Posted by Oluyinka Akintunde and Ibanga Isine, Abuja on
The Public Accounts Committee of the House of Representatives has queried the former Minister of Industry, Chief Kola Jamodu, and the ministry over the alleged diversion of the sum of N6billion from the National Automotive Council funds totalling N10.5billion.
The Public Accounts Committee of the House of Representatives has queried the former Minister of Industry, Chief Kola Jamodu, and the ministry over the alleged diversion of the sum of N6billion from the National Automotive Council funds totalling N10.5billion.
The committee ordered that the diverted funds be refunded to NAC accounts.
The query followed the Status Enquiry Report on NAC carried out by the Committee on NAC.
Decree No. 84 of August 25, 1993, which established NAC, mandated the collection of two per cent on any imported fully built up vehicles into Nigeria and on spare parts, for the use of the council.
In the report on NAC, which was obtained by our correspondents on Monday in Abuja, the committee observed that N6billion was withdrawn from the NAC's account with the Central Bank of Nigeria for other uses, despite the Accountant-General of the Federation's advice against it.
The report stated, 'But against the advice, Jamo-du, the then Minister of Industry, misadvised the President to approve the loan of N3.7billion to the National Fertilizer Company of Nigeria.
'Records reveal that it was disbursed in paying terminal benefits for terminated staff and disengaged workers totalling N1.725billion and N2billion released to Ministry of Industry for direct payment to sundry creditors on behalf of the company."
The committee, according to the report, also alleged that a loan of N2.3billion to Steyr Nigeria Limited for the purpose of fast-tracking the provision of tractors was never achieved.
The committee noted that the money was diverted for the importation of tractors, which were distributed to states at reduced cost for which payments are just trickling in.
The PUNCH, Tuesday, November 1, 2005