Some federal government agencies now operate bank accounts in violation of the Treasury Single Account (TSA). The TSA is a bank account or a set of linked accounts through which the government transacts all its receipts and payments.
Under the TSA all government payment for services and revenue collection are operated through one account known as Consolidated Revenue Fund/Treasury Single Account (CRF/TSA) domiciled with the Central Bank of Nigeria (CBN). Hence, ministries, departments and agencies under the federal government are not allowed to open or operate any bank account.
According to the CBN guidelines on the implementation of TSA, “government agencies are not to operate any bank account under any guise, outside the purview and oversight of the Treasury.” Also, the “Guidelines on the Implementation of Treasury Single Accounts
{TSA) I e-Collection”, issued by the Office of the Accountant General of the Federation (OAGF) on October 15th, 2015, prohibited MDAs from operating any bank account. It stated, “No MDA is permitted to maintain account for any purpose with commercial banks including transit accounts. Diversion of deposits to any commercial bank account and use of surrogate accounts of any form is strictly prohibited.”
Vanguard investigations however revealed that some MDAs, especially tertiary institutions maintain accounts with commercial banks. These include: University of Port Harcourt, Port Harcourt; Federal College of Education, Abeokuta; Federal Polytechnic, Kaura Namoda, Zamfara State; and Federal Government Colleges also know as Unity Schools.
How Unity Schools circumvent TSA policy
Vanguard investigations revealed that most of these schools still collect all manners of payment using their Parents Teachers Association (PTA) accounts. Although, managements of the schools claim that the PTAs are run independently, it was discovered that they (PTAs) are mostly cronies who are often used to bypass due process.
For instance, the Federal Government College, Yaba in Lagos last term directed parents to pay their wards’ school fees in cash to the school’s cashier, ostensibly to avoid the challenges being faced in the process of paying into the TSA accounts with banks. This was however discontinued when some parents voiced their objections.
It was also gathered that some schools adopted the method because they claimed it was difficult accessing the funds early enough, especially the money for feeding of the boarding students at the beginning of the term.
MDAs advertise bank accounts
Vanguard investigations also reveal that some of the MDAs even advertised bank accounts for collection of sundry fees. For example, University of Port Harcourt in advertisement published in Punch Newspaper on Monday June 20th, 2016, page 41 stated, “Application fee of fourteen thousand naira should be paid online at any of the following banks: U&C Microfinance Bank, UBA, Union Bank, Access Bank, Ecobank and First Bank”.
Similarly, Federal Polytechnic Kaura Namoda, Zamfara state, advertised in Punch Newspaper June 20th 2016, page 45, stating, “Application forms in respect of programmes in 1.0-4.0 are obtainable from the following centers on presentation of non-refundable fee of Two thousand nine hundred naira (N2, 900). Ecobank Plc Kaura Namoda; Ecobank Plc Gasau, Zamfara; Access Bank Bida Road, Kaduna, Kaduna state; Access Bank, Katsina, Katsina State; Access Bank Sokoto, Sokoto State; Access Bank, Kano, Kano State, Access Bank Dutse, Jigawa State”.
The Upper Niger River Basin Development Authority, an MDA under the Federal Ministry of Water Resources also advertised its Keystone Bank account. In an advertisement titled, “Request for Expression of Interest/Invitation to tender for projects under the Authority’s Year 2016 Appropriation, published on June 20th, page 48, Punch Newspaper, the agency said, “Payment of Non-Refundable Tender fee should be made into the following bank details: Account Name: Upper Niger River Basin Development Authority, Minna; Bank Name: Keystone Bank; Account Number: 1001165435”.
It is illegality-CBN
But a top official of CBN describes such accounts as illegal. “Speaking under condition of anonymity, he said: “No MDA is permitted to have any account with any bank and for any purpose. Doing so amounts to illegality. We are aware of incidences of some MDAs using pseudo names to open and operate bank accounts. It is criminality that will attract severe sanctions”.
Another CBN staff who spoke to Vanguard on condition of anonymity confirmed this development saying what some MDAs do is to have an arrangement with a bank to open a bank account either with a pseudo name or with name of one of the officials of the MDA. “Whenever anybody comes to make payment in the name of the MDA, the money will be paid into the account without the knowledge of the payee”.
Provision Accounts for Special purpose
Though the TSA guidelines make provision for MDAs to have sub-accounts for special purpose, such accounts are however supposed to be domiciled with the CBN.
The guidelines from the OAGF stated, “Where a donor to an MDA requires that a separate account be maintained for the purposes of managing such funds, a Donor Fund Sub Account will be opened at CBN for that purpose. All counterpart fund accounts are to be domiciled at the CBN. All Donor and Counterpart Fund Accounts are to be linked to the TSA as Sub Accounts. Spending from such accounts will be based on approved budget.
“There are situations where some fully or partially funded MDAs (eg Universities, other tertiary educational and health institutions) raise funds through fees, donations, endowments and sponsorship for specific tasks like sports, research, prizes, trainings and workshops. Any fully funded MDA with such arrangement is to apply to the OAGF for approval to operate TSA Sub Account at the CBN for such purpose. All such applications will be accompanied by details of sources of funding and proposed spending plan.
‘MDAs are not allowed to transfer funds from their CBN Sub Accounts to commercial banks or other financial institutions before spending. All payments are to be made from the CBN Sub Accounts directly to beneficiaries. The Monitoring and Enforcement Team will ensure that any act of non-compliance is detected and sanctioned. The use of multiple Sub Accounts at CBN is not encouraged. MDAs are advised to use relevant books of accounts to keep track of different receipts and payments.”
