Home Agriculture Senate orders BOA to account for N3.2bn loan to 10 vendors to purchase tractors

Senate orders BOA to account for N3.2bn loan to 10 vendors to purchase tractors

by Business News Report

Senate has indicted  the Bank of Agriculture over N3.2 billion loan disbursed to ten vendors to purchase tractors and other equipment for allocation to end users. The wrong doings of the Management of the bank was find out after investigation showed that it was unable to account for N3.2 billion disbursed to 10 vendors out of the  N3.6 billion provided in 2015 by the Federal government through the bank. The indictment was sequel to the 2016 report of Auditor General of the Federation considered by Senator Matthew Urhoghide, led Senate Public Accounts Committee.

According to the report,  the Ministry of Agriculture selected the 10 unnamed vendors for the Management of bank of Agriculture which the N3.2 billion was disbursed to and the loan had four years tenor. The Senate after the adoption of the report of the Committee asked for the recovery of N3.2 billion from ten unnamed vendors. The query read, “The  sum  of  N3,200,592,007.00  (Three  billion,  two  hundred  million,  five  hundred and  ninety-two  thousand,  seven  Naira)  was  disbursed  out  of  N3,600,000,000.00  (Three billion, six  hundred million Naira)  provided  between  24th  March, 2015 and  17th  November 2015,  by  the  Federal  Government  through  the  Bank  to  10  (ten)  vendors  selected  by  the Ministry  of  Agriculture  to  purchase  tractors  and  other  equipment  for  allocation  to  end users.   

“The  beneficiaries  were  expected  to  make  repayment  through  Service  Provider Operators  (SPOs)  under  a  revolving  fund  arrangement  with  expected  multiplication effect  on  the  national  Agricultural  mechanisation  agenda. The  Bank  was  to  monitor  and supervise  the  disbursement  as  well  as  ensure  recovery  of  the  funds  for  further  lending to  new  participants.  However,  the  entire  revolving  fund  could  not  be  accounted  for  by the Bank’s Management.   The  Managing  Director  was  communicated  to  account  for  all  the  amounts involved.”

The Bank of Agriculture in its written response  which was not  accepted by the Committee said, “Programme was structured with a four (4) year loan tenor commencing from the date of release of the machinery/equipment to theAEHE Centre.   Since the machinery/equipment were not released on the same day, the expiry dates of the machinery loans also vary.”

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