Reps to investigate non-payment of $7bn by asset managers

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Reps to investigate non-payment of $7bn by asset managers

The House of Representatives has resolved to investigate the non-payment of seven billion dollars disbursed by the Central Bank of Nigeria (CBN) to 14 global asset managers and their Nigerian counterparts.

This is sequel to a unanimous adoption of a motion by Rep. Abubakar Ahmad (APC-Gombe) at the plenary on Thursday.

Moving the motion earlier, Ahmad said that sometime in 2006, the CBN disbursed seven billion dollars to 14 global asset managers and 14 Nigerian banks that were local partners to manage.

He said that the asset managers and their Nigerian counterparts included Black Rock and Union Bank Nigeria Plc, J.P. Morgan Chase and Zenith Bank Plc.

Others are First Bank of Nigeria Plc; BNP Paribas and Intercontinental Bank Plc; USB and United Bank for Africa; Credit Suisse and IBTC Chartered Bank Plc; Morgan Stanley and GTB Plc; Fortis and Bank PHB Plc among others.

He said that CBN gave each asset manager  and its Nigerian bank counterpart 500 million dollars from the nation’s foreign reserves to manage.

 The lawmaker said that six of the 14 Nigerian banks that received the said funds had either merged or been acquired by other banks under the oversight of the CBN.

He said that the six banks are Oceanic Bank, Intercontinental Bank, Bank PHB, FIN Bank, AfriBank, and Diamond Bank Plc.

Ahmed said that the assets and liabilities of the six merged/acquired banks had been legally acquired as part of the legacies of the defunct banks.

According him, after 13 years, Nigeria’s hard earned 7 Billion dollars foreign reserves has not been repaid to the CBN and there is no action put in place to ensure repayment of the funds.

In his ruling, the Deputy Speaker of the House, Rep. Ahmed Wase mandated the Committee on Banking and Currency to investigate the details of the disbursed funds by the CBN.

The committee is to determine the terms and conditions of the disbursement and find out if the terms and conditions have been complied with and report back within eight weeks for further legislative action.

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