The Socio-Economic Rights and Accountability Project (SERAP) has issued the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso an ultimatum, demanding he “account for and explain the whereabouts of the over N100 billion ($65.6 million) ‘dirty and bad notes’ and ‘other large sums of cash awaiting examination’ allegedly stored in CBN branches across the country.
A letter dated June 29, 2024, signed by SERAP’s Deputy Director Kolawole Oluwadare, the organization highlighted concerns raised in the latest annual report by the Auditor-General.
The report suggests that the dirty and bad notes intended for destruction may have been re-diverted and injected back into the economy.
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Further, SERAP demanded that Cardoso account for the N7.2 billion ($4.7 million) meant for the construction of the CBN Dutse branch in 2010 and the N4.8 billion ($3.1 million) budgeted for the renovation of the CBN Abeokuta branch in 2009.
“The CBN in August 2010 also reportedly budgeted N7.2 billion ($4.7 million) for the construction of Dutse branch building. The Dutse branch was due to be completed in November 2012 , but the contractors have failed to complete the project,” SERAP’s letter read in part.
“The CBN in 2009 reportedly budgeted N4.8 billion ($3.1 million) for the renovation of the CBN Abeokuta branch while the Abeokuta branch was due to be completed in 2012 but the contractors had failed to complete the project,” it went on.
SERAP echoed the auditor general’s directive that Cardoso ensure the projects are completed as planned.
“The Auditor-General is concerned that the project may have been ‘awarded to an incompetent contractor,’ and wants the ‘job completed without further delay’, SERAP commented on the Dutse branch building’s construction.
On the CBN Abeokuta branch’s renovation, SERAP said,“There is no significant renovation work on the site, several years after the proposed completion date. The Auditor-General is concerned that the project may have been ‘awarded to an incompetent contractor,’ and wants the ‘job completed without further delay.”
Additionally, the human rights and anti-corruption organization demanded an explanation regarding a N1.2 billion (about $785,000) loan and N1.9 billion ($1.2 million) loan granted to two Nigerian states, and called on Cardoso to ensure the funds are recovered.
“The CBN also reportedly failed to account for the missing outstanding loan of N1.2 billion (about $785,000) granted to the Enugu State Government in 2015 and the outstanding loan of N1.9 billion ($1.2 million) granted to the Anambra State Government between 2015 and 2016. The Auditor-General fears the public funds may have been diverted. He wants the money fully recovered and remitted to the treasury,” SERAP wrote.
SERAP faulted Cardoso and the CBN noting that the apex bank had failed in its accountability mandate and was not being transparent.
“These grim allegations by the Auditor-General suggest grave violations of the public trust, the provisions of the Nigerian Constitution, the CBN Act, and national and international anticorruption obligations,” the organization stated adding, “These grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and to uphold the principles of transparency and accountability.”
The organization further criticized the CBN for paying contractors before project completion, citing Paragraph 708 of the Financial Regulations 2009 and sections of the Public Procurement Act 2007, which prohibit payments for uncompleted services or goods.
SERAP gave the CBN governor seven days to comply with its demands or face legal action. They referenced Paragraph 3112(ii) of the Financial Regulations 2009, which stipulates that public officers who fail to account for government revenue will be surcharged and handed over to anti-corruption agencies like the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
“We would be grateful if the recommended measures are taken within seven days of receipt or publication of this letter. If we do not hear from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” SERAP concluded.
