Senate to probe BPE over alleged non-remittance of $679.4m NPA rent for 10 years  

The Senate has vowed to uncover circumstances surrounding alleged failure by the Bureau of Public Enterprises (BPE) to remit into the Consolidated Revenue Fund, the sum of $679.4 million, being amount realised from the concession of various ports granted to 23 companies under Nigerian Port Authority (NPA) for ten years.

The Senate Committee on Public Accounts chaired by Senator Mathew Urhoghide’s investigation was sequel to the query issued by the Auditor General in its report which alleged that there was no evidence to show that $679 million was collected as at when due and remitted to Consolidated Revenue Fund.

According to the query by the AuGF, 23 companies were granted concessional rent in various ports under the NPA for 10 years and above associated yearly rent of $679.4 million payable to the NPA as at December 31 every year.

The Auditor General’s Office further disclosed in its report that it opened correspondence with the BPE but “no response has been received from the Bureau.”

The query read in part: “Twenty-three (23) companies were granted concessional rent of various Ports under Nigerian Ports Authority for ten years and above with associated yearly rent of $679,403,172.00 (Six hundred and seventy-nine million, four hundred and three thousand one hundred and seventy-two dollars) payable to NPA as at 31st December, 2016.

“There is no evidence to show that the sum of $679,403,172.00 was collected as at when due and remitted to the Consolidated Revenue Fund.

“This has been communicated to the Bureau vide letter with reference No. OAuGF/RESAD/05/2016/07 dated 19th April, 2018.No response has been received from the Bureau.

“Unremitted funds may be misapplied by the Bureau. Also, it may lead to the diversion of funds to other uses.

“The Director-General is required to show evidence that the sum of $679,403,172.00 was collected and remitted to the appropriate authority.”

“This has been communicated to the Bureau vide letter with reference No. OAuGF/RESAD/05/2016/07 dated 19th April, 2018.No response has been received from the Bureau.

“Unremitted funds may be misapplied by the bureau. Also, it may lead to the diversion of funds to other uses.

“The Director-General is required to show evidence that the sum of $679,403,172.00 was collected and remitted to the appropriate authority.”

The BPE in its written defence however maintained that the concession transactions were done in 2005 and the concession agreement executed clearly showed that BPE was only a confirming party while the primary parties to the concessions were the Nigerian Port Authority (NPA).

BPE further disclosed that the responsibility for such collection rests with the NPA.

“Having midwifed the concession transactions, the BPE collected some of the remittances to the NPA.

“The NPA has since acknowledged the transfer made regarding the rentals received on its behalf by the Bureau.

“Revenue accruing on the ports concession have, beyond 2008, been paid directly to “Landlord”, NPA and not the BPE as the OAuGF report appears to allege.

“We are therefore unaware of the $679.4 million.”