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KPMG audit reveals how Maina spent N24bn

News » Business

Image: Police Pensioners waiting to be paid

20 March, 2012

The report of a forensic audit conducted by KPMG has documented the unhealthy practices adopted by the Abdulrasheed Maina- led Police Pension Office and others, by constantly moving around all, or part of the huge funds released by the Federal Government for the payment of police pension arrears.

In the last two weeks, BusinessDay has exposed the sharp practices involving corrupt senior government officials and their bank collaborators, who aid them to hold and earn bribe money on funds meant to facilitate the execution of projects for which the cash was released in the first place.

One case in point cited by the KPMG report,  is the N24bn payment made by government into the bank account of the Police Pension Office on July 19, 2010.

Four days after the release of the funds, the entire N24 billion was moved into a fixed deposit account.

According to the KPMG report, “our analysis of the available bank statements reflected that there had been several instances of movement of part, and all of the N24 bn harmonisation fund, from one PPO bank account to another, during the tenures of Kigo and Wada, as directors of PPO, as well as during the tenure of Maina at PPO. “

The KPMG audit report which has already been presented to the Federal government, contains a flow chart offering a graphic depiction of the elaborate but unexplained movements of the N24bn following from when the Central Bank released the money in July 2010, and its many journeys to and from a litany of at least ten banks, either in part or in whole.

The report said when the entire N24bn was first moved on July 23, 2010, the sum of N10bn found its way by July 25 to an account in another bank  “at the police affairs to avoid concentration of funds in one bank.” There were many other unexplained movements of pension funds.

On July 20, 2011, one whole year after the N24bn was released by the Federal Government supposedly for very urgent payment to police pensioners around the country, Maina caused the sum of N9bn to be transferred again, and this was after the sum of N3bn had been moved on July 18.

Again on August 11, 2011 the sum of N2bn was transferred from one account, to a bank account held at another bank.

The KPMG report said the transfers were during the leadership of Maina and at his directive, as confirmed by a co- signatory of the accounts, J. Yusuf.

According to the report, “on July 12, 2011, N8bn was transferred from PPO account to another account at the instance of Maina.”

On the same date, N2bn was transferred to another account.

KPMG auditors were able to establish a pattern in which transfers were made from accounts that could earn income for the PPO and not in the other direction.

“We observed”, said the KPMG report, “that funds were moved from the highest interest yielding accounts, to lower yielding accounts and zero interest yielding accounts.”

The auditors said in the process, losses were incurred by way of unpaid interests.


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Updated 6 Years ago

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Tags:     Nigerian' pensions     pensions