Zenith Bank Nigeria Plc, led by Chief Executive Officer, Ebenezer Onyeagwu is on the radar of the Economic and Financial Crimes Commission (EFCC).
The anti-graft agency is investigating the bank’s role in the diversion and embezzlement of N5.5bn from the National Social Investment Trust Fund (NSITF).
•Financial Mismanagement
The National Assembly had invited the Managing Director and other senior officials of the NSITF over the mismanagement and embezzlement of N61.1bn.
Senator Matthew Urhoghide, who heads the Senate Committee on Public Accounts (SPAC), said at the time that the invitation was based on three questionable areas in the Auditor General of the Federation’s Report of 2018.
In the Auditor General report, it was gathered that NSITF was fingered in a diversion of N5.5bn from its account to Zenith Bank Plc.
In another investigation, the agency was also found to have paid N38.2bn in personnel cost in a period spanning five years, between 2012 and 2017.
This high cost, however, was found not to have been approved by the National Salaries, Income and Wages Commission.
The Auditor General’s revelation further showed that N17.1bn was sent to some companies and individual’s accounts in transactions yet to be explained by the NSITF.
“Audit discovered that the Fund was using a salary structure that the National Salaries did not permit, Income and Wages Commission,” the enquiry read. As a result, from 2012 to 2017, the Fund’s staff received an irregular payment of N 38,219,919,530.32 in personnel costs.
“Risk implementing an unapproved salary structure could result in a waste of public funds, as remuneration could be higher than staff productivity.
“For the implementation of the Fund’s salary structure, the Managing Director must obtain approval from the National Salaries, Income and Wages Commission.”
“Audit of the Fund’s bank statements for the period under review revealed that contributions received from the federal government in 2014, amounting to N 5,500,000,000.00, were diverted to a Zenith Bank account number 1013938003, instead of the Skye Bank account number 1790122304, into which other contributions were paid, without providing any authority or any statutory authority,” the Auditor-General wrote.
“Audit also found the following: A. The bank account was opened without the approval of the Federation’s Accountant-General, as no such permission was presented for audit.
“B. The new account was formed particularly for this purpose, as evidenced by the bank statements, which show that the first tranche of N 2,750,000,000.00 was utilised to start the account on August 29, 2014.”
“Transfers from the account to third parties, people, and other NSITF accounts were also made without payment vouchers or other supporting paperwork to legitimise such transfers.
“This casts suspicion on the legitimacy of all bank account transactions. As a result, the audit cannot accept such transactions as valid charges against public funds without the appropriate evidence.”
Further revealing its displeasure with the NSITF’s account situation, the audit queried the transfers made to some companies’ accounts as they lacked proper documentation, true purpose and looked short of following due process.
“Audit observed from the Fund’s Statements of Account No. 1750011691 with Skye Bank Plc for the period 1st January 2013 to 20th December 2013, and Statements of Account No. 2001754610 with First Bank Plc for the period 7th January 2013 to 28th February 2013, that amounts totalling N17,158,883,034.69 were transferred to some persons and companies from these accounts,” the third query read. Payment receipts for the transfers, as well as their accompanying documentation, were not given for audit. As a result, the reason(s) for the transfers could not be verified.”
