Senate cries foul over CBN’s TSA agent appointment

…alleges N25bn fraud

The appointment of REMITA, a subsidiary of SystemSpecs as an agent for the operation of the Treasury Single Account has been described as a contravention of section 162 (1), with senators urging the suspension of further payment into the Treasury Single Account

In a motion co-sponsored by 35 senators, Dino Melaye, senator representing Kogi west, argued that the appointment of Remita as an agent for the operations of the TSA negated and contravened Section 162 (1) of the 1999 constitution. Melaye said the Central Bank of Nigeria (CBN) was the sole institution mandated to collect and disburse money on behalf of the federal government.

Melaye alleged that aside from contravening the BOFIA acts, there were underhand practices in the management of the TSA. He observed that “in the course of the operations of the TSA, the federal government on September 15 mopped up the sum of N2.5 trillion through its e-collection agent, Remita, which charges one percent of all money passing through it, the implication of which one percent of the N2.5tr mopped up on September 15 alone amounted to N25bn largesse to Remita for doing nothing”.

Some of the senators who contributed to the motion said a third party like REMITA was not needed to ensure compliance with the TSA policy let alone a company that should be paid in billions.

One of the signatories, Senator EyinnayaAbaribe, added that the amount had even risen to over N60 billion since September 15 when the transfer of N2.5 trillion was done. He said more money had been paid to the TSA through REMITA and the company had taken its one per cent commission.

However, Senator AdamuAliero (APC, Kebbi Central) cautioned the Senate should be mindful of pursuing the case, urging that proper investigations must be done first.

The Senate President, BukolaSaraki mandated the committee to investigate the allegations and get back to the Senate within two weeks.

Remita is used by a number of states and federal government agencies like the Petroleum Equalisation Fund (mgt) Board (PEF (M) B), Remita is also the e-payment platform chosen by the Federal Government to drive the Treasury Single Account (TSA).