Reps Summons Amaechi, NPA Management Over N166bn Funds, Others

The House of Representatives has summoned the Minister of
Transportation, Rotimi Amaechi and the Management of the Nigeria
Port Authority to give details of revenue accruing to the Nigeria
Port Authority as at December 31, 2016 amount to about N166,
685,929,000 which were not properly captured in the statement of
account of the agency.

They are also to explain cost of services rendered to the
Authority amounting to about N103.996 billion including channels
and water ways maintenance (N65.130 billion) and Port and Quays
Expenses of N38.412 billion).

The Minister and the NPA management who were initially expected
to appear before the House Committee on Public Account on Thursday
pleaded for another date to cause appearance and were given a July
8 date to appear before the committee.

They are expected to respond to audit queries contained in the
comments of the Auditor General of the Federation on the group
financial statement of the Nigeria Port Authority for 2016.

They are equally expected to give a breakdown of the Ports and
Quays Services income stating the respective income from each of
the services, scheduled oil terminal dues, details of pilotage and
service boats and the nature of rentals services offered and rates
applied.

In addition, the Auditor General said they are to answer
questions from the lawmakers, giving breakdown of maintenance,
budgetary provisions and evidence of work done on the channels and
waterways as “examination of the accounts revealed that the
channels and waterways maintenance rose from N44.427 billion in
2015 to N64.130 billion in 2016, an increase of over N20
billion.

The comments suggest that the NPA incurred about N38.412 billion
as service charge on the Ports and Quays and demanded that the
management of the Authority provide details of how these charges
were incurred and also to explain what they meant by the term
“others” for which about N4.7 billion was spent.

The Auditor General said that further examination of the
accounts of the NPA revealed that Intels Integrated Services
Limited were over paid their commission to the tune of N2.099
billion.

The Minister and the NPA management are also to explain what
happened to the dividend income of N643.006 million received from
their joint venture partners as well as interest income of about
N97.8 million and N28.7 million being interest from bank deposits
and interest on loan and receivables.

Other queries against the NPA include administrative expenses of
N61 billion which include professional charges of N638 million,
donation and subscription of N1.88 billion, exchange loss of N7,3
billion, defined benefit expenses of N11.4 billion and director’s
remuneration of N4.2 million.

The Auditor General’s query signed by Adolphus Aghughu and dated
24th May, 2021also identified what it called understatement of
depreciation charges to the tune of N6.4 billion stressing that
“the provision made against eight classes of property amounted to
N4.472 billion as against N10.891 million arrived at during
vetting.

“If however, the under provision of depreciation was
attributable to assets which have been fully written down, the
nominal values at which such assets were retained in the books
should be disclosed.”

The House of Representatives has summoned the Minister of
Transportation, Rotimi Amaechi and the Management of the Nigeria
Port Authority to give details of revenue accruing to the Nigeria
Port Authority as at December 31, 2016 amount to about N166,
685,929,000 which were not properly captured in the statement of
account of the agency.

They are also to explain cost of services rendered to the
Authority amounting to about N103.996 billion including channels
and water ways maintenance (N65.130 billion) and Port and Quays
Expenses of N38.412 billion).

The Minister and the NPA management who were initially expected
to appear before the House Committee on Public Account on Thursday
pleaded for another date to cause appearance and were given a July
8 date to appear before the committee.

They are expected to respond to audit queries contained in the
comments of the Auditor General of the Federation on the group
financial statement of the Nigeria Port Authority for 2016.

They are equally expected to give a breakdown of the Ports and
Quays Services income stating the respective income from each of
the services, scheduled oil terminal dues, details of pilotage and
service boats and the nature of rentals services offered and rates
applied.

In addition, the Auditor General said they are to answer
questions from the lawmakers, giving breakdown of maintenance,
budgetary provisions and evidence of work done on the channels and
waterways as “examination of the accounts revealed that the
channels and waterways maintenance rose from N44.427 billion in
2015 to N64.130 billion in 2016, an increase of over N20
billion.

The comments suggest that the NPA incurred about N38.412 billion
as service charge on the Ports and Quays and demanded that the
management of the Authority provide details of how these charges
were incurred and also to explain what they meant by the term
“others” for which about N4.7 billion was spent.

The Auditor General said that further examination of the
accounts of the NPA revealed that Intels Integrated Services
Limited were over paid their commission to the tune of N2.099
billion.

The Minister and the NPA management are also to explain what
happened to the dividend income of N643.006 million received from
their joint venture partners as well as interest income of about
N97.8 million and N28.7 million being interest from bank deposits
and interest on loan and receivables.

Other queries against the NPA include administrative expenses of
N61 billion which include professional charges of N638 million,
donation and subscription of N1.88 billion, exchange loss of N7,3
billion, defined benefit expenses of N11.4 billion and director’s
remuneration of N4.2 million.

The Auditor General’s query signed by Adolphus Aghughu and dated
24th May, 2021also identified what it called understatement of
depreciation charges to the tune of N6.4 billion stressing that
“the provision made against eight classes of property amounted to
N4.472 billion as against N10.891 million arrived at during
vetting.

“If however, the under provision of depreciation was
attributable to assets which have been fully written down, the
nominal values at which such assets were retained in the books
should be disclosed.”