USA Africa Dialogue Series - Re: [africanworldforum] Re: TSA hits N2.3tr as 98% of MDAs complies

 

 

Bolaji:

 

 

This sounds like bad news for the wailing wailers!

 

 

Bye,

 

Ola

 

 

-----Original Message-----
From: Mobolaji Aluko <alukome@gmail.com>
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Sent: Mon, Feb 8, 2016 8:51 pm
Subject: [africanworldforum] Re: TSA hits N2.3tr as 98% of MDAs complies

QUOTE

(OAGF Director of Funds, Mr. Mohammed Dikwa) said with over  17,000 bank accounts being operated at the federal level in commercial banks, government had no choice but to introduce the TSA which has so far helped in mopping up about N2.3trillion into the various accounts maintained and operated at the  Central Bank of Nigeria (CBN).......(AGF)Idris said: "As at December 2015, 726 MDAs, which are responsible for almost 98 per cent of the national budget have complied fully."......

Mrs Adeosun said: "TSA has eliminated opportunities for brokerage and other corrupt practices that previously encouraged agencies to accumulate funds with commercial banks rather than apply them to their intended uses."

UNQUOTE

My People:

As at December 2015, 726 MDAs operating 17,000 bank accounts holding N2.3 trillion means that each MDA operated an average of 23 bank accounts each holding on average N135 million.  With so many accounts accumulated over many years - with some agencies have ten to twenty times the average number of accounts,  with some MUCH fatter balances than the average amount quoted - one can be certain that many of these accounts were:

 (1) dormant - but not necessarily empty of funds - because of executive ignorance (most probably when executives changed hands and there was not proper document);

(2)  idle - or idled - funds, due to "brokerage" interests (getting and spending un-reported interests) of the executives in collusion with the finance officials of some MDAs;

(3)  "privately managed" - either by the rogue executive or rogue bank officials with or without the knowledge of the other.

(4) deployed by the banks to make short-term loans at usurious rates not only to individuals and to companies, but to the FEDERAL GOVERNMENT itself - ironically from its own money!

With TSA, certainly items (1), (3) and (4) - and part of (2)  can be eliminated in one fell swoop.  However, funds, if not properly identified, can still be idle - but that can be DETECTED by close monitoring.

My own Federal University MDA is operating  two electronic platforms -  GIFMIS (for paying FGN budgeted items of Capital, Personnel and Overhead) and TSA/Remita (for all other payments) -  without hitch so far.  We are not yet on IPPIS - the third Integrated Personnel Payroll Integrated System - but that will happen soon, most probably after my time as VC.

All in all, the PMB administration is on the right track on deploying IT in curbing financial excesses in the government system, and state and local governments should embrace it.

And there you have it.   

Bolaji Aluko

_________________________________________________________

THE NATION

TSA hits N2.3tr as 98% of MDAs complies

Posted By: John Ofikhenuaon: February 09, 2016

• Fed Govt, IMF urge states to adopt TSA system

The Office of the Accountant-General of the Federation (OAGF), yesterday said it has mopped up N2.3 trillion  into the Treasury Single Account (TSA).

Its Director of Funds, Mr. Mohammed Dikwa, disclosed this at the opening session of the workshop on TSA in Abuja.

He said with over  17,000 bank accounts being operated at the federal level in commercial banks, government had no choice but to introduce the TSA which has so far helped in mopping up about N2.3trillion into the various accounts maintained and operated at the  Central Bank of Nigeria (CBN).

In similar vein, the Accountant-General of the Federation (AGF), Mr.Alhaji Ahmed Idris, said 98 per cent of the Ministries, Departments and Agencies (MDAs) have complied with the TSA.

He said following government's February last year directive, all federal MDAs are now on TSA operating their account successfully through the CBN.

Idris said: "As at December 2015, 726 MDAs, which are responsible for almost 98 per cent of the national budget have complied fully."

According to him, the challenges encountered in the adoption of the TSA were entrenched resistance from banks and the MDAs, which the Federal Government has now overcome.

With the massive compliance, the AGF noted, the new challenge is that of capacity building , and the application of information technology (IT).

In her opening remarks, the Minister of Finance, Kemi Adeosun, who was represented by Mr. Adeseye Shefuye said the  balance, which changes daily as MDAs remit revenues and make payments, according to the latest reports from CBN exceeded N2.2 Trillion.

She said: "I can report that work is now ongoing within the Treasury, to determine how much of these funds can potentially be utilised to part fund the 2016 budget and how much relates to pending commitments. This, of course, will reduce the amount to be borrowed."

TSA, she said,  has provided government with financial information on the revenues of agencies funded by government and has reduced revenue suppression.

She noted that the information is being used to drive government's programme to enforce compliance with the Fiscal Responsibility Act and ensure that revenue generating agencies generate expected surpluses and remit to the Federation Account.

Mrs Adeosun said: "TSA has eliminated opportunities for brokerage and other corrupt practices that previously encouraged agencies to accumulate funds with commercial banks rather than apply them to their intended uses."

____________________________________________________________

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