John Ebohon:
In addition to the pedestrian reference to balances in two accounts in the same bank, I am far more troubled by the reference of one of those balances as "The TSA" funds.
Foul!
Let the facts be clearly stated: the TSA balances BELONG to the MDAS, and NOT the Federal Government. Unless determined otherwise, they are monies either already budgeted and transferred to the MDAs, or IGR and other funds generated within and belonging to the MDAs. A fraction of the TSA funds of REVENUE-GENERATING MDAs - those specifically identified as such - does indeed belong to the Consolidated Revenue Fund, but that fraction must first be determined then transferred BEFORE the FG can claim it for itself.
Consequently, if the true balance overdrawn in the CBN by the FG is N1.47 trillion, then the FG spokesperson should leave it at that, and not claim a CREDIT of N1.19 trillion by adding a TSA balance of N2.66 trillion that does not belong to it.
I stand to be corrected.
The bottom line: The integrity of the TSA should not be jeopardized by careless reference by bureaucrats to it as if the FG can dip its hands carelessly into it. The MDAs are DEPOSITORS into the CBN's TSA just as they would be in ordinary deposit banks, and those deposit banks could not just claim those monies as theirs.
And there you have it.
Bolaji Aluko
On Tuesday, December 6, 2016, John Ebohon <ebohon@dmu.ac.uk> wrote:
> Now they know that Emir Sanusi is a "fabricator"? "However, a reliable source close to the Presidency said: "Despite the Emir's seeming knowledge of these situations, his assertions are totally false and wholly fabricated." When he started with $20 billion missing oil money then because US12 billion and for each time he opened his mouth, the figure was fluctuating – these same people calling him a "fabricator" celebrated him wildly.
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> On another front, the explanation given by the government is also bizarre. "If a customer with XYZ Bank Limited has N100 in one account but has also borrowed N35 from XYZ Bank Limited. Even if the bank were to demand that this customer pays off all his debt to them, he can do so and still have N65 balance with the bank." Why would a customer running two accounts for the same business overdraw one account and be paying interests, why another account is in surplus earning lesser interests than that, which is being paid to service the overdrawn account? And "The CBN wondered how this becomes a problem."
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> "The source also expressed doubts over how Sanusi reached the conclusion that the CBN's claims on the FG are over N4.7 trillion". So Emir Sanusi is open doubted now that it is convenient to do so. As my trust worthy Emir of SS used to say, in the fullest of time, all shall be revealed.
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> From: NIgerianWorldForum@
> Sent: 06 December 2016 05:11
> To: NigerianWorldForum@
> Subject: [NIgerianWorldForum] CBN exposes Emir Sanusi's lie + Isi ewu, suya killing Nigerians AND Other Morning Stories
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> CBN exposes Emir Sanusi's lie *Releases details of FG's accounts with apex bank http://newsexpressngr.com/
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'Emir Sanusi lied about status of FG's accounts with CBN' (PLUS: Account details)
By News Express on 06/12/2016
>> Claims by former Central Bank of Nigeria (CBN) Governor and now Emir of Kano, Muhammadu Sanusi II, regarding the status of the account of the Federal Government domiciled at the apex bank were on Monday described as "totally false and wholly fabricated".
The respected traditional ruler had last Friday at a public forum in Abuja asserted that the account is overdrawn to the tune of N4.7 trillion by the Muhammadu Buhari administration.
According to him, "CBN claims on the FGN now tops N4.7 trillion – equal to almost 50 per cent of the FGN's total domestic debt. This is a clear violation of the Central Bank Act of 2007 (Section 38.2), which caps advances to the FGN at 5 percent of last year's revenues."
However, a reliable source close to the Presidency said: "Despite the Emir's seeming knowledge of these situations, his assertions are totally false and wholly fabricated. Contrary to his claims, the Federal Government's Treasury Single Account (TSA) balance with the CBN as of 2nd December 2016 was N2.66 trillion (credit). In line with practices that even Emir Sanusi presided over, the FG has overdrawn another account at the CBN by about N1.47 trillion (debit) as of 2nd December 2016. In effect, therefore, the net balance of the FG at the CBN is over N1.19 trillion (credit)."
The source explained: "If a customer with XYZ Bank Limited has N100 in one account but has also borrowed N35 from XYZ Bank Limited. Even if the bank were to demand that this customer pays off all his debt to them, he can do so and still have N65 balance with the bank." The CBN wondered how this becomes a problem.
The source also expressed doubts over how Sanusi reached the conclusion that the CBN's claims on the FG are over N4.7 trillion.
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