These include the whereabouts of over N100 billion in ‘dirty and bad notes’ and other large sums awaiting examination across various CBN branches.
SERAP also urged Mr. Cardoso to clarify the allocation and utilisation of funds designated for specific projects, such as the N7.2 billion budgeted for the construction of the CBN Dutse branch in 2010, and the N4.8 billion allocated for the renovation of the CBN Abeokuta branch in 2009.
It also emphasised the need to disclose the identities of contractors responsible for these projects, who reportedly received funds but failed to complete their contractual obligations.
Furthermore, SERAP pressed for accountability concerning outstanding loans, specifically mentioning a N1.2 billion loan to the Enugu state government in 2015 and a N1.9 billion loan to the Anambra state government between 2015 and 2016.
SERAP insisted on the full recovery and remittance of these public funds, and called for appropriate investigation and legal action by relevant anticorruption agencies.
SERAP highlighted that these issues not only violate Nigerian constitutional provisions and the CBN Act but also contravene national and international anticorruption obligations. The organisation underscored the importance of transparency and accountability in the operations of the CBN, emphasising that failure to address these concerns undermines public trust in the institution.
In a letter dated June 29, 2024, signed by SERAP’s deputy director Kolawole Oluwadare, the organisation emphasised the seriousness of the allegations, urging swift action within seven days to address these issues in the public interest. If no response is received within this timeframe, SERAP indicated its intention to pursue legal action to compel compliance.
The organization stressed that disclosing the whereabouts of missing funds, identifying responsible parties, ensuring justice, and recovering misappropriated funds are essential steps to restore public confidence and uphold the integrity of the CBN.
SERAP said, “These grave violations also reflect a failure of CBN accountability more generally and are directly linked to the institution’s persistent failure to comply with its Act and to uphold the principles of transparency and accountability.
“These grave violations have seriously undermined the ability of the CBN to effectively discharge its statutory functions and the public trust and confidence in the bank. The CBN ought to be committed to transparency and accountability in its operations.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.
“Explaining the whereabouts of the missing public funds, publishing the names of those suspected to be responsible and ensuring that they are brought to justice and the full recovery of any missing public funds would serve the public interest and end the impunity of perpetrators.
“According to the recently published 2020 audited report by the Auditor General of the Federation (AGF), the Central Bank of Nigeria (CBN) has since 2017 been keeping over N100 billion [N100,672,999,000.00] ‘dirty and bad notes’, and other large sum of cash awaiting examination in various branches of the CBN.
“The Auditor-General fears that the ‘dirty and bad notes’ initially planned to be destroyed may have been ‘be diverted and re-injected into the economy.’
“The CBN in August 2010 also reportedly budgeted N7.2 billion [N7,286,500,476.76] for the construction of Dutse branch building. The Dutse branch was due to be completed in November 2012 but the contractors have failed to complete the project.
“The Auditor-General is concerned that the project may have been ‘awarded to incompetent contractor,’ and wants the ‘job completed without further delay.’
“The CBN in 2009 reportedly budgeted N4.8 billion [N4,812,608,028.10] for the renovation of the CBN Abeokuta branch. The Abeokuta branch was due to be completed in 2012 but the contractors have failed to complete the project.
“There is no significant renovation work on the site, several years after the proposed completion date. The Auditor-General is concerned that the project may have been ‘awarded to incompetent contractor,’ and wants the ‘job completed without further delay.’
“The CBN also reportedly failed to account for the missing outstanding loan of N1.2 billion [N1,294,453,887.83] granted to the Enugu State government in 2015 and the outstanding loan of N1.9 billion [N1,994,383,561.64] granted to the Anambra State government between 2015 and 2016.
“The Auditor-General fears the public funds may have been diverted. He wants the money fully recovered and remitted to the treasury.
“Paragraph 708 of the Financial Regulations 2009 provides that, ‘on no account should payment be made for services not yet performed or for goods not yet supplied.’
“Section 35(2) of the Public Procurement Act 2007 provides that, ‘once a mobilisation fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate.
“Section 16(6) of the Public Procurement Act states that ‘all bidders shall possess the necessary professional and technical qualifications to carry out particular procurement; the financial capacity and adequate personnel to perform the obligations of the procurement contracts.'”
“SERAP notes that Section 15(5) of the Nigerian constitution requires public institutions to abolish all corrupt practices and abuse of power. Section 13 of the constitution imposes clear responsibility on the CBN to conform to, observe and apply the provisions of Chapter 2 of the constitution.
“Paragraph 3112(ii) of the Financial Regulations 2009 provides that, ‘Where a public officer fails to account for government revenue, such officer shall be surcharged for the full amount involved and such officer shall be handed over to either the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and other related offences Commission (ICPC).
“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the CBN to ensure proper management of public affairs and public funds.
“Nigerians have the right to know the whereabouts of the public funds. Taking the recommended measures would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.
“The Nigerian constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions’ activities.”