Group seeks audit of NIMASA’s financial records over alleged discrepancies

Document shows NNPCL got $955,185.80 from Cabotage Fund

Significant discrepancies, inconsistencies and duplications in the financial records presented by the Nigerian Maritime Administration and Safety Agency (NIMASA) from 2004 to 2006, have necessitated calls for the forensic audit of the Cabotage Vessel Financing Fund (CVFF).

In a document made available to The Guardian, the discrepancies and inconsistencies were identified in the financial records generated from 2004 to 2023, while duplications were found in the waivers, surcharges, and Cabotage extracts from 2004 to 2006.

Borderless Ltd/Gte, a Nigerian content advocacy group, through its law firm, Kusamotu Associates, sought a court order on October 5, 2021, to support a freedom of information request for a comprehensive account of CVFF funds from inception in 2004 to 2022.

The response provided by NIMASA covered the period from 2007 to 2022, omitting the critical early years of 2004 to 2006.

Consequently, a follow-up request was submitted by the group to address this gap and seek detailed information on the accruals and interest generated by the CVFF from 2004 to 2023.

In NIMASA’s subsequent response, it acknowledged an error in its initial submission and provided the requested data for 2004 to 2006.

However, this new information, according to the group, revealed further inconsistencies in the figures for the surcharge accounts, waiver accounts, and cabotage extracts, which did not align.

In the document made available to The Guardian, the surcharge account figures from 2004-2006 were duplicated in the waiver account records.

The CVFF document from NIMASA gave a breakdown of the funds showing Cabotage waivers for 2004 in Bank PHB in naira as N263,789,420.85, while in dollars as $14,704.00; for 2005, naira as N43,434,500.00, and dollars as $1,764,235.69; for 2006, naira as N123,704,330.00, and dollars as $5,546,914.81.

Guaranty Trust Bank (GTB), AfriBank, and Access Bank had no record of the funds in both naira and dollar.

The Guardian found that the document on the Extract of Cabotage collections from Bank PHB had duplications of the same amounts listed on the Cabotage waiver in Bank PHB for the three years.

In one of the documents, the Cabotage surcharge account collection from various bank statements from 2004 to 2006, including Access, AfriBank, and GTB, had no records in either naira or dollars.

In another document, the Extract of Cabotage collections from Bank PHB, showed N13,475,000.00 in naira and $56,000.00 in dollar for 2004, N18,229,500.00 in naira and $168,000.00 in dollar for 2005, and N62, 355,815.00 in naira and $4,306,869.00 in dollar for 2006. Access, AfriBank, and GTB again had no record of fund collection.

On bank interest accrual, NIMASA’s responses did not adequately address the interests generated by the CVFF funds, despite these funds accruing since 2004, despite the Cabotage Act specifying that interest on loan repayments should be accounted for.

NIMASA had stated on several occasions, through its Deputy Director of Legal Services, Peter Agbaminoja, and Executive Director, Maritime Labour and Cabotage Services, Nwabueze Obi, that the CVFF had neither been misapplied nor misappropriated, with no amount disbursed from the fund since inception and no list of beneficiaries.

However, a document provided by the Head Legal Services/Board Secretary, NIMASA, Mrs. Aisha Idris Yakubu, in March 2024 showed that the Nigerian National Petroleum Company (NNPC) received $955,185.80 from the fund.

The document also detailed bank statement figures from 2004 to 2013 in naira as N11, 232,861,920.39 and in dollars as $149,765,313.73. It further showed total receipted revenue in naira as N7,697,572,897.34 and in dollars as $108,403,666.44, and total unreceipted revenue in Naira as N3,535,289,023.05 and in dollars as $41,361,647.29.

The Founder of Borderless Ltd/Gte and Principal of the legal team, Tunde Kasamotu, said the omission of details as instructed by the court order was brought to the attention of the agency’s legal department, which has yet to provide a satisfactory response.

Kasamotu said this raises questions about the accuracy of the reported funds and suggests potential misreporting or misallocation of funds between different accounts.

He called for a thorough forensic audit of the CVFF accounts, noting that the discrepancies between the provided figures for different years and the unexplained variations in surcharge and waiver amounts indicate a need for greater transparency and accuracy in financial reporting.

He mentioned that legal actions, including contempt proceedings against the agency and other responsible parties, are being considered to ensure compliance with the court’s orders and accurate disclosure of all relevant financial information.

He emphasised that the insistence on full disclosure is driven by the public’s right to know how funds intended to support the development of the domestic shipping industry are being managed and utilised.

Meanwhile, the Director-General of NIMASA, Dr. Dayo Mobereola, assured the public during an interactive session with the media that the funds generated under the CVFF remained intact and have not been misappropriated, contrary to circulating rumours.

Mobereola clarified that the CVFF is currently being held by the Federal Government and will soon be deployed for its intended purpose.

He acknowledged that in the past, the funds were allocated to the wrong recipients, which did not yield any benefits for the Federal Government.