Reps seek bank’s probe over N4bn fund

The House of Representatives Public Accounts Committee (PAC) has asked the Economic and Financial Crimes Commission (EFCC) to probe an ‘illegal’ transfer of N4 billion belonging to the Industrial Training Fund (ITF) by Keystone Bank.

The committee said circumstances that led to the transfer of the fund without due permission from ITF should be investigated to ascertain the rationale behind such action.

The committee’s decision was based on the report of the Auditor-General of the Federation for the year 2010.

Citing the auditor-general’s report, deputy chairman of the committee, Rep Ibrahim Baba (APC, Bauchi), who presided over the panel’s session on the matter said Keystone Bank moved money thrice from ITF’s account domiciled in the bank in November, 2010.

He said on discovering the irregular transaction during one of its audit visits, the auditor-general’s team raised a query on the matter, saying an interest of N23.5 million was supposed to be paid by the bank.

But ITF’s Director General, Joseph Ari, in his response said the transaction was carried out without the agency’s authorization and that the bank had explained that it was done in error.

He read a letter from Keystone Bank in which the bank said it had reversed the transaction but that no interest was paid to ITF.

He said as part of efforts to get the transaction rectified and the accrued interest paid, ITF reported the matter to the Central Bank of Nigeria (CBN) and that the apex bank advised an amicable settlement.

He said however that despite meeting with the officials of the bank on the matter, no solution could be found. Thus, the committee called on the EFCC to come into the matter with a view to investigating the transaction.