Sanusi replies to query on ‘financial recklessness’

The suspended Governor of the Central Bank of Nigeria (CBN) Malam Sanusi Lamido Sanusi yesterday responded to the allegations of financial recklessness filed against him by the Financial Reporting Council of Nigeria (FRCN) which led to his suspension last month.Last week, presidential spokesman, Reuben Abati challenged Sanusi to respond to the allegations and stop playing […]

The suspended Governor of the Central Bank of Nigeria (CBN) Malam Sanusi Lamido Sanusi yesterday responded to the allegations of financial recklessness filed against him by the Financial Reporting Council of Nigeria (FRCN) which led to his suspension last month.
Last week, presidential spokesman, Reuben Abati challenged Sanusi to respond to the allegations and stop playing the victim.
In a 28-page reply emailed to Daily Trust yesterday, Sanusi said the response was necessary to clarify the allegations against the CBN cited as the reasons for his suspension from office with effect from 19th of February 2014.
Sanusi gave detailed explanation on the issues raised by the council and attached evidences on each allegation against him.
The response tilted: ‘Memorandum Responding to The FRCN Allegations,” Sanusi said some of the monies alleged to have been spent recklessly were paid on the instruction of the President Goodluck Jonathan.
For instance, on the intervention projects which were regarded as unlawful by the FRCN, Sanusi said President Jonathan instructed the CBN to intervene by paying N19.7 billion to the Ministry of Police Affairs for the purchase of armoured helicopters and other security equipment.
“Also, upon the application of the Secretary to the Government of the Federation, the CBN paid N2.1 billion for the automation and renovation of the Federal Executive Council Chamber.  
“The CBN also initiated, with His Excellency, the President’s approval, the construction of the International Conference Centre for Nigeria.  
“His Excellency, the President, also requested that the CBN pay N3.2 billion for the construction of a new counter terrorism centre for the office of the National Security Adviser.
“The FRCN itself is a beneficiary of the CBN’s intervention policy as the CBN paid the sum of N220 million to the FRCN and also organised the banking sector, through the Banker’s Committee, to pay N280 million, totalling a sum of N500 million, for the construction of the IFRS Academy,” Sanusi said.
On the alleged fraudulent activities on Nigerian Security Printing and Minting, that the CBN’s breakdown of “Currency Issue Expenses” for 2011 and 2012 indicated that it paid the Plc (NSPMP) N38.233 billion in 2011 for printing of banknotes, Sanusi responded that the expense item of N38.233 billion to NSPMP was made up as follows: N28.738 billion payment to NSPMP in 2011; N6.587billion accrued liability in 2011 but paid in 2012 when deliveries were received; and  N2.829 billion audit adjustment journal entry into the account at the end of 2011 in respect of prepayments to NSPMP.
On the alleged fictitious payments to Emirate Airlines: N0.511 billion which allegedly does not fly local charter in Nigeria; Wing Airline: N0.425 billion which allegedly is not registered with the Nigerian Civil Aviation Authority (NCAA); and Associated Airline: N1.025 billion which allegedly did not have a turnover of up to a billion naira in 2011, Sanusi responded that: “The CBN neither engaged, paid nor claimed to have paid Emirates Airlines. Rather, the CBN engaged and entered into an Air Charter Services Agreement with Emirate Touch Aviation Services Limited, which is a local Nigerian charter service company. A simple enquiry by FRCN would have clarified and avoided this misrepresentation.”
 Sanusi said in conclusion that “It is now my sincere hope that, having painstakingly provided detailed explanations, backed by verifiable documents, His Excellency, Mr President will find the response satisfactory, and in line with his adherence to fairness and justice, revisit and redress the issue of my suspension.
“Furthermore, it is my wish that His Excellency, Mr President, will apply the same rationale and rigour to other agencies of the Federal Government that have had serious allegations and queries levied against them, and presume upon them to provide responses and explanations with the same level of clarity and transparency.”