An audit query has revealed that the Nigeria Bulk Electricity Trading Company (NBET) failed to recover a debt of about $69.38 million owed by two foreign firms operating from Benin Republic, News About Nigeria reports.
The audit query, issued by the Office of the Auditor General for the Federation, alleged that NBET’s efforts to recover the debt were thwarted by a petition from the Transmission Company of Nigeria (TCN), which claimed that NBET had no authority to execute contracts with the foreign firms, CEB and NIGELEC.
According to the audit report, NBET entered into agreements with the two firms for the supply of electricity, with a total value of $315.41 million.
However, as of January 2019, the firms had only made payments amounting to $246.02 million, leaving an outstanding debt of $69.38 million.
Despite provisions in the contract agreements allowing for the charging of interest on outstanding amounts, NBET reportedly failed to recover the debt or provide clarification on its efforts to do so.
Additionally, the audit report accused NBET of failing to recover a loan of N188.36 million from its former Managing Director and seven other staff members who were no longer in its employment.
The loan was disbursed as part of a staff mortgage scheme/revolving loans for property acquisition, but a huge amount remained unpaid at the time of the audit.
“Audit observed that the sum of N321.72 million was paid to a former Managing Director of the company and seven other officers as staff mortgage scheme/revolving loans for the acquisition of properties while they were in active service.
“Of the above amount, a former Managing Director received the sum of N85.28 million in January 2018, while the balance of N236,44 million was paid to the seven officers in July 2016.
“At the time of disengagement from the service in July 2020, the former Managing Director had only repaid the sum of N35.71 million, leaving an unpaid balance of N49.58 million, while the sum of N97.66 million was recovered from the seven former officers of the company, leaving an unpaid balance of N138.78 million.
“In all, the sum of N188.36 million remained outstanding at the time of audit in October 2020, and all the officers in question were disengaged from service in 2018 without paying the outstanding loan of N188.36 million.”
In response to the audit query, NBET’s management stated that an accounting firm had been engaged to carry out the audit of the outstanding financial statements for the years 2017 to 2019.
However, the company had yet to submit its audited financial statements as required by law.
Following NBET’s failure to adequately respond to the audit query, the Managing Director was tasked with providing reasons for the disengagement of officers who had outstanding debts totaling N188.36 million.
