The Bank of Agriculture in Kaduna has been charged by the Senate over a N3.2 billion loan given to 10 contractors to buy tractors and other equipment to be given to end users.
The indictment followed the Auditor General of the Federation’s 2016 report, which was discussed by the Senate Public Accounts Committee, which is led by Senator Mathew Uhroghide.
According to information , the Bank of Agriculture, to whom N3.2 billion was given, was managed by 10 anonymous vendors who were chosen by the Ministry of Agriculture.
After the committee’s report was adopted, the Senate demanded that the 10 vendors pay back N3.2 billion.
“The amount of N3,200,592,007.00 (Three billion, two hundred million, five hundred and ninety two thousand, seven naira) has been paid out from N3,600,000,000.00 (Three billion, six hundred million naira) provided by the Federal Government by means of the Bank to 10 vendors selected by the Ministry of Agriculture to purchase tractors and other equipment for distribution to end users between March 24 and November 17 2015,” the statement reads.
The Bank was required to keep an eye on and oversee the money’s release as well as make sure it was recovered so it could continue to lend to new members. The management of the bank, however, was unable to account for the full revolving fund.
Additionally, it stated that “The Managing Director was communicated to account for all the amounts involved.”
The Bank of Agriculture, however, stated in its written response, which the Committee did not accept, that the “Program was constructed with a four-year loan tenor commencing from the date of release of the machinery/equipment to the Agricultural Equipment Hiring Enterprises Center.
“The expiry dates of the machinery loans also vary because the machinery/equipment were not released on the same day
