SENATE ORDERS FEDERAL MORTGAGE BANK TO GO AFTER LOAN DEFAULTERS
The Senate Ad Hoc Committee on Alleged Misuse, Under Remittance and Other Fraudulent Activities in the Collection, Accounting, Remittance and Expenditure of Internally Generated Revenue IGR by Revenue Agencies of government has directed the management to go after Nigerians that collected billions from Federal Mortgage Bank as loans and refused to pay over the years leading to serial losses for the financial institution and inability to remit any revenue to the Federation account.
Given the directive in course of its ongoing hearing on non remittance and misuse of IGR by Revenue Generating Agencies of Government, the chairman of the Senate Committee, Senator Solomon Adeola said that it is regrettable that a financial agency of Federal Government with private sector investments can continue to post losses yearly while billions of its funds are with people who supposedly got loans for property development.
“From the records before us from the bank recorded losses amounting to N48 billion between 2012 and 2016. This is not acceptable for an agency that should generate revenues for the government” Senator Adeola stated.
The senator urged the managing director Architect Ahmed Dangiwa to use all means at his disposal to ensure that debtors to the bank fulfill their obligations to reduce the huge losses the bank is facing yearly.
Architect Dangiwa had earlier briefed that committee and explained that the bank could not remit any revenue as it has been running on losses over the year adding that most of the funds of the bank are trapped in unpaid loan with many not paying a dime since they got the facility.
In a related development Senator Adeola frowned at the ‘paltry’ sum of N108 million remitted by the Fire Service of Nigeria to the Federation Account in 5 years nationwide from revenue sources like Fire Safety Certificates, Permits Fire Safety Codes among others adding that the Committee will seek confirmation that the amount was actually remitted by the service from the Accountant General of the Federation.
