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CBN says no N500 billion stolen, denies online audio report

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Freeze accounts #EndSARS

BY OUR EDITOR

The confirmation of Mr. Godwin Emefiele as governor of Central Bank of Nigeria (CBN), for a second term, may not be as easy as taking a bow and leaving the Senate Chamber, without breaking a sweat.

President Muhammadu Buhari had Thursday sent a letter to the President of the Senate, Bukola Saraki, requesting the upper chamber to confirm Mr. Emefiele for a second term of five years. The market responded positively as soon as the news of the President’s letter hit the airwaves.

But the bubble of that euphoria appears to have become short-lived, especially for the CBN governor and his executive management, with the release of an audio material online by an online news portal.

The audio which has already gone viral, warranting an immediate rebuttal by the apex bank, cast the CBN governor and three other executive staff, in what the news portal described as: “CBN Gov Emefiele and top officials discuss how to cover-up N500bn they stole – Part 1.”

Whereas the conversation was badly abridged and may not really make sense to most listeners, it was obvious that the issue being dealt with in the four-man telephone conversation was a very naughty one, going by the unanswered questions, sighs and exclamations repeatedly heard.

The CBN, however, described the audio material as a “purported audio recording of selective conversations amongst the Governor, Deputy Governor and some Senior Officials.”

The bank’s director corporate communication, Isaac Okorafor, in a statement dated May 12, 2019 explained: “Contrary to the headline-grabbing narrative that the discussion was about a fraudulent transaction, this conversation – the beginnings of which was omitted to create a different impression – was simply to proffer solutions to a misunderstanding that affected the Bank’s balance sheet.

“As publicly known the CBN was approached in 2015 by the National Economic Management Team and the National Economic Council (NEC), chaired by the Vice President, to assist State Governments with Conditional Budget Support, in the aftermath of the significant nose-dive in global oil prices and associated FAAC allocations. In order to ensure that ordinary Nigerians workers got their salaries, pensions and gratuities, and that the economy continued to recover from recession, the Bank provided about N650 billion in loans at 9% with a two-year grace period to 35 States of the Federation. These monies were distributed to the States monthly with documented approval of the Federal Ministry of Finance and the Presidency.

“In closing the Bank’s 2018 accounts, external auditors in their Draft Account, erroneously classified about N150 billion of these loans as bad, which negatively affected the Bank’s Balance Sheet and shareholders fund. The selective conversation being circulated was simply a discussion to ascertain why the auditors took that position and next steps to resolving it. Obviously, it soon became clear that a State Government loan cannot be classified as “bad” or “irrecoverable” when the State still exists and getting FAAC allocations.

“The Bank then reached out to the Federal Ministry of Finance and they jointly gave comfort to the auditors who accepted in writing that these monies would be repaid. On this basis, the auditors reversed the negative entry and they certified that the CBN’s 2018 accounts were a true reflection of the State of Affairs.

“Reconciliation of Balance Sheet items are regular conversations amongst Senior Management of many agencies and should not be misconstrued as anything but that. Had the online media which released the selective recordings sought the comments of CBN as required of journalism practice, we would have provided it.

“Clearly those who listened to the audio and can easily ascertain that the conversation had nothing to do with anything fraudulent as purported. The Bank therefore urges all well-meaning Nigerians to disregard this audio and continue to trust that the Bank is doing everything it can to represent their interests in the best possible way.

“Under the leadership of Governor Emefiele, the CBN has always stood for, and vigorously pursued transparency in its stewardship of public resources and policies. NO MONIES ARE MISSING OR STOLEN. The integrity of the CBN Governor remains unassailable. He has no account in Dubai or anywhere in the

world and would never convert the funds of CBN for personal use. Not in the past, not now and not ever. The use of selective wiretapped conversations of the Bank’s Management, to malign his character and integrity will never stand. The Bank will pursue every legal means to bring the perpetrators to justice.”

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