EXPOSED: Bank Of Industry Dispenses N4.6billion Loans To Suspicious Individuals Without Vital Documents

The Bank of Industry has claimed that it disbursed N4.6 billion loans to beneficiaries inside two years however there aren’t any paperwork of collaterals, financial institution assure, or supply letters from the mentioned people to point out. 

A authorities’s audit report, obtained by SaharaReporters revealed that though the financial institution claimed it gave out the loans between December 2017 and December 2018 to 97 beneficiaries, the people couldn’t be traced as their supply letters and different important paperwork weren’t offered by the financial institution.  

EXPOSED: Bank Of Industry Dispenses N4.6billion Loans To Suspicious Individuals Without Vital Documents 2

The Auditor-General of the Federation’s report for 2018 said that only one beneficiary, for example, acquired N1.5 billion from the N4.6 billion disbursement and one other particular person acquired N1.1 billion among the many 97, however the particulars of those people weren’t given, elevating suspicion that authorities funds on the financial institution might need been cornered by proxies and corrupt people.

The report reads, “Disbursement of loans without sufficient supporting documents – N4,668,105,127; R603 states that ‘All payment vouchers must be supported with relevant supporting documents.’ 

“Audit observed, from the examination of payment vouchers, that the Bank made certain loan disbursements amounting to N4,668,105,127.60 to 97 beneficiaries between February 2017 and December 2018. It was further observed that these disbursements were made to the beneficiaries on the basis of just two documents – Availment Forms and Disbursement Requests.

“Audit, however, noted that the following documents which are expected to be attached to the payment vouchers were unavailable: (a) Particulars of the Collateral used as security (b) Bank Guarantee (c) Credit appraisal (d) Offer Letter.

“For example, a particular beneficiary received the sum of N1,500,000,000 vide payment voucher No. 100716, dated December 27, 2018 while another beneficiary received the sum of N1,105,000,000 vide Payment Voucher No.095881, dated September 20 without relevant supporting documents attached to the payment vouchers.

“The risk is the possibility of loans becoming non-performing as necessary safeguards may not have been observed. The bank responded that based on their operational and credit policy, loans are given after due scrutiny and adequate documentation. The bank’s response does not sufficiently address the issue raised as documents expected were never provided.

“The Managing Director is required to justify the disbursement of the loans without adherence to credit management policy of the bank. Furthermore, evidence of proper documentation of the loan amounting to N4,668,105,127.60 (as stated above) should be provided and presented to the Public Accounts Committees of the National Assembly and the Auditor-General for the Federation, for confirmation. Otherwise, sanction should apply.”

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EXPOSED: Bank Of Industry Dispenses N4.6billion Loans To Suspicious Individuals Without Vital Documents

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