Reps Probe Leakages of FG Revenue, By-passing of TSA by MDAs

The House of Representatives has resolved to investigate the leakages of revenue of the federal government revenue caused by the ineffectiveness of the Treasury Single Account (TSA) system.

The move to embark on the investigation followed the adoption of a motion moved by Jeremiah Umaru (APC, Nasarawa) and Jafaru Gambo (APC, Bauchi) during plenary on Wednesday.

Moving the motion, Mr Umaru said the Remita platform, a software cum financial service platform, is the gateway to the Treasury Single Account (TSA) of the federal government.

He said despite the role of the platform in creating a cashless economy, it has not been able to block leakages and abuse.

The lawmaker said some Ministries, Departments and agencies (MDAs) now create multiple sub-accounts that allow them to bypass the TSA.

“The TSA system has created a cashless economy, transparency and effective tracking of cash assets with attendant accountability. It has not indeed fully blocked leakages and abuses by the proliferation of CBN sub-accounts,” he said.

Mr Umaru expressed displeasure over the effectiveness of Remita, despite the commission charged on every transaction.

The lawmaker said, “One per cent of the funds collected is charged as commission for making use of the platform and shared among the owners of the software, the Deposit Money Banks (processor) and the Central Bank of Nigeria (License issuer) in the ratio of 50:40:10 respectively. This is alarming and unacceptable.”

The motion was seconded by Kabir Mai-Palace (PDP, Zamfara).

Speaking on the motion, Abubakar Yelleman (APC, Jigawa), moved an amendment for the motion to be referred to the Committees on Banking Regulation and Finance.

“We have a committee that supervises the central bank, so this motion should be moved to them. After the investigation and submission of the report, if necessary, the Public Account Committee can come in,” Mr Yalleman said.

However, the amendment was rejected when Speaker Abbas Tajudeen put it to a voice vote.

Also speaking on the referral, Oriyomi Onanuga (APC, Ogun), said the Committee on Banking Regulation and Finance should be given the mandate because Public Account Committee ought to focus on its constitutionally defined mandate.

Following the debate, the House resolved to mandate the Public Accounts Committee to investigate revenue leakages and ineffectiveness of Remita.

The committee was mandated to report back within six weeks for further legislative action.