Reps battle NERFUND for spending recovered funds

The House of Representatives committee on Industry has frowned at the National Economic Reconstruction Fund (NERFUND), for spending recovered loans from debtors without recourse to the National Assembly, which is saddled with the responsibility of appropriation.

The committee, which is under the leadership of Hon. Abubakar Moronke, raised concerns over spending of money recovered from debtors amounting to N705m, which they said was not acceptable. The green chamber frowned at the misappropriation of the recovered fund, saying “Where do you get the mandate to go ahead with spending what you have recovered,” the Committee chairman questioned.

The chairman also pointed to the fact that over N17.5billion is the outstanding loan and NERFUND needed to take drastic steps to recover the monies from the debtors which he said could do a lot to improve the country’s dilapidated economic situation.

The Acting Director General (DG) of NERFUND, Dr. Ezekiel Oseni said, it is not correct that the agency spent all the funds it recovered, rather it was used for the payment of 35 retrenched staff of the organization.

“I wish to put on record that, of the N705million recovered, N625m was used for payment of exited staff of the agency”, he clarified.

Oseni further explained that, he and 4 of his colleagues are on secondment from the Bank of Industry (BOI), and as such, the NERFUND doesn’t foot their bills however.

He also said NERFUND is a self accounting institution which earns and pays salaries and whatever comes into the purse goes to personnel cost.

“We work to earn and pay our salaries we are not earning income or fees so whatever we get goes to personnel. Since my assumption as NERFUND Director General I have not earned a dime. I get my money from BOI”, he emphasized.

The committee ruled that NERFUND 2017 budget proposal will be looked into with a view to making amendments, where necessary.

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