Bank Of Agriculture, Ministry Of Agriculture In N712m Japanese scandal

Bank Of Agriculture, Ministry Of Agriculture In N712m Japanese scandal
ndic advert
  • Ministry of Agriculture should be held responsible – BOA
  • Audit Report Indicts BOA In Another N78,960,842.00 scam
  • List of prominent Nigerians as beneficiaries exposed

Abdul Lateef Taiwo Bamgbose

The Cookie for the Federal Government run Bank of Agriculture (BOA) seems set to crumble; the bank incorporated to provide loans to support all part of agricultural value chain and non-agricultural micro credit is trapped by its murky disbursement of unsecured loans.

Preliminary investigation of AljazirahNigeria revealed  massive fraud in the disbursement of  Agriculture  Transformation Agenda (ATA) private sector mechanization intervention programme worth N3, 200,592,007 00 and the N712 million Japanese/National Planning Commission revolving scheme facility by the Bank of Agriculture .

Contained in audit report’s query from the office of the Auditor General of the Federation, exclusively obtained by AljazirahNigeria, 10 vendors were approved to supply the needed tractors, implements and other equipment deemed necessary for the Agriculture Transformation Agenda (ATA) private sector mechanization intervention programme worth N3, 200,592, 007,00 of which 20% repayable equity contribution by service provider Operators (SPOS) 24 Months after delivery to them.

Audit scrutiny on the recovery of the 20% service provider operators , equity contribution and performance of 35% refinancing loan granted , revealed that  the sum of N78,960,842,00 was recovered as at first quarter of March 2016 , leaving a balance of the recovery outstanding of the loan totaling N828,975,628.51.

While the Japanese/National Planning revolving loan which amounted to N721.2 million and N493million totaling N1,214,200,000.00 domiciled with Bank of Agriculture (BOA) was disburse to 70 beneficiaries have accumulated to the tune of N2,703.757, 186, 13 as at November 2008.

Also Read:  Foreign Reserves Decline By $5.09bn In Less Than 4 Months

Indeed AljazirahNigeria gathered that two sets of selection for 98 and 70) beneficiaries were carried out in 2006 and 2007, but the disbursement went to proxies and prominent Nigerians who have nothing to do with the loans.

AljazirahNigeria investigation revealed that more than 60% of the beneficiary offices rather than farms are located in highbrow areas in Abuja and Lagos

Indeed the names and address of the defaulters were contained in a response by the Bank Of Agriculture in its response to the query from the office of the Auditor General of the Federation, submitted to the Senate Committee on public Account, with reference No. BOA/PAC /MD /CEO/2017 entitled “ Republic Hearing on the Annual Report of the Auditor General of the Federation for The Federation On The Accounts of The Federation of Nigeria for the Year Ended 31st December 2015, signed by Professor Danbala Danju, the Managing Director / CEO of BOA, dated March 29 , 2017.

The list include the names of the company, chief promoters contact address, project types and the amount disbursed , for instance Pastor Mrs Akporaye, the promoter of Aso Multipurpose Coop Society, with contact address Kainji Village Kubwa Abuja, claimed she is into Agricultural production,  A.A Ahmed of Mahaj Nigeria limited with, Gumen Tech Shopping Complex Jukwio, Phase1, Abuja,  M.O kwoche of No6 Elesie Femi Pearse street , Victorial Island Lagos, Tourism,  Senator U Dahiru, c/o National Assembly and Waziri Kwaja .

Also Read:  CBN dissolves Skye Bank's management

Others are S.O Fashanu, AB Mohammed , Bako Farm, Kebbi Farm  has no promoter listed, Nuhu S Waya, Hadiza Ridan, Dizan Donvian invst . ltd, MRS. Oseke Folade, Krenzo Bottling Co., Machi Okpechukwu, MACHI IVST.LTD, Mr. SN  Anni, Soleb INT LTD, Mrs. Anyiribe, TYNAD INVST. Ltd, Col. Mike Usoro, Wardrobe Linen Care, Dala Ent, Saba Jabana Nig. Ltd, and Sunday Dada Farms, S. Dada.

Others are AB Mohammed, Bako Farms, Miagro Ltd, M. Tauhid, and Hassan Sule, Najib Enterprises among other beneficiaries.

The Audit report wants the managing Director to furnish the office of the Auditor General with evidence of liability of these facilities, that the BOA claimed in its response have been transferred to the National planning Commission and statement of Accounts/ Banks.

In an addendum attached to the response to the query BOA threw the blame on the Ministry of Agriculture and Rural Development.

The BOA management stated that “It started in March 15 2015 with the selection of the service providers Operators and the subsequent release of the Machines by the ministry. Similarly, the vendors were also accredited and shortlisted by the Advisory Ministerial Mechanization Committee (AMMC), BOA exonerates itself.

Among the challenges the BOA identified in the recovery of the loans is the grudges the SPOS bore on the implementation of the programme.

BOA puts the outstanding of the loan as at May 2020 at N1, 896,302, 535.36,451, 429,829.05 and N2,347,732, 364.41 as the principal, interest respectively .

Also Read:  BOA, NPHCDA In N2bn Loan, Procurement Scandal

Contacted the management of the BOA put the blame on the Ministry of Agriculture and Rural Development saying “We are just fund manager, we don’t go to the field, we only disburse on the recommendation of the Ministry of Agriculture and Rural Development” Daniel Olatomide, the spokesperson told Aljazirah Nigeria in a telephone chat.

Continued, Olatomide, told Aljazirah Nigeria, “We cannot tell the ministry who should be given or who should not be given, we are like agent” He said.

But the Audit query from the Auditor General’s office while querying the BOA stated, “The management ought to have organized Desk Officers in tracking investments, so as to ensure investments are progressed according to plan, thereby reducing the risk of default and ensure timely initiation of remedial interventions where there were obvious challenges.

The noose seems to be tightening  for years the Bank of Agriculture , BOA in cooperated in  1972 and became operational in 1973, following the shoddy manner it handles its mandate had its name changed to Nigeria Agricultural and Cooperative Bank, established to provide loan to support all parts of Agricultural Value Chain, non-Agricultural and Micro credit to the poor,  to reflect it broader mandate before it again transformed into Bank of Agriculture, linked with many financial improprieties , the disbursement of loan has remained the most scandalous.


Tags assigned to this article:
Bank of Agriculture (BOA)