If the Federal Government accepts the report of a committee it set up to investigate how Nigeria invested the sum of $480 million in the African Finance Corporation (AFC), the Central Bank Governor, Prof. Chukwuma Soludo, may be compelled to withdraw the amount and put it in an escrow account.
A member of the panel who disclosed to The Guardian in Abuja last night said the committee gave the order to preserve the fund.

He explained that there was a need to stop officials of the CBN and the AFC from tampering with it.
His words: "Members of the panel have told him (Soludo) in clear terms to immediately withdraw the money already invested in AFC and keep it in an escrow account pending the conclusion of the investigation.

"The money, which the CBN invested in AFC in November 2007, is an exhibit. We don't want the money to be tampered with by officials of the AFC or the CBN. It has to be preserved and that was why the CBN governor was told to withdraw it and keep in an escrow account."

The committee also frowned at a recent statement credited to the corporation that it would support government's effort to generate 6,000 megawatts of electricity by sourcing for funds to finance the project. Describing such claim as laughable, the source said: "We have read in the dailies about the AFC saying it will support the government's bid to generate 6,000 megawatts of electricity through sourcing for funds. Does the AFC realise that the government has a power project that is being investigated?"

"Soludo told the panel that the $462 million was taken from the Autonomous Foreign Exchange Market (AFEM) Account."

The source said that when he appeared before the panel, Soludo enjoined it to ask AFC and CBN officials who accompanied him to the meeting to leave. When the officials left, according to the source, Soludo allegedly pleaded with members of the committee to show understanding even if he had made any mistakes.

Soludo had last week led a team of senior officials from the apex bank before the committee in response to an invitation extended to him. The committee is headed by Mr. Tunde Ogunsakin, the Head of Operations at the Independent Corrupt Practices and other Related Offences Commission (ICPC). The committee is sitting at the ICPC's Corporate Office, Central Area, Abuja.

A member of the committee, however, told The Guardian that details of submission by the CBN's governor could not be made public because investigation was continuing. The Secretary to the Federal Government (SGF), Ambassador Baba Gana Kingibe, constituted the committee following speculations that Soludo did not get presidential approval before investing the money in AFC.
According to the committee's terms of reference, it appears government also intended to divest from the corporation.

Other members of the committee are former Director-General of the Bureau of Public Enterprises, Dr. B.B.A. Verr, a Director in the SGF's Economic Affairs Office, Alhaji Mohammed Garba, a director at the Consolidated Accounts Office at the Accountant-General of the Federation's Office, Mr. E. Oshibote and Mr. Pius Oteh of the Federal Ministry of Justice who is Secretary to the Committee.
The committee was inaugurated by the Attorney General and Minster for Justice, Chief Michael Aondoakaa (SAN).

The terms of reference read: Determine the laws and procedures relating to the setting up of institutions such as the AFC and ascertain whether such laws and procedures have been complied with to date by all relevant persons and authorities in the establishments, funding and operations of the AFC;

• To ascertain the source of authority for the withdrawal of the sum of $480 million in respect of the purchase of equity in AFC by the CBN and determine whether there was relevant authorisation by the National Assembly or the President for the investment;
• Ascertain the past and present details of the Bank Account from where the said funds were withdrawn ;

• Obtain details, documentary and otherwise, of withdrawals made from the Federal Government of Nigeria Account maintained with the bank of England and ascertain by whom such withdrawals were made;

• Obtain necessary evidence of remittance of the equity contribution by the CBN to the receiving Bank for the AFC initiative, ascertain the source of authority for the said remittance and determine the signatories to the account in the receiving institution;

• Ascertain the ownership structure to the AFC, determine the percentage equity holding of such investors, and determine the representation of Nigerians on the Board of the Corporation;

• Enter into appropriate correspondence with the receiving Bank and take all further necessary action for the purpose of preventing further transactions on the account, and effecting the return of the invested funds to the paying Bank as soon as possible;

• To determine the roles played by any authority or person in the formation and funding of the AFC and make appropriate recommendations in respect of such authorities or persons; and
• To do any such other thing as appropriate for the attainment of any of the above objectives.

Source: Guardian