The House of Representatives committee on Industry chaired by Rep. Abubakar Moronike has frowned at 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 raised concern over spending of money recovered from debtors amounting to N705million which they said is not acceptable.
According to Rep. Moriki, "this culture of spending has to stop, where do you get the mandate to go ahead with spending what you have recovered", he questioned.
The chairman also pointed to the fact that over N17.5billion is the outstanding loan and NERFUND need to take drastic steps to recover the monies from the debtors which he said can 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, N625million was used for payment of exited staff of the agency", he clarified.
Oseni further explained that he and four of his colleagues are on secondment from the Bank of Industry (BOI) so NERFUND doesn't foot their bills however, out of the 15 staff 10 are of NERFUND.
He also said NERFUND is a self accounting institution which earn and pay salaries and whereas, 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 look into with a view to make amendments where necessary.
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