Human Rights lawyer Femi Falana, SAN, has called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the alleged criminal diversion of the $3.4 billion loan obtained from the International Monetary Fund (IMF) by Nigeria to fight the COVID-19 pandemic.
In a statement signed on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana said, “We call on the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to investigate the criminal diversion of the $3.4 billion loan obtained by Nigeria to fight the Covid-19 pandemic.”
He also urged the IMF board to probe the deliberate refusal of its management to ensure that the emergency funds were used for their intended purposes.
The IMF had approved $3.4 billion to provide critical support to shore up Nigeria’s health care sector and shield jobs and businesses from the shock of the COVID-19 crisis.
However, a 2020 audit report by the Office of the Auditor-General of the Federation flagged several irregularities in the handling of the fund, including the transfer of $2.4 billion to the CBN’s account at the Federal Reserve Bank of New York and the remaining balance to the CBN’s account at the Bank of China, Shanghai.
The audit report noted that the funds were subsequently reclassified as part of the CBN’s external reserves rather than the Federal Government’s holdings, allowing interest to be earned on the funds contrary to the emergency spending purpose for which they were approved.
Falana said, “the report recommended that the CBN Governor should explain the movement and classification of the funds without proper authorisation.
”It also requested bank statements to confirm the unmonetised balance and demanded the recovery of N13.3 billion and N350 million into the Federal Government’s account.”
Falana demanded that the IMF suspend the collection of scheduled charges, including net charges, basic interest, and administrative fees, amounting to SDR 125.99 million (N275.28 billion), pending the conclusion of its investigation.
He added that the Auditor-General wanted the money recovered and remitted to the public treasury and for the evidence of remittance to be forwarded to the Public Accounts Committee of the National Assembly.
Falana alleged that the National Assembly has failed to cause the 2020 Annual Report to be considered by the committees responsible for public accounts, in order to cover up the criminal diversion of the $3.4 billion IMF loan and several trillions of Naira set out in the Auditor-General’s report, in utter contravention of section 85(5) of the Constitution of the Federal Republic of Nigeria as amended.
