The Federal House of Representatives Public Accounts Committee intensified its scrutiny of the Bank of Industry regarding the unrecovered Micro, Small, and Medium Enterprises (MSME) offtake grants from 19,538 Nigerians, as part of the ongoing probe into the alleged mismanagement of COVID-19 intervention funds by various Ministries, Departments, and Agencies (MDAs).
Chaired by Honorable Bamidele Salam, the Committee directed the Bank’s management to furnish it with pertinent documents detailing all disbursements related to the COVID-19 funds.
Represented by the Executive Director of Small and Medium Enterprises, Mr. Omar Shekarau, the Managing Director of the Bank, Mr. Olasupo Olusi, faced questioning over the COVID-19 fund management, which the Bank oversees on behalf of the Ministry of Trade and Industry and the National Export Promotion Council (NEPC).
According to Shekarau, the Bank received a total of N75 billion on behalf of the Ministry of Trade and Industry, with disbursements distributed across various tracks of implementation. These included payroll support, general MSME grants, artisan and transporter support, MSME offtake, and CAC formalization support.
Highlighting a concerning issue, Shekarau revealed, “Under the Guaranteed Offtake Scheme, 19,538 beneficiaries failed to deliver their items after receiving the 30 percent mobilization fee, thereby breaching the contract with the Federal Government.”
He emphasized that beneficiaries of the intervention programs encompassed artisans, transporters, small business owners, as well as private and public school staff.
In response to queries regarding the recovery mechanism for the MSME offtake grants, Shekarau stated that the Small and Medium Enterprises Development Agency is responsible for the loan recovery process.
Amidst the proceedings, when the Bank failed to substantiate its claims with adequate documentation, the Committee unanimously resolved that the Agency should promptly submit all relevant documents pertaining to the disbursements during the specified period.
The House’s rigorous scrutiny underscores the imperative of accountability and transparency in the management of public funds, particularly in times of crisis such as the COVID-19 pandemic.
