Micro Finance Bank Investigation: Abia Assembly Finally Releases Report, Gives Detail How N200M Was Spent

The committee which is headed by the member representing Umuahia- South Hon Jerry Uzosike in its report stated that that the State Committee on SMEs was constituted in 2018 with the Mandates which included acquiring Multi-tier License for the establishment of Abia Microfinance Banks in all the 17 Local Government Areas of the State in order to provide support to Small and Medium Scale Enterprises across the State. It added that the State Committee on SMEs received the sum of N200m from Keystone Bank as loan as approved by the State Government to establish a Multi-tier Micro Finance Bank for the State so as to attract Funds from the Central Bank of Nigeria for SMEs oriented programme for the State.

Giving a breakdown on how the #200m was spent the committee stated the State Committee on SMEs submitted the following;

Procurement of Banking License -N38,500,000.00

Legal fees and Corporate Services - N9,000,000.00

Bridging Finance (deductions from the Term Facility) by Keystone Bank - N19,300,000.00

Rehabilitation/Renovation of the bank building and banking hall and the One Stop Shop in Umuahia - N7,711,000.00

Procurement of Plants and Equipment - N8,728, 000.00

Procurement of Banking Software, ICT and Security Infrastructure - N7,263,000.00

Motor Vehicles - N11,000,000.00

Flag-off/Commissioning Ceremonies - N4,166,000.00

Share Capitalization Increase - N2,135,000.00

Total - N107, 803, 000, 00

The committee stated in its report the SME committee adduced that the remaining Ninety Two Million, One Hundred and Ninety Seven Thousand Naira (N92,197,000.00) is still intact in the Committee's Account domiciled with Keystone Bank, Umuahia as stated by the SME Committee. It added that representative of the State Committee on Small and Medium Scale Enterprises (SMEs) and its Director of Finance made oral submissions and later submitted documents to the committee to prove the above expenditures.

The Committee after its investigations recommended among other things ; That the House do mandate the State Committee on SMEs to, without further delay, address all the bottlenecks surrounding the transfer of the ownership of the acquired Micro Finance Bank to the State Government in order to ensure that the Bank is put into the rightful purpose for which it was acquired by the State.

-That the House should commend the laudable vision and efforts of the Governor, Dr Okezie Victor Ikpeazu, in establishing the Micro Finance Banks in the three 3 Senatorial Districts of the State in order to provide financial support and soft loan facilities to Small and Medium Scale Enterprises across the State.

-That the Permanent Secretary, Ministry of SMEs be included as a member of the State Committee on SMEs in order to ensure proper cohesion between the Ministry and the Committee. It also recommended that the Post of the Accountant of the State Committee on SMES should be domiciled in the Ministry of SMEs in such a way that every Director of Finance of the Ministry occupies the position.

Recall that members of the State Committee on Small and Medium Scale Enterprises (SMEs) when it was constituted in 2018 includes; the then Secretary to the State Government (Dr. Eme Okoro), the then Commissioner, Ministry of SMEs (Barr. Gab. Igboko) the Special Adviser to the Governor on SMEs (Mr. Chinenye Nwaogu) and the Director of Finance, Ministry of SMEs.

Apart from the receipt of the Committee on Public Accounts, Anti-Corruption and Due Process report, the Speaker Rt.Hon Chinedum Enyinnaya Orji also constituted the ad-hoc committee to screen the commissioner nominees and nominated Chairmen and Members of the Abia State Civil & Local Service Commissions. Members of the adhoc committee includes; Hon Ifeanyi Francis Uchendu - Chairman, Hon Munachim Alozie ,Hon Paul Taribo ,Hon Kelechi Onuzuruike. Others are Hon Mandela Obasi and Hon Chijioke Chukwu.

The Speaker also read a letter from Chief Uzodinma Okpara (Omekannaya), the first son of Late Dr Michael Iheonukara Okpara, former Premier of Eastern Region inviting the House to the burial of his mother, Late Lady Adanma Okpara scheduled to hold 18th December, 2021, at Umuegwu Okpuala Afugiri in Umuahia North Local Government Area.

A letter was also read by the Speaker from Rt Hon Prince Christopher O. Enweremadu inviting the House to the burial of his father, His Eminence Eze Dr Bernard Enweremadu, Eze Ukwu Ngwa on 17th December, 2021, at the country home of the late monarch. Rt Hon Engr Chinedum Enyinnaya Orji also read out a letter inviting the House to the burial of Late Eze Johnson Nwagwu, a former Deputy Speaker of the Abia State House of Assembly. The burial is slated to hold on 22nd October, 2021 at Ihie, Ugwanagbo Local Government Area of Abia State. The letter also requested the House to hold a valedictory session for the late former Lawmaker. The Abia legislature adjourned Plenary to Wednesday, 29th September, 2021.