AFC: Soludo in trouble over $462m

Chris Agbambu, Abuja - 16.05.2008

THE Presidency is angry with the Central Bank of Nigeria (CBN) governor, Professor Chukwuma Soludo, for unilaterally paying $462 million to the African Finance Corporation (AFC) for investment.

Nigerian Tribune exclusively gathered from an interim report submitted to President Umaru Yar’Adua last week that the money was paid “in flagrant abuse” of his office as the governor of the Central Bank.

The source said though Soludo had alleged to have got the approval of the CBN board to invest the sum in AFC, while President Olusegun Obasanjo gave his approval shortly before leaving office.

However, the panel set up by the Presidency, in its interim report to the President, discovered that the money was allegedly paid to AFC in November 2007 without the knowledge of the President or the Minister of Finance.

Nigerian Tribune also gathered that the money had been refunded to the CBN account with documents attached to the interim report.

The Presidency frowned at the discovery of the panel that Soludo was the chairman of AFC in his personal capacity, contrary to section 9 of the CBN Act.

Nigerian Tribune also gathered that the panel visited the head office of AFC in Lagos and interrogated the officials, who also made useful statements and supported them with documents.

The panel discovered that all the banks’ managing directors and some influential Nigerians were shareholders in the AFC.

The Presidency frowned at the discovery that AFC was not a registered company in Nigeria, but was allowed to be doing business.

It was also discovered that AFC had offices in Ghana, where it was operating a mining corporation with different names, and as well as other African countries with different names too.

Furthermore, the AFC and the panel members were to work out the interest accruing on the $462 million from November, 2007 to last week when the money was returned to the accounts of CBN.