Economic Confidential, April 16, 2009

NATIONAL

 AGF Warns Banks against Delay in E-Payment

The Accountant-General of the Federation, Ibrahim Hassan Dankwambo, has warned that the government may withdraw its deposit from any bank that delays the process of e-payment which was introduced recently by the Federal Government.

Dankwambo who said the government may reexamine its relationship with any Bank that is poised to frustrate the full implementation of e-payment was speaking at a meeting with bank Chiefs on the implementation of the e-payment regime adding

He said that his office had received series of complain complaints from certain quarters that the banks were not cooperating amongst themselves which resulted in many customers receiving their payments several weeks after the payments were due.

He decried lack of understanding of the use of mandate by Ministries, Departments and Agencies, just as he lambasted some banks for not having the capability to implement mandates electronically within 24 hours.

He therefore urged banks to build capacity for the implementation of mandates instructions electronically within 24 hours.

Some officials of the banks suggested the establishment of a regulatory framework that will guide the banks and other operators of e-payment. They believed that the body would ensure compliance, met out appropriate sanctions against defaulters and also liaise with the appropriate authorities for provision of infrastructure to ensure the smooth running of e-payment.

Finally it also agreed that a working group be set up to include Banks representatives, Network providers that will oversee to the smooth and speedy implementation of the e-payment process.