N178bn Bad Debt: Reps Dismisses Allegation Against NPA
The House of Representatives has exonerated the Managing Director of the Nigerian Ports Authority, Mohammed Bello-Koko of N178 billion bad debt allegations as contained in the 2019 audited financial statement of the authority.
The Chairman of the House Committee on Public Petitions, Mike Etaba, dismissed the allegations at a public hearing held at the National Assembly Complex, Abuja on Wednesday.
The Forum of Non-governmental Organisations in Nigeria had accused the NPA and Bello- Koko of complicity in the mismanagement of N178bn for bad debt in the agency’s audited financial statement.
At the resumption of the public hearing on Wednesday, the forum failed to appear before the committee to defend its allegations.
Disappointed by the absence of the forum, Etaba dismissed the petition for lack of merit, saying the petitioner had failed to appear before the committee to prove its allegations against the NPA and the MD.
The chairman said, “This is the sixth time the House Committee on Public Petition is sitting with respect to N178 bn bad debt allegations brought against the authority. The petitioner has not been in this place. The case is hereby dismissed.”
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As contained in its petition, the forum had requested the management of NPA to be invited to address the growth of alleged debt from N135bn in 2018 to N173bn in 2019.
“Our attention has been brought to the 2019 audited financial statement of the authority with special reference to Trade Accounts Receivable and the huge provision made for bad and doubtful debts.
“Whilst we note that the position in 2019 would significantly change by now, the poor quality of NPA’s trade receivable account is alarming and requires urgent attention,” the petition read in part.
“It is our great concern that NPA, a very important and strategic government agency with the responsibility of revenue generation will allow poor management of accounts receivable to the extent a substantial portion of it is imported.
“The incredible debt profile and provision of important as demonstrated in 2019 audited financial statement is antithetical to public growth and inimical to public interest.”
“The table below is an analysis of debts due from third parties, exclusive of other inter-governmental agency valued at N237bn. Out of this amount, a whopping sum of N173bn is doubtful of recovery and this represent a staggering 73 percent of the total involved,” the petition added.
The forum therefore prayed that the management of NPA should be invited to address the growth in doubtful debt from N135bn in 2018 to N173bn subsequent year.
