The Senate in Nigeria has commenced an investigation into what it called the abuse and mismanagement of the Treasury Single Account (TSA) regime.
Bringing a motion on the floor of the Senate on Wednesday, a federal lawmaker, Senator Dino Melaye, raised an alarm that the Treasury Single Account regime was being abused and mismanaged.
The plenary was presided over by the Deputy Senate President, Mr Ike Ekweremadu, of the Peoples Democratic Party (PDP), a minority party, as the Senate President Bukola Saraki was at the inauguration of Nigeria’s new ministers.
Senator Melaye, a member of the PDP representing a Senatorial district in Kogi State, brought up the issue of the Treasury Single Account being implemented by the government.
Suspend Further Remittances
President Muhammadu Buhari had in August 2015 directed the Government Ministries, Departments and Agencies to open and start paying into a Treasury Single Account all government’s revenues and incomes.
According to the directive, the measure is to promote transparency and block leakages in the public sector to free up funds for infrastructural development amidst dwindling oil prices.
However, Senator Melaye said the policy was being abused.
He said the appointment of REMITA, an e-collection agent, is a gross violation of section 162 (1) of the Nigerian Constitution and the banks and other Financial Institutions Act.
The floodgates were thrown open, as some federal lawmakers, Ali Ndume and Biodun Olujimi, both of the PDP, expressed dismay over the development.
Another lawmaker of the Peoples Democratic Party, Enyinaya Abaribe, urged the Senate to get to the root of the matter.
After an extensive debate on the matter, the Senate mandated the Committees on Finance, Banking and other Financial Institutions to carry out a holistic investigation on the matter and report back in two weeks.
The Senate also urged the Federal Ministry of Finance and Central Bank of Nigeria to suspend further remittances to REMITA till the outcome of the investigation.