The Federal Government may have decided to withdraw all the funds meant for Ministries, Departments and Agencies lodged with commercial banks nationwide.
This step, it was learnt, is being taken to avert commercial banks colluding with fraudulent government officials to siphon such funds.
A source at the presidency told our correspondent that funds meant for the MDAs would be lodged with the Central Bank of Nigeria as was the case in the past.
According to a source, the move, which would reduce the volume of money in circulation, is a response to the alleged high level of corruption in banks and the complicity of banks in the diversion of public funds.
The source noted for instance that it was the widespread practice among officials of government to lodge huge amounts of public funds with banks by collecting upfront on the accruing interest from the deposit.
It was learnt that the banks, which are always desperate for fund, would accept questionable deposits, pay upfront and roll back the deposit at the expiration of the given period without the fund being used for the purpose for which it was released from the government coffers.
SATURDAY PUNCH investigations showed that the Federal Government, worried by the mind-boggling revelation about the diversion of the billions of pension funds, had taken steps to stop the act in the future
A highly-placed source said on Thursday that it was the belief in government circles that the system in operation in the country is aiding the theft of public funds by unscrupulous civil servants.
One of the measures said to be considered by the government was the introduction of Government Integrated Financial Management Information System.
The application of the system is expected to make it difficult, if not impossible for officials to embark on the diversion of funds as was observed in the raging pension fraud controversy.
It was learnt that President Goodluck Jonathan had asked a former Minister of Education in the Olusegun Obasanjo administration, Mrs. Oby Ezekwesili, to oversee the new financial system.
The source said the President is keen on engaging Ezekwesili as a special adviser, who would be in charge of the effective implementation and supervision of GIFMIS.
Ezekwesili, a former Senior Special Assistant to Obasanjo on Budget Monitoring and Price Intelligence, just concluded her tenure as the vice-president of the Word Bank for Africa.
It was learnt that the President was of the view that Ezekwesili’s background as a chartered accountant and her professional competence and prominence in the Obasanjo administration were among the factors working for her in the new job.
Ezekwesili, a former Minister of Solid Minerals, who worked as an auditor, management and financial services consultant, was said to be a founding director of Transparency International for Africa from 1999 to 2004.
A source, however, added that a former Special Adviser to Obasanjo on Budget, Mr. Bode Augusto, was also being considered for the same position.
It was learnt that GIFMIS was being put in place by the FG as a means of ensuring improved efficiency in public expenditure and receipts.
Further investigations showed that the FG would choose the six biggest ministries as a pilot study for the execution of the new system.
The source said that the ministries are most likely to include Works, Transport, Education, Defence, Interior and Agriculture.
The source said, “Of course, the FG is concerned because these shocking revelations about the management of the pension funds and the huge amount of funds that were traced to the accounts of individuals.
“You know that the government had been implementing the Integrated Personnel Payroll system, yet, people are still stealing so much money. The situation is messy and I think the government wants to clean it up.
“So, they are planning to reintroduce the GIFMIS project to arrest the situation.
“Both the IPPIS and GIFMIS are under the World Bank Economic reform, which was started by the Obasanjo administration.
“The FG has concluded an arrangement to introduce the GIFMIS, which has some implications for the banking sector.
“And they are going to start with six ministries, which they are using as the pilot for the programme.
“The Presidency is reaching out to a former Minister of Education, Mrs. Oby Ezekwesili, as the special adviser to the President, who would oversee the project.
“I learnt that another aide of former President (Olusegun) Obasanjo on Budget, Bode Augusto, is also in the picture.
“With that arrangement, the government would move the accounts of Ministries, Departments and Agencies to the CBN.
“The feeling is that the banks are not helping in this situation; the banks are conniving with these people, who lodge huge sums of money with them, without strictly applying the rules.”
In September 2011, the FG organised a three-week training designed as part of the induction for the planned implementation of the GIFMIS.
Materials from the website of the new programme stated that the induction programme, which was held on Sept 13, 2011, in Abuja, was for 30 support consultants.
The 30 consultants were 18 accountants and 12 information technology support consultants.
Facilitators for the programme were said to have been from the office of the Accountant-General of the Federation, Budget Office, World Bank, the GIFMIS Project Manager and others.
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