WHILE the Federal Government is busy borrowing money from multilateral organisations such as the World Bank to finance much-needed infrastructure, the $480 million (about N74.4billion) recovered from the Africa Finance Corporation, AFC, still lies idle in JP Morgan Bank in New York, United States of America.

The money was recovered by the Federal Government Administrative Panel of Inquiry on the African Finance Corporation, AFC, and the Central Bank of Nigeria, CBN.

Vanguard learnt that the Administrative Panel, which had Deputy Commissioner of Police, Mr. Tunde Ogunsakin, as Chairman traced the money to the U S following the scandal that broke out over the integrity of AFC’s operations.

The money was paid into the Federal Government Account at JP Morgan Bank, one of the financial institutions used as a warehouse for Nigeria’s foreign reserves in New York in 2008.

It was further learnt that the money was already yielding interest in the said account.
The Ogunsakin Panel of Inquiry reportedly left a standing instruction with the bank that only the President of the country should be allowed to withdraw the money.

Vanguard was told: “The total principal invested by the CBN in the AFC in the sum of US$462,923,000.00 has been recovered from the AFC by the CBN and deposited in Account No. 000000400130300 with JP Morgan Chase Bank in London under the CBN’s signatories.

“The Committee considered the possibility of repatriating the investment immediately, but decided that in view of the fact that the funds are now effectively back under the control of the CBN and the fact that JP Morgan Bank holds 28 other FGN accounts, the funds can remain in its custody pending a final decision by the Federal Government on the continuation of its investment in the AFC.”

That instruction, it was understood, followed findings that some top government officials, particularly, a minister and some of the Yar’Adua inner circle members were desperate to access the fund.

It was further learnt that but for the instruction of the panel led by former Director of Operations of the Economic and Financial Crimes Commission, the money would have been literally stolen in the days preceding the death of the immediate past president.

AFC is an international organization established by treaty between sovereign states. It was established by twin legal instruments, with all the rights, privileges and immunities conferred upon international entities.

Current member nations are Nigeria (host country), Guinea_Bissau, Sierra Leone, The Gambia, Liberia and Guinea. In addition, various prospective new member countries are now at different stages of due diligence.

AFC shareholders include the various African financial institutions (47.6 percent), the Central Bank of Nigeria (42.5 percent), and several industrial and corporate shareholders (9.8 percent).

The African financial institutions promote synergy between African banks, strengthening local support and partnership, and ensuring proximity to projects and transactions flows.

As a single institution, the Central Bank of Nigeria provided the anchor capital for the corporation’s start_up in 2007 and has helped solidify partnership with AFC’s host government. It holds considerable shareholding in trust for other African investors.

African industrials and corporations integrate local corporate experience and strengthen support from leading local sponsors.