AGF threatens bank over illegal COT deductions


Jun 20, 2010 By Tordue Salem 


The Accountant-General of the Federation, AGF, has threatened to shut the accounts of the Ministry of Commerce at an unnamed bank, if an illegal Commission on Turnover,COT allegedly deducted by the bank was not refunded in 48 hours.


According to the Banking and Other Financial Institutions Act, and other extant banking and financial regulations, a bank must not deduct a kobo on public funds as COT in any financial transaction between it and an agency of government.The AGF made the threat, weekend, while verifying figures during a quarterly briefing on public accounts of the country by the Auditor-General of the Federation, before the Public Accounts Committee of the House of Representatives presided over by Mrs. Uche Ekwunife.


The AGF, Mr. Ibrahim Dankwambo, who was represented, said “The Accountant-General’s Office would not tolerate the blatant violation of financial regulations. No bank can do COT on any public funds, so it is unacceptable that a bank would deduct N302,000 from funds meant for a Federal Ministry.








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