The investigative panel set up by the acting Governor of Adamawa State, Alhaji Umaru Fintiri, to probe the operations of the state Homes and Savings Limited from 2007 to 2014 has submit its report.
The panel, which was set up a month ago, was saddled with the responsibility of investigating the activities of the operations of the company under the administration of former Governor Murtala Nyako who was accused of gross misconduct and impeached by the state assembly.
The panel headed by Mr. Atiku Joshua, was given one month to finish its assignment and submit its reports to the state government for prompt action.
Presenting the report in Yola yesterday to the Secretary to the State Government (SSG), Prof. Liman Tukur, Joshua noted that the panel’s findings showed that the lack of strict financial discipline, aggressive desire for profit-making, low capital base, among others, were some of the factors militating against the company.
The chairman explained that another issue was that the poor negotiation of the interest on fix deposits with commercial banks. as another serious factor affecting the company, citing an instance were the company placed N100 million with Union Bank for 30 days at the interest rate of 8.5 per cent which he described as “too low.”
Atiku recommended the recapitalisation of the company with the sum of N2.5 billion in line with the Central Bank of Nigeria (CBN) directives to such institution.
He further said that in the area of housing, out of the N440 million released to the state Urban Planning and Development Authority (ASUPDA) by the company for the construction of 150 housing units, the sum of N407 million had been paid to contractors with only 60 per cent of the houses completed.
“Even the balance of over N32 million was not accounted for by the General Manager of ASUPDA and his management staff,” he said.
He also blamed what he described as the failure of owner occupier scheme in the state to lack of adherence to due process by officials of ASUPDA.
In his remarks, Tukur commended the committee for a job well done and said the report would be studied carefully and where necessary, the committee would be referred to for necessary guidance.
Tukur said the state government was already in touch with the authorities of CBN on the issue of recapitalising the company.
He noted that the acting governor had already met with the CBN Governor on the issue.