Probe of revenue leakage in Customs yields N140bn—Senate

Probe of revenue leakage in Customs yields N140bn—Senate

 

 

About N140 billion has been returned to the Federal Government through the Central Bank of Nigeria, CBN, by firms and banks found guilty in Senate’s recent investigations into revenue leakages in the Nigeria Customs Service.

Presenting the interim report on the investigation into the activities of the Nigerian Customs Service by Joint Senate Committee on Customs, Excise and Tariff and Marine Transport, Chairman of the Committee, Senator Hope Uzodinma (PDP, Imo West), said the committee identified that there was undervaluation due to low ex-factory price, reduction in quantity or false description.

According to him, these infractions within the system disproportionately distort the economic profile of the country and placed extensive pressures on the nation’s scarce foreign exchange. Uzodinma added that the action also negated all CBN’s initiated foreign exchange management plans.

He said the committee identified several revenue leakage channels to include undervaluation, wrong tariff classification, misuse of procedure codes, abuse of waivers and concessions, and abuse of diplomatic cargo and personal effects privilege to clear consignments actually meant for commercial use.

Other channels, according to him, are falsification of import documentation such as pro-forma invoice, final invoice and bills of laden, non imputation of vehicle identification number in inspection acts in order to undervalue vehicles.

The committee, he said also identified sale of bulk forms M and pre-arrival assessment report by importers and clearing agents and submission of forged documents for pre arrival assessment reports as part of leakage channels.

The Senate yesterday granted an eight week extension to the committee which held its first sitting on July 20, 2017 to complete its work.

Uzodinma said: “As a result of this exercise, some collection banks have made additional remittances to the Central Bank of Nigeria, to the tune of N128 billion and evidence of payment and receipt have been received by the committee.

“From the selected 60 companies, over N12 billion payments have been made to the government voluntarily by the companies based on their own internal self audit after receiving documented evidence of their culpability from our committee.’’

Deputy Senate President, Senator Ike Ekweremadu, who presided over plenary, said since the report was an interim report, it would be prejudicial if “we go into details in considering it.’’ He thereafter gave the committee eight weeks to complete work on the report and report back to the senate.

 

Leave a Reply

Leave a Reply

  Subscribe  
Notify of