Former Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, has insisted that all dollar-denominated funds received under the Cabotage Vessel Financing Fund (CVFF) were converted into naira during his tenure, saying the exercise was carried out on the directive of the Accountant-General of the Federation (AGF).
Omatseye, who spoke on Sunday, maintained that the conversion was an established practice under his administration, disclosing that NIMASA had N52 billion in fixed deposits when he left office on December 13, 2010.
He explained that the N52 billion comprised the CVFF and the Maritime Fund, adding that the decision to convert the dollar-denominated funds into naira was based on a directive from the Accountant-General’s office.
According to him, the directive required NIMASA to convert all foreign-denominated internally generated revenue, including the three per cent surcharge and the CVFF, into naira before placing the proceeds in naira fixed deposits.
Omatseye’s clarification follows his recent remarks that the Accountant-General’s office had advised the conversion of the CVFF into naira.
He recalled that when he assumed office as NIMASA Director-General in 2009, the agency’s funds, including the CVFF and the three per cent surcharge, were held in commercial banks.
“By virtue of a memo from the Accountant-General’s office, the agency was directed to change all foreign internally generated revenue, be it three per cent or CVFF, into naira and fix it in naira,” he said.
He said the directive was informed by the disparity in interest rates offered by commercial banks on naira and dollar deposits.
According to Omatseye, dollar deposits attracted interest rates of between one and two per cent, while naira deposits earned upwards of 15 per cent, making the conversion financially attractive.
He added that the practice continued until he left office, stressing that his comments were intended to explain the financial management arrangements during his tenure.
“I was explaining to the audience what had transpired during my tenure,” he said.
The former NIMASA chief, however, said the agency was better positioned to explain how the CVFF had been managed since the introduction of the Treasury Single Account (TSA).
“What has been the practice since the advent of TSA is better explained by NIMASA. In the light of that, I stand fully by my statement that during my tenure all dollar funds received as CVFF was converted into naira,” he said.
