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SERAP criticizes FG’s plan to borrow unclaimed dividend, funds
By Modupe Shodeinde
The Socio-Economic Rights and Accountability Project has criticized the Federal Government’s plan to borrow about N895bn from unclaimed dividends and funds in dormant accounts.
The group described the move as as an illegal expropriation that would hurt poor and vulnerable Nigerians.
Deputy Director of SERAP, Kolawole Oluwadare, in statement released on Sunday, said that the plan to borrow unclaimed dividends and funds without following the due process of the law and consent of the owners is illegal and arbitrary.
The group urged the President Muhammadu Buhari to make use of his position in stopping the plan.
“Rather than pushing to borrow unclaimed dividends and funds in dormant accounts, your government ought to move swiftly to cut the cost of governance, ensure review of jumbo salaries and allowances of all high-ranking political office holders, and address the systemic corruption in MDAs, as well as improve transparency and accountability in public spending.
“SERAP is concerned that the government has also repeatedly failed or refused to ensure transparency and accountability in the spending of recovered stolen assets, and the loans so far obtained, which according to the Debt Management Office, currently stands at $31.98bn.” the statement partly read.
The Federal Government recently announced that unclaimed dividends and bank account balances unattended to for at least six years will be available as special credit to the federal government through the Unclaimed Funds Trust Fund.
According to the Finance Act 2020 recently signed into law by President Muhammadu Buhari, monies transferred to the trust fund will be a “special debt owed by the federal government to shareholders and dormant bank account holders”.
The trust fund will be supervised by the Debt Management Office (DMO).
