EXCLUSIVE: Revealed: Jonathan’s Second Query to CBN Governor, Sanusi

It was Mr. Sanusi’s reply to this query that Mr. Jonathan forwarded to the Financial Reporting Council of Nigeria

PREMIUM TIMES has now obtained a copy of President Goodluck Jonathan’s second query to suspended Central Bank Governor, Lamido Sanusi. The query was the communication from the presidency to the CBN governor alleging financial recklessness in the operations of the bank.

The query arose after Mr. Sanusi forwarded a copy of the CBN’s 2012 audited financial statements to the President on February 26, 2013.

The document was forwarded to Mr. Jonathan, alongside a covering letter referenced: FND/DIR/SEC/ACC/04/001.

Barely three months after the receipt of the letter, the President issued a 22-point query to Mr. Sanusi and demanded immediate response.

A copy of the query which was exclusively obtained by PREMIUM TIMES is dated May 4, 2013 and signed by the President.

In the letter, Mr. Jonathan noted that following the examination of the financial statements of the CBN as contained in the 2012 audited report, some issues were thrown up which required clarification.

“To this end,” Mr. Jonathan wrote, “I request that you avail me of detailed explication with respect to the under listed issues, providing, where available, relevant confirmatory letters and or board approvals.”

The President specifically requested Mr. Sanusi to forward to his office, the domestic report on the CBN’s 2012 financial statements by external auditors and the financial reporting framework under which the financial statements were prepared.

Mr. Sanusi was also directed to provide names of the trustees of the CBN’s self insurance, including the board minutes approving the said self insurance scheme and trustees and the entries of the annual appropriations indicating where it was posted in the financial statements.

Evidence of the license given to the CBN by the National Insurance Commission, to operate a self insurance scheme was also requested.

Parts of the query read, “Report from independent sources revealed that the CBN is insured by 29 underwriters on General Business Insurance and 20 underwriters on Group Life Assurance for 2011-2013. A reconciliation of this report with paragraph 3 above is required.

“The valuation report on certain assets of the CBN (as in accounting policy ‘a’) and how and when the fixed assets revaluation reserves was created and accounted for (As in the balance sheet), as well as the accounting policy of the CBN on short term investment.

“Detailed breakdown of: a) Long term loans of N550. 062 billion (beneficiaries) as in Note 5 and why it was fully provided for as irrecoverable, b) the banks’ that are involved in ‘other loans’ of N12.899 billion as in Note 5, that are also fully provided for as irrecoverable.

“c) Provision of loan losses of N585.703 billion (as in Note 5), d) Investment in Asset Management Corporation of Nigeria, AMCON< bonds of N3,596,356,000,000 that are expected to mature on December 2013, August 2014 and October 2014 and why no provision was made against them except general loans loss provision of N4.620 billion only (as in Note 6).

“e)Prepayments of N58.133 billion in 2012 and N102.459 billion in 2011 (as in Note 8) and why the bank was paying so much in advance. Board approvals for these levels of advance payments are required.”

The President also requested for Mr. Sanusi’s explanation of the relations between the N35 billion investment in the Bank of Industry (BOI) debentures in 2012 (as in Note 6) and “intervention activities” expenses of N19 billion in operating costs as in Note 27 as well as a detailed breakdown of the “intervention activities”’ expenses (as in Note27).

Based on the bank’s deposits of shares of N4.947 billion in 2011 and 2012, the President requested to know when the deposit was made, the names of the companies where the investments were supposedly made as well as the related amount and why shares were yet to be issued based on Note 8 of the audited report.

A detailed breakdown of the “other sundry assets” of N5.949 billion in 2012 and N3.393 billion in 2011 as in Note 8b and the reason why they are so classified and a complete reconciliation of “Notes and Coins in circulation” indicating “Deposit by banks” and “Withdrawal by Banks,” were also requested.

Mr. Sanusi was further asked to explain the composition of CBN’s gratuity of N72.653 billion in 2012 and N64,280 billion in 2011 and how it was determined as well as the board minutes and approval practice of making provisions for internal currency insurance based on the premium that would have been payable to external insurers had they been engaged and the names of the insurance companies that were filed tested in the exercise and the modalities thereof.

A detailed breakdown of the following were sought:

Currency issue expenses of N36.589 billion in 2012 and N47.337 in 2011 indicating the amount paid to the individual printing companies involved for 2011 and 2012 and the names and amount paid to each company.

Repairs and maintenance expenses of N2.268 billion in 2012 and N2.070 billion in 2011 and the extent of repairs of printing machines and intervention activities of N19 billion in 2012 and N23.865 billion in 2011as well as the administration of expenses of N42.596 billion and N48.340 billion in 2011.

Related party transactions indicating the persons involved, the applicable amount and the impact on the profit and loss of CBN, the statement of corporate governance on the financial statements.

Other explanations sought by Mr. Jonathan were, “The reason for IMF Quota of N421.864 billion in 2012 and N433.744 billion in 2011 was included in sundry receivables in other assets, confirmation of the movements in the ‘other investments’ as in Note 6 and other related board approvals.

“The reason why the financial statements of the CBN were not in compliance with Sections 44 and 57 of the Financial Reporting Council of Nigeria Act 6, 2011 and why the CBN continued to invest in AMCON’s bonds in 2012 and it intends to recover the funds invested in AMCON that are due by December 2013.”

The President claimed in the letter that Mr. Sanusi’s expeditious response on the issues raised would be helpful in providing proper appreciation of the nation’s economic outlook.

It was, however, Mr. Sanusi’s reply to this query that Mr. Jonathan forwarded to the Financial Reporting Council of Nigeria.

After considering the CBN’s financial statements for 2012 and Mr. Sanusi’s reply, the council gave report which the Federal Government said it relied upon to suspend the embattled governor.

Download full query here


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  • Fairgame

    This is a fight between corrupt NNPC and corrupt Sanusi. In the end Nigerians will benefit. Let the corrupt parties keep on the fight in public space and truth will spill out. Enjoying the drama.
    We want an independent forensic audit of both NNPC and CBN!

    • ayoyo

      They will kiss and make up, just watch

    • Ide4u

      That frog eyed-thief of a woman must first of all give way from the Petroleum Ministry.

  • Fairgame

    Diezani Allison Madueke’s NNPC and Ministry of petroleum must be subjected to an independent forensic audit! Sanusi’s CBN must be subjected to an independent forensic audit! That is the only way to get to the truth.

  • Es3

    By the time this is through Nigerians will understand and appreciate my earlier position (still being held by me) that Sanusi knew that he has done terrible things that are about to come to the public domain in the 1st quarter of last year. Then himself and el-Rufai sat down and devised the NNPC angle in desperate bid to cover his back when the backlash starts?!!!

    NNPC has never been a saint and still they are not till date, which explains why some of us have been calling for a change in the laws dictating their operations for a long while before PIB! Then came PIB that APC and IOCs are afraid of???!

    So, Sanusi may have a point in NNPC’s alleged fraud, but the question remains if that would have come up from Sanusi if he was not found out as having ‘defecated in the public’ as CBN governor???!

    • omadewu

      my position here too.

    • Garden-City Boy

      Your analysis is spot on. You got the damned point!

    • Oga Dee

      Same her bro!! you so spot on

  • MuckRaker

    “repairs of printing machines and intervention activities of N19 billion in 2012 and N23.865 billion in 2011”? What kind of machine are those? Quantum computers?

    Jonathan’s many flaws has given vent to Nigeria’s most profligate, corrupt and ineffectual CBN governor in Sanusi, same way Jonathan himself stands to be this nation’s most corrupt, and most fraud-friendly president!

  • taewo

    When last was the NNPC account audited? If NNPC account has not been audited for the past nine years or so, we also demand to see the queries issued to the MD, NNPC.

    • Bosa Odaro

      there are honest people that could have ran the Central bank like Dr Moses Osaruyi Odaro who resides in Benin, a PhD holder from Mc Gill university Montreal, Canada back in 1970. He was GM New Nigeria Bank in 1981-1984 and he worked for CBN back in 1971-72 when he returned to Nigeria. his email ID is mosesodaro@gmail.com. He was GM Great Merchant Bank in 1990-1993, a bank that he floated.

      • Oga Dee

        Where are those banks today? Mtcheew. Make I hear word. Attempt to resuscitate another old cargo.

  • Adoki

    So why didn’t the presidency simply tell us that it was the president who reported Sanusi to the Financial Reporting Council in the first place, and not the other way round.

    Or what are they trying to hide by twisting the facts?

    • Afam

      FRC is the only body the president is permitted under the law to report CBN governor to.CBN is also the Board chairman of CBN that’s the abnormal part of the CBN act as Sanusi can not be a judge on his own case..Sanusi has the backing of his senators brothers from the North as they are majority in the senate..Sanusi knew that his brothers will block his sacking based on so called Federal character just as they have been blocking the passage of PIB Bill since 2012..My worries is this,Nigerians emergency activists have not protested non passage of PIB BILL as this will put an end to quantum corruption in NNPC ..why are they afraid of PIB BILL?

  • esaulogbon

    Mark my words, Jonathan is going to backtrack on this so-called persecution of Sanusi… The man knows he is pursuing a monster that will consume him. We all know Mr Jonathan is not fighting corruption… in fact… he is the worst president who has condoned and embraced and romanced corruption in the history of this country.

  • Nwa Aba #Lets Break Up Now

    GOD save me from heart attack…….., Repairs and maintenance expenses of N2.268 billion in 2012 and N2.070 billion in 2011 and the extent of repairs of printing machines?

  • dan

    It is now getting clearer why Sanusi came out with his $49b, $12b, and $20b missing money allegations. It was a blackmail tactic to stop or divert attention from the ongoing investigation on him that started early last year following due process (unknown to the public). He and his handlers (including El-rufai who has confirmed to Sahara Reporters that he got N5b contract from the Sanusi’s scam – that’s the one we know now, it is not impossible they are many) know that if Sanusi goes to public with missing money from NNPC, it will be difficult for the the government to proceed with the investigation on him without people thinking it is witch hunt. No wonder he was coming out with different figures everyday as if he suddenly didn’t understand simple arithmetic anymore – he was actually a drowning man trying to pull everyone down with him.

  • Excisionist

    SANUSI, a thief shouting “Oleh, Oleh”

    Sanusi saw what was coming and fearing that he would be exposed for
    corruption started shouting that money was missing from NNPC. That was
    why even though he was not sure of his figures, he kept on shouting.

    Sanusi is like the Thief shouting “Ole, Ole” to confuse the crowd so that he can escape. Here is a man who is:
    – a murderer (Killed and paraded the head of Akaluka, an Igbo man across the streets of Kano)
    – An adulterer (Mrs. Yaro and other married women around him)
    – An embezzler (38 Bilion USD just disappeared under his watch).
    – A hard like Islamist and hypocrite
    His deputies should not be mentioned as only God knows what would have
    happened to them if they opposed him. Dont forget his feudalist mindset.

    All these peoblems will end when the H-F Islamist states are excised. from Nigeria. That’s for sure !

    • Aleowo

      Your statement is an embarrassment to the educated people of this country.

  • BJ

    Since this matter is now being judged in the court of public opinion, it would only be fair and in the spirit of balanced journalism, for Premium Times or other news firms to avail the public with the suspended CBN Governor’s initial RESPONSE to the President’s query which was considered by the Financial Reporting Council of Nigeria (FRCN). Even though FRCN was not satisfied with the response and subsequently went ahead to indict the suspended Governor, it would still be fair for the public to form their own opinion. A point of note about the FRCN is that it is actually not a stand-alone regulatory body but it is under the Ministry of Trade & Investments.

  • Awarawa

    I still cannot understand. If Sanusi told us that the NNPC account has not been audited since 2005, why didn’t he raise the alarm during Yar’dua’s tenure? This gives credence to the claim that he was only “forming” whistle blower when he saw that the game is up.

  • Ikechukwu_67

    Hahahaha!!! Suddenly so many querries are coming to light just because people that stole 20 billion must be protected. Let us take it that the president ‘querried’ Sanusi in April 2013, after that nothing happened abi? Sanusi now wrote the President detailing and requesting investigation into the non-remittance of 49.9 billion dollars in september 2013. Nothing happened agaiin. The letter got leaked in december 2013 and it was bedlam everywhere. Okonjo Iweala, after reconciliation of accounts, now said it was 10.8 billion dollars and she said that the money was not lost that it would be found. Yes she said so.. In February sanusi still insisted that 20 billion dollars had not been re-mitted. He said so in front of Okonjo iweala, Deziani and NNPC management. Non of these individuals controverted him with any facts. Instead it was Okonjo, who said that money was not missing in december, that now requested for forensic audit. Right now no one is talking about Forensic audit of NNPC, but all the apparatus of the state have been brought out to deal with Sanusi. Suddenly all “the photocopies of Papers” (apologies to the President) have been brought out against sanusi. This is interesting. WHERE IS 20 BILLION DOLLARS???? NO AMOUNT OF DESPERATE DIVERSIONARY TACTICS WILL MAKE THIS GO AWAY!!!! WHERE IS OUR MONEY????

  • agabaidu

    PREMIUM TIMES
    Please show us side by side and item by item – the audit queries by the external auditors (Not FRCN) and CBN Management Response. that way we can judge for ourselves the true position before the politicians walked in.
    thanks.

  • emmanuel

    PT now judge yourself.

    How much of the squandered monies did you get to do the YO man’s job for Sanusi?

    The total sum that guy amassed for himself is enough to compromise the Judiciary, Military, media and National Assembly

    The whole nation has to join hand to tackle the rampaging monster called Sanusi. Infact, the Senate should invoke the doctrine of necessities to hound the guy into detention whole his case is on if not, he is ready to pull Nigeria down to survive a probe, using his false NNPC alarm as a yardstick.

    Sanusi is evil

  • jay

    So they were out to get this mallam for a long time. Desperados.

  • Afam

    Sanusi has pre-planned action to do this at the tail of his tenure …what more do you expect from a man openly said he would have resigned in 2012 but remained in the office just because of his elders.so whose interest is he serving since 2012? He was queried two times in 2012..NNPC should account for the any money said to be missing and Sanusi should face the law if found guilty should pay for it..

  • Garden-City Boy

    Sanusi is the quintessential awusa man. He has to reason and argue like one. It is not unlike
    the awusa man to sing an illogical “sunrise in the west;sunset in the north” mantra to prove why we must put “power in the hands of yet another northerner”, and why an awusa Robin Hood, caught with his hand stuck in the cookie jar, is not a thief after all. The argument is that we must
    look elsewhere for the “real” thief. Any situation that permits the awusa man to dig his fangs into the nations jugular must be preserved and held sacred. Ask why he argues absurd and the awusa man will wonder what you think the “DOCTRINE OF SETTLED ISSUES” is all about?
    It is all about the freewheeling banditry, unrestricted pillage, the parasitism that must go on ad lib, unchallenged, the big buffet Nigeria must continue to be for the awusa man, and ,of course, the self-arrogated braggadocios impunity….so we can have one great, united, country’s where we live in peace, harmony, equity and justice and move on.That exactly is what the awusa man wants. Once this is not happening, the moment it is challenged, then comes the Boko Haram!
    However, the unfolding revelations prove one thing. This man -Sanusi- is like the prank-playing shepherd boy crying wolf, believing he is too smart for everybody. For all intents and purposes, this Robin Hood blew this whistle on himself. The new details prove solidly that Sanusi’s $20billion NNPC flag is a red herring diversionary aimed to shift focus from his horrendous thievery.
    Predictably, army of beneficiaries of his loot work frenetically to give the catastrophic saga a disingenuous spin: “Ah!!! hear is an anti-corruption activist…a progressive, persecuted and gagged for exposing a corrupt President, whose cronies pocketed $20billion NNPC money…Y-e-e-paripa! Where is this Jonathan of a man? Throw him out of office…shikena!”.
    We now know better. These so-called friends and supporters, these King’s College form 2 friends, these wharf-rats he knew from his “FIRST BANK DAYS’ are all in this putrid mess together for the facilitation banditry on a massive scale. Hand-in-gloves, this mafia squirreled billions out of the CBN, using spurious documentations and deceptive technical lingo. Now, the fire is on the mountain, there is no place to run. Perhaps, had Sanusi not been misled by his cohorts to fire the first salvo and blow his stupid whistle on himself, these details would not
    surface and his accomplices would remain faceless or, at best, keep the straight face, pretending to be saints and ‘progressives’.
    The brat had always carried on as the wiz-kid of sorts, allowing himself to be consumed in his bubble of angelic conceit, unable to even mask his scorn for a President he regards with utter contempt and took for granted. Most unfortunately, this Robin Hood was not wiz kid enough to realize when his goblet got full or when to cut the bungling and fumbling, or quit juggling figures and doctoring the books. It is a self-designation for candidacy in the jail cell. His “CRONIES” (my apologies to Robin Hood) can only do one thing: work towards a bargain for the mitigation jail terms. For it is no longer the question of if, it is that of when. It is doubtful if any awusa parent would ever want to name a child a “sanusi” – word that has quickly assumed synonymous parity
    with thievery.