The Executive Secretary of the Tertiary Education Trust Fund (TETFUND), Mr Sonny Echono, has said that contrary to speculation, there is no missing N2. 3billion in the agency even as he disclosed that over 137 students on foreign scholarship had absconded.
Echono gave the explanation, on Tuesday, when he appeared before the House of Representatives Ad-hoc Committee, investigating alleged missing fund in the agency. The House had last week adopted a motion to investigate the alleged missing of N2.3 trillion generated from the Tertiary Education Tax by the Fund from 2011 to 2023.
Nevertheless, the Executive Secretary noted that the total fund generated by
from education tax between 2011 to 2022 was N2.476 trillion. He stated that out this sum, the Federal Inland Revenue Service (FIRS) retained N99 billion as cost pf collection.
Echono added that the Federal Government borrowed N371.3 billion from the Fund , in 2013, out of which it has paid N48 billion so far.
According to him,“We do have challenges but these challenges and they have nothing to do with fraud. They are basically issues of governance and I would start by explaining what the challenges are.
“First in absolute terms so we have a clear picture of what we are talking about. From the year 2011 to 2022 total education tax collected by the FIRS as presented to us in their documentations, as confirmed from the statements we received from the Central Bank of Nigeria (CBN) which we have also attached for the Committee to peruse is N 2, 476, 733, 181, 679.75.
“Out of this amount, a total sum of 99 billion were retained by FIRS as cost of collection leaving a balance of 2.37 trillion. So the total fund that had hit education pool account at the CBN is 2.3 trillion from 2011 to date
“However the FG over time in the course of governance and to meet pressing needs has borrowed funds from these accounts. The total borrowing is approximately N371.339 billion. These borrowings happened over time and most of the borrowings started in 2013.”
Echono further stated that “The FG acknowledges that it was borrowing and we have full documentation of this and all the correspondences that accompanied it. Other borrowings since then are being tabulated and given to you. We did secure presidential approval for the refund of this borrowing since 2015 and the FG has been refunding albeit in piecemeal.
“To date total borrowing is over N371 billion. But total repayment to this date is about N48 billion. Last year 12.8 billion was given to us, this year another 12.89 billion was given to us.
They are just paying. God knows how long this will take to defray the principal amount.”
Meanwhile, the Executive Secretary disclosed that over 137 students sponsored abroad by the fund absconded. Echono spoke on Tuesday when he appeared before the House of Representatives Ad-hoc committee investigating the alleged mismanagement of N2.3tn tertiary education tax by TETFund.
He stressed that the scholars who were sponsored by TETFund for “higher education” abroad refuse to return to the country after completing their programmes.
The Executive Secretary said, “Some of the scholars that have been sponsored, unpatriotically when they go, they enjoy our scholarship, acquire a higher degree, then refuse to come back, it has become a major crisis.
“The scholarship requires that you will come back. It is required that you have a guarantor and in many cases, the guarantor has suffered undue hardship because when you disappear, we hold the guarantor to pay all the money expended on your behalf but that has not been effective.”
Echono said TETFund is working with stakeholders for “stringent and effective measures” to be taken against those who refuse to return to the country for Nigerians to benefit from their expertise.
“We believe that in a system where we work with our embassies and the institutions, we can enforce the repayment for those who insist they will not come back,” he said.
He added that if the scholars who don’t want to return to the country refuse to repay the money expended on their programmes, they will be declared persona non grata.
Echono said, “We will write to the embassies and they will make it available to those countries and they will not be able to get jobs. They will be seen as fugitives of law from their countries.
“We may have to take that hard stand because the numbers are alarming. We just checked about 40 institutions and over 137 absconders and the review is ongoing.
“It is a huge number that we cannot afford and so we will be seeking your support to strengthen some of the existing regulations to ensure that those who benefit from this programme must come back.
“We are not against people looking for greener pastures but do so on your own, not through our scholarship or our sponsorship.”
The Executive Secretary said TETFund may suspend foreign scholarship due to the exchange rate crisis.
Echono said that some of the taxes are paid to TETFund in foreign currencies at the account domiciled with the Central Bank of Nigeria but when fees are to be paid for scholars abroad, the apex bank insists on TETFUND sourcing Forex by itself.
He added, “We operate a system where our forex is being sold on our behalf at an official rate and we apply like anybody else to get it, sometimes it leads to additional cost.
“Currently as I speak, we are in consultations with all our stakeholders to suspend foreign training for a year or two.
“This is because of the recent exchange rate adjustments. We are unable to continue based on our disbursement guidelines.
“The money we allocated in naira cannot cover the dollar requirement for training. For those who are currently there, we now need more naira to pay for the dollar that is required for their annual fees. We are trying to put a hold.”
He said most of our training will now be done locally through “our experienced, first-generation universities and other specialised universities” in the country.
“This way we can retain our resources in-house and cope with the change of foreign exchange variation,” he added.
Echono also said the federal government was owing TETFund N371.3 billion out of which it has repaid N46 billion so far.
However, Oluwole Oke, chairman of the committee, said the probe is not to witch-hunt, adding that the lawmakers are out to stop the misuse of public funds.
Source: The Sun
