FRCN in trouble over unrecovered advert debts of N187m

The Federal Radio Corporation of Nigerian (FRCN) is in trouble with the upper chamber of the National Assembly over unrecovered advert debts of N187 million.

The Senate Committee on Public Accounts has sustained the query of Office of the Auditor General of Federation against the agency, over its failure to recover the money.

The Chairman of the Committee, Senator Mathew Urhoghide, sustained the query when he was not satisfied with the defense of the Director General of the FRCN, Mansur Liman before the panel.

The query reads: “Financial records maintained at Ibadan zonal office (FRCN Ibadan) revealed huge unrecovered advert debts of ₦120,099,666.88 (One hundred and twenty million, ninety-nine thousand, six hundred and sixty-six naira, eighty-eight kobo) owed to the Corporation as at December 2016, as a result of services rendered on credit to some companies by the zonal office.

“Contrary to the provisions of Financial Regulations 224 and 230 (2009), which stipulates that all services rendered by the government must be paid for immediately on completion of the service and where possible, payment may be made in advance; and where payment is outstanding, a system of follow-up by means of reminders and final demand should be made.

“Unrecovered advert debts of ₦67,842,011.50 (Sixty-seven million, eight hundred and forty-two thousand, eleven naira, fifty kobo) which were in respect of services provided on credit to some companies by the Lagos Operations of the Corporation were being owed to it as at December 2016; and majority of them have been outstanding for more than five years.

“Requests for the companies’ files and evidence of following due process before rendering the services as well as agreements between the Corporation and the purported debtors were not honoured. The majority of these debts have been outstanding for more than five years,” the query stated.

Responding to the query before the committee, the Director General of FRCN claimed that the outstanding of the debts came when the indebted companies went bankrupt, which led to change of business name.

He added that when the FRCN approached the new company to pay the debt, those companies declined because it was not part of liability inherited, revealing that N28 million has been recovered so far from the debtors.

He said the service of a legal outfit has been engaged to recover the debt.

But, when the Chairman of the Committee demanded for advert schedule of the debtors, the Director General of FRCN failed to present it to the committee to see, adding, “we have it but it is not here with us.”

The Chairman thereafter sustained the query until they are able to present the schedule of the debtors to the Committee to see.

(Daily Independent)