Senate Probes Shippers’ Council’s Spending

The Senate committee on public  accounts has taken a swipe at the  Nigerian Shippers Council for its huge spending on recurrent expenditures, even as it probes the N9.916Billion that was allocated to the agency between 2003 and 2008.The Shippers’ Council is funded from the seven per cent port development levy which is payable by importers on all consignments that arrive the country through the seaports.
The Senators’ displeasure became manifest when the executive secretary of the Council, Capt. Adamu Biu appeared before the Senator Ahmed Lawan-led committee last week in Abuja. 
After listening to Captain Biu’s presentation, the committee expressed shock that about 80 per cent of the council’s annual allocations go into recurrent expenditures.
After perusing the documents that were submitted by the Shippers’ Council, the committee wondered why it spent a whopping N500Million on travels alone in 2008. 
Other observations were that the council expended about N57Million and N58Million respectively in 2004 and 2005 on enlightenment, workshops and seminars.
The committee also wondered why a whopping N24m could be spent on telephone and telegrams- related issues in 2003 and expressed shock that by 2007 the valued had soared to N71Million.
However, the committee chided the Council for embarking on spendings outside what the National Assembly appropriated to it and queried the justifications for the spendings and the council’s continued relevance.
Specifically, it expressed surprise that about N77Million was taken from its allocation to augment shortfalls in appropriation for salaries of staff.  ”You are not supposed to just go and dip your hand into the account because there is money there and use without getting the approval of the National Assembly either through supplementary budget or virement. ”You have to go through the normal process to get the money and you have to give explanations for spending the money that way and do not continue the practice any more”, he warned.
But, rising in stout defence of his agency’s relevance, Captain Biu informed the law makers that the Nigerian Shippers’ Council was performing its roles in accordance with the Act that set it up in 1978.
 According to the Shippers’ Council boss, it is wrong to perceive the agency as non-performer largely because it does not execute capital projects. He nevertheless explained that the agency is involved in negotiations on behalf of Nigerian shippers and also performs advisory roles for the federal government on all shipping-related matters.