Sunday, 30 August 2015

Ogun Lauds FG Over TSA Directive

The Ogun state government has commended the federal government over its directive that all states in the country should operate one single account.


President Muhammadu Buhari, as part of his plans to rid the country of corruption, directed that all Ministries, Departments and Agencies (MDA’s) at the federal and state levels in the country should operate the Treasury Single Account (TSA) system, and this has caused a lots of controversies in some quarters.


Governor Amosun

Governor Ibikunle Amosun of Ogun state



In a statement issued on Friday August 27, the secretary to the state government, Barrister Taiwo Adeoluwa, noted that the scheme is a welcomed development and hinted that it has been in operation in the Ogun state since 2011.


Adeoluwa pointed out that the Ibikunle Amosun-led administration commenced the operation of the TSA system as part of its re-engineering programme when it came on board in 2011.


The statement reads in part: “Ogun state government through the office of the accountant-general in December, 2011 issued a treasury circular which requested each commercial bank to open and operate a single account with the state government, with sub-accounts for expenditure and revenue.


“This is in disparity with the previous situation in which over 300 bank accounts held at various bank branches were in active operation in the individual ministries, departments and agencies of government,” the SSG said.


He explained that by this development, the state government deployed a technology which enabled it to view all balances online, real time and moved funds electronically as and when required.


Highlighting the benefits of the initiative, he revealed that government discovered many dormant accounts whose balances were recovered, adding that, it also reduced the need for short term borrowing with resultant savings in interest payments.


READ ALSO: ‘President Buhari Trying To Steal Achievements Of Jonathan’


The Lawyer further stated that the TSA also enhanced reconciliation, control and reduction in revenue suppression as well as allowed effective utilization of periodic cash surpluses.



Adeoluwa however assured that government is committed to continuous improvement of all its operations and currently considering opening an account with the Central Bank of Nigeria (CBN) as part of the programme.


 


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