AFC denies allegation of financial malpractices

THE African Finance Corporation, AFC, has said that its financial transactions in Naira or US Dollars were executed through the Central Bank of Nigeria’s instituted foreign exchange market at the official rates.

This was coming against a claim by a newspaper columnist that CBN may have used Bureaux de Change, BDCs, to execute its dealings with AFC about eight years.

AFC has also corrected the impression of any anomaly in Nigeria’s equity investment in the continental financial institution.

In a letter to Vanguard Newspapers, AFC’s Director of Communications, Lucy Savage, stated that some earlier allegations of such anomalies were investigated and rejected by the Federal Government, following which Nigeria’s membership of AFC was thereafter ratified and the equity investment by the CBN in AFC confirmed by the Federal Government of Nigeria. She stated: ‘‘If there had been any fundamental problems, the government of the day would not have taken these actions’’.

Official channels

According to her, “AFC does not transact and has not transacted any of its currency dealings either in US dollars or in Nigerian Naira through any bureaux de change.

All such dealings are through official channels at the CBN’s prevailing rate. AFC has categorically not been involved in money laundering or round tripping.

The AFC is an international, multilateral corporation with a membership of 14 African sovereign states, investors and an investment footprint in over 26 countries across the continent. The corporation’s mission and mandate is to proactively improve Africa’s economies and the lives of its citizens by financing and developing much-needed infrastructure projects that have the potential to stimulate real change and positive economic growth.

AFC achieved this mission by investing heavily across the African continent in power, roads, transport and natural resources.

The Corporation has successfully grown its balance sheet to US $3.5 billion and has one of the highest international credit ratings on the African continent.

According to Savage, AFC has a significant Nigerian interest while the CBN’s stake currently accounts for 42.5 per cent of total shareholdings.

“Nigeria is AFC’s host country and the location of its headquarters.

Since inception, AFC has invested several billion US dollars in Nigeria, typically averaging 40 percent of its portfolio.

AFC has supported projects in the power, telecommunications, heavy industry, gas and energy sectors. AFC’s activities also support the financial markets and financial institutions in Nigeria.

The corporation has an active pipeline of additional investments that it is considering in Nigeria, in all five of its focus sectors.

In addition to investments, AFC provides advisory services and has advised all governments of Nigeria since the Corporation’s inception, including the current one.”

Source: Vanguardngr.Com

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