SystemSpecs opens up to Buhari

The firm also said they shared proceeds of the 1% processing fee, with various banks and the Central Bank of Nigeria (CBN) according to an agreed ratio of 5 %, .4% and 1% respectively.

 

The Treasury Single Account(TSA) account saga has taken another twist, as more revelations are unfolding, regarding the 1% processing fee charged by SystemSpecs, owners of Remita.

SystemSpecs has reportedly written a letter to President Muhammadu Buhari, explained that they did not make N25b as stated by Senator Dino Melaye.

The firm also said they shared proceeds of the 1% processing fee, with various banks and the Central Bank of Nigeria (CBN) according to an agreed ratio of 5 %, .4% and 1% respectively.

An excerpt of the letter, signed by the Managing Director, Mr. John Obaro and dated November 6, 2015 reads “Your Excellency, we are aware that you must have heard series of reports around the 1% processing fees chargeable on e-Collections of Government receipts. We will like to provide some background on these issues sir.

“System Specs was engaged to provide the Payment Gateway for TSA in 2011. While the payment leg of TSA commenced in January 2012, the collection component did not start as scheduled due to the resistance from a number of quarters and the absence of the political will to push this through.

“In 2013, CBN and OAGF setup a multi-stakeholder implementation committee and organised a joint seminar with key stakeholders, including banks, to agree formalities for commencement of e-collection.

“The Banks proposed a fee of 5% to compensate for the fact that they would no longer keep float.

“The implementation committee however recommended 2.5% after negotiation with the banks.”

“The then AGF later approved 1% as processing fee, which was in turn communicated to all the stakeholders through CBN in December 2013. Subsequently, we executed a contract with CBN and other stakeholders involved on the provision of services to support TSA."

The Managing Director also explained that "Based on the increased scope of the TSA project, following your directive in August 2015 for all MDAs to join the scheme, we had highlighted the need for a stakeholder meeting to discuss the TSA e-collection fees. This was communicated to both CBN and OAGF.

“Instead of an invitation for a stakeholders meeting as requested, we received a directive from the CBN Governor to refund all TSA e-collection fees earned to date and to suspend all charges on the platform.

“System Specs has since complied fully with this directive and refunded all monies earned to date to CBN. This we did in good faith and without prejudice to avoid distractions that could becloud the bigger potential of the TSA project for our country.

“While we await clarification from OAGF/CBN on the way forward, we have since suspended all TSA e collection fees on the platform. This means that none of the TSA collection parties/channels are earning any fees for providing services to Government."

“This position is however not sustainable as the collection partner banks are threatening to suspend FGN TSA collections. This would clearly be playing into the hands of those who do not wish this initiative to succeed.

“We understand the strategic importance of the TSA project to this administration and the country at large. We have demonstrated good faith and continued commitment to the project in the last four years to deliver on our mandate.

“We will continue to do all within our power to bring the project to full term.

“Your Excellency, we would appreciate your kind and urgent intervention to ensure a speedy resolution of this matter before the banks stop collections," SystemSpecs said.

You will recall that Senator Dino Melaye first raised the alarm that Remita, the official e-payment agent, made N25b from processing the Treasury Single Account payments.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Police invade kidnappers' hideout, arrest 3 suspects, rescue victim

Buhari salutes Bazoum as Niger Republic marks 61st Independence Anniversary

Gov Matawalle receives APC membership card

Gov Zulum denies visiting Abba Kyari, says he doesn’t know his residence

Sanwo-Olu says Tinubu is hale and hearty

FEC approves $11.17bn rail project to link all coastal cities

PDP crisis: Secondus urges respect for party constitution

Police arrest notorious killer cultist, Ewe in Epe

Delta mulls poverty alleviation programme for less privileged