EXPERT ADVISES FEDERAL GOVERNMENT TO FOLLOW DUE PROCESS IN CLAIMING DORMANT DIVIDENDS
Uploaded by Michael George on January 11, 2021
The federal government has been advised to observe due process in its plan to use unclaimed dividends and dormant bank accounts to finance its expenditure.
A Financial Expert, Mr Okechukwu Unegbu, gave the advice in an interview with newsmen in Abuja.
Mr Unegbu, a past President of Chattered Institute of Bankers, said that the idea of the government acquiring the funds would deny the owners their right of ownership, so government should use the option of investment outlets to invest such dividends in bonds, and make them profitable.
According to Mr Unegbu, the law provides that if after twelve years the dividend remains unclaimed it should be reverted back to the company that issued the shares.
The financial expert suggested that government should use government security to acquire them instead of using a trust fund, saying that the banks were to blame for leaving some accounts dormant instead of contacting next of kin of their owners.
He added that after fulfilling its tax obligations to the federal government over the years, the companies reserved the right to keep the dividend.
The Federal Government recently announced its decision to securitise unclaimed dividends and dormant account balances of up to six years.