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Commission seeks tougher sanctions for issuers of dud cheques

By on November 20, 2014

The Nigerian Law Reform Commission (NLRC) has called for tougher sanctions for issuers of dud cheques.

The chairman of the commission, Professor Oserheimen Osunbor, who made this call at a workshop on the reform of the Dishonoured  Cheques (Offences) Act, said the law was no longer serving the purpose for which it was enacted.

The Central Bank of Nigeria (CBN) had, in a circular of July 5th, 2013 to banks and Other financial institutions on dud cheques,  said that between January 2012 and December  2012, over 167,507 dud cheques with a total value of N166 billion were processed by deposit money banks.

Osunbor, who gave a brief history of the Act, said the Dishonoured
Cheques Act which came into force on May 20, 1997, was passed to curb the issuance of dishonoured cheques in Nigeria which he said became prevalent during the Udoji Award that followed the oil boom.
Osunbor said: “Thirty-seven years since the commencement of the Act, the issuance of dishonoured cheques remain on the  increase in Nigeria especially in recent times.”

He said research conducted by the commission revealed that despite the existence of the Act, incidents of dishonoured cheques still abound.
Osunbor recommended that the law should be amended to reflect additional grounds for dishonouring a cheque.

He also suggested that the penalties for issuing dud cheques be reviewed upward while provisions to compensate victims of dud cheques should also be included.

The Attorney General of the Federation and Minister of Justice, Mr. Bello Adoke, SAN, said there was an urgent need to amend the Act.
The minister who was represented by one of his assistants, Mr. Bola Odugbesan, said t a reform of the law would enhance the CBN Cashless/Cash-lite policy by ensuring a reliable and secure payment system through the issue if cheques.

Adoke said the reform of the Dishonoured Cheques Act was in tandem with the President Goodluck Jonathan administration’s  effort to reform the economic sector as well as activate institutions to promote efficiency, good governance and the war against corruption.

 

[ThisDay]