Audit: N3.2tr Unpaid Into National Treasury In 2014 | Independent Newspapers Limited
Newsletter subscribe

Latest News

Audit: N3.2tr Unpaid Into National Treasury In 2014

Posted: Mar 15, 2016 at 3:56 am   /   by   /   comments (0)

A sordid picture of financial recklessness in the Dr. Goodluck Jonathan administration was yesterday painted by the Auditor-General of the Federation (AGF), Mr. Samuel Ukura.

He said about N3.2trillion revenue was not remitted to the Federation Account.

Besides, $235.6m earned from gas was diverted to  undisclosed escrow accounts.

Ukura said the whereabouts of $316.2m in NGL Funding Account was unknown because no document was made available to confirm either the receipt or utilisation of the cash.

More shocking was the disclosure by the AGF that payments amounting to about N73,547,759. 436 were made contrary to the established purpose of the funds.

Of the N73.5billion, about N36, 432,423,968.73 was released to the Office of the National Security Adviser (ONSA) for rehabilitation of dams —a job reserved for the Federal Ministry of Water Resources.

The management of the National Assembly allegedly disbursed N9,514,568,222.62, without raising payment vouchers.

The AGF released the shocking details in the nation’s 2014 Audit Report, which was submitted to the Clerk of the National Assembly, Alhaji Salisu Maikasuwa, for consideration by  both chambers of the National Assembly.

The presentation was in line with Section 85(2) (4) of the 1999 Constitution.

The section says: “The public accounts of the Federation and of all offices and courts of the Federation shall be audited and reported on by the Auditor-General who shall submit his reports to the National Assembly; and for that purpose, the Auditor-General or any person authorized by him in that behalf shall have access to all books, records, returns and other documents relating to those accounts.”

In fulfilment of his mandate, the AGF returned a damning verdict of sleaze and mismanagement of funds in 2014 during the administration of ex-President Jonathan.

The report reads in part: “From the examination of NNPC mandates to CBN on Domestic Crude Sales and Reconciliation Statement of Technical Subcommittee of Federation Account Allocation Committee meeting held in January 2014, amount not remitted to FAAC was N3, 234,577, 666,791.35

“Review of sales profile on sale of gas to NLNG ($235,685,861.31) was not paid to the Federation Account but transferred to some undisclosed Escrow Accounts. Relevant documents were not made available for verification.

“Sales profiles ($316, 211,227) on gas in respect of Gas Export Sales due to the Federation were stated to have been paid and received through the NGL Funding Account. No statements or documents were made available to confirm the receipts as well as the utilisation of these payments made through the named account.”

The AGF listed other financial infractions in 2014 by the government to include:

“Withdrawal of N922, 429, 182 from Husked Brown Rice Levy as loan given to Independent National Electoral Commission(INEC) to finance 2015 elections.

“About N7billion Comprehensive Import Supervision Scheme (CISS) Levy was withdrawn as loan given to INEC to finance 2015 elections. Expenditure is contrary to the purpose of the fund, which is to fund Destination Inspection Service Providers.

“The value of the Federal Government and Federation Account Foreign Reserves was not disclosed in Financial Statements as part of the assets of the Federal Government.

“Direct deductions from FGN shares in respect of 1% Police Reward Fund(N5,199, 864, 234). There was no evidence of accounting for the utilisation of this fund.

“Non-disclosure of N10billion expenditure of Subsidy Re-investment (SURE-P) in the Consolidated Development Fund Statement.

“Ministry of Niger Delta. Lots of funds through illegal withdrawals. About N803, 165, 879.78 was withdrawn through three illegal withdrawals as follows: N300m(3/9/2014); N305, 073, 540(17/9/2014) and N198, 092, 339.78( 19/11/ 2014). Beneficiaries not stated/ indicated.

“National Assembly. N9,514,568,222.62 payments were made without raising payment vouchers at the Management Department, which is a violation of Financial Regulation 601.

“Personal advances granted to 112 staff from recurrent votes and 50 members of staff from General Service Vote from July to December 2014 for various purposes all amounting to N1, 162, 009.305”.

The report explained that payments amounting to about N73,547,759,436 were made, contrary to the established purpose of the funds.

The highlights of the diversion of N73.5billion to other purposes are as follows:

  • N36,432,423,968.73 was released to the Office of the National Security Adviser (NSA) for the rehabilitation and construction of dams instead of the Federal Ministry of Water Resources.
  • N2,894,531250.00 was spent on the procurement of hand sanitizers for schools and critical public places.
  • N31,324,952,239.87 was paid for subsidy on fertilizer and youth employment in agricultural programmes.
  • N2,395,851,978.00 was approved for Group Life Assurance Premium for Armed Forces budget in 2013, but not cash backed.
  • N500,000,000 payment for agricultural programmes.
  • N500million payment for schools agricultural programmes

“These were variances with the purpose of the fund. No evidence of these lines of expenditure in the 2014 Appropriation Act,” the AGF said in the report.”