OAuGF queries FHA over N2.57 billion unauthorised expenditure

The Office of the Auditor General for the Federation (OAuGF) has directed the management of the Federal Housing Authority (FHA) to account for N2.57 billion it spent without authorisation.

The directive is contained in the Auditor General for the Federation’s annual report on non-compliance and internal weaknesses in ministries, departments and agencies (MDAs) of the federal government for the year ended December 31, 2021, submitted to the National Assembly.

The report said the management of the FHA invested the sum of N2.5 billion in FHA Homes Limited, a mortgage bank wholly owned by FHA without returns. The OAuGF discovered that there was no evidence of approval of the said investment from relevant authorities, especially the Accountant General of the Federation (AGF).

It was also discovered that FHA spent N10 million to engage external solicitors without approval from the Attorney General of the Federation (AGF) contrary to paragraph 2(a) of the establishment circular Ref. No. SGF/PS/CIR/625/1 of July 16, 2003.

The circular states: “Approval of the Honourable Attorney General of the Federation should be obtained before external Solicitors/Advocates are hired and legal fees agreed upon by ministries and their parastatals/agencies for any service rendered.”

The agency also spent another N7l.96 million as payment for life assurance claims from overhead.The report also indicted the management of FHA over irregular payment of N2.94 million for social events, non-retirement of N10.5 million cash advances as well as store items valued at N36.1 million that was not taken on ledger charge.

The report noted that the management of FHA failed to respond to any of the queries. For failing to respond to the queries, the management of the authority was directed to recover the said sums and remit the same to the treasury and provide evidence of such remittance to the Public Accounts Committee (PAC) of the National Assembly or face necessary sanctions.

The FHA is a government agency responsible for providing affordable housing to citizens. It is responsible for developing and constructing public housing estates and schemes across the country.It is also vested with the responsibility of mortgage financing to enable individuals and families to own their own homes.