Audit Report: CSO urges NASS to probe N3.5tr unaccounted for by MDAs

Paradigm Leadership Support Initiative (PLSI), a non-profit organization with a mission to advance accountability and foster good governance, has appealed to the Public Accounts Committee (PAC) of the National Assembly to thoroughly investigate the N3.5 trillion unaccounted for by ministries, departments, and agencies (MDAs) of the Federal Government.

The amount, which was uncovered by the 2021 Audit Report by the Office of the Auditor General for the Federation (OAuGF), cuts across virtually all the MDAs.

PLSI, on its official X handle on Wednesday, said these financial irregularities weaken governance and hinder national development and called on the Public Accounts Committee to investigate these findings and ensure that these funds are recovered for the government.

The report showed that about eight MDAs failed to recover outstanding revenue and debts amounting to N2.9 trillion, with the Nigerian Bulk Electricity Trading Plc (NBET) accounting for the lion’s share of N2.89 trillion.

Thirty-one MDAs made payments valued at N167.6 billion for jobs and contracts not executed, the bulk of which was by NBET Plc, which made payments of N100 billion for contracts not executed.

It was also discovered that 19 MDAs incurred expenditures worth N122.5 billion which they could not account for, of which NBET again made N111.6 billion of such expenses.

NBET was also found culpable of making N96.2 billion in irregular payments out of N115.8 billion of such payments discovered in 64 MDAs.

The report further reveals that N7.386 billion were irregularities in the award of contracts by 32 MDAs. The Rural Electrification Agency, Abuja, posted the highest infraction of N2.118 billion.

It further showed that 21 MDAs did not deduct N2.636 billion as tax from payments to several beneficiaries, while 11 MDAs failed to remit N11.561 billion of tax deducted from taxpayers to relevant authorities. Nigerian Security Printing and Minting Company Plc recorded the highest sum of N10.393 billion.

Forty MDAs paid out N8.312 billion without support documents. The Presidential Amnesty Programme led with N1.529 billion. Eight MDAs misapplied the sum of N663,854,877.01, with the University of Benin Teaching Hospital, Benin City, being the biggest culprit with N253,532,050.49. Twenty-four MDAs awarded contracts worth N20.334 billion without following due process, with the Nigerian Security Printing and Minting Company Plc awarding the bulk of those contracts valued at N14.136 billion.

The report also reveals that the Federal Inland Revenue Service did not recover about N69.928 billion in tax liabilities from 26 of its outstation offices.

The Auditor General informed that the attention of PAC has been drawn to each of these issues through recommendations, including sanctions, with a view to stemming the tide.

He noted that the essence of bringing these issues together was to further assist the PAC and other stakeholders in seeing at a glance the amount the report seeks to help the federal government recover.