The Socio-Economic Rights and Accountability Project (SERAP) has requested the administration of President Muhammadu Buhari to launch an immediate probe into the allegation that a total of N106 billion public funds are missing from 149 ministries, departments and agencies (MDAs) as documented in the 2018 annual audited report by the Auditor-General of the Federation.
According to the report of the Auditor-General of the Federation, 35 MDAs failed to remit N48,551,274,468.35 of generated revenue, and N5,418,780,747.23 of statutory deductions including value added tax, withholding tax, and stamp duties in 2018, thereby depriving the government of the much-needed fund to pursue its agenda.
Similarly, 25 MDAs were said to have awarded “contracts amounting to N18, 369,595,564.47 in violation of the Public Procurement Act (PPA), 2007, including disregard to due process, irregularity in payment for contracts, excessive pricing of procurements, payment for services not rendered, and payment in full for uncompleted projects.”
Besides, the report also alleged that another N23, 486,881,920.49 was spent by 48 MDAs without following the rules and regulations relating to spending procedures and policies, and without any documents to support such spending.
Similarly, the report disclosed that 11 MDAs paid N8, 389,842,637.88 for store items that were not taken on store charge which the Auditor-General feared that the items may be ‘missing/misappropriated.’
In addition, 18 MDAs were said to have paid N354, 223,774.67 as cash advances to staff without duly retiring the money, contrary to the Financial Regulation 1405 and Financial Regulation 1420.
According to the report of the Auditor-General, the ‘unretired cash and personal advances may be a deliberate attempt to divert public funds for personal use.’
Besides,12 MDAs allegedly spent N371,750,964 as cash advances, above the approved threshold of N200,000.00, contrary to the Treasury Circular Ref. No. TRY/A2&B2/2009OAGF/CAD/26/V, which requires all local procurement of stores and services costing above N200,000.00 to be made only through the award of contracts.”
Call for probe
SERAP is consequently pushing for investigation and prosecution of anyone suspected to be involved in such fraud if there is sufficient admissible evidence with any missing public funds fully recovered.
This is as the organisation is urging the federal government to direct the Minister of Finance, Budget and National Planning to create a system of public announcements to name and shame the indicted 149 MDAs, including those that reportedly failed to remit over N55bn of their revenue; awarded contracts of over N18bn for services not rendered; and spent over N23bn without any supporting documents.
In the letter dated April 17, 2021 and signed by SERAP Deputy Director, Kolawole Oluwadare, the organisation said: “The reported missing public funds reflect the failure of the indicted MDAs to ensure strict compliance with transparency and accountability rules and regulations, and the failure of leadership of the MDAs to foster institutions that uphold the rule of law and human rights.”