A NIGERIAN government agency kept public funds in staff’s private bank accounts, thereby violating Paragraph 713 of the 2009 Financial Regulations. It is very common for government officials to keep public funds in their own personal accounts. However, it runs foul of the law and can even send culprits to jail.
This explains what the Auditor-General of the Federation, Mr. Andrew Onwudili, highlighted in his 2022 report, where he alleged that a little known Environmental Health Registration Council (EHORECON) allowed staff members to keep government funds in their personal bank accounts.
“Twenty-four (24) payments totalling N22,944,565.16 were made into private accounts of some members of staff of the Council from the Constituency Projects Fund Account. There was no evidence of utilisation of the funds paid into the private accounts of the staff members or explanations on the purpose for the payment of such amount into the individual accounts,” the AGF noted.
The nation’s chief auditor noted that the agency’s payment of such public funds into private bank accounts contravened extant regulations, stating that the above anomalies could be attributed to weaknesses in the internal control system at EHORECON, which was and is still led by its Registrar, Dr. Yakubu Mohammed Baba.
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The management of the agency did not respond to the AGF’s query. The nation’s chief auditor recommended that the registrar account for the N22.944 million to the public accounts committees of the National Assembly and also remit the said amount to the treasury. He must also forward the evidence of remittance of the money to the treasury to the public accounts committees of the National Assembly. Failure to do so would attract sanctions in line with the provisions of Paragraph 3106 of the Financial Regulations 2009.
Suspicious contracts
The AGF further said that the agency or council awarded 6 contracts for consultancy services for the development of modern abattoirs in Kebbi State and the supervision of 7 projects in Kebbi, Jigawa, and Abuja to 4 contractors on September 29, 2021 and November 25, 2021 at the sum of N12.030 million.
“These consultancy contracts were for preliminary activities like production of bills of quantity, architectural design, structural designs and electrical designs for the main contracts as well as supervision. The basis for arriving at the consultant’s sum was not provided for audit to confirm compliance with the standard scale of fees for consultants in Nigeria,” the AGF said, noting that the agency did not provide the necessary documents for audit examination, and the payments would not be accepted as legitimate.
Contract irregularities
The AGF also alleged irregularities in the award of contracts totalling N404.480 million. He said payments were made for contracts totalling N404,480,531.24 to companies without adequate registration profiles, noting that most of the companies were not registered on the National Database of the Bureau of Public Procurement.
“Some companies used two names, a pointer to non-adherence to due process in awarding the contracts, and invalid Tax Clearance certificates were attached to the payment vouchers of some of the contracts.”
Contracts without evidence of performance
The AGF also disclosed that, “Payment totalling N103,250,000 wee made to three contractors without evidence of performance.” The nation’s chief auditor said that the agency did not provide any evidence to show that the contractors were involved in any capacity-building activity,” as “names of the contractors were not on the banners and flyers of the events as facilitators.”
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The management of the agency did not respond to the AGF’s query. The AGF recommended that the registrar account for the N103.250 million to the public accounts committees of the National Assembly and also remit the said amount to the treasury. He was also to forward the evidence of remittance to the public accounts committees of the National Assembly. Failure to do so would attract sanctions in line with the provisions of paragraphs 3104 and 3106 of the Financial Regulations 2009.
Allegations against other agencies
Economy Post reported that the AGF had also accused the management of the National Insurance Commission (NAICOM) of deliberately understating revenue to the tune of N4.047 billion, while also making questionable payment for vehicles.
The AGF also accused the National Pension Commission (PenCom) of paying N7.261 billion to 2,863 unidentified beneficiaries of deceased Federal Government employees in 2022 through different Pension Fund Administrators (PFAs) without details.
The National Assembly Service Commission was equally accused of inflating a contract worth N11.647 billion, while paying a contractor without approval.
The AGF further alleged that the Ministry of Mines and Steel Development committed multiple acts of fraud, ranging from an inability to account for over N5 billion to the payment for a road contract without evidence of execution.
The AGF likewise accused the Federal Capital Territory (FCT) Police Command of booking 42 AK-47 rifles and pistols as well as 737 live ammunition in 2 years without returning or re-booking them.
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The office said police personnel under the command booked live ammunition and firearms from the FCT CID between 2021 and 2022, but its failure to return or re-book them made it difficult to verify the existence or otherwise of such arms.
The AGF picked holes in contracts awarded by the National Agencies For Prohibition Of Traffic In Persons (NAPTIP) IN 2020, describing them as ‘anomalies.’
He disclosed that a contract valued at N21.879 million was awarded to a contractor for sensitisation on the effects of child labour in Lokoja/Koto Federal Constituency, Kogi State.
