The Office of the Auditor-General of the Federation has 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.

According to the AGF’s 2022 report seen by Economy Post, NAICOM reported N9.241 billion as revenue in 2022 on its source documents. However, the agency reported a different figure – N5.193 billion – in its 2022 financial statement, leaving questions over the whereabouts of the sum of N4.047 billion.

The AGF pointed fingers at an alleged collusion between NAICOM and an external audit firm, stressing that the situation led to the loss of government revenue and the under-remittance of revenue into the Consolidated Revenue Fund.

But NAICOM management contradicted the AGF’s claim, stressing that, “Audit only captured operating fund of the agency without considering the education fund which was reported separately in the sum of N2,542,057,034 and Security and Insurance Development Fund in the sum of N1,694,704,689.”

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The agency claimed that “adding the two figures as reported in the financial statement for the year under review shows that no amount was understated. This is evident in pages 25, 28 and 31 of the financial statement.”

However, the AGF was adamant, saying that the explanation wasn’t satisfactory. The AGF recommended that the chief executive officer of commissioner for insurance should forward the trial balances, general ledger and audited accounts of 2020-2022 to the Public Account Committees of the National Assembly.

The AGF further noted that failure to remit the missing revenue to the treasury should attract sanctions relating to gross misconduct as specified in paragraphs 3112 and 3129 of the Financial Regilations (2009).

Questionable payment for vehicles

The AGF further alleged that NAICOM paid N247.999 million to R.T. Briscoe Nigeria Limited for the supply of 2 units of 2021 Toyota Hiace and 6 units of Toyota Hilux model. The amount was paid to the company on March 31, 2022 thrugh Remita, revealing that double payment was made for the items.

“The double payments implied the loss of N247,999,995.96 to the government. The procured vehicles were not recognised as itens of Property, Plant and Equipment in the Audited Financial Statement of the Commission, thus, misleading users of the financial information.”

The AGF recommended that the CEO of NAICOM justify the duplicate payment of N247.999 million to the Public Account Committees of the National Assembly and must provide bank statements relating to the payments. The nation’s achief auditor said failure to do so or recover N247.999 million and return it to the treasury must attract sanctions to the CEO of the insurance agency, Mr Olorundare Sunday Thomas, was NAICOM’s CEO at that time.

“Paragraph 112 (f) of the Financial Regulations (2009) states that the function of accounting officers shall include ensuring accurate collection and accounting for all the public moneys received and expended.”

Pollice, Pencom, Ministry of Mines

The AGF also accused 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.

The AGF 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.

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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 chief auditor also accused the National Assembly Service Commission 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.