AN obscure government agency, Benin Owena River Basin Development Authority (BORDA), located in Edo State, disbursed $16,854 and another N18.668 million to two staff members as travel estacode for 8 days.
Hence, to travel and stay abroad for 8 days, the agency, which is not popular among Nigerians, sought and disbursed $8,427 and N9.333 million to each person. This means the agency assumed that either of the two would spend $1,053 and N1.17 million each day.
Economy Post interprepeted the phenomenon from the 2022 Auditor-General of the Federation (AGF) Report, which also noted that there was also an overpayment of the dollar component of the estacode. The report did not specify when the incident happened, but it is assumed that it took place in 2022.
In 2022, under Mr Godwin Emefiele’s leadership in the Central Bank of Nigeria (CBN), getting dollars from the official market was nearly impossible. Many Nigerians sourced their dollars from the parallel market. The exchange rate at the parallel market was messy, sometimes hovering between N700 and N800 per dollar.
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The AGF revealed that the Minister of Water Resources and the Secretary to the Government of the Federation approved $15,448 and N18.668, highlighting that the dollar component was inflated to $16,854.
“The sum of $16,854 was paid to two (2) staff of the Authority as eight (8) days estacode allowance and others. The amount approved for the eight (8 days by the Honourable Minister of Water Resources and the Secretary to the Government of the Federation was $15,448 and N18,668,560.
“The payment resulted in an overpayment of the foreign currency component of the estacode by US$1,406, which is equivalent to N1,043,252 at N742/$US$ exchange rate,” the AGF said, noting that the anomalies could be attributed to the weknesses in the internal control system in BORDA, which led to the loss of public funds.
The management of BORDA did not respond to the AGF’s query over the whereabouts of the money, prompting the nation’s chief auditor to recommend that the managing director of BORDA account for the $1,406 to the publuc account committees of the National Asssembly, while recovering and remitting the money to the treasury. Failure to do so would attract sanctions related to irregular or wrong payment or poor cash management as specified in paragraphs 3106 and 3115 of the Financial Regulations (2009).
Saliu Osifueme Ahmed was the Managing Director/Chief Executive Officer of BORDA at that time.
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.
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.
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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.
The AGF also alleged that the Environmental Health Registration Council (EHORECON) kept public funds in staff’s private bank accounts, thereby violating Paragraph 713 of the 2009 Financial Regulations.
The office further said that the Vice-Chancellor of Michael Okpara University of Agriculture, Umudike (MOUAU), Prof Professor Maduebibisi Ofo Iwe, paid for jobs that were not executed.
