The Federal Government is set to prosecute of 33 of its agencies over non-remittance of N450 billion revenue, a sum generated between 2010 and 2015.
This position was disclosed yesterday by the Minister of Finance, Kemi Adeousun, during a news conference in Abuja.
Adeosun said an audit had been carried out on the agencies in compliance with the Fiscal Responsibility Act, FRA, 2007. According to her, a Demand Notice has been issued to the affected agencies for their Payment Plans, which must be complied with within seven days. Adeosun said that a recovery committee, headed by the Accountant-General of the Federation had been set up to recover the money from the agencies.
According to her, a Demand Notice has been issued to the affected agencies for their Payment Plans, which must be complied with within seven days. Adeosun said that a recovery committee, headed by the Accountant-General of the Federation had been set up to recover the money from the agencies.
Adeosun noted, however, that some of the agencies had returned various sums, and that N640 million had been received from the Nigeria Shippers Council, NSC.
“The total independent revenue generated between January and October, 2016 was N272.03 billion but there is a projected increase to N811.03 billion as we recover amounts owed,’’ she said.
Agencies listed in this development include Nigerian Communications Commission, NCC; Nigerian Ports Authority, NPA; Corporate Affairs Commission, CAC; Nigerian Maritime Administration and Safety Agency, NIMASA; Nigerian Export-Import Bank, NEXIM; Federal Airports Authority of Nigeria, FAAN; National Open University of Nigeria, NOUN; Nigerian Railway Corporation, NRC; West African Examination Council, WAEC; Joint Administrations and Matriculation Board, JAMB; and National Hospital, Abuja. Also affected are Industrial Training Fund, ITF; National Broadcasting Commission, NBC. Nigeria Television Authority, NTA; Nigeria Immigration Service, NIS; Federal Mortgage Bank of Nigeria, FMBN; National Teachers Institute, NTI; University of Lagos Teaching Hospital, LUTH; University College Hospital, Ibadan, UCH; National Orthopaedic Hospital, Igbobi, Lagos; University of Lagos, UNILAG; University of Nigeria, Nsukka, UNN; Ahmadu Bello Teaching Hospital, ABTH; National Agency for Food and Drug Administration and Control, NAFDAC; National Centre for Women Development, NCWD; Ahmadu Bello University, Zaria, ABU; Nigeria Shipper’s Council, NSC; University of Benin, UNIBEN; University of Ilorin, UNILORIN; University of Ibadan, UI; and Bayero University, Kano, BUK.
Others are: Nigeria Television Authority, NTA; Nigeria Immigration Service, NIS; Federal Mortgage Bank of Nigeria, FMBN; National Teachers Institute, NTI; University of Lagos Teaching Hospital, LUTH; University College Hospital, Ibadan, UCH; National Orthopaedic Hospital, Igbobi, Lagos; University of Lagos, UNILAG; University of Nigeria, Nsukka, UNN; Ahmadu Bello Teaching Hospital, ABTH; National Agency for Food and Drug Administration and Control, NAFDAC; National Centre for Women Development, NCWD; Ahmadu Bello University, Zaria, ABU; Nigeria Shipper’s Council, NSC; University of Benin, UNIBEN; University of Ilorin, UNILORIN; University of Ibadan, UI; and Bayero University, Kano, BUK.
Adeosun further said that a circular on the inclusion of 92 additional corporations, agencies and government-owned companies to the schedule of the Act had also been issued. According to the minister, the exercise is an ongoing process and all agencies will eventually be audited. FG forwards audit reports to EFCC Mrs.
Adeosun said that some of the audit reports had been sent to the Economic and Financial Crimes Commission, EFCC. “The financial regulations are very clear, where audit reports have indicted some of the officers, some of these audit reports are going to the EFCC.
“Some of the audit findings were so serious that the decision was taken that some of those particular reports must go to the EFCC. ‘’Remember that we are not a prosecuting agency, ours is to investigate and then we hand it over to the relevant agencies,” she said.
“The audit also showed that there was under-reporting of revenues, failure to submit audited financial statements, payroll fraud and exaggeration of payroll costs, over-payment of staff salaries and abuse of personnel grants,” she said.
She further said “What was consistent was non-remittance or under-remittance of revenues due to the Consolidated Revenue Fund. Many agencies have been operating without any approved budget and where there were budgets, they were not complied with. They were spending in excess of the budgeted amounts.
“We found under-reporting of revenues. Payments were made without vouchers and payment receipts in certain cases. Cash advances were given to staff without retirements. Loans and grants were given to parent ministries and other entities without approval. “There was
“There was failure to reconcile accounts. There were irreconcilable differences in a number of agencies. There was no fixed assets register in many agencies and we found evidence of assets being purchased and then sold to staff at significant discounts. There were purchase of fixed assets direct from IGR (Internally Generated Revenue), inadequate internal audit and weak internal controls. Many agencies have no audited Financial Statements. We found exaggerated payroll costs. Also we found excess staff salaries- salaries being paid in excess of approved salaries by the National Salaries, Incomes and Wages Commission. “We found unapproved monetization of medical allowances including foreign medicals for some board members. Staff advances to staff and board members were in excess of approved limits. Non-compliance with the Public Procurement Act.”