Auditor General Detects Over N9.4bn Illegal Spending By Lawmakers, NASS Management
BY SEGUN ADEBAYO – A total of N9.424 billion in unexplained expenditure dotting the 2019 financial records of the National Assembly management and the National Assembly Service Commission (NASC) has put the two bodies on a collision course with the Office of the Auditor-General for the Federation (OAuGF).
The OAuGF is said to be unhappy that in their daily routine, both parties have grossly ignored the public sector accounting systematic process of recording, communicating, summarizing, analyzing, and interpreting the financial statements and statistics as contained in the existing financial regulations and guidelines of the government.
A breakdown of the amount involved indicates that over N5.521 billion of the puzzling spending was chalked up by the House of Representatives in five different audit queries; the Senate has N3.595 billion to its name as contained in seven audit queries, with the NASC having N307.676 million in two audit queries to explain.
According to available reports, all the queries were captured in the “Auditor-General for the Federation annual report on non-compliance/internal control weaknesses issues in Ministries, departments and agencies of the federal government of Nigeria for the year ended 31st December 2019”
Dated September 15, 2021, and addressed to the clerk to the National Assembly, with reference number, AuGF/AR.2019/02, the report, signed by the Auditor General of the Federation, Adolphus Aghughu, further noted that the sum of N2.550 billion was granted to members of the House of Representatives as running costs between July and December 2019 without evidence to show what the funds were used for, neither was the money retired.
Furthermore, the AuGF report noted that the sum of N1,594,807,097.83 was paid to revenue authorities between February and December 2019 as Pay As You Earn (PAYE – 6 members); Car Loans (5 members); and Housing Loans (6 members) without acknowledgment receipts from the relevant revenue authorities.
Similarly, the payment of N1,010,598,610.97 from the salary account of the House without payment vouchers as required by law was queried, with the Clerk to the National Assembly asked to provide explanations for the irregularities while also ensuring the amount involved is returned to the government treasury.
Other observable discrepancies include the sum of N258 million given to 59 staff of the House, while another N107.912 million was signed off by two staff for repairs and maintenance of unspecified residential quarters. This arrangement clearly made the government lose the statutory VAT and WHT of 10,791,296 accruable funds if the jobs were awarded to registered contractors.
The NASC was also indicted for failing to retire about N31.927 million cash advance granted to 59 staff of the Commission as well as non-remittance of one percent stamp duty amounting to N276,749,014.68 to the government coffers.
Aside from noting the non-remittance of about N219.645 million deducted as housing loans from some Senators were not remitted, the report said; “The sum of 219,645,567.08 was deducted from one hundred and seven (107) Senators’ salary arrears between July and December 2019 as housing loans, and there was no evidence to show that the above amount was remitted to the Treasury”.
Also disturbing, according to the report, was the non-remittance to the appropriate authorities the sum of N123.320 million deducted from Senators’ salary arrears between July and December 2019 as vehicle loans and the N176.267 million Pay As You Earn (PAYE) deductions from staff salaries.
Not yet done with the queries, the OAuGF also noted that the sum N277.411 deducted as VAT and WHT from services rendered were not remitted to the Federal Inland Revenue Services (FIRS), even as the NASS Clerk failed to present payment vouchers amounting to N1,718,130,630.24 for audit verification.
In the same vein, it was observed that N657.757 million was paid for the supply of vehicles and other office equipment through 16 payment vouchers not cleared by the Internal Audit as required by law before making such payments, while another unexplained N423.370 million was captured as payment for utility vehicles supplied and production of NASS Logo between August and November 2019 from the Capital account with no relevant document(s) attached.
Obviously piqued by these disturbing discoveries, the House Committee on Public Account immediately summoned the Clerk to the National Assembly, Architect Amos Ojo to appear before it with answers to the audit queries.
It was reliably gathered that shortly before going on Christmas break, the House Committee Chairman, Hon Wole Oke had directed that Architect Ojo comes up with appropriate responses to the Auditor General’s queries to save the House from any further public embarrassment. – With Vanguard report