Financial Infractions: Senate Audit Report Indicts 38 Agencies

The Senate has adopted the report of its Public Accounts Committee on the 2016 Auditor General Report indicting 37 agencies of government over various financial infractions, including the Nigeria National Petroleum Company Limited (NNPCL).

The Senate adopted the audit report after a thorough consideration of the document which was presented on the floor by chairman of the committee, Matthew Urhoghide.

While presenting the report, Urhoghide told his colleagues that the committee report was the product of one and a half years of rigorous scrutiny of queries contained in the audited report of the Auditor General.

This will be the second time the 9th Senate would adopt the report of its Public Accounts Committee after the first report in 2015 which was submitted last year.

The 2016 audit report, which also indicted many agencies of government, demanded the refund of a whopping N5 trillion into the coffers of the federal government.

In taking a look at the audited report of the Auditor-General for 2016, the Senate committee extended an invitation to 92 MDAs to come forward and defend their queries.

Eighty agencies responded with written responses and appeared before the committee to defend their queries, while four failed to either appear or submit written responses to the committee despite several reminders.

Of the 80 agencies that appeared before the committee, 43 had their queries vacated, while the queries of 37 MDAs were sustained and recommendations accordingly presented to the Senate.

Those that failed to submit written submissions before the panel are the Federal Ministry of Health, Medical and Dental Council of Nigeria, National Orthopedic Hospital, Kano, Nigeria National Merit Award, Abuja.

Government agencies which submitted report but failed to appear are Federal Ministry of Works , Power and Housing (Works Sector), Federal Ministry of Women Affairs and Social Development, Defence Industries Corporation of Nigeria (DICON), Nigeria Police Force , Nigerian Press Council , National Primary Healthcare Development Agency, Federal Dental Clinic, Broad Street, Lagos , National Health Insurance Scheme (NHIS), Federal University of Technology, Minna.

While making contributions to the debate before approval, there was clamour from the lawmakers for a draft legislation that would compel the executive arm of government to act on the report of its Public Accounts Committee.

Senator Ayo Akinyelure initiated the demand.

One of the indicted MDAs is the NNPCL, which was accused of failure to provide details of crude Oil delivered to Warri, Kaduna Refineries, worth about $376, 655,589 (N102.6 billion) in the audited year.

The query reads: “From the review and examination of domestic Crude Oil Lifting sales profile presented for audit verification, it was noted that several deliveries were stated to be jointly lifted by or delivered to Warri Refinery and Petrochemical company (WRPC) and Kaduna refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies.

“From the examination carried out a total oil lifting of 8,399,017; bbls with a total sales value of $376, 655,589 (N102.6 billion) was stated to have been lifted jointly by these two companies.

“The failure to properly separate these deliveries and charge directly to each company makes it difficult to reconcile and account for each lifting.”

Consequently, the Senate upheld the recommendation of its Committee asking the Group Managing Director of NNPC, Mele Kyari to ensure specific details of crude delivered to the two refineries for audit.

Another indicted government agency is the Federal Ministry of Information and Culture over three unrecovered vehicles.

The query as adopted by the Senate reads: “Audit Investigation revealed that Toyota Land Cruiser and two Toyota Hilux pick up Vans, observed to be missing, were in the custody of former Minister of the Ministry and a female staff in Sure-P office.

“In his response to the query, the Permanent Secretary explained that the Toyota Land Cruiser was an official vehicle of the Minister, High Chief Edem Duke and he took it away when he was leaving the office.

“The Ministry, the Permanent Secretary added, has written a series of letters to the former Minister to return the vehicles but to no avail.”

Accordingly, the Red Chamber resolved to submit the report of the indictment to the Office of Secretary to the Government of Federation for further action.

In his remarks, the Senate president, Ahmad Lawan, supported the idea that there should be a timeline for the executive to implement the report, pointing out that it was the only way the legislative report would be taken more seriously.

The Public Accounts committee of the Ninth Senate has finalised work on the Auditor General Report for both 2017 and 2018 but the Senate refused to act on the report.