Fiscal Responsibility Commission (FRC) has denied the claim by the Nigerian Security and Civil Defence Corps (NSCDC) that it insisted the corps’ annual financial and audited reports must be prepared by Independent Accounting and Audit Firms so as to be acceptable.
FRC chairman, Victor Muruako stated this at the resumed hearing of the House of Representatives Committee on Finance on the Medium Term Expenditure Framework (MTEF) in Abuja on Monday.
Muruako was responding to questions by the Committee the rationale for the external auditing when most agencies have staff posted to them from the office of the Accountant General of the Federation and Auditor General of the Federation.
He said there was no such condition operational at the commission, adding that it will accept Financial and Audit statements from agencies prepared by relevant staff as expressly contained in the Act setting up FRC.
“As chairman of the FRC, I’m not aware of the Commission insisting on Independent Accounting and Audit firms preparing the financial statements of MDAs before they could be acted upon by the Commission.
“FRC does not operate outside the Acts setting it up which is specific about preparation of financial documents and Reports” Muruako added.
The committee’s chairman, Hon. James Faleke urged the NSCDC to review its licensing and yearly renewal fees upward for Private Guard Companies (PGC) to boost its revenue generation capacity, especially now that funds are needed to implement the 2024 budget.
The committee said the one-off licence fee of N2 million for Grade 1 Security Guard Companies, with more than 500 guards on their employ and N1.5 for Grade 2 companies with less than 500 with a yearly renewal fees of N200,000 and N100,000 for the two categories of companies was grossly inadequate.
The deputy commandant-general of NSCDC, Nwinyi Nwokuche, told the lawmakers that there were about 1300 PGC registered in the country with 400 of them in Lagos alone.
Ruling, Faleke demanded a full register of security guard companies operating in the country, their full addresses, amounts paid as licence and renewal fees over the years to give the Committee proper insights into their operations.