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  • Audit report: No record of funds recovered between 2016-2019

    Audit report: No record of funds recovered between 2016-2019

    The Central Bank of Nigeria (CBN) has no records of monies recovered by the Economic and Financial Crimes Commission (EFCC) between 2016 and 2019 as required.

    This is according to the Office of the Auditor General for the Federation (OAuGF) in its 2020 Audited report of government finances.

    The report, dated November 30, 2023, was submitted to both chambers of the National Assembly through the Clerk.

    The OAuGF said the last time the CBN recorded an inflow of recovered funds into the federation accounts was December 2015.

    It also said that the Recovered Funds component of foreign exchange inflows into the Federation Account of $40,502,645.06 was last reported in December 2015.

    Such inflows were not reported between 2016 and 2019, says the report, adding that there were no documents to justify the non-recognition of recovered funds between 2016 and 2019.

    In its management response, the CBN said: “There was no inflow for the period January 2016- December 2019.

    “However, a review of the account showed credit interest for the period.”

    The report asked the Public Account Committees of the Senate and House to request the CBN governor to justify the non-recognition of recovered funds for the years 2016 to 2019.

    The report queried what it called an unjustified decrease in foreign reserves of the country between 2017 and 2019.

    “Audit observed from the review of CBN Summary of Monthly Foreign Exchange Cash flows that Foreign Reserves which stood at $42.594 billion as at December 2018 decreased to $38.092 billion in December 2019, and there were documents to justify the decrease,” the report says.

    The Auditor General also reported a decrease in foreign exchange earnings of about $2,667,269,011.33 in 2019 as contained in the CBN summary of monthly foreign exchange cash.

    The Auditor General also said in 2020, the CBN made deposit placements with First Bank of Nigeria (FBN) United Kingdom (UK) Ltd, London amounting to US$134,507, 155.20, split into two tranches of $59,029,548.09 and US$75,477,607.11 to circumvent the provisions its Guidelines on offshore deposits.

    It alleged that no further information was given at the time of the audit visit to enable the audit to verify the average monthly deposits of FBN UK Ltd, London over one year to establish if it qualified for exposure above US$100 million

    However, the CBN denied any infraction, saying the exposure to FBN, UK was within the approved exposure limit.

    It added that the deposits were split for liquidity planning purposes and not to circumvent the provision of the guidelines.

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    It also said that the placements with FBN UK have never been above the limit stipulated by the Guidelines.

    The report accused the apex bank of violating IMF conditions, and diversion of IMF rapid financing instrument of about $3.4 billion

    The report says: “The Executive Board of the International Monetary Fund (IMF) through a letter dated 28th April 2020 approved Nigeria’s request for emergency financial assistance of US$3.4Billion under the Rapid Financing Instrument (RFI) to meet the urgent balance of payment needed for stemming the outbreak of COVID-19 Pandemic and the decline in Oil prices.”

    “As part of the conditions to release the grant to Nigeria, IMF had requested CBN to credit a Federal Ministry of Finance (FMF) account with the Naira equivalent upon receipt of the Funds.

    “Audit observed from the review of documents relating to the grant of the US$3.4 billion that on April 30, 2020, US$ 2,396,458,513.75 was transferred to CBN’s account with Federal Reserve Bank, New York (FRB), while CNY 6,776,051 497.99 was transferred to CBN’s CNY account with People’s Bank of China, Shanghai Office.

    “On June 1, 2020, barely one month after the receipt of the fund, the CBN moved US$ 2,396,458,513.75 out of the fund with Federal Reserve Bank, New York to Bank of International Settlement (BIS) for investment in short-term maturities.

    “The funds with Peoples Bank of China, CNY 6,776,051,497.99 were moved to the Industrial and Commercial Bank of China (ICBC).

    “The funds were classified under the CBN’s portion of the External Reserves instead of the Federal Government Reserve to earn interest that may help to increase the reserves portion of the Federal Government.

    “No information/document was provided to justify the movement of Fund, including the subsequent investment and classification as CBN Reserve category that was not made known to the Federal Government and not approved by the Investment Committee of the Bank.”

  • Yearly audit recommendations not implemented, says Auditor General

    Yearly audit recommendations not implemented, says Auditor General

    • Frowns at disregard for financial regulations by MDAs

    The Auditor General of the Federation has frowned at the non-implementation of recommendations contained in the annual audit report of the finances of the federal government by the office of the Accountant General of the Federation.

    The Auditor General also frowned at the flagrant disregard for the financial regulations and extant government circulars on the submission of audited government account of MDAs to the office of the Auditor General.

    The constitution requires that audited account of government agencies be made available to the office of the Auditor General for the Federation not later than 31st May of the preceding year.

    In a report signed and submitted to the Clerk to the National Assembly by the Auditor General for the Federation, Shaakaa Kanyitor Chira, dated November 30, 2023, the Auditor General said out of 32 recommendations for the Office of the Accountant General of the Federation contained in the 2019 audit report, only six have been fully implemented while five others are in the process of implementation.

    The report with reference number AuGF/AR./2020/01said 21 of three report were not being implemented by the Accountant General of the Federation, leading to management inefficiency, loss of public funds and sub optimal decisions by those charged with governance.

    Twenty-six audit queries with several recommendations were issued to the Accountant General, based on the Consolidated Financial Statements (CFS) of the Federal Government for the year ended 31st’ December, 2020 and related records in respect of FGN Ministries, Departments and Agencies (MDA) maintained by the Office of the Accountant General of the Federation.

    It also contained recommendations for implementation by both the Public Account Committees of both chambers of the National Assembly and the Office of the Accountant General of the Federation.

    Some of the recommendations include the need for the office of the Accountant General to comply with the provisions of Financial Regulations on implementation of Audit Recommendations among others.

    The report also queried the non-compliance with extant regulations with the timeline for the submission of the consolidated financial statements by the Accountant General and several Ministries, Department and Agencies of government in contravention.

    The Auditor General said in spite of the extant regulations, the federal government consolidated financial statement for the year ended 31st December, 2020 was first submitted for audit by the Accountant General of the Federation (AGF) on 15 March, 2022, which was over a year after the reporting date (31st December, 2020), over one year after it should have been submitted.

    He said further that “the final submission after audit adjustments by the AGF was made on 2nd of March 2023 to the Auditor General for the Federation (AUGF); a practice the AuGF said was contrary to the provisions of extant regulations.

    He said the anomalies were attributable to weaknesses in the internal control system in the consolidation process, leading to impediments to Public Accounts Committees (PAC) oversight.

    However, in its response contained in the audit report, the Office of the Accountant General said “the era when OAGF will not be complying with extant rule will soon be over. With the deployment of GIFMIS as the source of preparation of GPFS, the account shall henceforth be ready within (2) months after the year end.”

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    The audit report also frowns at the non-preparation of stand-alone financial statement by MDAs “in violation of paragraph 4 of Treasury Circular Ref. OAGF/CAD/026/VOL.III/7 dated 18th March, 2016” which “requires MDA to prepare annual statutory financial reports in addition to the monthly trial balance to be submitted to the Treasury.

    “Similarly, paragraph 5.3 of Treasury Circular Ref. OAGF/CAD/026/VOL.III/108 dated 1st December 2016 requires each MDA to prepare IPSAS accrual basis annual statutory financial statements effective 15st January 2016.

     “The Circular requires all MDAs to prepare Statements of Financial Performance, Statements of Financial Position, Cash Flow Statement, Statements of Changes in Net Assets/Equity, Statements of Comparison of Actual and Budget and Notes to the Account

    “The financial statements are to be forwarded to the Treasury and be in public domain (Website, Publications, etc.) after certification by the Auditor General for the Federation.”

    The report said further that “Audit observed that the FGN CES for the year ended 31st December 2020, was a combination of Trial Balances of 950 (Nine hundred and fifty) MDAs instead of consolidation of their audited stand- alone financial statements, certified by the Auditor General for the Federation in accordance with the Treasury Circulars.

    “The non-preparation and submission of individual MDA’s stand alone financial statement for audit prevented the evaluation of the basis of measurement, recognition, and disclosure of the elements of the financial statements before consolidation.

    “Notes to such stand alone financial statements that would have facilitated extensive review of the FGN Consolidated Financial Statements were not made available”.

    The AuGF said the Accountant General should ensure full compliance with the provisions of Treasury Circular Ref. OAGF/CAD/026/VOL.INI/108 dated 18′ December 2016 on Auditor General for the Federation’s certification of the stand alone financial statements of each MDA.

    He said the Accountant General should also ensure that each MDA submits stand alone financial statements for audit by the Auditor General for the Federation or his representatives before forwarding to the Accountant General of the Federation for consolidation.

  • Fed Govt orders audit of Dana airline (Audio)

    Fed Govt orders audit of Dana airline (Audio)

    The Federal Government has ordered a complete audit of Dana airline.

    The airline has recently been involved in some incident. One of its planes overshot the runway in Port Harcourt and the door of another one flung open while taxing at the Murtala Muhammed Airport in Lagos.

    Senior Special Assistant on Media and publicity to the President Mallam Garba Shehu told reporters after the Federal Executive Council (FEC) meeting, that the audit would cover the personnel and assets of the airline.

    Also at the briefing were Minister of Defence, Mansur Dan-Ali, Minister of Budget and National Planning Udoma Udo Udoma, and Minister of Niger Delta Affairs Usani Uguru Usani.

    Shehu said: “A lot of quality time was spent discussing air safety. The government of Nigeria is very much concerned about safety and the lives of Nigerians; this is following the recent air incidents.

    ”Minor as they were because there were no fatalities, the government did feel concerned and the Minister did the report to the Council on steps that were taken following the last incident in Port Harcourt, Dana aircraft overshooting the runaway. As soon as that happened, a few seconds, a rescue team was there on the ground and few moments thereafter every passenger on board was evacuated. There was no harm to persons and this is something that should be celebrated.

    ”Within 24 hours an official investigation had commenced because investigators arrived in Port Harcourt and began work. One week after, that a preliminary report was prepared and it was about this that the Council was briefed.

    https://soundcloud.com/thenationnewspaper/fg-orders-comprehensive-audit-of-dana-airline

    ”Consequently as announced by the aviation authorities, the engineer and pilot of that particular aircraft got their licences suspended and beyond that the government has ordered a complete audit of Dana airlines in terms of personnel, operations, and technical capacity.” he said

    He said the Council had approved the augmentation of the contract sum for the rehabilitation of the burnt Marina Bridge and the Maintenance of Eko (Apobgbon) and Iddo bridges in Lagos State, in Favour of Messrs. Buildwell Plant and Equipment Industries Limited, in the sum of N114,424,225.05.

    The amount, he said, represented 12 per cent of the original contract sum.

    He said that the contract sum was reviewed from N957,053,316.45 to N1,071,29,541.40 with additional completion period of six months.

    The Council, he said, also approved augmentation for Mangu Dam, in Plateau State to N7.66 billion from original cost of N5.66 billion increasing the total contract sum to N13.2 billion.

    Dan-Ali said that his Ministry presented to the Council the status of the implementation of approved capital projects and achievements of the Ministry of Defence from 2015 to 2017.

    ”Some of the facilities renovated were neglected for over forty years. Between 2015-2017 a total of 18 rehabilitation works have been carried out in various barracks across the six geo political zones by the Ministry. Similarly Defence Headquarters also approved 36 capital projects within the period.

    ”The Nigerian Army embarked on 68 approved projects. Nigerian Navy implemented 31 projects while a total number of 64 projects were also implemented by the Nigerian Air force.” he said

    Udoma said he briefed the Council on the NBS recent report.

    He said: ”You will recall that it indicated that in the last quarter of 2017 the economy had continued its positive growth trajectory by growing by 1.92%. This is higher than the previous quarter when it grew by 1.40%. And higher still from the 2nd Quarter, when it grew by 0.72%.

    ”The numbers clearly show that the economy has fully exited recession.

    ”Capital inflows in 2017 were US$12,228 million, a growth of 138.6% over the total inflow in 2016 of US$5,124 million. This has been a factor in the build-up of our foreign reserves which have grown from US$23.81 billion in September 2016 to almost US$42 billion.

    ”And, of course one of the ways we are intensifying implementation of the ERGP are the ERGP focus labs which will be launched next week Tuesday, 13th March, by Mr President.” he stated

    Usani Uguru, said the Council approved the design of section five of East – West Road meant to link Oron in Akwa Ibom to Calabar in Cross River State.

  • Buhari okays action on audit reports on 400 Niger Delta projects

    Buhari okays action on audit reports on 400 Niger Delta projects

    President Muhammadu Buhari has approved that action be taken on the Technical Audit Report on all projects awarded between 2009 to 2015 by the Ministry of Niger Delta Affairs. This is  to ensure that there is value for the over N450 billion so far released for projects in the nine oil producing states.

    Minister of Niger Delta Affairs Usani Uguru Usani, who stated this in Abuja at a news conference to review the activities of his ministry in the past two years, said the audit report not only provided first-hand information on the over 400 projects but convinced the President to approve the supervision of the Niger Delta Development Commission  (NDDC) by the Ministry to avoid duplication of duties.

    Usani who did not give details of the actions the government would take against contractors who collected various sums of money but failed to deliver, said it was regrettable that the percentage of job done on the projects stand at only 12 per cent.

    He said: “The Ministry may not have got it right at inception in terms of pursuing the agenda of government of transforming the region, we are nonetheless committed to changing the narratives by addressing the core needs of the people.

    He explained that between 2016 and 2017 about 214 women and youths from the nine states of the Niger/Delta were trained in Ibadan, Oyo state in fisheries, poultry and Information Communication Technology and empowered with sums ranging from 300,000-500,000 naira (107 million naira) as start-up capital for business.

    The Minister said 130 youths were earlier trained in Isreal in poultry, aquaculture and crop production and were given one million naira each to begin a life of productivity, stating that the funds were disbursed through the Bank of Agriculture and the Nigerian Agriculture Insurance Corporation.

    The minister said one million non-militant youths and women have been trained in various fields of human endeavours, while seven cassava processing plants were being established in the region to make life easy for the citizens.

    He said the ministry had facilitated the required 30 per cent counterpart funding to access European Union (EU) 2.4billion naira grant for a water project in five Niger/Delta states of Bayelsa, Delta, Edo, Rivers and Akwa Ibom under the Niger/Delta Support Programme.

    Usani added that the ministry is constructing housing estates in the nine states of the region, while work was at advanced stage in the skill acquisition centres being constructed by the Ministry in the affected states. He added that the Skill Centre in Otuoke had been completed and handed over to the Federal University, Otuoke to manage.

  • Buhari orders audit of recovered assets within one month

    Buhari orders audit of recovered assets within one month

    PRESIDENT Muhammadu Buhari has vowed to put in place measures to check embezzlement and diversion of recovered assets.

    He gave the assurance while inaugurating the Audit Committee on the Recovery and Management of Stolen Assets within and outside Nigeria at the First Lady Conference room in the Presidential Villa, Abuja.

    Stressing that recovered assets must be accounted for, he directed Ministries, Departments and Agencies (MDAs) and corporate bodies to give the committee the necessary support.

    The committee, which has three members including Mr. Olufemi Lijadu, Mrs. Gloria Chinyere Bibigha and Mr. Mohammed Nami, was given one month to carry out its assignment.

    The Federal Executive Council (FEC) meeting started immediately after the inauguration ended, with one-minute silence observed for the late former Vice President Alex Ekwueme.

    Buhari said: “Members of the committee may recall that pursuant to the resolve of this administration since its inception to pursue a strong and effective anti-corruption regime, and in view of the multiple cases of mismanaged and misappropriated national assets identified by this administration upon our assumption of office, the Federal Government embarked on tracing and recovery of all such stolen assets within and outside Nigeria, using all legal and diplomatic resources at our disposal.

    “The gains of our initiatives over the past two and a half years have been very obvious to all Nigerians. This is clear from the level of investigation, prosecution and forfeitures involving both public and private sector officials in the country.

    “The message has, therefore, been passed loud and clear that never again as a nation are we going to allow the wanton diversion and embezzlement of public funds to private pockets.

    “Nigerians will further recall that pursuant to requisite directives, recovered assets are progressively being returned to designated accounts by the anti-graft agencies and other agencies of government involved with the process.”

    The President added it was in realisation of this and due to his administration’s determination to ensure that in pursuing the anti-graft war, “we do not create new room for dishonorable conduct by any individual or agency that I directed, earlier in the year, that all agencies should send in detailed reports of all their recovered assets as at March, 2017”.

    Buhari added that the decision to inaugurate the audit committee was the next step in ensuring that all returns filed by the various agencies were accurate and consistent with actual recoveries made.

    He said the committee is expected to judiciously undertake an audit of all recovery accounts established by government agencies from the date of opening such accounts up to April 10, 2017.

  • OGFZA orders 10-year audit of Intels for ‘unlawful operations’

    OGFZA orders 10-year audit of Intels for ‘unlawful operations’

    The Oil and Gas Free Zones Authority (OGFZA) has ordered a comprehensive compliance audit of Intels Nigeria Limited’s operations in the last 10 years.

    The Authority said it appointed a team of auditors to examine Intels’ books.

    The firm is a concessionaire of the Nigerian Ports Authority (NPA) and a licensee of OGFZA.

    The audit is over the company’s alleged serial violation of the laws and regulations governing operations in the free zone.

    Intels was accused of failing to submit its records, warehouses and equipment imported under the zero duty regime of the free zone for inspection in compliance with the OGFZA Act.

    In a letter to Intels Managing Director, OGFZA drew his attention to the alleged breaches.

    The letter, signed by OGFZA Managing Director Mr Umana Okon Umana, accused Intels and her affiliate companies of having “transferred and sold off their assets” imported into the free zone under the zero duty regime, which only free zone companies are entitled to.

    He said the company allegedly did so “without the approval and consent of the Authority,” in contravention of Section 12(6)(a-b) of the Oil and Gas Export Free Zone Act.

    The section states: “Where any goods which are dutiable on entry into the Customs territory are sent from the Export Free Zone into the Customs territory, the good shall be subject to the provision of the Customs, Excise tariff, etc. (Consolidation) Act and any regulations made thereunder, and if the goods are intended to be disposed of in the Customs territory, shall not be removed from the Export Free Zone unless— a) the consent of the Authority has been obtained; and b) the relevant Customs authorities are satisfied that all imports restrictions relevant thereto have been complied with and all duties payable in connection with the importation thereof into Customs territory have been paid.”

    According to Umana, on March 20, the Authority issued a new standard operating procedure (SOP) to enforce the laws and regulations in the free zone.

    Two days later, 16 affiliates of Intels filed applications for de-registration from the free zone

    It was learnt that the revised SOP made it mandatory that all requests for transfer of cargoes from the free zone had to be made to the Authority in keeping with the law, to protect the interest of government and other stakeholders.

    Following Intels’ affiliate’s applications, OGFZA informed the companies that in line with section 15 (1) of Act, they would have to be audited.

    The Authority said the audit is to ensure that their assets were fully accounted for and that appropriate revenue payable to the Federal Government is remitted when the assets are disposed of.

    In keeping with section 15(1)(a-c) of the Act, a joint team of OGFZA and Nigeria Customs Service was set up to visit the companies’ premises to inspect their records and equipment ahead of the de-registration.

    Umana alleged that the assets that may have been disposed of by Intels and its affiliate companies, including Prodeco, add up to 3,000 project vehicles, trucks, cranes, forklifts and a large number of assorted construction equipment.

    In the letter OGFZA also drew the attention of Intels to the fact that its Free Zone operating licence, which had expired since 31 December 2016, had not been renewed.

    Following the OGFZA allegations, Intels Nigeria Limited (INL) has threatened legal action against Umana, saying he leveled “false and malicious allegations against the company and its management which are injurious to its business interests, as well as the reputation of INL.”

    INL said it is compiling the losses being suffered by the organisation due to Umana’s actions both in his official and private capacity.

    It said: “We have no doubt that as these are deliberate actions, you are well aware of the consequences as these are clearly crude, irresponsible and off-limits. At the appropriate time, we will initiate necessary legal measures to ventilate this grievance.”

    In a letter titled ‘Re: Various Matters in Contention between Oil & Gas Free Zone Authority (OGFZA) and Intels Nigeria Limited,’ Intels listed some issues of contention between INL and OGFZA, which he said Umana capitalised on to disparage the reputation of the company.

    Intels listed some of the contentious issues to include the refusal of OGFZA to renew the 2017 Operating License for Intels Nigeria Limited; the imposition of land charges by OGFZA; nullification of INL’s Industry Wide Standard Tariff (IWST) and other port related charges by OGFZA.

    INL also frowned at Umana’s “penchant for conveying messages to government agencies and clients injurious to INL business interest and reputation; non-payment for INTELS’ premises occupied by OGFZA at Onne and Heliconia Park Estate and the refusal of OGFZA to renew the residence permit and re-designation of INL expatriate employees in the Onne Free Zone.

    Part of the Intel’s letter reads: “We refer to the various exchange of correspondence, meetings and discussions held between our company and the OGFZA regarding various demand notices issued by the OGFZA, as well as other measures taken by the OGFZA affecting our status and operations in the Onne Oil & Gas Free Zone.

    “As you are aware, we have so far engaged you in discussions with a view to resolving the matters amicably, in line with our conviction that a harmonious working relationship will be of mutual benefit to our two organisations and will be in the overall interest of both parties. However, in view of your persistent engagement in actions deliberately aimed at undermining our business, as well as tarnishing our hard-earned reputation, it has now become imperative to formally address the various issues on both the law and facts with the hope that you will be better guided to retrace your ill-advised actions,” the company said.

    On OGFZA’s refusal to renew the 2017 Operating License of Intels Nigeria Limited, the company states: “OGFZA has refused to release INL licence for 2017 on the ground that INL has to pay all charges and fees demanded by the OGFZA notwithstanding that INL has paid in full the renewal fee for the licence. The other fees in question relate to new free zone tariffs on land charges imposed by the Free Zone (Tariffs & Other Charges) INL has raised some issues concerning the land charges (which are further enumerated hereunder) with the result that the claim by the OGFZA on INL for those charges are presently being disputed.

    Intels said OGFZA’s view that INL has not complied with Regulation 35(1) (b) (“payment of any outstanding sum due to the Authority”) and is therefore not entitled to have its licence renewed, is a grave error, insisting that OGFZA should issue INL its licence for 2017.

    On the land charges imposed by OGFZA, Intels maintained that INL is not liable to pay the land charges levied on it by OGFZA, pointing out that the premises it occupies in the ports were granted by the Nigerian Ports Authority (NPA); the statutory/legal owner of the land on which our operation is situate. It said OGFZA has no legal authority to administer or manage land vested in the NPA in any manner whatsoever. “OGFZA cannot levy any charges over NPA land, and not having any interest over the land, it cannot register third party interests or transactions over the land.”

    Intels, in its letter, said the charges of terminal operators for stevedoring or other terminal handling is certainly not part of Regulation 11 of the Free Zone Regulations which grants the OGFZA the authority to issue a schedule of Tariff that should apply in the Free Zone. The OGFZA tariff, Intels maintains, relates to services intended to be provided by or through the OGFZA, insisting that this was never intended to regulate NPA services including cargo handling of any sorts, as these are the preserve of NPA.

    Intels said it is on record that it has paid the prescribed FZ licence fees for the 2017 Operating License after filing the 2016 annual return along with other formalities, stating, “as already demanded by us, we expect that OGFZA should immediately release our FZ (Free Zone) license for 2017.”

    “If you fail or neglect to release the said License within five days of receipt of this letter, we shall have no option but to take appropriate legal steps to compel the OGFZA to release our 2017 FZ Operating License along with all other services and benefits ancillary thereto and accruing to us as FZ Licensee, including the grant of expatriate quotas and re-designations thereof as validly applied for,” Intel said.

     

  • Reps give CBN, AG six weeks to provide audit reports on TSA

    Reps give CBN, AG six weeks to provide audit reports on TSA

    The House of Representatives has given the Central Bank of Nigeria (CBN) and the Office of the Auditor General of the Federation (OAGF) six weeks to provide it with detailed reconciliation and audit reports of the amounts generated so far in the Treasury Single Account (TSA).
    The House said it’s ultimatum was necessitated by the need to know the current and true status of the TSA going by reports that not all Ministries, Departments and Agencies (MDA) have complied with the August 2015 directives of the Federal government on the policy.
    The Abubakar Danburam-led ad-hoc committee investigating the status of the TSA said the November 10 deadline is sacrosanct, adding that all money banked in the country are not excluded as long as they have MDAs’ account with them.
    The Committee held a closed door meeting with officials from the Office of the Accountant General of the Federation (OAGF), Auditor General’s office as well as CBN and some commercial banks.
    According to the Chairman, the Committee was forced to take the decision following the revelation of the  Director of Funds, Accountant General’s office Alexander Adeyemi that there were still leakages in collecting funds from agencies despite the existence of TSA.
    It would be recalled that the Committee was told last month that the TSA has not been audited by the office of the Auditor General since its inception two years ago.
  • ASUU to Ajimobi: stop blackmail with LAUTECH audit

    ASUU to Ajimobi: stop blackmail with LAUTECH audit

    The Academic Staff Union of Universities (ASUU) at Ladoke Akintola University of Technology (LAUTECH) has urged Oyo State Governor Abiola Ajimobi to stop “blackmailing” the union over the purported forensic audit of the university.

    Last week, the governor ordered the reopening of Emmanuel Alayande College of Education and pleaded with LAUTECH stakeholders to allow auditors to peruse the records of the institution.

    He said this would pave the way for the reopening of the institution.

    But yesterday, ASUU challenged the governor to show documentary and other evidences on how the union allegedly impeded the audit.

    In a statement by its Chairman and Secretary, Drs Biodun Olaniran and Toyin Abegunrin, ASUU said it had nothing to do with the audit and could not impede the audit.

    In the statement, titled: Auditing LAUTECH: ASUU Sets the Record Straight, the union asked the state government to stop what it called cheap blackmail and focus its attention on how LAUTECH could benefit from the Paris Club fund refund the Federal Government just released to the state.

    LAUTECH’s ASUU described The Paris Club refund as a golden opportunity for the government to bail out the institution before it is swallowed by contractual commitment.

    The statement said: “For the umpteenth time, let us reiterate the fact that ASUU has nothing to do with audit and, therefore, cannot stand in the way of the exercise. If the governor of Oyo State has any evidence to the contrary, we challenge him to come to the public domain and state what role ASUU has to play in the audit.

  • Benue SUBEB to audit staff

    Benue State Universal Basic Education Board (SUBEB) Executive Chairman Rev. Philip Tachin, has inaugurated the state Committee on National Personnel Audit of Public and Private Primary and Junior Secondary Schools.

    Speaking during the inauguration at the SUBEB’s headquarters in Makurdi, the state capital, Tachin charged the committee to identify challenges of inadequate education data for effective implementation of programmes in the Basic Education sub-sector.

    “It is the desire of the Federal Government to carry out the Personnel Audit in all the 36 states, including Benue,’’ he said, adding that the aim is to obtain comprehensive and reliable data on children; to obtain the number and qualification of teaching and non-teaching staff, to determine key performance indicators and to generate data for effective National and Global reportage in the Basic Education Sub-sector.

    Members of the committee, include the state Director, National Population Commission, Mr Amee Tser; state Chairman, Parent-Teacher Association, Mr Benjamin Dugeri; representative of Quality Evaluator, Federal Ministry of Education, Mrs. Janet Angwe; Tyoor Mbatsen of Konshisha Local Government, and Zaki Nder Kuhwa. They appreciated the SUBEB’s management for finding them worthy to serve, promising to put in their best for the good of the Benue child.

     

  • For strong audit

    •The anti-corruption process should boast a modernised audit law, guaranteeing full independence for the Auditor-General

    What is the fate of the Audit Bill of 2014, submitted to the 7th Senate, to be passed into law, to replace the Audit Ordinance Act of 1956?

    That appears to weigh much on the mind of Anthony Ayine, sitting Auditor-General of the Federation (AGF), reported to have called for the speedy passage of that bill, to further strengthen the anti-corruption process. He was speaking in Abuja, while receiving the Conference of Auditors-General for Local Governments of the Federation, led by Reuben Nwosu, their chairman.

    Mr. Ayine also made an impassioned plea for the independence of the AGF, thus guaranteeing a sound legal cover for financial checks-and-balances, thus making the accounting process more transparent; and subscribing to the doctrine that prevention is better than cure in the fight against corruption.

    Not a few could, of course, argue against Mr. Ayine’s seeming penchant for the legalistic, stating that there are already too many laws. They could also go ahead to say that inasmuch as laws are vital, developing a mindset to be bound by law, unlike Nigerian elite’s natural instinct to flout it, is even more vital.

    Indeed, this could be a clincher to that argument: that conventions — informal practices over time, without formal legal cover — appear stronger than laws in established democracies, is because those people subject themselves to the law, rather than arrogate themselves over it.

    All these could well be. But if everybody is a product of his or her environment, Mr. Ayine’s push cannot be totally dismissed. Take his call for the independence of the AGF to be guaranteed by law, one of the key provisions in the Audit Bill 2014.

    In 2005, Vincent Azi, an acting AGF, summarily lost his job. He had published a financial report that indicted the  Presidency, the National Assembly, ministries and some parastatals over dubious expenditures.

    Ike Nwachukwu, former army general but then presidential candidate of the National Democratic Party (NDP), was so incensed with the move, declaring it unjust as, he added, Mr. Azi was a dutiful official of state, that took routine but official steps to ensure transparency and fight official corruption. Not a few others too, home and abroad, railed against what they perceived as clear injustice and disincentive to fight sleaze.

    Still, none of all those could save Mr. Azi’s job. That was under President Olusegun Obasanjo. Twelve years down the line, no other AGF had summoned enough courage to replicate Mr. Azi’s feat.

    Down that line too, the economy had gone near-bust; and corruption assumed a near-stratospheric state, with revelations of alleged humongous sleaze under President Goodluck Jonathan. You don’t need to be a clinical diarist to tie the reckless spending of the Jonathan years to a near-complete breakdown of financial checks-and-balances.

    Would an independent AGF, secured by law, have made any difference? In the context of a robust audit institution, and an officialdom ready to subject itself to the strictures of law, at the pains of dire sanctions otherwise, clearly yes. That is the point of Mr. Ayine’s advocacy.  That is why he should be listened to and not be dismissed.

    That is why work should be restarted on the Audit Bill 2005. It is tribute to a general penchant for lack of accountability that the current regnant audit law was forged under colonial rule in 1956. It has remained all through independent Nigeria since 1960, all through the military era and even survived the return to democracy in 1999. It is a momental scandal!

    To fully and successfully fight corruption, effective auditing is critical. That is the narrow and winding path to financial health; and the development and prosperity that beckon after.