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Tag: MDAs

  • Job racketeering: Mark, FCC boss blame MDAs, others

    Job racketeering: Mark, FCC boss blame MDAs, others

    Senate President David Mark yesterday blamed the Head of Ministries, Departments and Agencies (MDAs), military and paramilitary organisations for the menace of jobs-for-sale-to-the-highest-bidder in the country.

    He said the heads of the MDAs and their military and paramilitary counterparts were “guilty” of the scam.

    The Chairman of the Federal Character Commission (FCC), Prof. Oba Abdulraman, said the trend, which is being aided by the MDAs, is a major source of insecurity in the country.

    Mark and Abdulraman spoke at the opening of a two-day public hearing on ‘Employment irregularities in federal establishments in Nigeria’, organised by the Senate Joint Committees on Federal Character and Inter-Governmental Affairs and Employment, Labour and Productivity.

    The Senate President lamented a situation where those who find themselves in positions of authority think first about their immediate families and relations when it comes to job placements.

    He said the Senate was concerned about job insecurity in the MDAs and other organisations.

    Mark said: “Similarly, we are concerned that people who have found themselves in position of authority think first about their immediate relations, other extended family members and not the best and the most competent.

    “Most heads of federal establishments secure for their relations unwarranted advantage or favour, which they are not ordinarily legally or morally entitled to.

    “This is a manifestation of a corrupt society where there is no equity or fairness.

    “Head of Ministries, Departments, Agencies, Military and Paramilitary organisations are all guilty of this.”

    He noted that that the practice has killed patriotism and ignited anger from the citizens, who have been denied their rightful place on account of their ethnic backgrounds.

    He said: “This has led to frustration, declining productivity and corruption, because since putting their best is not recognised, they exploit the slightest available means to fulfil their desire.

    “What is also more worrisome is that employment into federal establishments is for the highest bidder.

    “Our newspapers are awash with allegations that there are agents in and outside these establishments, who facilitate the sale of job slots.

    “The desperate applicants sell their property to buy these slots. For our leaders of tomorrow to buy job portends a dangerous signal for the future generation.”

     

     

     

  • Senate probes employment racketeering in MDAs

    Senate probes employment racketeering in MDAs

    …Appointment letters allegedly sold for N500, 000

    The Senate on Wednesday mandated its committees on Federal Character, Employment, Labour and Productivity, to investigate alleged irregularities in employment in all Ministries, Department and Agencies in the last two years.

    This followed a motion titled: Employment irregularities in the Nigerian Immigration Service and other ministries, department and agencies (MDAs) in Nigeria” sponsored by Senator Abubakar Bagudu (Kebbi Central).

    In his lead debate, Bagudu urged the Senate to note with serious concern the media stories on irregularities in employment at the Nigerian Immigration Service, Nigerian Customs Service, Nigeria Security and Civil Defence Corps and other ministries, department and agencies in Nigeria.

    The lawmaker argued that statements credited to the Comptroller General of the NIS suggested that over 4,000 employment slots were approved for the agency by the Federal Government.

    However, he insisted that the slots were allegedly being sold to job applicants and some allocated to various other personalities.

    He regretted that due process involving advertisement for interested members of the public to apply, had not been observed.

    He explained that employment letters were allegedly offered for sale for between N400, 000 and N500, 000 “by the syndicate whose operation base are in Gwagwalada, Karu and other places.”

    The Senator added that recruitment exercises now favour some states of the federation which amounts to a “total negation of the Federal Character principles.”

    He informed the Senate that the recruitment exercise embarked upon by the NIS and others have generated a lot of criticisms and outcry from the general public.

    Senate President, David Mark said the Federal Civil Service Commission (FCSC) was guilty of the lopsidedness in employment in the MDAs.

  • AGF blames MDAs for loss of revenue

    AGF blames MDAs for loss of revenue

    • ‘Expenditure to end December 31’ 

    THE Accountant-General of the Federation (AGF) Mr Jona Otunla has accused Ministries, Departments and Agencies (MDAs) of loss of revenue.

    This is contained in a circular to administrative and accounting heads in government in November 2012.

    In the circular, the AGF stated that “MDAs engage in acts that result into loss of government revenue.”

    Otunla has read the riot act to the MDAs. He said: “Spending of government revenue without appropriation is a violation of the Appropriation Act in line with Treasury Circulars TRY/AI&BI/2009 of January 19, 2009 and no deductions should be made from any revenue collected.”

    On the gross amount received, he warned that MDAs “must on all occasions be accounted for in full in line with FR 223. Therefore, all revenue collected including interest earned on bank account should be receipted properly and brought into the account on or before the close of work on December 31, 2012.”

    Otunla directed revenue collectors to ensure that their collections are promptly paid into the Consolidated Revenue Fund and accounted for by showing evidence of payment duly supported by Treasury Form 15A, and submitted to the Federal Sub-Treasury in Abuja or the appropriate Federal Pay Office before close of works on December 31, 2012.

    For the MDA on Treasury Single Accounts (TSA), the Accountant-General of the Federation insisted that “their revenue should be accounted for based on the requirements of Treasury Circular TRY A6 & B6/2012 OAGF/CAD/026/VI/I of July 4, 2012 which provided for the procedures for the collection and accounting for independent revenue under TSA.”

    In the case of Nigerian Foreign Missions, the AGF directed that “the independent revenue generated should be paid into the Independent Revenue Account No. 400939134 at J.P Morgan Chase Bank, New York, Code: CHASUS 33 and the evidence of the payment should be e-mailed to the Treasury (oagfnigeria@yahoo.com) latest by 7:00 p.m. Nigerian time on Monday, January 7, 2013.”

    In addition, the AGF expects outstanding advances to be retired on or before December 31, 2012 as failure to do so would lead to sanctions.

    While MDAs are expected to comply with the requirements of the previous circulars on the need to promptly retire all outstanding advances, the AGF, specifically, cautioned accounting officers to note “that it is their responsibility to ensure that advances granted to officers are recovered.”

    Also, AGF said government’s spending would closed on December 31, 2012.

    In a circular to administrative and accounting heads of Ministries, Departments and Agencies (MDAs) and the Presidency, he said: “All the cash books should be balanced latest by the close of work on Friday, December 28, 2012.”

    Thereafter treasury officers, “shall be deployed to ministries, extra-ministerial offices, agencies and other arms of government on Monday,December 31, 2012 by noon to rule-off all Cash Books and extract the Cash Book balances.”

    This is the first time in many years that the AGF will rule-off cash books and extract the cash book balances from MDAs on December 31. In the past, this action was carried out between December 20 and 24.

    A development that had seen many civil servants spending money after the books had been closed.

    The circular was issued to the chief of staff to the president, the deputy chief of staff, office of the vice president, all ministers, the Secretary to the Government of the Federation, the Head of civil service of the federation, special advisers,service chiefs/ Inspector-General of Police, the governor of the Central Bank of Nigeria, the chairman, federal civil service commission, federal permanent secretaries, the clerk of the National Assembly, the secretary, National Judicial Commission, the chief registrar, Supreme Court of Nigeria, the Auditor-General for the Federation, directors-General/chief executives of extra-ministerial departments and agencies, directors of finance and accounts, heads of accounts divisions, zonal coordinators (OAGF), the sub-treasury of the federation and heads of internal audit units and federal pay officers.

    The AGF directed the MDAs that entries into the Departmental Vote Expenditure Allocation (DVEA) books, ledgers, mandate summary registers and imprest accounts should be concluded on Friday, December 28, while all MDAs on GIFMIS/TSA would have their accounts closed online real time by the Treasury.

    Thus, unspent balances in the Recurrent Expenditure Cash Books at the financial year“must be paid back to the Consolidated Revenue Fund Account.

     

     

     

     

     

     

     

  • MDAs to implement new accounting rules in 2013

    Ministries, Departments and Agencies (MDAs) will start implementing the International Public Sectors Accounting Standards (ISPAS) from January next year, the Accountant-General of the Federation Mr Jonah Otunla has said.

    Speaking during the Ninth Financial Reporting Council (FRC) Summit in Lagos, Otunla said the aim is to reduce abuse of public funds and encourage the good corporate governance.

    He said with the new accounting standards, the government will be able to know and record income when it is received, adding that It will also help in recording expenses when cash is paid out for certain developmental projects.

    ISPAS is a set of high quality independently developed accounting standards aimed at meeting the financial reporting needs of the public sector.

    The idea, he said, would serve as an alternative to the International Financial Reporting Standards (IFRS) conceived for privately quoted entities globally.

    He said the International Public Sectors Accounting Standards Board (ISPASB), United States developed the standards, adding that it has been adopted by governments in the developed economies to ensure uniform, strong and effective management of public funds.

    Also, a partner with Deloitte, an accounting firm, Mr Uwadiae Oduware, said the government is committed to the implementation of the international public sectors accounting standards to encourage good fiscal management and subsequently block loopholes through which funds are stolen from the public purse.

    He said the government through the Office of the Accountant-General of the Federation (AGF) has communicated the issue to agencies of the Federal Government.

    He said the adoption of the standards was long overdue because other countries, including Benin Republic, Ghana, and Kenya had long adopted ISPAS to foster growth.

    He said at the end of the implementation of the standards, the government hopes to deliver to the nation, a Standardised Uniform Chart of Accounts, Budget and General Purpose Financial Statements that will meet international best practices as required by ISPAS.

    Oduware said users of government’s financial statements would see more transparency, accountability and integrity in the statements when the standards would have been adopted next year.

    He said the ISPAS cash basis will be implemented with effect from the 2013 financial year, while the ISPAS accrual basis will come into operations in 2015.

    ISPAS accrual basis is the accounting method that in which each item is entered as it is earned or incurred regardless of when actual payments are received.

    He said the standards would build confidence of donor agencies, improve service delivery, enhance public-private partnership, and boost peer review mechanism of financial reports of the three-tiers of governments and governments of other countries.

    Other benefits of the adoption are better access to financing through either bond releases or international financing from organisations, such as the International Monetary Fund (IMF) and the World Bank.

  • MDAs must remitt budget surpluses – Jonathan

    MDAs must remitt budget surpluses – Jonathan

    Tough actions await heads of Federal Government Ministries, Department and Agencies who are in the habit of withholding budget surpluses.

    President Goodluck Jonathan said on Wednesday that such practices will henceforth attract sanctions.

    The president also charged the states and local government areas in the country to embrace the fiscal responsibility.

    He spoke during the oath taking of commissioners of National Population Commission and the swearing in of two members of Fiscal Responsibility Commission.

    The event which happened simultaneously came up shortly before the commencement of the weekly Federal Executive Council meeting.

    The NPC commissioners are Alhaji Ya’u Usman Sa’in, representing Kaduna. He was the former state chairman of Peoples Democratic Party, Kaduna and Aliyu Datti.

    Datti represented Niger State.

    The two members of Fiscal Responsibility Commission that were sworn-in are Mohammed Garba, a journalist, representing the civil society. He is from Kano State and Ismaila Hassan representing Bauchi.

    Jonathan in his short speech said the administration’s commitment to building strong institutions remain unwavering.

    He said, “Let me also use this occasion to warn government agencies that henceforth, failure or late rendition of accounts or non remittance of operating surpluses will attract the full weight of actions as prescribed by law.

    “It is imperative therefore that all tiers of government must totally embrace fiscal responsibility, as state and local government control over 50 per cent of federally collectable revenue.”

    While noting that the country now has in place a concussed and focused legal framework that regulates conduct, guide the management of government finances and impose limitation in government spending, Jonathan stressed that the administration’s commitment to building strong institutions shall remain unwavering.”

    The president, who also commended the commission for enforcing accountability in government, said the fiscal responsibility act was enacted to bring the country in line with Fiscal Responsibility standard in practice in both developed and developing economies all over the world.

     

  • Reps order MDAs to remit N13b to Fed Govt coffers

    Some revenue generating agencies are to remit N13 billion into the Consolidated revenue account, the House Committee on Finance ordered yesterday.

    The Abdulmumin Jibrin-led committee also expressed dissatisfaction over the ‘apathetic behaviour’ of most ministies, departments and agencies towards transparency and accountability.

    It was during the reconciliation of the MDAs’ revenue profiles.

    The lawmakers specifically chided the management of Federal Mortgage Bank of Nigeria (FMBN) for its inability to avail the committee of its 2009/2010 financial reports. They queried the N36 billion deficit presented by the bank.

    The Reps demanded the bank’s transactions to show its deficit status.

    The financial statements of the Federal Inland Revenue Service (FIRS) showed that N41,825,098,000 was realised as against the N50,828 billion projected in 2009; N50.038 billion against N52.166 billion in 2010 and N56.286 billion was realised against last year’s N85.403 billion.

    The committee said the Federal Housing Authority should cut down its operating cost. Its management was berated for non-compliance, despite its Managing Director, Mr A.O Ogunmoroti’s defence that the agency got no subvention from the government and had been operating on deficit.

    NIGCOMSAT blaimed faulty satellite for its lean purse. It said it was the reason for the N1.334 billion being projected for next year.

    The Federal Road Safety Corps (FRSC) raked in N72,177,202,837 between 2009 and October this year, but remitted N4,966,912,525.42 from N30,714,596,715 projected.

    Iyabo Solanke, Finance Director, who held brief for Nigeria Communication Commission (NCC) said the commission generated N34 billion in 2009, N36.6 billion in 2010, N39 billion last year and realised N7.9 billion in October.

    Of the N39 billion generated last year, she said N10.2billion was remitted to the coffers of the government. No remittance was made to date.

    Universal Basic Education Commission (UBEC) said it generated N39 billion in 2009 and N46 billion in 2010. But the audited account for last year was not ready because of an ongoing EFCC investigation. But the committee refused to accept the excuse. It directed the commission to reconcile the account and report back.

    The committee ordered the National Automotive Council to pay N250 million to the government following a discovery of under-declaration. The Council said it realised N17 billion from two per cent automobile import levy into the country and the funds were domiciled with the Bank of Industry BOI).

    The committee directed NAFDAC to return N105 million for 2009, N15 million for 2010, N15 million for 2011 and N253.6 million in 2012.

    The committee flayed NAFDAC for inconsistency in its profile. It showed that N4.5 billion was genereated in 2009, N5.1 billion in 2010, N5.7 billion in 2011 and N5 billion realised as of October.

    The Committee was also not happy with the inconsistency in the financial report and revenue profile of the National Teachers Institute (NTI). Its Bursar, Abdulkareem Acho, told the lawmakers that N1.4 billion was realised against, the projected N2.039 billion for 2009, N1.4 billion in 2010 and that no income was generated last year while N518 million was made this year.

    The lawmakers asked Nigerian Agricultural Insurance Corporation (NAIC) to pay 25 per cent of all outstanding payments to government coffers since 2009 to date.

     

     

  • Financial irregularities: Lagos Assembly to sanction errant MDAs

    Financial irregularities: Lagos Assembly to sanction errant MDAs

    The Lagos State House of Assembly will henceforth sanction any Ministry, Department and Agency (MDAs) that fails to update Fixed Assets Register and Unretired Payment Vouchers as such offence would be regarded as negligence of governmental duty.

    This was contained in the recommendations of the House Committee on Public Accounts (State), which was presented by the committee chairman, Yusuf Ayinla, at the Committee of the Whole House. Ayinla in the report, which was on the accounts of the state government for the year ended 31st December, 2010, disclosed that some MDAs were guilty of certain anomalies that needed urgent intervention.

    Some of the anomalies, according to him, include late submission of financial statements, non-reconciliation of bank statements, non-submission of relevant documents with payment vouchers, negligence of accountants and internal auditors to effectively monitor financial matters in their MDAs, among others.

    The House, in its resolutions, resolved that MDAs that have revenue potentials should henceforth prepare realistic revenue estimates and block loopholes that characterised collection of the state revenues so as to forestall incessant shortfalls.

    It was also resolved that all ongoing projects embarked upon by the MDAs in the year under consideration should be expeditiously executed while evidence of completion should be forwarded to the Assembly.

    The lawmakers also asked MDAs’ accountants and internal Auditors to ensure that all irregularities found in their accounts during the exercise should be rectified within two months or face appropriate sanctions.

    The lawmakers also admonished internal auditors to ensure regular reconciliation of nominal roll registers with payroll in order to avoid incidence of ghost workers, emphasising that prompt transfers of salaries of officers deployed must be carried out immediately, while unclaimed ones should be remitted to the chests

    35 MDAs were indicted in the report due to observations raised by the PAC regarding outstanding issues in their account.