The 2017 report of the Auditor-General of the Federation (AuGF) revealed that about 265 federal agencies did not account for over N300 billion. Similarly, the 2016 audit report showed that the agencies did not remit N450billion between 2010 and 2015, despite the over N40 trillion disbursed to them. Apart from the report being an indictment on the poor performance of the MDAs, it showed that the agencies breached government’s accounting procedures, including the implementation of the Treasury Single Account (TSA).
The highlights of the report signed by the AuGF, Anthony Ayine, revealed that while 160 agencies failed to submit their audit accounts for 2016, 265 agencies defaulted in submission of their audited accounts for 2017 and eleven never submitted any financial statement at all since inception.
By the provisions of the Financial Regulation 3210(v), chief executive officers of government corporations, companies and commissions must submit both the audited accounts and management reports to the Auditor-General of the federation not later than May 31, of the following year of accounts. The report also discovered that the MDAs and their accounting officers had not been responding promptly to audit observations.
The situation has been compounded by government’s refusal to create or sign the already passed bill containing sanctions on erring MDAs and their chief executive officers. We recall that the National Assembly has recommended that such sanctions should include, withholding financial releases and stiff penalty on the chief accounting officers who fail to render timely accounts, as provided in Sections 162 of the Constitution, financial regulations and other relevant laws.
Besides, the report observed some lapses in the management of public funds and resources across several MDAs during the exercise. They include irregular expenditures and failures to return surplus revenues to government treasury. In addition, the report showed that most of the MDAs, especially the high revenue generating agencies failed to remit withholding taxes, Value Added Tax (VAT), Stamp Duty, capital gains tax, and Pay As You Earn (PAYE), among others.
Among the government agencies indicted in the non-remittance or under remittance include the Bureau of Public Enterprises (BPE) with unremitted N7.59billion, National Examination Council (NECO) and the Securities and Exchange Commission (SEC) with N6.67billion and N2.29billion. Sixteen others failed to remit N20billion into the Consolidated Revenue Fund.
The AuGF found that the agencies dissipated funds on overhead and extra-budgetary expenditures on contracts resulting in the reduction of their operating surpluses, with some of them involved in unauthorised investment in idle funds without remittance of interest or return to the consolidated revenue fund. Some of the agencies’ officials embarked on international travels without requisite approval from the appropriate authorities as specified in extant circulars.
These infractions ran through most of the agencies within the period covered by the audit report in flagrant violation of fiscal and audit rules.
The rot in the MDAs sinks deeper than the audit report may have uncovered. The malfeasance is so nauseating that only stringent sanctions against erring agencies and their accounting officers can stop it. Failure to take appropriate action will weaken the anti-graft war of the government.
Recently, about N3billion was discovered in the account of a top official of the Federal Ministry of Water Resources in Abuja. This underscores the level of rot in the MDAs. In 2016, a similar mind-boggling discovery was made, which led to plans to prosecute officials of 33 of the agencies over non-remittance of N450billion.
Therefore, the AuGF report should serve as a wake-up call on the government to address public sector corruption. We believe that this is the right time to ensure that the MDAs stick to the provisions of the relevant fiscal and audit rules governing their operations. A timely reconciliation of all revenues accruing to the Consolidated Revenue Fund should be done forthwith.
Also, heads of the agencies indicted in the audit report should be adequately sanctioned. We urge the government to review the expenditure plans of the agencies to ensure accountability. Let government deploy relevant technology to enhance the efficiency of the MDAs.