JUST-IN: Auditor-General uncovers N3.4trn fraud

***At Minting & Printing, PenComm, others

The Office of Auditor-General for the Federation (OauGF) has uncovered financial infractions worth over N3.403 trillion in several government Ministries, Departments and Agencies (MDAs) for the financial year ending 31st December 2021.

The infractions reported in 28 audits conducted by the office were contained in the 2021 audit report of non-compliance/internal control weaknesses in MDAs of the federation for the 2021 financial year.

Already, facts on the issues were submitted to the National Assembly via a letter reference number AuGF/AR.2021/02, dated 15th October 2024 signed by the Auditor-General for the Federation, Shaakaa Kanyitor Chira.

The report noted that N2.902 trillion of the amount came from the failure of eight government agencies to recover outstanding government revenue with the Nigerian Bulk Electricity Trading Plc. which had failed to recover N2.896 trillion of the amount.

In the correspondence addressed to the Clerk of the National Assembly, the Auditor-General said the infractions were part of what he called cross-cutting issues which he noted were the same non-compliance/internal control weaknesses that were identified in at least four MDAs of the Federal Government covered by the Auditor-General for the Federation’s Annual Report on Non-compliance/Internal Control Weaknesses in MDAs of the FGN for the year ended 31st December, 2021.

The correspondence drew the attention of the Public Accounts Committees of the National Assembly to each of the issues through recommendations, including sanctions, with a view to stemming the tide.

He said the essence of bringing up the infractions was to further assist the Public Accounts Committees and other stakeholders to assist the federal government recover from a class of issues tagged ‘Cross-cutting’.

The report, noted that the sum of N7.386 billion were the irregularities in the award of contracts by 32 MDAs with the Rural Electrification Agency, Abuja, having the highest infraction of N2.118 billion, while the Nigerian Security Printing and Minting Company Plc. (NSPM) was involved in the least level of infraction noted to be N11.7 million.

The report alleged irregular payment of N115.675 billion by 64 MDAs with the Nigerian Bulk Electricity Trading Plc., Abuja, having the highest infraction with N96.2 billion, while the Federal Neuro-Psychiatric Hospital, Kaduna, is credited with the least amount of N1.323 million.

The Auditor-General noted that the sum of N167.592 billion was for contracts not executed by 31 MDAs in the year under reference, with the Nigerian Bulk Electricity Trading paying a whopping N100 billion and the National Centre for Women Development (NCWD) paid the least amount for unexecuted contracts to the tune of N2.171 million.

The report further stated that six MDAs failed to deduct withholding Tax and Value Added tax amounting to N129.341 million as accruing tax to the government, with the Federal Road Safety Corps (FRSC) failing to deduct the highest tax amounting to N90.58 million, while the Federal Ministry of Labour and Employment came last with N623,162.80.

Similarly, 21 MDAs were said to have failed to deduct the sum of N2.636 billion as tax from payments to several beneficiaries, with the Nigerian Security Printing and Minting Company Pic. (NSPM) coming tops with N41.009 billion, while the Federal Medical Centre, Ebute Meta, followed from the rear N617,427.66.

According to the report, 11 MDAs failed to remit N11.561 billion, which was tax deducted from taxpayers to the relevant tax authorities, with the Nigerian Security Printing and Minting Company Plc. (NSPM), failing to remit the highest amount of N10.393 billion, while the Federal Medical Centre, Katsina, failed to remit N1 .371 million.

The report also noted that the sum of N8.312 billion was paid out by about 40 MDAs without support documents to back up the payments, with the Presidential Amnesty Programme (PAP), being the biggest culprit with N1.529 billion, and the Federal College of Land Resources Technology, Owerri, having the least amount of N1.992 million.

It also reported that 8 MDAs misapplied the sum of N663,854,877.01 in contravention of extant laws, with the University of Benin Teaching Hospital, Benin City, spending about N253,532,050.49 of the money, while 24 other MDAs awarded contract worth N20.334 billion without following due process, with the Nigerian Security Printing and Minting Company Plc. (NSPM) awarding contract valued at N14.136 billion without following due process.

It said further that the Federal Inland Revenue Service (FIRS) failed to recover about N69.928 billion as tax liabilities from 26 of its outstation offices within the period under review, while items valued at N968.908 billion were taken from the store without ledger charge by 29 MDAs with the Nigerian Railway Corporation (NRC), Lagos, alone accounting for N125 billion of the items.

The Audit report also disclosed that in 2021, 15 MDAs carried out extra-budgetary expenditures amounting to N15.786 billion, with the National Agricultural Land Development Authority (NALDA), accounting for N8.86 billion of the amount.

In addition, it recorded six MDAs which carried out virement of about N2,63 billion without approval with the Rural Electrification Agency (REA)accounting for N1 .9 billion of the amount, While about N122.5 billion was left unaccounted for by 19 MDAs, with the Nigerian Bulk Electricity Trading Plc being culprit of N111.601 of the amount.

It also reported that about N6.602 billion was generated internally by 29 MDAs, but not remitted to the appropriate authority, adding that the National Pension Commission, withheld the highest amount of N4,429,550,386.58, while 35 MDAs circumvented the procurement process leading to the loss of N1,948,132,710.98.

It accused 9 MDAs of paying external solicitors about N243,932,964.27 engaged without the Attorney-General’s Fiat, with the Bureau of Public Procurement (BPP) having the highest infractions of N112,261,659.00, while another 5 MDAs paid some unspecified third parties about N439,688,368.76 without the attorney general’s approval.

Five MDAs awarded contracts valued at N2.407 billion stated to be above their approval threshold, with the Ahmadu Bello University (ABU) Teaching Hospital,, Zaria, incurring the highest amount of N1,065,614,232.70, while staff and unauthorised persons from other five sets of MDAs illegally held on to government vehicles valued at N747,749,365.06, with the Nigerian Security Printing and Minting Company Plc. (NSPM) Abuja, having the highest amount of N413,343,623.00.

Other infractions reported by the Auditor-General included denial of access to documents with expenditure amounting to N21,480,891,930.77 by 11 MDAs, unretired cash advances in 30 MDAs amounting to N1,300,643,209.41 and payment without vouchers amounting to N1,135,025,464.67, with the Federal Ministry of Works (Housing Sector) having the highest amount of N1,076,662,242.61.