Politics
THE House of Representatives Committee on Public Accounts has quizzed Accountant General of the Federation (AGF), Mrs Oluwatoyin Madein over the country’s growing public asset worth N33.3 trillion, as well as over N284.316 billion extra-budgetary expenditures carried out to 256 Ministries, Departments and Agencies (MDAs) in 2020 fiscal year, in breach of provisions of the 1999 Constitution (as amended) and extant financial regulations.
The oAuGF in the report on the ‘Negative Net Assets’ specifically expressed worry over negative net assets of Federal Government of Nigeria totaling N33.3 trillion. The total assets stood at N10.1 trillion while the total liability was N43.4 trillion thereby leading to a negative net asset of N33.3 trillion.”
It further showed that; “Federal Government’s total current assets was N1.7 trillion while total current liability was N16.3 trillion thereby leading to a difference of N14.6 trillion. This means that FGN will not be able to meet up with its current obligation/commitment. This also suggests that Federal Government of Nigeria is faced with a high debt burden which could hamper the development of key infrastructures.”
Speaking during the flag-off of the investigative hearing into the 2020 consolidated financial statements and audit queries on non-compliance by Ministries, Departments, and Agencies MDAs (MDAs) submitted by the office of the Auditor General of the Federation (OAuGF), Chairman, House Committee on Public Accounts, Hon. Bamidele Salam explained that the exercise was not aimed at witch-hunting anyone.
Hon. Salam who lamented that over 300 MDAs have failed to submit audit reports to the oAuGF in breach of extant financial regulations, for between five to 10 years frowned at the failure of relevant regulatory agencies to enforce relevant laws.
Hon. Salam also unveiled plans to investigate the utilisation of the Service Wide Vote which he noted that Mr. President has power to grant approval for its utilisation.
While noting that the Service Wide Vote should not be seen as “slush fund”, he argued that the National Assembly will exercise its constitutional powers to investigate its utilisation.
In his address, Auditor General of the Federation (OAuGF), Mr. Shaakaa Kanyhor maintained that all public officers must adhere to extant financial regulations.
While noting that all the assets and liabilities of Federal Government were not captured in the financial reports he argued that: “as we speak, key assets like airports, dams, railways, all generating (power) stations, roads, bridges, Federal Government buildings are not valued.
“You will not see them in the financial statements which is not good enough,” Mr. Kanyhor noted.
He also noted that up till now, most of the MDAs have not prepared their financial statements to the OAuGF in breach of extant financial regulations, adding that most of the MDAs have failed to provide stand-alone audit statements as required in the IPSAS accounting system adopted by Nigeria.
As stipulated in the 2020 audit queries, Paragraph 313 of the Financial Regulations 2009 states that: “The authority conveyed to the Accountant-General, and to officers controlling votes, by Recurrent Expenditure Warrants is limited to the amounts provided under each sub-head in the Approved Estimates and Supplementary Estimates. No expenditure on any sub-head of the Recurrent Estimates in excess of the provision in the Approved estimates or Supplementary Estimates may be authorised by any officer controlling a vote, without approval of the National Assembly. Such approval will be sought by means of an application for supplementary provisions or virement.”
Furthermore, paragraph 107 of the FR 2009 states “Pursuant to FR 106 above, the Accountant-General shall inter-alia’…(a) serve as the Chief Accounting Officer for the receipts and payments of the government of the federation; (b) supervise the accounts of federal ministries, extra-ministerial offices and other arms of government…”
According to the report, 256 MDAs exceeded their Overhead Cost budget by N284,316,170,124.34 out of total expenditure of N361,273,553,365.49 disclosed for the affected MDAs, against the approved budget of N76,957,383,241.15. The sources of the extra spending were neither disclosed nor was the evidence of supplementary appropriation or approved virement provided.
The OAuGF maintained that the above anomalies can be attributed to the failure of the Accounting Officers of the affected MDA to ensure that proper budgetary and accounting systems are established and maintained to enhance internal control, accountability, and transparency. Also, lack of due diligence from the Accountant-General of the Federation in ensuring that the release of the Overhead Costs was limited to approved estimates.
While responding to inquiries on the N33.3 trillion asset liability, Accountant General of the Federation, Mrs. Oluwatoyin Madein affirmed that the records of Federal Government have not been put in place.
While responding to the state of economy’s health status, she said: “In the course of the Auditor General’s opening statement, he mentioned that legacy assets of the Federal Government had not been valued and included in the financial statements.
“That is where the net assets is coming from. And we discovered that valuation of assets is something that takes time. Like the entire National Assembly is an asset of the Federal Government that do come into the financial statements; airports all over. So, the valuation of the assets are the critical case now.”
While maintaining that there is no national asset register in existence, she stressed that the financial statements do not give true financial performance of the Federal Government, however noting that efforts are ongoing to address the lacuna and ensure that necessary valuation is carried out.
“On the issue of the national assets register, I have not seen one,” she affirmed.
In response to the report on the misapplication of public funds, Accountant General through the ‘Management response to the audit query, affirmed that GIFMIS budget-based software could not allow payments without a budget.
Also, MDAs with waivers to spend 75% of their revenue are allowed to add whatever they spent as a supplementary budget. Several of the affected MDAs also do have Grants or Aid, these are to be classified as supplementary budget. Those, with AIE, revenue & grant sources have had the budgets adjusted as supplementary budgets.
The Committee is also expected to investigate the audit query which indicated that the proceeds from Personal Income Tax of the Personnel of Armed Forces, Nigeria Police Force, and Ministry of Foreign Affairs were not recognised in the Consolidated Finance Statement.
TRIBUNE
17th February, 2024.
C.E.
Tags: AGF House of Representatives Oluwatoyin Madein
