Report implicates Senate, House of Reps in N2bn misappropriation scandal

A report from the office of the Auditor-General of the Federation, Anthony Ayine, has implicated both arms of the National Assembly in the misappropriation of about N2bn from the Assembly accounts, National Daily has gathered.

The report, made available to National Daily, revealed that the illegalities were perpetrated in 13 transactions. The annual report also implicated National Assembly Service Commission (NASC), and the National Institute for Legislative Studies (NILS).

The report said House incurred the highest infraction of N1.1 billon followed by Management, N347.8 million; NILS, N246.5 milliion; the Senate N205.7 million; legislative aides N70 million and NASC,N30 million.

The report stated that, “records however showed that the supply of 14 Units of these motor vehicles were not made. The Clerk has been informed and has been requested to recover monies paid for the outstanding 14 vehicles and forward the recovery particulars for audit verification.”

Also at the House, the Auditor-General said 50 cash advances amounting to N499.6 million were granted to staff to carry out various assignments.

“Some of the vouchers were granted multiple advances without retiring the previous ones in violation of the Financial Regulations which provides that no new advance should be granted, if the previous ones had not been retired” it stated.

For the Senate, the Auditor-General’s report said N186million meant for the payment of Motor Vehicle Loan which was paid into a Commercial Bank Account as indicated in the mandate was misapplied for other purposes such as organizing Senate Retreat and Pre-Valedictory Session of the 7th Senate.

This action, according to the report, violates the provision of Financial Regulations 417 which states that, “Votes must be applied only to the purpose for which money is provided. Expenditure incorrectly charged to a Vote shall be disallowed”

In the Management accounts, the Auditor-General said the personnel Account was overdrawn in two instances, and this attracted a penalty amounting to N8.8 million in violation of the provisions of Financial Regulations 710 which states that “No Government Bank Account shall be overdrawn or any temporary advance obtained from a bank and any bank charges incurred shall be recovered from the Accounting officer.”

It also observed that account payment vouchers amounting to N115.9 million paid by the Management within the first 6 (Six) months of the financial year 2015, were not produced for audit examination.

It was further observed that Cash Advances totalling N158million granted to members of staff in 17 instances between the months of January and June 2015 are yet to be retired at the time of writing this report in the month of August 2016, (more than a year after payments) in flagrant disregard of extant regulations which stipulate that all advances should be retired /accounted for, immediately after the completion of the assignment for which funds were granted.

During the Audit of National Assembly Budget & Research Office (NABRO) account, financial scandal of N66million was observed. It said there were vital/relevant supporting documents.

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The Audit of the Personnel Accounts of the Legislative Aides revealed that a total sum of N78.5million was expended on the payment of Overtime/Special Allowances to officials who are not Legislative Aides, in the months of November and December 2015.

In case of the National Assembly Service Commission, an amount totalling N17million was deducted from four months’ salaries by the commission in the year 2015 as PAYE (Pay As You Earn) and claimed to have been remitted to the Federal inland Revenue Services without any evidence of payment to FIRS.

“If evidence cannot be produced, then they said amount should be recovered and paid back to FIRS (and) furnish the Auditor-General with payment particulars for verification.”

At the NILS, it was observed that despite the prohibition of payments by cheque by the Federal government, except in extreme Shortcode for newslettercases, the institute used cheque to make payment for transactions amounting to N246 million.

Meanwhile, Senate President, Dr. Bukola Saraki has referred to the Senate Committee on Public Accounts for further legislative actions. The committee Send a newsltterwas given four weeks to look into the matter.