As part of efforts geared towards tackling leakages, a committee saddled with the responsibility of recovering unremitted operating surpluses of agencies of government, running into N450billion, has been constituted by the Federal Ministry of Finance.
The committee whose findings have shown under-remittance of over N450 billion, which has accrued within the period is led by Ahmed Idris, the Accountant General of the Federation,
The committee is to reconcile the operating surpluses of 31 revenue-generating agencies of government for the period 2010-2015.
According to a statement issued by Festus Akanbi, Special Adviser, Media to the Honourable Minister of Finance, “staff of the Office of the Accountant General of the Federation have critically reviewed the accounting statements of these agencies, which include the Central Bank of Nigeria (CBN), Petroleum Technology Development Fund, (PTDF), National Agency for Food and Drug Administration and Control (NAFDAC), Nigerian Television Authority (NTA), and the Securities and Exchange Commission (SEC), among others.”
According to the statement, the Committee will therefore be inviting the management of these agencies to explain why their operating surpluses have not been remitted as mandated by the Fiscal Responsibility Act (FRA 2007).
Quoting relevant sections of the FRA 2007, the statement specifically cited
Sections 21 and 22 of the Act which specifically states that:
“21. (1) The Government corporations and agencies and government owned companies listed in the Schedule to this Act (in this Act referred of as “the Corporations”) shall, not later than six months from the commencement of this Act and every three financial years thereafter and not later than the end of the second quarter of every year, cause to be prepared and submitted to the Minister their Schedule estimates of revenue and expenditure for the next three financial years.
“(2) Each of the bodies referred to in sub-section (1) of this section shall submit to the Minister not later than the end of August in each financial year:
a. An annual budget derived from the estimates submitted in pursuance of subsection (1) of this section; and
b. Projected operating surplus which shall be prepared in line with acceptable accounting practices
3) The Minister shall cause the estimates submitted in pursuance of subsection (2) of this section to be attached as part of the Appropriation Bill to be submitted to the National Assembly.”
The statement reemphasized that according to FRA 2007, “balance of the operating surplus shall be paid into the Consolidate Revenue Fund of the Federal Government not later than one month following the statutory deadline for publishing each corporation’s accounts.”
Some of these agencies the statement read further, have incurred huge expenses on overseas training and medicals, and huge expenses on behalf of supervisory ministries and other organs of government involved in oversight or regulatory functions without appropriate approval.
“Other infractions include payment of salaries and allowances to staff and board members, governing councils, and commissions which are outside or above the amount approved by the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC) and the National Salaries, Income and Wages Commission.
“The list also includes unacceptable expenses incurred on donations, sponsorships, etc, unfavourable contract signed for revenue collection by a third party; granting of staff loans that have not been repaid as well as sale and transfer of assets to board members, among others.” Akanbi stated.
According to the Finance Ministry, the overall effect of these practices is that operating surpluses of these agencies are lower than should be.
The statement further revealed that Kemi Adeosun, Minister of Finance, has directed the Accountant General of the Federation to issue a circular that will limit allowable expenses that can be spent as part of measures to ensure these agencies face strict monitoring.”
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
