AGF uncovers over N3.374trn misappropriated funds by NNPC, MDAs

The office of the Auditor-General of the Federation (AGF) has uncovered over N3.374 trillion misappropriated funds by the Nigerian National Petroleum Corporation (NNPC) and other federal ministries, departments and agencies (MDAs) in a 2014 audit report presented to the National Assembly on Monday.

Samuel Ukura, AGF, gave account of the misappropriated funds while presenting the 2014 Annual Audit Report to Salisu Maikasuwa, Clerk of the National Assembly, in Abuja, and urged the Federal Government to ensure immediate recovery.

According to the documents seen by BusinessDay, a whopping sum of N3.2 trillion was not remitted by the NNPC to Federal Account Allocation Committee (FAAC) in January 2014, a figure uncovered during the examination of NNPC mandates to the CBN on domestic crude oil sales and reconciliation statement of the technical sub-committee of FAAC.

The sum of $236 million, being proceeds from sales of gas to Nigerian Liquified Natural Gas Company (NLNG) was not paid to the Federation Account but transferred to an “undisclosed Escrow Account”.

There was another $346 million, proceeds from gas export sales due to the Federation Account and received through NGL funding account but no statements or documents were made available to confirm the receipts, as well as the utilisation of these payments made through the named account.

While the Federal Ministry of Petroleum Resources failed to remit N29.4 million in taxes, the Department of Petroleum Resources allegedly failed to sanction 26 oil companies over about $744 million outstanding revenue to the Federal Government as at 31/13/2013, yet some of them are still operating. NIPOST also failed to remit

N14.3 million VAT/withholding tax (WHT); N80 million not remitted by Federal Ministry of Niger Delta, N803.2 million lost through three illegal withdrawals and N322.6 million PVs not presented for examination despite repeated demands.

Others include: N5.2 billion direct deductions from FGN shares in respect of 1% Police reward fund, without evidence of accounting for the utilisation of the fund; and non-disclosure of N180 billion SURE-P expenditure in the consolidated development fund statement.

As also seen in the report, there were no explanations about N12.7 billion loan from 10% Rice levy to Nigeria Custom Service “to take care of urgent and critical needs” and additional sum of N922.4 million withdrawal from 25% husked brown rice levy as loan given to INEC to finance 2015 elections, as well as N7 billion of 1% comprehensive import supervision scheme (CISS) pool levy withdrawn as loan given to INEC to finance 2015 elections.

“The expenditure is contrary to the purpose of the fund which is to fund the Destination Inspection Service Providers,” according to the AGF.

Ukura further noted the N3.850 billion grants given to Lagos, Ogun, Kebbi, Sokoto for undisclosed reasons and charged to 2010 capital vote; N305.6 million paid for establishment of Cactus Opuntua plantations in Jigawa, Katsina, Kebbi, Borno, Kaduna and Niger in support of afforestation initiative and N260 million overpaid for

contract for remediation work at Warri Refinery and Petrol Chemical Company.

A breakdown of the irregular payments from special funds showed that N36.4 billion was released to the office of the National Security Adviser for the rehabilitation and construction of dams instead of to the Federal Ministry of Water Resources.

Others include: N2.9 billion spent on procurement of hand sanitizer for schools and critical public places; N31.3 billion subsidy on fertilizer and youth empowerment in agricultural programmes;

N2.4 billion paid for Group Life Assurance Premium for Armed Forces budget in 2013 but not cash-backed, as well as N500 million payment for schools agricultural programmes.

Some of the unretired advances by some MDAs include: N1.6 billion advances to 47 members of staff of the Federal Ministry of Health were not retired; N48 million for Federal Ministry of Foreign Affairs; N24.6 million for Federal Ministry of Special Duties and Inter-Governmental Affairs; N113.8 million advances for Federal Ministry of Lands, Housing and Urban Development.

The Federal High Court was also indicted over N44.4 million advances paid to 12 staff of the Federal High Court between March and December 2014. These were not retired up to August 2015.

Similarly, N90.6 million paid to 15 officers exceeded the limit of N200,000 authorised for procurement of goods and services; 84 payment vouchers worth N750 million were not procured for audit examination and verification as well as N564.8 million raised for 28 PVs raised and paid for various insurance premium and renewals between January, 2012 and December 2014. “Relevant documents as letter of engagement/award of insurance contact to the insurance broker or insurance companies were not procured for audit,” the report stated.

Likewise, figures showed how the National Assembly failed to retire the N1.2 billion granted to 112 staff from recurrent votes and 50 staff from General Service Vote from July to December 2014 for various purposes and additional sum of N9.5 billion payments made without raising payment vouchers at the management department which violates financial regulation 601.

The report also showed that N205.5 million deducted as PAYE from January to December 2014 but not remitted by the Plateau State Police Command and 12 missing fire arms at various Police Divisions in the State. “The rate of missing or snatching of Police firearms is alarming and needs concrete efforts to be made to reduce this trend,” the AGF recommended.

The AGF also recommended the recovery of $3.7 million (N578,973,154.69) generated by the Embassy of Nigeria in Washington DC allegedly expended,which was supposed to be remitted into the Consolidated Revenue Fund account; $147,831.89 accumulated interests on $2,890,656.51 credit paid to a Nigerian contractor to build schools in Haiti and $552,629 owed to Haiti fund.

He however advised Federal Ministry of Foreign Affairs to discontinue the project without MoU for which $1,166,710.44 has been paid and the job was at 12% completion stage.

KEHINDE AKINTOLA