Kano raises fresh oversight panel over audit report discrepancies

Fresh concerns over discrepancies in salary deductions and conflicting financial records have prompted the Kano State Government to constitute another implementation committee to oversee the execution of recommendations arising from an independent audit report that uncovered over N1.8 billion in excessive deductions from workers’ salaries.

The decision, according to Umar Farouk Ibrahim, secretary to the Kano State Government (SSG), became necessary after the state discovered inconsistencies in earlier reports surrounding the controversial deductions, alongside the need to ensure transparency, accountability and proper verification before any corrective financial actions are carried out.

Ibrahim explained that the committee was designed as a cross-functional implementation and oversight body that would supervise the verification of records, monitor the execution of approved corrections and prevent further disputes linked to salary deductions and payroll administration.

The committee was inaugurated following a reconciliation exercise ordered by Governor Abba Kabir Yusuf after complaints by the Kano State chapter of the Nigeria Labour Congress (NLC) over what workers described as illegal deductions from their monthly salaries.

Speaking during the inauguration ceremony, Umar Farouk Ibrahim said the government was compelled to establish a new committee after the reconciliation exercise exposed what he described as “premature and inaccurate deductions” as well as misleading interpretations of the actual financial situation.

According to the SSG, findings from the review showed that several deductions previously linked to loan vendors were wrongly flagged by the Digital Information System (DIS) under the Office of the Head of Service, creating confusion over the true status of the transactions.

He stated that the reconciliation process eventually uncovered savings of about N1.8 billion that had not been properly reflected in earlier records.

“The council discovered discrepancies in the previous reports and resolved that a broader implementation committee was necessary to thoroughly verify all transactions and supervise corrective actions before further deductions can take place,” Ibrahim said.

He added that the government adopted what he termed a “review-first” strategy to avoid additional financial disputes and restore confidence among civil servants affected by the controversy.

The newly inaugurated Joint Implementation Committee comprises Commissioner of Finance as Chairman; Attorney General/Commissioner for Justice as member; Head of Civil Service as member; Accountant General as member; Chairman, State Standing Committee as member; Local Governments Standing Committee as member; Director, Computer Center as member; Permanent Secretary, Establishment, who will serve as Secretary; Principal Assistant Secretary (REPA) as member; Commissioner for Livestock as member; Commissioner for Planning and Budget as member; and a Chartered Accountant as member.

Government officials said the committee would work closely with the independent audit firm engaged by the state to validate records and align financial documentation with verified transactions.

The controversy surrounding the deductions intensified after allegations surfaced accusing the immediate past Head of Service, Abdullahi Musa, of mismanaging N1.8 billion belonging to the state government.

However, findings from the investigation ordered by Governor Yusuf reportedly contradicted the allegations.

During a Dinner and Award Night organised by the Kano State Government in collaboration with the Nigeria Labour Congress at the Government House, Ibrahim disclosed that the funds in question were not diverted by government officials but represented illegal and excessive deductions imposed on workers by loan vendors.

A statement issued by the Chief Press Secretary to the Governor, Mustapha Muhammad, quoted the SSG as saying that the government had engaged an independent professional audit firm to carry out a detailed review of the payroll system and examine the accounts of affected workers.

According to the findings, several loan vendors allegedly imposed charges far above agreed contractual terms, resulting in unauthorised deductions from civil servants’ salaries.

“The audit established that the deductions were carried out by loan vendors beyond the approved agreements, thereby leading to illegal financial charges against workers,” Ibrahim stated.

He noted that the government had earlier suspended the loan scheme pending the outcome of investigations in order to prevent further exploitation of civil servants.

The audit report, according to him, confirmed that cumulative excess deductions by the vendors exceeded N1.8 billion, effectively clearing the former Head of Service and other government officials of wrongdoing.

Following the findings, the Kano State Government directed all implicated loan vendors to refund the entire amount.

Ibrahim assured workers that recovered funds would be redistributed transparently to affected civil servants after due verification by the implementation committee.

He also said the government was introducing stricter oversight mechanisms for third-party financial service providers operating within the state payroll system to prevent future abuses.

The SSG maintained that Governor Yusuf’s administration remained committed to protecting workers’ welfare, strengthening financial discipline and ensuring accountability in all payroll-related transactions.

Officials at the meeting further revealed that the government intends to introduce additional technical and operational support initiatives to streamline future reconciliation exercises and eliminate delays capable of disrupting financial operations.

As part of resolutions reached after the reconciliation review, the state government directed that no fresh deductions should commence until the committee completes its verification exercise and submits periodic implementation reports.

The move, officials believe, will help restore public confidence in Kano State’s payroll administration system while reinforcing the administration’s commitment to transparency and fiscal accountability.