Last month, media reports revealed alarming financial irregularities uncovered by the Office of the Auditor-General of the Federation (AuGF). These irregularities, amounting to billions of naira, were traced to contract payments across various ministries, departments, and agencies (MD As) in the country.
The Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses for 2020-2021 highlighted significant contract fraud involving several notable government agencies. The violations included irregular payments for contracts and payments for jobs that were either partially executed or not executed at all.
In light of these revelations and many other yet-to-be-uncovered irregularities, this article seeks to outline measures to curb, if not completely eradicate, public financial irregularities and contract scams that are increasingly affecting Nigeria’s progress as a nation.
While Part 1 of this article addressed proactive, preventive measures, Part 2 focuses on the reactive or detective approach—primarily through the use of probe panels.
Understanding probe panels
A probe panel is a specialised group of individuals established by the executive branch of government to address serious issues such as financial irregularities, contract scams, and corruption within public institutions. The primary mandate of the panel is to investigate these allegations thoroughly, uncover the full extent of any wrongdoing, identify the individuals or entities responsible, and provide actionable recommendations for preventing such incidents in the future.
Typically, a Probe Panel is chaired by a judge, bringing a sense of authority and impartiality to the proceedings. The other members are often selected from relevant professional fields such as accounting, law, public administration, and sometimes investigative journalism, to ensure the panel has the right mix of expertise to handle complex financial and legal matters. This diverse and qualified composition ensures that the investigation is carried out with fairness, transparency, and credibility. Each member’s professional background adds a unique perspective to the process, ensuring that the investigation remains objective, comprehensive, and grounded in expert knowledge. The panel’s balanced approach helps to foster public trust in its findings and recommendations, making it a powerful tool for enhancing governance and accountability.
“The primary mandate of the panel is to investigate these allegations thoroughly, uncover the full extent of any wrongdoing, identify the individuals or entities responsible, and provide actionable recommendations for preventing such incidents in the future.”
Modus operandi of a probe panel
For a probe panel to fulfil its mandate effectively, the following key steps must be followed:
Clear terms of reference:
The panel’s objectives, scope of work, and timeframe should be clearly outlined in their appointment letter to provide a solid foundation for their investigation. By specifying these elements upfront, the letter establishes clear expectations for both the panel members and the public, ensuring that the investigation remains focused and aligned with its intended purpose. A well-defined scope prevents the investigation from becoming overly broad or disorganised, allowing the panel to concentrate on the most relevant issues. Additionally, a clear timeframe sets a reasonable deadline for the investigation, promoting efficiency and accountability. This structured approach ensures that the panel operates with purpose and direction, and it helps maintain transparency regarding the investigation’s progress and eventual outcome.
Public memoranda:
The panel may request memoranda from the public as part of its investigative process to gather valuable information and evidence related to the alleged financial misconduct, irregularities, or contract scams. By seeking input from the public, the panel can uncover additional details or perspectives that might not be readily available through official channels. This allows for a more comprehensive understanding of the situation and can lead to the identification of overlooked facts or witnesses. Public engagement in this manner helps ensure that the investigation is inclusive and thorough, allowing the panel to make more informed decisions and recommendations based on a wider pool of evidence. It also encourages a sense of collective responsibility, as citizens are given a direct role in holding public officials accountable.
Summoning of individuals:
Summoning individuals accused of financial wrongdoing or corruption is a crucial step in the investigation process. By requiring them to testify or present evidence, the probe panel ensures that all relevant facts are gathered and that those implicated have an opportunity to defend themselves. This process is essential for establishing the truth and holding individuals accountable for their actions. It also reinforces the principle of fairness, ensuring that the investigation is thorough and that no stone is left unturned. Moreover, this step is vital for determining the extent of the wrongdoing and its impact, thereby helping to identify appropriate corrective measures and prevent future misconduct.
Public hearings:
Public hearings are an essential part of the investigation process, as they ensure transparency and foster trust in the panel’s work. By making the proceedings accessible to the public, these hearings allow for greater accountability, giving citizens the opportunity to observe the process firsthand. Additionally, they provide a platform for third parties—such as experts, whistleblowers, or individuals with relevant information—to contribute valuable insights that could strengthen the investigation. This open approach encourages community participation, ensuring that all voices and perspectives are considered and that the investigation remains unbiased and thorough.
Evidence examination and reporting:
After gathering evidence, the panel meticulously examines all available data, testimonies, and supporting documents to uncover the root causes and extent of the misconduct. This thorough analysis ensures that every detail is considered, leaving no room for oversight or ambiguity. The panel then compiles its findings into a comprehensive report, which not only outlines the irregularities and those responsible but also provides actionable recommendations. These recommendations are designed to address systemic weaknesses and establish measures that can effectively prevent future occurrences of similar issues, thereby promoting accountability and long-term institutional reform.
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Benefits of probe panels
Using probe panels to address financial irregularities and corruption offers several benefits:
Investigation of financial misconduct:
Probe panels play a critical role in the fight against financial misconduct by conducting in-depth investigations aimed at uncovering the root causes, identifying the individuals involved, and understanding the motives behind such unethical practices. Through meticulous scrutiny of records, interviews with key stakeholders, and analysis of evidence, these panels go beyond merely identifying wrongdoers; they strive to address the systemic weaknesses that allow such misconduct to thrive.
Accountability and transparency:
By uncovering misconduct and ensuring those responsible are held accountable, probe panels foster a culture of transparency and openness in governance. Their actions help build public trust, reinforce ethical standards, and encourage accountability across all levels of government. This process deters future violations by demonstrating that corruption will not go unpunished. Additionally, it strengthens democratic institutions by promoting integrity and ethical conduct in public office.
Deterrence:
Imposing sanctions on indicted officials not only serves as a deterrent to others considering similar acts but also reinforces the principle that no one is above the law. It sends a strong message that corruption and financial misconduct will face strict consequences, ensuring accountability and discipline within the system. Such actions also help restore public trust in governance by demonstrating a firm commitment to upholding integrity and ethical standards in public service.
Promotion of good governance:
When probe panels operate effectively, they build trust and credibility by showing that misconduct will not go unchecked. This fosters good governance by promoting accountability, ensuring that public resources are managed responsibly, and reinforcing the government’s commitment to transparency. Such actions inspire confidence among citizens and stakeholders, creating a more stable and ethical environment for societal growth and development.
Encouraging whistleblowing:
The panel’s activities can strengthen whistleblowing mechanisms by creating a supportive environment where individuals feel safe to report corrupt practices. By demonstrating fairness and impartiality, the panel reassures whistleblowers that their concerns will be addressed without fear of bias or victimisation. This fosters a culture of accountability, empowers citizens to actively participate in fighting corruption, and ensures that unethical behaviours are promptly exposed and addressed.
Recommendations for effective probe panels
For probe panels to deliver meaningful and impactful results, the government must prioritise the appointment of credible individuals with impeccable integrity and a track record of ethical conduct. These members should be thoroughly vetted to ensure they are free from any past involvement in financial irregularities, corruption, or questionable dealings, as their credibility is the foundation upon which the panel’s legitimacy rests. Furthermore, the panels must operate with complete independence, shielded from political or external interference, to inspire public confidence in their processes and outcomes. Any hint of bias or undue influence could undermine their work and diminish their effectiveness.
Conclusion
Winning the war against financial irregularities, contract scams, and corruption requires collective effort. The government must urgently appoint credible and independent individuals to probe panels, ensuring they possess the expertise and integrity to deliver on their mandate.
When properly structured and supported, probe panels can become a powerful tool for uncovering wrongdoing, promoting accountability, and restoring public trust in governance.
Kingsley Ndubueze Ayozie, KJW, FCTI, FCA, an advocate for good governance and a Chartered Accountant, writes from Lagos.
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