Institute of Chartered Accountants of Nigeria (ICAN) says plans by the Federal Government to hire foreign consultants to monitor Ministries, Department and Agencies’ (MDAs) budget is a waste of scarce foreign exchange.
ICAN observes that the idea to monitor budget is a laudable one, but the Federal Government does not require the services of foreign consultants to monitor the budgets, saying the country has auditors and chartered accountants who are sufficiently trained to monitor and audit projects with financial implications.
In a letter written to the Federal Government signed by Titus Soetan, 52nd president, and Rotimi Omotoso, registrar/chief executive of ICAN, and obtained by BusinessDay, the Institute says what is operational in other climes is the implementation of a Single Audit Process, which will require MDAs to obtain a yearly financial statement audit in addition to a compliance review of the terms and conditions of its federal awards by a professional auditors.
Omotoso advises that all government needs to do is compel MDAs to prepare financial statement, have it audited and also have their projects verified.
According to Omotoso, “Who is in the position to do this than professional accountants that we have in this country, I think we should give them a chance to do their jobs. Not look outward into foreign shore and foreign consultants who will not do much.”
He urges the government not to expend scarce resources on monitoring projects that can ordinarily be done by Nigerian professional accountants, saying, “We are of the firm belief that involving Nigerian accounting firms in the exercise would not only yield better results, but also help create jobs for the citizens.
“The so-called foreign consultants to be hired would be paid in dollars. They don’t accept naira for their service, but I am sure ICAN members will always accept naira.”
It would be recalled that a publication in the Guardian Newspaper of November 29, 2016, reported that the Federal Government was to hire foreign consultants to monitor MDAs’ budget.
According to the publication, “this is part of the government’s plan to strengthen the monitoring and evaluation content in the 2016 and 2017/2019 budgets.” This idea to hire a foreign consultant is also reported to be one of the key recommendations presented to the government by a former Georgian prime minister, Nika Gilauri, who is also a foreign consultant to the national economic team.
