Senate probes revenue generating agencies

The Senate has constituted an adhoc committee to investigate Federal Government’s revenue generating agencies over accusations that they are short-changing the Federal Government of billions of naira realized yearly.

The six-man panel, chaired by Solomon Adeola (APC, Lagos West), is expected to submit its report within six weeks.

The setting up of the committee, followed a motion tagged: “Urgent need to investigate revenue generation agencies for non-remittance of Generated Revenue”, sponsored by Adeola.

The setting up of the panel comes two weeks after the Federal Government accused revenue-generating agencies of siphoning money. Minister of Finance, Kemi Adeosun in October, also accused revenue generating agencies of diverting revenues generated meant for the government.

Senate President, Bukola Saraki, while setting up the committee, expressed regret that revenue agencies generated over N1.5 trillion in 2015 but could only remit less than N500 billion.

“As I keep on hammering, independent revenue and non-oil revenue are very important areas of our budget. This independent revenue is 37 per cent. You remember that last year it was almost N1.5 trillion and I am being told now that this year is likely to come down to 500 billion because they could not meet the target.

“The inability to meet the target is not that they do not have the capacity to meet the target; the problem is that there is too much abuse on this operating surpluses where people spend up to the last naira in all. I think the best way forward is for us to address this issue in blocking these leakages and I believe that in constituting the adhoc committee, we would just take the best hands and still bring people from Finance and Public Accounts Committees,” he said.

In his remarks, Adeola said all revenues and monies raised or received are expected be paid into the Consolidated Revenue Fund of the Federation.

He submitted that the Fiscal Responsibility Act of 2007 was enacted to ensure transparency, accountability and to prevent corrupt practices in relation to public revenues and expenditure.

He expressed worry that government owned companies have over the years grossly violated the letters of the 1999 Constitution and the Fiscal Responsibility Act in relation to their revenue generation activities and expenditures.

“The various audit queries against these agencies over the years further indicates possible mismanagement of public funds against the spirit of the Constitution and Fiscal Responsibility Act.

“In view of Federal Government’s dwindling revenues from the traditional crude oil sector and the on-going recession, these government bodies are continuing in short-changing government of needed revenue through various illegal practices,” Adeola noted.

In his contribution, Deputy President of the Senate, Ike Ekweremadu, said there was need to review the existing laws setting up the agencies.

He said if the revenues generated are carefully monitored, there may not be need to borrow money to fund the budget.

President Muhammadu Buhari’s request to borrow $29.9billion to fund the 2017 budget and other critical projects in the country, is currently stalled in the National Assembly.

Ekweremadu stated: “We have a lot of leakages. I think it is time for us to look back and look at those laws. We need to look at those laws and review them. We are talking about borrowing money to fund the budget, whereas, monies generated are going into private pockets”.

On his part, Ahmad Lawan, said: “Some of these agencies have their Acts supported by law. We have to amend these laws. Another thing we can do is to intensify our oversight. We need to know how these agencies utilize the funds. Many of these agencies are just there. We should be looking at reducing these agencies so that those that will be left to collect revenues will be thoroughly supervised.”