Massive fraud: N3.2trn unpaid into national treasury in 2014 [DETAILS]

According to the federal government, not less than N3.2 trillion was unremitted into the national treasury by various Ministries, Departments and Agencies of government as well as foreign missions in the 2014 fiscal year.

This disclosure was made in the 2014 Annual Audit Report presented to the National Assembly on Monday by the Auditor General of the Federation, Samuel Ukura.

The AGF submitted the audit for consideration by both chambers of the National Assembly in line with Section 85(2) (4) of the 1999 Constitution.

The report showed a massive mismanagement and misappropriation of funds in 2014 during the administration of ex-President Goodluck Jonathan.

The Nigerian National Petroleum Corporation, the document reveals, failed to remit N3,234, 577,666,791.35 to the Federation Account Allocation Committee in 2014.

The report further stated that $235,685,861, proceeds from gas sale accruable to the Nigeria Liquefied Natural Gas, was transferred to some undisclosed Escrow Accounts rather than being paid into the Federation Account.

According to the audit report, N36,432,423,968.73 was released to the Office of the National Security Adviser for the rehabilitation and construction of dams rather than the Federal Ministry of Water Resources- which should be ordinarily responsible for such projects.

Based on the audit, it was also discovered that the management of the National Assembly disbursed N9,514,568,222.62, without raising payment vouchers.

The report reads in part: “From the examination of NNPC mandates to CBN on Domestic Crude Sales and Reconciliation Statement of Technical Subcommittee of Federation Account Allocation Committee meeting held in January 2014, amount not remitted to FAAC was N3, 234,577, 666,791.35.”

“Review of sales profile on sale of gas to NLNG ($235,685,861.31) was not paid to the Federation Account but transferred to some undisclosed Escrow Accounts. Relevant documents were not made available for verification.”

“Sales profiles ($316, 211,227) on gas in respect of Gas Export Sales due to the Federation were stated to have been paid and received through the NGL Funding Account. No statements or documents were made available to confirm the receipts as well as the utilisation of these payments made through the named account.”

Other financial anomalies perpetrated in 2014 include: “Withdrawal of N922, 429, 182 from Husked Brown Rice Levy as loan given to Independent National Electoral Commission(INEC) to finance 2015 elections.”

“About N7billion Comprehensive Import Supervision Scheme (CISS) Levy was withdrawn as loan given to INEC to finance 2015 elections. Expenditure is contrary to the purpose of the fund, which is to fund Destination Inspection Service Providers. The value of the Federal Government and Federation Account Foreign Reserves was not disclosed in Financial Statements as part of the assets of the Federal Government.”

“Direct deductions from FGN shares in respect of 1% Police Reward Fund(N5,199, 864, 234). There was no evidence of accounting for the utilisation of this fund. Non-disclosure of N10billion expenditure of Subsidy Re-investment (SURE-P) in the Consolidated Development Fund Statement.”

“Ministry of Niger Delta. Lots of funds through illegal withdrawals. About N803, 165, 879.78 was withdrawn through three illegal withdrawals as follows: N300m(3/9/2014); N305, 073, 540(17/9/2014) and N198, 092, 339.78( 19/11/ 2014). Beneficiaries not stated/ indicated.”

“National Assembly. N9,514,568,222.62 payments were made without raising payment vouchers at the Management Department, which is a violation of Financial Regulation 601. Personal advances granted to 112 staff from recurrent votes and 50 members of staff from General Service Vote from July to December 2014 for various purposes all amounting to N1, 162, 009.305.”

“These were variances with the purpose of the fund. No evidence of these lines of expenditure in the 2014 Appropriation Act,” the AGF said in the report.”

The report indicted the Nigerian High Commission in Jamaica on the earthquake in Haiti, noting that the Embassy awarded $2.3million contract without following due process.

“The aftermath of Haiti earthquake in 2010 led the Nigeria Red Cross to coordinate fund raising to assist Haiti victims. The total sum remitted to Nigeria High Commission, Kingston-Jamaica was US$4, 901,006. 16. The fund was to primarily finance a project in Haiti with a view to alleviating the suffering of the victims and promoting greater cooperation between the two countries.”

“A Nigeria-based contractor was awarded a contract to build a school in Haiti at the area not affected by earthquake at the contract sum of $2, 333, 420.89 in which 50 % of the contract sum was advanced(US$1, 166, 710.04 without due process. Physical inspection of the project revealed that the project is at foundation stage and not more than 12% completion stage in October 2015 even though execution was suspended by the Ministry of Foreign Affairs.”

“The Project Coordinator was awarded a contract of US$366, 160 with the sum of US$192, 408 paid. The Nigerian High Commission officials were indebted to the fund to the tune of US$ 552, 629 as at the time of audit in October 2015.”

“The fund was invested in fixed account and yielded accumulated interest of $147, 831.89 which was withdrawn and cannot be accounted for. The balance in the account as at the time of audit in October 2015 was US$2, 890,656.5 credit.”

“As at the time of inspection, there was no evidence of Memorandum of Understanding (MOU) between the Nigerian and the Haitian Governments for the construction of the school. More so, the location of the school was not affected by earthquake in 2010. Therefore, the purpose in which the money was given cannot be achieved.”

“Acquisition and payment of a N3, 630, 000,000 property for Petroleum Equalization Fund(PEF) Head Office building at Kado District without Certificate of Occupancy(C of O).”

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