The recent indictment of some government’s Ministries, Departments and Agencies (MDAs) by the Senate Public Accounts Committee for various financial infractions underscores the endemic rot in our governance systems. It is an evidence of government’s failure to check the financial recklessness that has persisted in these MDAs for years. The latest indictment is the outcome of the scathing report of the Auditor General of the Federation (AuGF) covering 2017 and 2018 financial period.
Among the key MDAs involved are the Office of the Accountant General of the Federation (AGF), the Ministry of Finance, the National Agency for Food and Drug Administration and Control (NAFDAC) as well as the Federal Mortgage Bank. Others include Nigerian Copyright Commission, Maritime Academy of Nigeria, Federal Ministry of Environment, National Library, Federal Civil Service Commission, Public Complaints Commission and others.
The Committee’s report also accused the outgoing administration of its inability to act decisively with previous AuGF’s reports on the MDAs that exposed huge financial malfeasance. The Vice Chairman of the Public Accounts Committee, Senator Hassan Hadejia, while presenting the report during plenary lamented the shocking revelations and said that the Committee will seek strict implementation of the National Assembly Annual reports 2023 that deal with related Matters (SB.117), which will also enable the government to decisively fight financial corruption and punish Heads of MDAs found culpable. In a similar vein, the Committee has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to recover $10 million reportedly paid to a consulting firm as ‘legal fees and technical charges,’ and remit same to government’s consolidated revenue fund as provided in the 1999 Constitution. Of this amount, $5 million is said to be part of the five per cent of the total $9.3billion Nigeria’s hydrocarbon loss between 2013 and 2014. According to the audit report, the money was reportedly paid from the UK branch of a frontline Nigerian bank.
It is disheartening that many MDAs have become cesspools of corruption. The inability of the government to sanction erring officials of the MDAs has tacitly encouraged the unbridled malfeasance. Indictment of the officials of the MDAs is not enough. Those indicted should be prosecuted by the Economic and Financial Crimes Commission (EFCC) to serve as a deterrent.
The 2019 AuGF report uncovered N969 billion unremitted budgetary allocations by 588 MDAs. The Senate Public Accounts Committee decried the development, but nothing concrete has been done to punish those responsible for the infractions.
Most of the unaccounted funds come under the subhead known as ‘intangible assets.’ These are assets that are not physical in nature but hold huge financial value. They include import quotas, copyrights, computer soft wares and others.
The latest report is one incident too many. The infraction breached the provision of International Public Sector Accounting Standard (IPSAS) 31. The Independent Corrupt Practices and Other Offences Commission (ICPC) has condemned the alarming corruption in the MDAs. The Chairman of the anti-graft agency, Prof Bolaji Owasanoye, revealed that N13.59 trillion was ‘padded’ by some of MDAs in the 2021 budget. Also, project duplication worth N100 billion was allegedly inserted into the 2022 budget. This included N49.9billion that was flagged off as salaries for ‘ghost’ or non-existent workers between January and June that year. Besides, in its 2017 audited financial report of the MDAs, the Office of the AuGF revealed that 265 MDAs did not account for over N300billion. The sum of N450billion was uncovered as unremitted funds between 2010 and 2015.
The latest infractions breached accounting procedures, including the guidelines set out for the implementation of the Treasury Single Account (TSA). It is unfortunate that despite the TSA, the financial excesses of MDAs have not been curtailed. Rather, they seem to have escalated. This is perhaps why the operation of these agencies has been shrouded in secrecy. Last year, President Buhari directed the MDAs to publish daily treasury summary statement of financial inflows and outflows. But that directive appeared to have been observed in the breach.
By the provisions of the Financial Regulation 3210(v), Heads of government agencies and commissions, are required to submit details of both the audited accounts and management reports to the AuGF not later than May 31 of the following year. The relevant rules of the National Assembly stipulate that defaulting agencies should be sanctioned and stiff penalties imposed on the chief accounting officers for violating the rules. The failure to rein in corrupt officials in the MDAs has made it possible for the agencies and their heads to continue with the impunity. This can probably explain why some accounting officers in some MDAs have corruptibly enriched themselves at the detriment of the country. There is need for accountability and transparency in the MDAs.
The incoming administration should have the political will to tame corruption in the MDAs. We also urge the 10th National Assembly to enact stiffer laws against financial infractions in MDAs.