N161.988m Audit Queries: Reps To Determine Ministry’s Responses, Summon Officials, Contractors To provide Details

….As PermSec Clarifies, Assures Panel Of Full Cooperation

The House of Representatives’ Public Accounts Committee, on Friday set up a sub-committee to verify information provided by the Federal Ministry of Finance in response to audit queries regarding N161.988 million expenditure on contract awards and cash advances to officials for staff sporting events between 2015 and 2016 financial years respectively.

The committee has therefore directed the Ministry to produce all officers given various cash advances without proper retirement receipts in conformity with the federal government financial regulations to appear before it and explain their failure to follow the rules.

Chairman of the Committee, Rep. Okuwole Oke, gave the rulings following appearances and explanations by the management staff of the Ministry, led by the Permanent Secretary, Alhaji Mahmoud Isah Dutse.

 

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In the queries read out by the officers from the Auditor Generals office, the sum of N2,768,769 worth of contract was said to have been awarded without appropriate quotations from the contractor even though the contractor got the certificate of no objection to carry it out.

Also, the sum of N16,858,800 in cash advancement was said to have been to staff in 2016, but was not retired and the PermSec was required to explain with evidence of retirement to the Auditor general’s office.

On page 55, of the Ministry’s submission, a payment of N12.21 million was seen as another cash advance with the panel asking who it was made to and why such a sum would be paid to one person?

The Deputy Director Account in the Ministry, Roseline Kolade said the sum was given to one Mr. Oyebamiji Taiwo and used to pay allowances to staff who participated in a sporting even in Imo in 2015.

Another query relates to N128.7m allegedly spent on newspaper advertorial for the publication of FAAC disbursement to the three tiers of government for a particular month.

Another N18.3 million was said to have been spent on vehicle maintenance by a civil servant, Mr. Baweyi John from his personal funds in 2016, whereas only about N6.4m could be verified as spent on the vehicle while the rest of the money allegedly spent could not be accounted for.

Responding to the queries, the Permsec,
Alhaji Dutse told the panel that, though the said queries were issued before he became the Ministry’s Chief Accounting officer, he however upon seeing them called on his Director in charge of procurement to make appropriate observations on how the transactions were handled and advise accordingly.

“I asked our new director of procurement to review this matter and advise me accordingly, and I will therefore allow him to give his opinion”, he said.

The panel before allowing Yusuf Bako Argungu, Director procurement ruled that everyone be placed on oath before making any deposition.

Director Bako who, is himself new in the Ministry said due process was followed in awarding the said N2,768,769 contract since it was below the threshhold of FEC approval and that it was successfully executed and paid for.

He said his observation to the PermSec was that the absence of quotation as noted by the auditors was not an error, and that it was an unsolicited submission that was regarded as an infraction by the auditors.

Chairman Oke interjected saying that the director was not speaking to the issues in question which border on due process.

He said the panel would like to see the quotations, the tax clearance and details of the contract before any progress can be made on the query.

PermSec in coming to his defense said he sympathised with the director procurement who incidentally took over the office in january, 2020, asking that the Committee gives him some time to go back and rectify all noticeable anomalies and get back to it.

But lawmakers insisted on being enlightened on the idea of “unsolicited quotations” by contractors even without invitations for same based on the Ministry’s procurement plan.

The director said it’s a usual practice for vendors and contractors to send in such quotations in advance, and whenever the need arises, they are called upon to defend same and if satisfactory, given the job.

Panel ruled that the invitation letter for quotations and competitive bidding be made available on the next adjourned date.

On various cash advances without adequate retirement receipts, all individuals given such funds should be made to cause appearances before the committee, provided they are not dead.

The Permanent Secretary who recently joined the Ministry provided answers to the questions asked, promising to go back and straighten all grey areas, just as he assured the panel of full cooperation with regards to producing persons and documents demanded for at the next adjourned date.

The committee before adjourning sitting however set up a 5-man sub-unit that would look into all submissions made by the PermSec and his team with a view to ensuring that they all are in tandem with what the queries demanded for.