By Danlami Nmodu
A stunning 2017 Annual Report by the Office of the Auditor-General of the Federation has revealed that eleven agencies of the Federal Government have never issued an audit report since their inception.
This was gleaned from the executive summary of the report seen by Newsdiaryonline.The report also revealed habitual default in submission of reports for audit among several agencies. It said ‘160 agencies defaulted in submission of audited accounts for 2016; 265 agencies defaulted in submission of audited accounts for 2017; while 11 agencies have never submitted any financial statements since inception.’
The report also said, “Although, we have noticed a marked improvement since my last report, there are still some violations of statutory financial reporting obligations by Parastatals.
Perhaps out of frustration, the Office of the Auditor General of the Federation suggested that “Stringent sanctions, including withholding financial releases and sanction of the Chief Executive Officer, should be imposed on defaulting Agencies who do not render timely accounts, as provided in the Constitution, Financial Regulations and other relevant laws.”
The Auditor General had underlined the power behind his report thus: “I am required by Section 85 (5) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), to submit my Report on the audit of the Accountant- General’s Financial Statements to the National Assembly within 90 days of receipt of the Statements from the Accountant-General of the Federation. The Financial Statements of the Federal Government of Nigeria for the year ended 31st December, 2017, were first submitted to me by the Accountant-General of the Federation on 20th December, 2018. Following my preliminary observations, the Statements were significantly amended and resubmitted on 26th April, 2019.
“In accordance with Sections 85 (2) and (5) of the Constitution, I have examined and certified the accounts subject to the comments and observations contained in this Report.”
He further noted that “The Financial Statements of Government Statutory Corporations, Companies, Commissions, etc., otherwise called Parastatals are not audited by my Office, in line with Section 85(3) (a) of the 1999 Constitution. However, in accordance with Section 85(3)(b) of the Constitution, their Annual Accounts and Audit reports thereon shall be submitted to me for comments. Some of the Government Corporations, Companies and Commissions have not submitted their audited accounts to me as at 30th June 2019, despite the provision of Financial Regulation 3210(v) which enjoins the Chief Executive Officers of these bodies to submit both the audited accounts and management reports to me not later than 31st May, of the following year of Accounts.”
While outlining what the Executive Summary described as cross cutting finding, the report said, “A number of major weaknesses and lapses in the management of public funds and resources were identified across several MDAs during the annual audit. A separate section is therefore included in this annual report to highlight the key issues. Our findings range from irregular expenditures to failure to surrender surplus revenues to the Treasury, all running into billions of naira. Also notable was the continuing failures in the implementation of International Public Sector Accounting Standards (IPSAS). “Overall, our findings are indicative of significant weaknesses in expenditure control, accounting, financial reporting and in the completeness and accuracy of the consolidated financial statements.
The report further noted that “Delays in budget passage, low levels of budgetary release across Government and the impact on the ability of the MDAs to perform – As in previous years, the annual budgeting process of the Federal Government remains flawed and unable to support genuine development. Delays in the passage of the budget had a direct impact on the ability of MDAs to perform their functions and rendered the annual budget execution process ineffective to a large extent (especially regarding capital expenditures). There remains the need for the Executive and the Legislature to work better together on the passage and implementation of budgets, if Nigeria is to achieve meaningful development.”
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Newsdiaryonline reports that the issue of budget delays may have been solved going forward as the 2020 budget received a swift attention by the ninth national assembly .Though the swift nature has made the lawmakers come under criticism of being the rubber stamp of the Presidency, a claim Senate President Ahmed Lawan has described as untrue.
However, a lot more is expected from the National Assembly stakeholders say.One such observer noted that the National Assembly needs to raise its game in order to find answers to questions arising from the 2017 Audit Report by the Auditor General of the Federation.
Newsdiaryonline reports that highly placed Nigerians have been asking questions arising from the stunning 2017 Audit Report. After looking at the report it an observer said trenchantly , the summary suggests that “265 MDAs receive appropriation and did not submit report of how they’ve spent our money. Remember this is 2017 report. Which means those 265 MDAs have received appropriations in 2018 and 2019! 11 MDAs have never submitted their financial reports since establishment.. but they continue to receive appropriations! In total defiance and disregard of public sector financial rules and guidelines! The summary also found “failure to surrender surplus revenues to the treasury, all running into billions of Naira”!
Even more, the central role of the National Assembly has emerged writ large as a highly place citizen said: “The question popping up in my head is why would the NASS continue to appropriate resources for agencies that are unaccountable? Is the Minister of Finance aware? What is the office of the DG Budget doing about this? Who are these defaulting 260 agencies? Who is heading them? Who are the 11 agencies that have never submitted financial reports since their establishment and yet have continued to receive budget allocations? What are the supervising ministries and ministers doing about this impunity? What is the total amount of budget not accounted for by the combination of 260 and 11 agencies above? Who is holding them accountable?
He noted further, “The NASS has oversight power over all these agencies. Why has it continued to allocate and not demanded accountability? The NASS receives and is expected to consider the auditor general’s report; why has it not called these agencies to account?”
Newsdiaryonline however reports that even the National Assembly seems to be having difficulties in getting some MDA to respond to enquiries. Senator Matthew A.Urhoghide, chairman Senate Public Accounts Committee had on the 19th of November 2019 in press briefing listed 25 defaulting MDAs that had not responded to their inquiries to enable the Senate carry out its oversight functions. It could not be immediately confirmed whether the MDAs listed by the Senate Committee are among the erring ones captured in the Auditor General’s 2017 report.
What seems very clear is that the battle for transparency and accountability is still fraught with deep-seated challenges.
With report by Ibrahim Mohammed