‎TSA: Reps query AGF over non audit of system since inception

The House of Representatives on Wednesday queried the Auditor General of the Federation (AGF) Mr Anthony Ayine over the failure of his office to conduct performance audit of the Treasury Single account (TSA) since inception two years ago.

This followed the admittance of the AGF before the Hon Abubakar Nuhu led Ad-hoc Committee of the House ‎investigating the implementation of the TSA since inception that his office had not carry out any audit to confirm it’s diligence or otherwise.

‎The AGF also admitted that the non-auditing of the new system for two was detrimental to transparency in business of government and that he was not aware of transfers into the TSA.

Ayine told the lawmakers that it was technically wrong and an ‘omission’ on the part of the OAGF not to have audited the account.

He however disclosed he had directed that a performance audit be carried out on the account on discovering that it was not done since inception of the TSA.

He said the report of the audit would be ready between three and seven months but the Committee mandated him to make it available to it not later than the first week of November this year.

Ayine, who resumed office as AGF recently said, “For TSA, we have not actually carried out performance audit directly.”

“After my review, I asked why there was no audit of the TSA and I was told it was an ongoing programme but I knew that there’s need to carry it out.”

“Not carrying it out was an omission and it was wrong because circle of audit is for preceding year and we have had TSA for two years now.”

“Since I noticed that no performance audit was done, I gave the directive that it should be carried out three weeks ago.”

On the details of transfer of N4.2 trillion into TSA account in CBN, Ayine denied knowledge of the transfer or otherwise since assumption of office.

According to him, “Not quite, I need to, as an auditor to have verifiable evidence before me to be categorical in my response. I need to have documents relating.”

On his part, the Representative of the Accountant General of the Federation (AGF), Mr Alexander Adeyemi said the TSA had been positive to the economy, plug leakages as well as curb corruption in the system.

He said the platform had provided an opportunity to monitor movement of money to and from Ministries, Departments and Agencies (MDA).

According to him, “Now, what is done with allocations and disbursements to MDAs can now be monitored with a push a button.”

Adeyemi explained that the policy had taken off the constant pressure on the Consolidated Revenue Fund (CRF) that was always in deficit and had to be financed with N4bn overdrawn every month before the inception of TSA.

Said he, “With this, there is fund to carry out activities of MDAs because payments are no longer authorized until due diligence is carried out and verified on projects.”

He also said contrary to insinuation in some quarters, the TSA has no idle fund and neither was it affecting economic growth adversely.

AGF said government has given directives that funds in the TSA be invested to generate more funds.

He further disclosed that banks had assisted by the TSA to focus more and be more creative in their traditional roles rather than depending on government funds.

According to him, “Total payment made out of TSA by Systemspec between August 2015 and November 2016 was N8.8 trillion against inflow of N4.147 trillion.”

Adeyemi however said that the details of whether there’s an overdraw on the account could only be provided by the operator of the TSA, Systemspec and the Central Bank of Nigeria (CBN).

On committee’s query that N1.65 trillion NNPC’s total inflow to the TSA sub account, which the Committee have no details of, Adeyemi said, “The information on this inflow is not available to the AGF because it is not available in the treasury.”

“The Committee may want to ask the NNPC and CBN to provide the information”.

On the reason for a difference of N2bn between N3.651 trillion inflow figure submitted by Systemspec from its Remita platform and N3.541trillion by the AoGF by October 2016, the AGF said the TSA is an active accounts with very constant inflow.

According to him, being a running balance, total figure in TSA changes due to deposits made into it on almost per minute basis.

He said a tripartite reconciliation of account would reveal whatever is response for the difference.

Adeyemi added that the report of the tripartite reconciliation would be ready by September as the commissioned consultants have submitted their reports.