The cumulative sum of N80 million, would be refunded to the coffers of the federal government, if the Chairman of the Federal Character Commission (FCC), cannot justify the expenditure in the 2017 fiscal year, Annual report of the Office of the Auditor General of the Federation (AuGF), has said.
The Commission was indicted over financial recklessness, shortchanging the federal government of revenue that could be accrued, through taxes and unjustifiable spendings.
The amount included the sums of N12,008,177.50 expenses which circumvented the procurement process, N5,845,411.70, and N56,030,593.30.
On taxes, the report recommended that the Executive Chairman of the Federal Character Commission (FCC), should remit the sum of N5.8 million to the relevant tax Authority in Nigeria.
Its recommendation followed the observation of non-remittance of N5.8m to the federal government coffers, in spite of records of payments and vouchers, which showed this amount was due to the federal government of Nigeria in taxes.
The recommendation reads: “The Executive Chairman is required to remit the sum of N5,845,411.70 to the to the relevant tax authorities, failing which sanction withing Financial regulation 234(i) & (iii) should apply.”
The government annual report of the Office of the Auditor General of the Federation for the year ending December 2018, said the the non-compliance with extant rules on deduction of appropriate taxes could lead to loss of revenue to the government.
It maintained that, such revenue loss could affect the ability of the government to implement programmes and projects for the benefit of the Nigerian citizen.
The report said: “From examination of records and payment vouchers, that VAT, withholding tax and stamp duties amounting to N5,845,411.70 (Five million, eight hundred and forty-five thousand and seventy kobo) that were deducted from payments made to contractors between January and March 2017, were not remitted to the relevant tax authorities.”
Federal Character Commission’s flagrant disregard for the books was also captured in the report as “audit observed that nineteen cash advances totalling N12,008,177,50 (Twelve million, eight thousand, one hundred and seventy seven Naira fifty kobo) were granted to 13 officers between March and December of 2017.”
The annual report noted that, for procurement and provision services in excess of the approved threshold of N200,000, contrary to the 2013 circular that directed all such transactions above N200,000 should be made only through the award of contract.
The chairman of the commission was requested to justify the contract of N56,030,593.50 for a contract it made full payment to at the first teacher which was supposed to be a 15% advance payment for fence and gate house at its training school in Katsina.
The Auditor General if the federation said failure to do so would compel the federal government to invoke Financial regulation 3115 which states: An Accounting Officer who is queried for failure to manage or spend public funds effectively or who spends public money without due regard to the economy contrary to financial 415 and fails to reply to a query, shall be removed from the schedule and be disciplined- according to with the civil service rule”
Another N7,105,777.50 has been recommended by the office of the auditor general “to be recovered from the beneficiaries and pay the same to the government coffers, failing which the stated within Financial regulation 3118 should apply.
Financial regulation 3118 states: “The head of Finance and Account amor Head if Accounts who fails to recover personal advances from staff shall be requested within 21 days to offer written explanations to a query addressed to him on this irregularity.
“All losses suffered by government as a result of negligence shall be recovered from a surcharged against the defaulting officer if he or she is a public officer and such officer would be charge of gross misconduct under the Public Service Rules.
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