The House of Representatives on Wednesday unveiled plans to investigate the Permanent Secretary of the Federal Ministry of Trade and Investment over unauthorized virement and illegal utilization of funds appropriated for Zonal Intervention Projects (ZIP) in the 2022 Appropriation Act.
The resolution was passed sequel to the adoption of a motion sponsored by Hon. Jonathan Gbefwi.
In his lead debate, Gbefwi noted that all funds appropriated for, and assented to in the Appropriation Act must be utilised for the item they were appropriated for.
“The House also notes that it is only via a corrigendum from the National Assembly that funds appropriated for a particular item can be used or applied elsewhere.
“The House is aware that the Federal Ministry of Finance has funded ZIP projects 100% and all contractors with certificates of completion of such projects should have been paid according to certified work done.
“The House is worried that after the said contractor who was fully awarded the contract for ZIP 20221459, successfully completed the job and was certified by the Ministry of Trade and Investments, the Ministry refused to pay the contractor.
“The House is concerned that the said contractor borrowed funds and is facing a debt crisis which is the story of a lot of our starting business enterprises that have been run out of business due to the insensitive attitude of some ministries and government agencies.
“The House is also aware that the office of the Accountant General of the Federation has released all funds as contained in a letter written to my office on request.
“The House is cognizant that it is against the laws of the Federal Republic of Nigeria to use funds appropriated for an item for another item in the budget as unauthorized virement of funds is an offence under the laws.”
In the bid to address the concern, the House urged Federal Government to mandate all Ministries Departments and Agencies (MDAs) and government parastatals to work on creating a system that ensures prompt payment of contractors after completing their jobs satisfactorily and also facilitates a fair and transparent system of payment that is accessible to all, regardless of their size.
To this end, the House mandated the Committee on Trade and Investment to call on the Ministry of Trade and Investment, to pay the contractor without further delay.
The lawmakers also mandated the Committee to investigate Permanent Secretary who is the chief Accounting Officer of the Ministry of Trade and Investment for the unauthorized utilization of funds appropriated for the ZIP 20221459.
In line with relevant legislative rules, the House referred to the joint House Committees on Industry and Public Accounts for further legislative investigation.
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