Reps tackle Accountant General over inaccurate MDAs’ financial records

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3 years ago

Members of the House of Representatives on Tuesday expressed grave concern over the inability of Accountant General of the Federation (AGF) to provide accurate documentary evidence of internally generated revenue of various federal agencies, parastatals and commissions.

The lawmakers who expressed displeasure during the resumed investigative hearing held at the instance of House Committee on Finance chaired by Hon. Abiodun James Faleke, frowned at the discrepancies between the financial records presented by National Oil Spill Detection Response Agency (NOSDRA) of Energy Commission of Nigeria (ECN) and Nigerian Electricity Trading (NBET) and office of Accountant General of the Federation.

Trouble started when the ECN Director, Finance & Account, Mr. Cletus Nnah, disclosed that the Commission as a fully funded Institution remitted N13.6 million while acting AGF, Okolieaboh Sylvia argued that the sum of N27,820,940 was remitted by the Commission.

Mr. Sylva who was represented by the Deputy Director, Revenue & Investment, Mr. Ambrose Amayi said: “In 2021, the Commission remitted N27,820,940. They have not made any payment in 2022.

“Sometimes, when these agencies pay their money to TSA subhead domicile in the CBN, we issue receipt when they apply. They let us know that they have paid so that we can issue them receipt. When we look at our advances from the CBN, we see bulk statement and we don’t know which agency is making payment and so, we usually have to wait.

“That is why there is always a delay because we have to go to the REMITA platform to find out which agency has made payment. We use their evidence to track it, reconcile and issue receipt.
Unfortunately, some of these REMITA receipt are not reliable. You can generate an invoice for REMITA, but that REMITA is actually not there. We always take extra precaution.”

Piqued by the controversy, Hon. Faleke who requested for documentary evidence of various payments made by the Agency said: “The burden is actually on them to prove that they have made payment because when you go for reconciliation what do you go with? Do you just go by words of mouth to say that you have made payment? So, you have to show us the proof so that we can shift the blame to Accountant General. By your records, you have remitted over N2 billion, but after that, you have no record of further remittance.”

On his part, Hon. John Dyeh (PDP-Benue) who demanded that the commission should furnish the committee with details of all the expenditures made by the commission between 2020 and 2021, said: “How do you come to parliament to claim that you made payment without evidence to prove that you paid?

“Recurrent grants received, N2.4 billion in 2021, IGR N13 million, operating expenses N2.46 billion, I mean we must have details of the expenditure; your received N2.4 and you expended everything, we must see the details, Nigerians must see these details.

“In the same 2021, counter grants, N5.7, Capital Expenditure, N6.9, we must see the details, we must see the details Chairman, we must see the details.

“In 2020, the same story, recurrent grant received N2.2, IGR – N14 million, operating expenses, N2.26, haba, haba, director finance, we must see the details, we must see the details,” he said.

While responding to the allegations, AGF representative, Deputy Director, Revenue and Investment, Mr. Ambrose Amayi said: “We have a copy of Central Bank statement. We find it difficult sometimes to identify agencies that have made payment. That is why we told them to come and identify themselves each time they make payment so that we can issue them receipt. The statement from CBN is not too explicit. We have codes for the agencies, but the CBN is not using the code.

Also speaking, Deputy Director, Sub Treasury, Mr. Dangina said: “these monies are paid to CBN using the TSA subhead. When the money is coming, it come in form of bulk head. What we then do is to go to the REMITA platform, use the debit advice or RRR that is generated and try and unbundle all the agencies that has paid so that we can match them.

“But that takes a bit of time. The problem we have is that the narration from CBN is usually poor and so, we had to rely on REMITA. What the agencies are supposed to do is to apply to us that they have made payment. We have complained to CBN severally.”

Worried by the development, Hon. Faleke argued that: “these agencies are not supposed to interface with you on that. CBN is supposed to inform you. I remember that this is the same situation we were last year and yet we have so much money lying unidentified and the next thing you hear is that money is missing in the system.

“When you can’t track sources of fund, it will easy for the money to leave the system. We need to take this job more seriously because that this country is bleeding. Every kobo matters to us at this time. It doesn’t matter how much is generated, but we must ensure that the money gets to where it is supposed to be. We can’t continue to have money in the system that nobody is accounting for.”

In his intervention, Hon. Stanley Olajide stressed the need to conduct Status of Inquiry on the affection Institutions, said: “I think a status enquiry is actually required because for this to be going on is unfortunate. How can we have money sitting down in CBN and we don’t know which agency is to be credited with the money?

“We need to go deep and find out what is happening here. Every year these agencies come here for a piece of the pie and we are loaning money to fund them. N2 billion received in grant and you are talking of one percent return on investment? Who does that? There is a committee now that is talking about merging these agencies. If an agency refuse to perform the way we want it to, I think it is time we collapse them into something else,” he urged.

In her remarks, Hon. Taiwo Oluga who frowned at the lackadaisical attitude of some accounting officers, said: “It is good to be on record and Nigerians must know this, that all the agencies, especially the office of the Accountant General are our problem in this country. Nigerians will be shouting that it is the politicians, but look at what has just been read out.

“So, it is good that we let Nigerians know that those of you that we have put at the helm of affairs in the various agencies, especially the office of the Accountant General, with the CBN are our problems in this country. The youths should know so that when the next EndSARS will start, they know where to go,” Hon. Oluga stressed.

While ruling, Hon. Faleke who expressed grave concern over the lingering crises in the oAGF, also blamed the Committee.

He said: “Primarily, we have responsibility over the office of the Accountant General. The Committee on Finance oversight the office of the Accountant General and as much as I hate to say it, I think we should take part of the blame.

“If we had been hitting you hard in terms of oversight, I am sure you would have been different.

“Be that as it may, what we have seen between Monday and Tuesday is not too palatable. I heard it before that in the last few weeks, the office has been in the news for the wrong reason.

“We need to go back to the drawing board and look into all these things that we have highlighted and work out a plan on how to bridge the gap. What we are getting from you is not acceptable.

“In Monday, we agreed that we are going to get us all the data we need to work, but you are here not fully armed. I can’t understand why, in this age and era, why are our operation should still be manual, you issue receipt manually.

“What we are getting from all these is that the office created a window to cut corners because when you do things manually, we know what you are operating. We must take this back home that this is not acceptable in this age and era for you to be doing thing manually. Everywhere you go to, people are going online.

“In this country where we are fed with series of challenges, the private sector is booming, the banks are working very well, many money. How are they making it when, with all that the government has in place, we are still struggling? If we take the decision to make this country work, it will definitely work and it will start from individuals and agencies,” Hon. Faleke noted.

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