On Friday, the House of Representatives tackled the management of the National Hydrological Service Agency (NIHSA) over the full payment of multi-billion naira to contractors for ongoing projects in the 2023 fiscal year.
Chairman, House Committee on Hydrological Service Agency, Hon. Pascal Agbodike, and members of the Committee made the observation during the 2023 budget performance and 2024 budget defence.
During the scrutinisation of the budget appraisal, the lawmakers, who frowned at various infractions in the implementation of the 2023 Appropriation Act, accused the agency’s helmsman of embarking on “extra-budgetary spending.”.
In his presentation, NIHSA Director General, Engineer Clement Nze, observed that the agency formally notified the Office of the Accountant General of the Federation of the unspent fund meant for outstanding projects under the 2022 Appropriation Act.
According to him, the AGF, in its response, wrote back to the agency that the money has been returned to the agency’s coffee in 2023 to ensure the agency completes the projects.
While presenting the 2024 budget, Engineer Nze disclosed that the sum of N1.266 billion was proposed for capital expenditure, while personnel is for N472.914 million and overhead is N118.411 million under the recurrent expenditure.
He added that the agency is expected to generate N5 million for the 2024 fiscal year.
Worried about the inconsistencies in the budget presentation, Hon. Ahmed Jaha, who expressed displeasure over the development, said: “After going through your submission honestly, this is not a budget document. You expect all of us to sit here and approve. You didn’t explain what constitutes your recurrent.”
To this end, he urged the Committee to step down the consideration of the 2024 budget proposal, saying, “There’s a need for this Committee to step down this submission. If, at the end of this exercise, your agency is not considered for the 2024 budget, you will take us seriously.”
While describing the NIHSA Director General’s presentation as a piece of information, he said, “Does that mean all your activities are about contract awards? How many people are on your payroll? Have they reflected federal character?”
During the discussion, Hon. Nwogu appealed to the Committee not to underfund the agency to prevent its premature demise. He urged his colleagues to approve the budget proposal and continue scrutinising it during the oversight function.
Responding swiftly to his remarks, Hon. Victor Abang commented that the agency’s expenditures seemed appropriate. To him, it appears they are working towards a solution.
While accusing the NiHSA Director General of misappropriation of public funds, Hon. Jaha observed that the delay in the presentation of the agency’s budget can’t truncate the passage of the 2024 budget before the end of the year, in line with President Bola Ahmed Tinubu’s request to maintain the January to December budget cycle.
Hon. Jaha said, “The first item to be considered is the personnel. In personnel, you are going to state month-to-month releases and payments of salaries and other emoluments.
For personnel, January x-figure, February y-figure. In most cases, they are of the same figure from January to October. We may not ask you about November because maybe, when you’re preparing this bill, your November salary was not paid.
“If at all it’s laid, you have to include November. In addition to this, you’re going to attach the nominal roll of the agency to justify the releases from the head of service or accountant general of the Federation.
“Secondly, it’s the overhead. The overhead cost is sacrosanct; we must have details of expenditure from overhead from one penny to the last kobo spent within the first month to the 11th month, which is November. The only item that may be outstanding in your account since you have 100 per cent releases is the overhead for December.
“Thirdly, the capital. In the capital, you have to state categorically the date of award for that particular project, which is not here.
“You gave us the date of the award, but it’s not written. Does that mean they were all awarded at the same time? You have to state it there. And in your remarks, you said ongoing after paying 100 per cent; you have already paid the contractor 100 per cent, and you are still ongoing.
“In order, the project is under execution. Why will you pay a company ahead of a certificate tendered by the company for payment? It’s misappropriation!
“So, sir, we have to have this detail: Company A was paid a, x, y on a so-so date, and was paid x, y on a so-so date; x, y on a so-so date. Now the organisation is owing the contractor x figure.
“I hope you understand what I’m saying; it’s simple. Present it on Monday so that the chairman will not be late in submitting his report to the Appropriation Committee. Because of any delay, it was the President who urged us to expedite the budget process before December ends, maintaining the budget cycle from January to December. Your agency alone can either delay or change Mr President’s directive.
“So, on Monday, make sure you come; we’ll be here to review this document anew,” Hon. Jaha stated.
In his ruling, Hon. Agbodike directed the Director-General of NIHSA and his team to re-present and submit the 2023 Appropriation Performance and the 2024 Budget Proposal on Monday for further legislative scrutiny.
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