Shaakaa Chira, Auditor General of the Federation
Auditor-General raises queries on N4.6bn financial irregularities in Works Ministry
The Auditor-General for the Federation has uncovered a total of N4.64 billion unapproved funds in the Federal Ministry of Works (Housing Sector).
The audit, which covers activities from 2020 to 2021, is said to have unearthed a systemic non-compliance with financial regulations and procurement laws under the tenure of former Minister Babatunde Fashola.
The findings are concerned with undocumented payments, extra-budgetary expenditures, and contracts awarded without due process, highlighting significant lapses in internal controls.
According to the findings, N1.08 billion was disbursed from the Government Integrated Financial Management Information System without proper payment vouchers, contravening Financial Regulations 2009 and N546 million was also transferred to project accounts without sufficient documentation or budgetary approval.
The findings showed that the lapses occurred due to weak internal controls, risks of fund misappropriation.
The findings indicated that the Ministry is yet to response to the queries as the Auditor-General recommended that the Permanent Secretary justify these expenditures, recover the funds, and remit them to the Treasury, with evidence of compliance submitted to the National Assembly’s Public Accounts Committees.
The findings indicated that non-compliance could result in sanctions under Paragraph 3106 of the Financial Regulations.
The audit also uncovered extra-budgetary spending of N2.89 billion, including N1.88 billion disbursed without legislative approval and over N1 billion paid for road projects in Katsina State that were only included in the 2017 Appropriation Act.
These expenditures are said to have violated Section 80(4) of the 1999 Constitution, which mandates legislative approval for public fund withdrawals.
Contracts worth N493.97 million were also said to have awarded to companies unregistered with the Corporate Affairs Commission, further breaching the Public Procurement Act, 2007, and the Companies and Allied Matters Act, 2020.
Payments to unregistered entities totaled N170.36 million, and one contractor was only registered three years after being awarded a contract. These practices raise concerns about non-execution, fund mismanagement, and payments to ghost entities.
Other findings included irregular mobilization fees, such as N110.81 million paid for a project in Oyo State, exceeding the 15 percent limit set by financial regulations.
In Edo State, a classroom construction project worth N46.31 million found that 88.18 percent of the contract sum was paid upfront, thus violating mobilization thresholds.
In some cases, also, essential documentation such as tender evaluations and meeting minutes were said to be missing, exposing the Ministry to risks of incomplete projects and fund diversion.
Five contracts worth N27.84 million were awarded without obtaining bids from at least three unrelated contractors, flouting Section 24(1) of the Public Procurement Act, 2007.
The report underscores pervasive weaknesses in the Ministry’s financial management and calls for urgent reforms to address the lack of accountability and ensure adherence to regulations.
Indeed, the Senate has vowed to impose sanctions on agency heads implicated in these financial infractions.
Senator Garba Madoki, Chairman of the Senate Committee on Legislative Compliance, warned against continued disregard for Senate resolutions, emphasizing that further non-compliance would not be tolerated.
The findings showed the need for stricter oversight and institutional reforms to safeguard public funds and improve governance.
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