The officials of Amuwo-Odofin local government were indicted for “unauthorised excess expenditure” running into millions of naira.

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The Executive Council of the Amuwo Odofin local government spent millions of naira in “spurious expenditure” and non-executed contracts in the council in 2012, according to official documents seen by PREMIUM TIMES.

The officials of the local government, and those of its offshoot, Oriade Local Council Development Area, LCDA, were indicted for “unauthorised excess expenditure” running into millions of naira.

An audit examination of the books and records of the council for the year ended December 31, 2012, revealed that the local government’s awards of contracts were littered with irregularities.

A report of the Auditor-General for Local Governments on the accounts of the council, made available to PREMIUM TIMES, revealed a series of official graft by the Executive arm of the local government.

Like their counterparts in other local governments, several official queries sent by the Auditor-General to both Ayodele Adewale and Joseph Sanusi, the council bosses of Amuwo Odofin and Oriade local councils respectively, were not responded to, according to the report.

It is not only auditors that have accused Mr. Adewale of graft. In 2010, he was accused by the councillors in his local government of misconduct and maladministration, and was impeached in a unanimous vote.

The impeachment was, however, controversially reversed a few months later on the orders of the Lagos State House of Assembly.

‘Spurious expenditures’ in Amuwo Odofin

During the year under review, the local government generated an internal revenue of N107.4 million (inclusive of LASAA, Wharf Landing and Land Use Charge) while the annual revenue budget amounted to N105 million.

Further investigations of heads and sub-heads by the auditors disclosed Internal Revenue Shortfall totalling N6.3 million recorded under four heads and eleven sub-heads. Out of the estimated revenue of N24.3 million, about N18 million was actually collected.

“This is a 26.04 per cent shortfall which is contrary to F.M. (Financial Memoranda) 1.8(2) which states that ‘seeing that all revenue due to the Local Government is collected promptly and properly and paid promptly into the Local Government Funds,’” the report stated.

The examination of the expenditure records showed a total expenditure of N1.3 billion of the annual budgeted expenditure of N3.84 billion.

“Further investigation of heads by heads showed excess expenditure amounting to N18,235,153 recorded under five heads and five sub-heads,” said the report.

An inspection of the payment vouchers of the local government revealed that payments totalling N41.2 million were expended on various projects whose contracts were fraught with irregularities.

Some of the irregularities included violation of due process, no evidence of registration of the contractors with the local government, tender procedures not adhered to, and performance bond from financial institution registered not produced before mobilisation fees were paid.

“This is contrary to F.M 17.10 which states that ‘except where approval has been given under Financial Memoranda 17.5 all transactions for works, services, materials and stores for ordering supplies at intervals over a period or for current works and services to be undertaking or supplied over a period must go to open tender contract,’” the report revealed.

The report noted that the sanction for the offence include recovery of the amount involved and removal of the officer from the schedule.

A further examination of the council’s books showed that a contractor, Amuwo Sowapo Nigeria Limited (a Revenue Contractor), failed to remit N1.5 million to the local government for the period under review.

Also, the revenue items contracted to Fortress Valley Consulting were not specifically stated.

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