₦airaland Forum

DPR, FIRS overpaid N837.082bn

324 MDAs fail to submit their accounts for audit

Ndubuisi Francis in Abuja

The audited report of the federal government for the 2016 financial statement from the Office of the Auditor-General for the Federation (OAuGF), Mr. Anthony Mkpe Ayine, has revealed that the presidency illegally withdrew N14 billion from the Stabilisation Fund for the establishment of an Army barracks.

The report, which is posted on the OAuGF’s website also indicated that one of the flaws among the agencies of government pointed was poor book keeping practices, especially in the oil mineral sector, in the management of revenue generation and expenditure, and described it as a major challenge in the anti-graft war in public finance expenditure.

The audit report cited one case of discrepancy by the relevant government agencies, which culminated in the over-payment of two revenue generating agencies, including the Department of Petroleum Resources ( DPR) and the Federal Inland Revenue Service ( FIRS).

According to the report, the overpayment stood at N837.082 billion as cost of revenue collection by the two bodies.
It said: “Our examination of the Accountant-General’s Transcript and FAAC figures revealed that the FIRS and DPR were over paid cost of collection in the month of August 2016 in the amounts of N305,922,200.48 and N531,160,436.78 respectively totaling N837,082,637.24.

“ It was observed that what was captured in the Accountant-General’s Transcript as payments for the month of August for FIRS and DPR as cost of collection differs from what FAAC approved in the FAAC file. It is expected that only figures approved by FAAC are to be paid by the Accountant-General of the Federation. The difference resulted in overpayments of N837,082,637.24 by the Accountant-General to the two collecting agencies.”

Also contained in the report was the fact that joint venture (J V) cash calls ( funds injected into JVs by the NNPC on behalf of the Federation could not be accounted for in the books of the OAGF and the FAAC.

“These funds are obtained out of revenues accruing to the Federation that would otherwise have been paid onto the Federation Account for allocation to the three tiers of government. Firstly, it is unclear how and where the asset values of these investments in Joint Ventures on behalf of the Federation are determined and reported.

“Secondly, from the analysis and review of the Revenue and Account documents presented by the Crude Oil Marketing Department (COMD) of the NNPC in respect of Sales of crude oil and gas and payment of JV Cash Call funding, it was observed that only a marginal sum was returned as revenue from Export of Crude Oil and Gas revenue inflows to the Federation Account for January to December, 2016,” the report said.

“From the total receipts by NNPC of $2,399,642,012.90 (N569,143,803,033.21 from export sales of crude oil and gas for the year, a total amount of $2,348,880,056.93(N517,354, 153,159.77) was paid out to fund JV Cash Calls, leaving only $72,875,099.00 (N22,423,859,671.82) which was paid to the Federation Account.
“It should be noted, that the above JV Cash Calls deducted from the proceeds from export oil and gas sales did not include an amount of N355,173,305,887.21 also paid from the receipts from Domestic Crude oil sales as JV cash calls,” the report stated.

It also pointed out is that the “examination of records and documents presented to the Audit Team in respect of the Excess Crude Account (ECA), revealed that a sum of N361,230,422,517.15 summarised below and classified as PPT/Royalty was deducted from total oil and gas revenue collected before the balance was paid to the Federation Account.
“These deductions would appear to contravene the provisions of Section 162 (1) of the Constitution of the Federal Republic of Nigeria, 1999 which states as amended,” it stressed.

There was also the issue of zero collection of oil revenue for some period.
According to the report, “ It was observed from the CBN Components Statements that no collections were reported into the Federation Revenue Account by some revenue collecting Agencies for certain months of the year. It was not clear from available records why these months recorded no revenue collections and no explanation was provided for this.

“The Accountant-General has been requested to obtain an explanation from the Group Managing Director of NNPC and Director DPR for the non-collection of revenue during these relevant months,” as well as “ensure that any revenue found due for these months is remitted to the Federation Account, and evidence forwarded for audit verification.”

Meanwhile, no fewer than 324 Ministries Departments and Agencies (MDAs) of the federal government failed to submit their accounts for audit in 2016, according to the report.

This figure contrasts with the 215 MDAs which did not submit their accounts in 2015.
There are over 900 MDAs at the federal level. The Auditor-General pointed out that the extensive violation of statutory financial reporting obligations by parastatals is of great concern. According to the report, as at April 2018, 109 MDAs had not submitted their accounts beyond 2013, while 76 agencies submitted last for the 2010 financial year even as 65 others never submitted any account since inception. The report was however silent on culpable agencies. “The extensive violation of statutory financial reporting obligations by Parastatals is of great concern.

Only 51 audited financial statements for 2016 and 149 for 2015 were submitted to the office of the Auditor-General as at December 27, 2017.

The report noted that the development runs foul of the Financial Regulation 3210 (v), which mandates the chief executives of agencies to submit audited accounts to the Office of the Auditor-General of the Federation, OAuGF “not later than 31st May of the following year of Account.”

Section 85 (5) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), empowers the Auditor-General to submit a report on the audit of the Accountant-General’s Financial Statements to the National Assembly within 90 days of receipt of the statements from the Accountant-General of the Federation.
However, the Auditor-General observed in the 2016 audit report that the financial statements of the federal government for the year ended December 31, 2016 were first submitted to him by the Accountant-General of the Federation on June 30, 2017.

“Following my preliminary observations,” he noted, “the Statements were significantly amended and resubmitted on 29th September, 2017. Further amendments to the Financial Statements led to another re-submission on 29th December, 2017 and 16th January, 2018 before the final version was eventually submitted on 20th March, 2018.
“The Financial Statements of Government Statutory Corporations, Companies, Commissions, etc, otherwise called Parastatals are not audited by my Office, in line with Section 85(3) (a) of the 1999 Constitution. However, in accordance with Section 85(3) (b) of the Constitution, their Annual Accounts and Auditor’s reports thereon shall be submitted to me for comments.

“Most of the government Corporations, Companies and Commissions have not submitted their audited accounts for 2016 to me. Only 51 audited Financial Statements for 2016 and 149 for 2015 have been submitted to my Office as at 27th December, 2017, despite the provision of Financial Regulation 3210(v) which enjoins the Chief Executive Officers of these bodies to submit both the Audited Accounts and Management Report to me not later than 31st May of the following year of Account,” the Auditor-General added in the report.

Many Killed as Soldiers Repel Boko Haram Ambush

The Nigerian Army yesterday said its troops successfully repelled an attack on a military patrol team coordinated by Boko Haram insurgents at Sasawa community in Yobe State.
The Director, Army Public Relations, Brigadier General Texas Chukwu, said this in a statement issued in Maiduguri, the Borno State capital.

According to Chukwu, the gallant troops at the weekend repelled an ambush by the insurgents and killed many of them in gun battles at Sasawa in Babbangida Local Government Area (LGA) of Yobe State.
He said the insurgents were planning to attack the Babbangida market to steal food items and laid ambush for the troops on patrol.

“Troops of 233 Battalion deployed in Operation Lafiya Dole have neutralised scores of Boko Haram terrorists today, July 21, along Sasawa Road in Babangida Local Government Area of Yobe State, while countering an ambush staged by element terrorists.

“The troops encountered the ambush during a fighting patrol to clear the general area of the fleeing elements of Boko Haram terrorists who have been on rampage for food and logistics.
“The gallant troops overpowered and neutralised the insurgents in the fierce fight that ensued and successfully extricated themselves from the ambush,” he said.

He added that the insurgents, whose original plan was to attack and loot Babangida market, aborted the mission and laid ambush for the troops on patrol.He, however, disclosed that the troops recorded some casualties but that the situation was under control.

The army spokesman added that additional men had been deployed to reinforce the patrol troops, while the Air Task Force was on aerial surveillance to track the fleeing terrorists.
Chukwu called on the people of the affected communities not to panic over the development which is under control.

https://www.thisdaylive.com/index.php/2018/07/25/2016-audit-report-presidency-illegally-moved-n14bn-to-establish-army-barracks-2/

They have the right to set up army barracks. No need to debate on this.

To established Army Barracks?!

Kworuption in high places. Where is the fraudulent fight against kworuption?


PMB is a complete FRAUD.

post=69680933:
To established Army Barracks?!

Yes!


Do you know what "Illegally" means?

Do you know what is called "Due Process"?

NOW, we know!

Gradually, corruption will be a thing of the past,

Just imaging many agencies since 2010 refused to summit their audit report.

Stealing monies without even seeking approval whatsoever either from NASS or the people and they say he is democratic..

He is a tyrant period and has shown all tendencies.

Diversion of funds from stabilization funds, ecological funds, and all other such funds will continue except we put in place legal mechanism for accountability and transparency in the administration of the funds.


The problem is our law that keeps creating bogus funds without putting in place any mechanism for accountability and transparency. The stabilization fund is one of those funds that the president exercise presidential discretion over without any control measures put in place. The funds will continue to get diverted to something it's not meant for or mismanaged and completely stolen irrespective of who is the president except the laws governing them are changed.

buhariguy:
Gradually, corruption will a thing of the past,

Just imaging many agency since 2010 refused to summit their audit report.

14bn disbused without due process from the same tyrant you claim is fighting corruption, is that not corruption itself?

Army barracks is an indication of war....ar we @ War?

Ejimagift:
They have the right to set up army barracks. No need to debate on this.

Would it have been a crime to get the funds through proper procedures rather than move funds illegally just because they can? So if someone steals food tomorrow there's nothing wrong because he has a right to food abi? U people should stop supporting nonsense in d name of politics

buhariguy:
Gradually, corruption will a thing of the past,

Just imaging many agency since 2010 refused to summit their audit report.

This money was diverted in 2016 I hope you're aware?

Esseite:
14bn was just diverted from the same tyrant you claim is fighting corruption, is that not corruption itself?

Diverted?

Can you point out in the report where diverted was mentioned or u lack comprehension skills?

koboko69:
Diverted?

Can you point out in the report where diverted was mentioned or u lack comprehension skills?

Answers: at the bolded, diversion is minimal, stole, looted, thieves, rogues should be the word.

According to the report, the overpayment stood at N837.082 billion as cost of revenue collection by the two bodies.
It said: “Our examination of the Accountant-General’s Transcript and FAAC figures revealed that the FIRS and DPR were over paid cost of collection in the month of August 2016 in the amounts of N305,922,200.48 and N531,160,436.78 respectively totaling N837,082,637.24.

“ It was observed that what was captured in the Accountant-General’s Transcript as payments for the month of August for FIRS and DPR as cost of collection differs from what FAAC approved in the FAAC file.

There was also the issue of zero collection of oil revenue for some period.
According to the report, “ It was observed from the CBN Components Statements that no collections were reported into the Federation Revenue Account by some revenue collecting Agencies for certain months of the year. It was not clear from available records why these months recorded no revenue collections and no explanation was provided for this.

Buhari is doing same thing he is accusing dasuki for.
By the time this government is out Nigerians will be surprised at the enormous corrupt practices carried out by this deceitful government.

Mistakely booked.

Esseite:
14bn disbused without due process from the same tyrant you claim is fighting corruption, is that not corruption itself?

14bn is not disbursed but it was borrowed from the stabilization fund.

Meanwhile, it was not diverted to private pocket's unlike before.

magoo10:
Buhari is doing same thing he is accusing dasuki for.
By the time this government is out Nigerians will be surprised at the enormous corrupt practices carried out by this deceitful government.

Firefire:
Kworuption in high places. Where is the fraudulent fight against kworuption?


PMB is a complete FRAUD.

2016 audit report = Audit of 2015 Calendar Year financial Transactions which obviously cut across GEJ/PMB

Why point finger at PMB when the alleged diversion could have happened in Q1?

buhariguy:
14bn is not disbursed but it was borrowed from the stabilization fund.

Meanwhile, it was not diverted to private pocket's unlike before.

did you read the audit reports at all ? Or you just want to start an illogical argument. The reports states how ministries operated financially with reckless abandon under the very nose of the not too aware buhari.
Relax by the time buhari is out these reports will be worked on .surely he and his appointees have a lot of explanation's to make.

jaybee3:
2016 audit report = Audit of 2015 Calendar Year financial Transactions which obviously cut across GEJ/PMB

Why point finger at PMB when the alleged diversion could have happened in Q1?

Section 85 (5) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), empowers the Auditor-General to submit a report on the audit of the Accountant-General’s Financial Statements to the National Assembly within 90 days of receipt of the statements from the Accountant-General of the Federation.
However, the Auditor-General observed in the 2016 audit report that the financial statements of the federal government for the year ended December 31, 2016 were first submitted to him by the Accountant-General of the Federation on June 30, 2017.

“Following my preliminary observations,” he noted, “the Statements were significantly amended and resubmitted on 29th September, 2017. Further amendments to the Financial Statements led to another re-submission on 29th December, 2017 and 16th January, 2018 before the final version was eventually submitted on 20th March, 2018.

Read the bold part, it was for the year ending Dec 2016. A year runs from Jan-Dec, nothing to do with 2015. Incompetent louts couldn't even submit until June 30, 2017. Even at that they couldn't get it right, all efforts to doctor the books and hide discrepancies failed despite attempts to submit and re-submit until March this year.

Next time read well before making poor attempts at obfuscation of facts.

Fowl nyash they open day by day.

Ejimagift:
They have the right to set up army barracks. No need to debate on this.

..but the money has to to moved through due process

post=69680933:
To established Army Barracks?!

Eh eh, to establish chicken republic

I thought they were fighting corruption?

And can someone tell mai suya up there that it's " to establish army barracks?" and not established......

bunch of dullards

We will know how far when Buhari leaves the presidency. Ans something keeps telling me that Buhari might not be seen after his tenure. We will just hear that he has gone back to UK and may not come back. Story ends.