Not too long ago, the Senate Public Accounts Committee (SPAC) threatened to situation warrants for the arrest of some heads of presidency businesses, together with the chairman of the Federal Inland Income Service (FIRS), Zacch Adedeji, the Governor of the Central Financial institution of Nigeria (CBN), Olayemi Cardoso, and the Group Chief Govt Officer (GCEO) of the Nigerian Nationwide Petroleum Firm (NNPC) Restricted, Mele Kyari, amongst others.
They have been accused of failing to answer audit queries issued to them by the Auditor Common for the Federation (AuGF).
In fact, this isn’t the primary time the Auditor Common has issued queries to heads of businesses, they usually have been ignored; it has really turn into an annual ritual.
Based on the 1999 Structure (as amended), the workplace of the Auditor Common for the Federation (OAuGF) is charged with the accountability of auditing all of the accounts of the federal authorities, together with ministries, departments, and businesses (MDAs). The
OAuGF’s function is to make sure that public funds are used appropriately and for his or her supposed functions.
The Structure additionally states that the Workplace of the Auditor Common for the Federation is a separate and unbiased entity whose existence, powers, duties, and obligations are outlined within the Structure.
Sadly, the legislation didn’t empower the workplace to chew, although it may possibly bark.
In truth, Nigerians are starting to ask questions on the actual relevance of the workplace of the Auditor Common if all it may possibly do is expose fraud in MDAs and nothing extra.
The outburst by the Chairman of the Senate Public Accounts Committee, Senator Ahmed Wadada, who threatened the arrest of the heads of the businesses, was an expression of frustration ensuing from the powerlessness of each the workplace of the Auditor Common and the Public Accounts Committee of the Nationwide Meeting to sanction or prosecute company heads alleged to have been concerned in irregularities within the administration of presidency funds in MDAs. These heads of businesses are very a lot conscious of this powerlessness, and therefore, they merely ignore the queries, and nothing occurs.
As an illustration, in response to Ahmed Wadada, from the inception of this committee to this point, greater than eight invites have been prolonged to the chairman of FIRS, who has deliberately refused to look earlier than the committee and in addition hasn’t been responding to communications from this committee.
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It’s the identical story with the Nigerian Communications Satellite tv for pc Restricted, which the committee mentioned it has invited over 9 instances to reply to the queries of the Auditor Common for the Federation, however not a single look. Even the Nigerian Police Drive has by no means appeared earlier than this committee regardless of all communications, in response to the SPAC chairman.
The OAuGF uncovered monetary infractions value over N3.403 trillion in authorities MDAs in its audit report for the monetary 12 months ending 31 December 2021 in 28 audits.
About N2.902 trillion was from the failure of eight authorities businesses to recuperate excellent authorities income. Nigerian Bulk Electrical energy Buying and selling Plc didn’t recuperate N2.896 trillion of the quantity.
These have been the sorts of discoveries through the years, but nobody has ever been sanctioned primarily based on these audit reviews, which has, in fact, emboldened the perpetrators, understanding that nothing will occur, and truly, nothing occurs.
Nigeria is ranked as probably the most corrupt nations on this planet, with a Corruption Notion Index (CPI) rating of 25 in 2024. It was ranked 134th out of 180 nations, indicating a excessive stage of perceived corruption.
It’s perceived that corruption is endemic in Nigeria, permeating all authorities businesses.
The workplace of the Auditor Common has been doing its job of exposing corruption in authorities businesses, but it surely goes past simply letting individuals know that these infractions exist. What actions have been taken to make sure they don’t repeat?
There have been requires a brand new Audit Act to exchange the present one, which was enacted in 1956. This present Act, in response to stakeholders, is clearly outdated and now not efficient in modern-day Nigeria, having not been reviewed or up to date in over 60 years.
They are saying the Act has didn’t preserve tempo with trendy auditing requirements and practices and has contributed to the prevalence of corruption and monetary mismanagement in Nigeria.
They insist that Nigeria wants a brand new audit laws to handle the weaknesses within the present system and empower the Auditor Common to prosecute and sanction company heads discovered responsible of fund mismanagement, as is completed in different nations.
The brand new Audit Act is predicted to offer for stronger penalties for audit failures and misconduct, in addition to better transparency and accountability within the audit course of.
Though there may be an audit invoice that has been earlier than the Nationwide Meeting for fairly a while, it seems the concern of the probably influence of the brand new legislation on public officers has ensured that the legislation stays on the cabinets of the Nationwide Meeting. In truth, it dates again to the President Obasanjo administration when it was really handed by the Nationwide Meeting, however the former President didn’t signal it into legislation.
The brand new Audit Service Invoice on the present Nationwide Meeting has been handed by the Home of Representatives, however the Senate has but to concur.
The Govt Director of Paradigm Management Assist Initiative (PLSI), Mr. Olusegun Elemo, mentioned in an interview that the enactment of the brand new Audit Service Act was lengthy overdue.
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He expressed pleasure that the Home of Representatives has already handed it and referred to as on the Senate to concur in order that it may be despatched to the President to signal.
He mentioned the brand new legislation will present the Auditor Common with important powers to prosecute and sanction anybody discovered responsible of economic irregularities.
In his personal contribution, a Professor of Accounting and Monetary Improvement at Lead Metropolis College, Ibadan, Professor Godwin Oyedokun, mentioned there’s a must strengthen the authorized framework to make sure that audit findings result in obligatory sanctions or penalties for recognized infractions. This consists of implementing legal guidelines that require accountability for monetary mismanagement.
He mentioned the Auditor Common’s workplace ought to report not solely on findings but in addition on the actions taken (or not taken) in response to earlier reviews by implementing a system for normal follow-up on audit suggestions.
“In some nations, corresponding to South Africa and Kenya, the Auditor Common has extra authority and is commonly concerned in prosecuting instances of economic misconduct,” he mentioned, including that we are able to have an analogous state of affairs in Nigeria.
Based on him, “There ought to be established mechanisms to make sure accountability and implement compliance with audit suggestions. Nevertheless, every part is determined by the broader political will to fight corruption.”
The Lead Director, Centre for Social Justice (CSJ), Barr. Eze Onyekpere, mentioned there’s a want for added powers and funding for the workplace. “The workplace wants the facility to sanction and observe as much as implement the sanctions,” he mentioned.
