The Senate Ad Hoc Committee on Alleged
Misuse, Under-Remittance and Other Fraudulent Activities has said
revenue agencies short-changed the Federal Government to the tune of
N1.7tn as unremitted revenue generated between 2012 and 2016.....
The panel blamed it on a memo by a
former Minister of Finance, Mrs. Ngozi Okonjo-Iweala, who allegedly
issued the memo to the agencies to remit 25 per cent of revenue they
generated to the Federal Government and spend 75 per cent on their
expenditures.
This was contained in an interim report
by the committee chaired by Senator Olamilekan Adeola, which was laid
before the Senate last week Thursday, a copy of which was sighted by our
correspondent on Monday.
The panel said the amount to be remitted to the Federal Government during the period by 93 agencies it investigated was N21.5tn.
It alleged that 25 of the 93 agencies covered defrauded the government of a total of N1,695,585,887,406.
The committee said the agencies chose to
comply with a directive by Okonjo-Iweala via a memo dated November 11,
2011, with Reference Number BO/RVE/12235/259/VII/201 by the former
minister “to remit 25 per cent only from the revenue generated and use
the remaining 75 per cent, which is a clear violation of Section 120 of
the 1999 Constitution of the Federal Republic of Nigeria (as amended)
and the Fiscal Responsibility Act 2007 as well as the establishment acts
of some of these institutions.”
According to the panel, in the report,
the Nigerian National Petroleum Corporation ran at a deficit of N3.1tn,
while the Nigeria Customs Service, which generated N335.855bn, failed to
remit N83.963bn during the period under review.
The committee alleged that the nation’s
cash cow generated N15.541tn, while its entire expenditure during the
period was N18.657tn, exceeding the corporation’s revenue profile by
N3.115tn.
The report also indicted the Federal Inland Revenue Service, which generated N455.5bn but allegedly failed to remit N33.83bn.
Also, the Nigerian Ports Authority reportedly remitted N86.636bn to the Consolidated Revenue Fund when it generated N789.104bn.
Others indicted by the panel are the
Central Bank of Nigeria, remitting N13.716bn out of N3.098tn; NIMASA,
N184.489bn out of N301.160bn; Nigerian Television Authority, N5.567bn
out of N56.817bn.
The report read in part, “Most of the
revenue generating agencies deny the Auditor General of the Federation
access to their financial books and records, which is in conflict with
Section 125, Subsection (3) a (i and ii); and Subsection (4) of the 1999
Constitution of the Federal Republic of Nigeria (as amended).
“Consequently, the committee recommends
as follows: that the Senate should amend the laws where necessary to
make it mandatory for all revenue generating agencies to accommodate
resident auditors to be posted by the Auditor General of the Federation
that will have access to all financial records and books, and to ensure
compliance with Section 120(i) of the 1999 Constitution of the Federal
Republic of Nigeria (as amended).
“The Fiscal Responsibility Act should be
amended in a way to compel all agencies and institutions of government
on compliance with financial regulations regarding income generation,
accounting and remittances.
“The Senate should also amend the laws
where necessary to make it mandatory for all revenue generating agencies
to accommodate resident treasury officers to be posted by the
Accountant General of the Federation that will have access to all
financial records and books.”
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