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FG, State, Local Govts should subject their structures to Forensic Audit for accountability

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Forensic audit reports recently have begun to reveal malfeasance of financial misappropriation, with wide gaps which are acts of corruption in government circle. Revelations from these reports have shown the depth of corruption inclinations in the Country, particularly in the public sector.

On Thursday, September 01, 2022, it was disclosed a forensic audit report revealed that a sum of N11.9 billion public funds were carted away from the treasury of Kwara State between 2011 and 2019 without any lawful tie to any project or programme. In a statement issued in Ilorin on Thursday by Mr Rafiu Ajakaye, the Chief Press Secretary to the Kwara State Gov. AbdulRahman AbdulRazaq, the audit also showed that N2 billion cash withdrawals not tied to any project or official expenditure were made within eight days in February 2019, barely one month to the general election. Presenting the report to the State Governor Prof. Anthony Iniomoh, said the report is in two volumes covering Internally Generated Revenue; Capital Receipts; Internal and External Loans; Recurrent/Overhead Expenditure; Personnel Cost (Salaries and Wages); Capital Expenditure; Assets Disposed; Kwara State Internal Revenue Service; Infrastructural Fund Kwara (IFK); and Harmony Holdings Limited, among others.

“A few highlights of our findings may be necessary for the record. Our forensic audit revealed a colossal pilfering of N11,981,268,709, which we recommended should be recovered to the public coffers. Similarly, we recommended to the state government to prosecute certain officers and companies in addition to claiming exemplary damages on transactions totalling N6,023,358,444, amongst other key findings.

“A firm that was incorporated at the Corporate Affairs Commission on 14th June, 2016, was paid by the state government for a contract it purportedly executed for the state in April of the same year. A preconceived attempt to defraud the state,” Inumoh said at the presentation of the report.

The report of the forensic audit observed cases of firms that were paid huge public funds without any evidence of work done on record. The report also revealed an instance of a public officer getting paid at two different places for years. It also disclosed that there was a cash withdrawal within eight days of N2.06 billion in February 2019 without no documentation made available to validate the purpose for which the money was withdrawn. Also, there were several other cash withdrawals within the state over the period running into billions of naira which the audit team could not validate. According to him, the audit revealed that loans were obtained by the Kwara government within the period under review. “The elements of these loans could not be validated. Above all, the bank accounts to which these loans were disbursed to and what the loans were used for could not be established or validated,” the report showed.

The report suggested to the government to prosecute some individuals and firms indicted in the two volume report, while other issues are to be referred to administrative panel of inquiry for some individuals to explain their roles in the many infractions.

Recently, revelations of forensic reports of Ministries, Departments and Agencies (MDAs) of the Government have exposed deep seated malfeasance of corrupt inclinations of financial misappropriation and mismagament. The exposure of the gaps, without explanations to clear the air by the affected MDAs, are indications of fraudulent practices which have continued to show forth by the outcomes of these reports. MDAs of the Federal Government have centrally been in the eyes of these exposures, particularly those with revenue generating profile. The reports have not only revealed gross financial recklessness, but also flagrant refusal to remit revenues to the coffers of the Federal Government.

Recently, the Office of the Auditor-General for the Federation, in its report presented to the National Assembly, alleged various financial infractions by Nigeria’s Foreign Missions between 2010 and 2019. The infractions revealed failure to remit Internally Generated Revenue as well as gross impunity of financial recklessness. It is disgusting such corruption is taking space while cries of paucity of funds by the embassies and high commissions have kept on reverberating.

The Auditor-General in the report decried that efforts to audit the accounts of some of the Missions were frustrated by officials who acted on a directive by the Permanent Secretary of Ministry of Foreign Affairs. The Auditor-General, in the over 450-page document containing a list of audit queries against the missions, raised alarm over their habit of spending with impunity outside their budgets and that without the approval of the National Assembly.

“The practice where Nigerian Missions over expended their allocations with impunity should be frowned at. It should be noted that this action is a contravention of Financial Regulation which stipulates that no expenditure on any subhead of the recurrent estimates in excess of the provision in the approved estimates or supplementary estimates may be authorised by any officer controlling a vote without the prior approval of the National Assembly. I am deeply worried at the non-adherence to budgetary provisions by most Missions. It is important to note that this act contravenes the provision of extant regulations which stipulates that no expenditure on any subhead of the recurrent estimates in excess of the provision in the approved estimates or supplementary estimates may be authorised by any officer controlling a vote without the prior approval of the National Assembly. It should also be noted that this practice makes nonsense of the appropriation. I have observed that most of the Nigerian Missions have formed the habit of over expending their allocations with impunity. This practice makes nonsense the essence of appropriation and should be frowned at.

“I have noted with dismay that most Nigerian Missions incur expenses on most of their expenditure sub-heads in excess of the provision in the approved estimates. It should be noted that this contravenes the provisions of Financial Regulation 313 (2009 Edition) which stipulates that no expenditure on any sub-head of the Recurrent estimates in excess of the provision in the approved estimates or supplementary estimates may be authorised by any officer controlling a vote without approval of the National Assembly,” the Auditor-General had decried.

According to the report, while the landed property of the Nigerian Embassy in Brasilia were in a dilapidated condition without any effort to renovate them, the embassy had been spending $50,247.89 annually on rent for two of its officials, noting that amount spent on rent for three years could have been used to renovate the buildings and cut cost. The report also revealed that the embassy exchanged six old vehicles, whose prices were not made available, for two new ones purchased at a total cost of $95,211, while an additional $17,642.08 was spent on shipment, insurance and clearing of the new vehicles, even when there was no budgetary provision for the acquisition.

Another query alleged that in 2010, the then Nigerian Ambassador to Poland claimed over N9.777million annually for non-existing domestic staff. According to the report, even though the ambassador’s letter of deployment noted engagement of a cook/steward, a maid and gardener who should be engaged locally and enrolled on the payroll of the mission, they were never employed.

Another query alleged that in 2011, the Nigerian Ambassador to France spent over N1.75m on entertainment of guests without any record of the guests, haircuts, manicure, hair colouring and cost of ticket to Nigeria for consultation without any evidence of any official invitation/approval for the journey.  The Auditor-General described these as “very private expenses that should not have been borne by public funds.”

The report further revealed that officials of the Nigeria Embassy in Paris were printing official receipts booklets for the collection of government revenue privately, contrary to Financial Regulations which stipulated that “under no circumstances shall temporary or privately printed receipts be utilised for the collection of government revenue.” According to the office, the practice encouraged fraudulent activities, making it difficult to track the receipts issued out and thus difficult to determine the actual revenue generated.

It was revealed in another query that at the Embassy of Nigeria, Washington D.C., USA, properties owned by the Federal Government of Nigeria were sold and the proceeds of the sales used to open a ‘Property Account.’ A scrutiny of the bank statements of the main account revealed that several transfers of funds amounting to USD17,477,677.54 (N2,619,949,997.79) were made at different times between 28th August, 2009 and 26th April, 2012, from the ‘Property Account’ to the main account. Despite these huge transfers, the main account had only a meagre balance of the sum of USD769.49 (N115,348.58) as at 16th May, 2012.

The revelations of these forensic audits have, no doubt, reflected their relevance to expose malfeasant practices of corruption of financial recklessness. This, no doubt, is veritable in the drive to fighting corruption in the Country. It is indisputable that the significance of such reports would bear their relevance in the architecture to fight corruption, particularly at this time when the need to confront the scourge, which has left the Country debilitated over the years, has become non negotiable.

The need to further strengthen and maximise the mechanisms of forensic audits of MDAs in the Country from the Federal to the State and Local Governments is pertinent to change the corruption inclinations in the public sector circle. Hence, the echelons of all these levels of government should expose and subject their MDAs to such forensic exercises without interference with the process. This is essential to deepen the architecture of  transparency and accountability which are key to the running of democracy which the Country subscribes to.

The role of the National Assembly and State Assemblies to take the process further with thorough probes of the MDAs exposed in allegations of financial related corruption made known through revelations of these reports, is pertinent to optimise the benefits of the exercise. Taking the process further, the judiciary has a role to play for trial of individuals nailed in the malfeasance of gross financial misappropriation.

This is important to salvage the Country from the scourge of corruption which, over the years, have held the Country to ransom, under a condition where growth and development have been frustrated by gross misappropriation of funds that should have gone into concrete projects, but ended in private pockets, thus leaving the Country with a paradox of “suffering amidst plenty.”

Editorial

Nigeria must act now to mitigate flood disasters

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As the rainy season looms ahead, a palpable sense of concern grips the nation.The recent cautionary message from the                      Federal Government to 31 state governors  regarding the looming threat of floods from April to November serves as a wake-up call, demanding swift and concerted action from both state and federal authorities.

Presented by Minister of Water Resources and Sanitation Joseph Utsev, the 2024 Annual Flood Outlook paints a bleak picture, underscoring the urgent need for preemptive measures. It is not merely an emphasising advisory; it is a resounding call to arms.

The spectre of past flood calamities in Kano, Taraba, Lagos, and other states still haunts our collective memory.

The haunting images of devastated homes, displaced families, and shattered livelihoods serve as poignant reminders of the human toll exacted by our complacency.

It is imperative that we glean lessons from these tragedies and take proactive steps to forestall the impending catastrophe.

The warning issued by the Federal Government is crystal clear: floods are imminent, and the time to act is now.

The Nigeria Hydrological Services Agency’s classification of 148 local government areas across 29 states, including Lagos, Kano, and Delta, as high flood-risk zones emphasising the gravity of the situation.

Every moment of inaction heightens the risk to countless lives and properties. State governors, local authorities, and relevant agencies must set aside differences and collaborate effectively to implement robust flood preparedness and mitigation measures.

From infrastructure reinforcement to early warning systems and community awareness campaigns, a comprehensive approach is imperative to safeguard vulnerable communities.

As responsible stewards of our nation’s welfare, we cannot afford to be caught off guard. Let us heed the warning, unite in purpose, and proactively address this looming threat.

The cost of inaction is too grave to contemplate, and the time to act decisively is now. This is not a drill.

The minister’s revelation that 31 states face high flood risks, while all 36 states and the Federal Capital Territory will experience moderate flooding, demands immediate attention and collective action.

“The high flood-risk states are Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe,” the Minister said.

We cannot afford to wait until the waters rise and lives are lost. The time to act is now. It’s imperative that federal and state governments, agencies, and local communities join forces to mitigate the impact of floods.

This requires a coordinated response, including public awareness campaigns, infrastructure upgrades, emergency preparedness plans, and investment in flood mitigation projects.

The future of our nation depends on it. Let us heed the warning and take proactive steps to build a more resilient Nigeria, where lives and properties are protected from the ravages of flooding. The clock is ticking; let us act now to avoid a catastrophe.

While 31 states face high flood risks, the remaining five states must also be proactive in their preparations. It’s not enough to simply warn residents to relocate from flood-prone areas; state governments must provide safe and conducive spaces for relocation, complete with essential services like relief materials, healthcare, and security.

This will help mitigate the trauma faced by displaced families. Citizens, too, have a critical role to play. They must be willing to relocate from their homes and comfort zones to prevent avoidable deaths and losses. The stark reality is that flood disasters are devastating, as seen in 2023 when 45 lives were lost, 171,545 persons displaced, and 22,666 homes partially damaged, with 5,358 others completely destroyed.

The economic toll was equally staggering, with a $4.6 billion bill that significantly dented Nigeria’s GDP. Let us learn from the past and take collective responsibility for flood preparedness. State and federal governments, agencies, and citizens must work together to build a more resilient nation, where lives and properties are protected from the ravages of flooding. The time to act is now.

In 2022, flooding claimed 662 citizens; 2.43 million others were displaced and 3,174 were injured nationwide, per NEMA.

The financial losses were estimated at $9.12 billion by the Federal Government, and by a United Nations agency at $7 billion. A UN report stated that food insecurity was aggravated in the country as 569,000 hectares of farmland were destroyed by the flood.

According to the then Minister of Water Resources, Suleiman Adamu, 178 LGAs in 32 states were declared “highly probable flood risk states.”

Although climate change remains a global concern, leading to flash floods, droughts, forest fires, and cyclones, the government must not make excuses.

They need to take lessons from previous floodings and replace their nonchalance with strategic actions and campaigns. They must do all they can to avoid the repetition of losses of lives and properties.

The citizens must play their part by clearing drainage in their vicinity, cultivating good waste disposal and environmentally friendly culture. To entrench this, the government must place strict surveillance and enforce stiff penalties against erring residents.

State governments should demolish structures erected on flood paths to enable rainwater to drain appropriately.

NGOs in the environmental niche should activate campaigns distilled in local languages through the media to prepare citizens for the flood.

The federal and state governments should be proactive in the deployment of ecological funds to provide guardrails against natural disasters. This must be used for pre-emptive measures like building bridges, desilting rivers, evacuating canals and drainage, and building dams and levees. The dams would help preserve excess rainfall to irrigate farmland during the dry season.

The government must fully embrace its onerous duty to safeguard lives and properties.

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Editorial

Preparing for a challenging farming season: NiMet’s forecast and the need for proactive action

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As the farming season beckons, Nigerian farmers are bracing themselves for a turbulent ride. The Nigerian Meteorological Agency’s (NiMet) forecast of a delayed and shorter rainy season has sent shockwaves across the agricultural community, threatening to upend the delicate balance of our food security.

With millions of farmers poised to plant their crops, the clock is ticking. Will our policymakers and stakeholders rise to the challenge, or will we reap a harvest of regret? According to NiMet, this year’s rainy season will commence later than usual, with the central states expecting the onset of rains around May 29 and the northern states around June 13.

Moreover, the season is predicted to end earlier than usual, between October 6 and November, in many states. This forecast raises concerns for farmers, as a shorter rainy season can lead to reduced crop yields and increased risk of drought.

To mitigate these challenges, NiMet advises planting early-maturing crop varieties at the beginning of the season. This is a wise recommendation, as it allows farmers to adapt to the predicted weather patterns and minimize potential losses.

With predictions ranging from October 6 to November, regions including Yobe, Jigawa, Sokoto, and Lagos are bracing for a shorter agricultural window. This forecast emphasised the critical importance of proactive planning and early adoption of fast-maturing crop varieties.

The essence of NiMet’s warning is clear: farmers must act swiftly to secure the necessary resources for a successful harvest. From fertilizers to seeds, the time to procure vital inputs is now, to mitigate potential setbacks and ensure a fruitful season. Traditionally, this period marks the commencement of government initiatives to facilitate the purchase and distribution of agricultural inputs. However, the silence on this front is deafening.

Instead of prioritising the long-term sustainability of agriculture, many officials seem fixated on short-term palliative measures, neglecting the imperative of future agricultural prosperity. As the countdown to the abbreviated season begins, the call to action grows louder. Farmers must seize the moment, equipping themselves for the challenges ahead, while policymakers must refocus their attention on fostering a resilient agricultural sector for generations to come.

Only through collective effort and foresight can we navigate the uncertain terrain ahead and ensure a bountiful harvest for all. As the federal government pledges to revamp the textile industry, Nigerian farmers are grappling with a more pressing concern – the exorbitant cost of fertilizers and other essential inputs. A bag of fertilizer now costs a staggering N48,000, forcing farmers to either purchase substandard products or resort to traditional alternatives, resulting in poor yields and revenue losses. The high costs of seeds, herbicides, pesticides, labour, and fuel have pushed small-holder farmers to the brink.

Despite President Bola Ahmed Tinubu’s assurances of support, including a promise to release 225,000 metric tons of fertilizers, seedlings, and other inputs in August 2023, concrete actions are yet to be seen. With food prices soaring nationwide, it is imperative that the government takes immediate steps to address the plight of farmers, who are crucial to the nation’s food security.

We urge the government to translate its promises into tangible support for farmers, including affordable access to quality inputs, to ensure a bountiful harvest and a food-secure future for Nigeria. We commend the Central Bank of Nigeria’s release of 2.15 million bags of fertilizer to the Federal Ministry of Agriculture and Food Security. However, it is alarming that there has been no update on the distribution of this vital commodity since the handover over a month ago.

Furthermore, we urge state governments to take their responsibilities in ensuring adequate input supply to farmers more seriously. We also call on the federal government to implement policies that facilitate the supply of fertilizers, seeds, and other inputs to the markets, thereby controlling rising prices.

The Presidential Fertilizer Initiative needs to be reviewed to ensure fertilizer blending plants resume production. Our farmers urgently need government support to access necessary inputs for successful cultivation. As the rains continue to falter, Nigerian farmers face an uphill battle. We urge the government to seed hope by providing essential resources – quality seeds, fertilizers, and equipment – to help them weather the storm.

Climate-resilient agriculture initiatives and weather insurance schemes will also help farmers adapt and thrive. But, there’s a greater challenge to tackle – the menace of bandits and militias terrorizing farmers, forcing them off their lands, and threatening our food security.

It’s time for decisive action! The government must act swiftly to protect our farmers, their farms, and our collective future. Let’s join forces to cultivate a brighter tomorrow, where our farmers can plant, grow, and harvest without fear. The time to act is now, for the sake of our nation’s food security and stability. Let’s sow the seeds of resilience and reap a bountiful harvest for generations to come!

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Editorial

Epileptic national grid in Nigeria: The way forward

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It is now commonplace to hear about the collapse of the national grid in Nigeria. In short, the news is now a periodic ritual. And for a country like Nigeria with all its potentials to be galloping with power in the name of national grid collapse is to say the least pathetic. Countries within our neighborhood we often refer to as smaller nations have since left us behind in terms of steady power supply.

Records have it that Nigeria has recorded about 140 national grid collapses since 2013 when the National Electricity Power Authority (NEPA) was unbundled and still counting. In first quarter of 2024 alone, Nigeria has recorded two national grid collapses, one on 4/2/2024 and  the other on 28/3/2024. One may now ask,what is the real problem? The country generates 4,000MW of electricity for a population of approximately 200m people. This is a far cry! What do we think 4,000MW will do for such a gargantuan population? Only God will save us!

According to reports, the Federal Government is targeting about 30,000MW in 2030. But experts say Nigeria needs about 33,000MW of electricity supply with its current population to be comfortable. Until that is achieved, it remains a dream. Now that power has been put into the concurrent list, states should wake up and embark on power generation projects to fill the existing gap created by the big brother, the Federal Government. It is not enough for states and local governments to continue to cry wolf when actually they can do something about the problem.

What are the effects of frequent national grid collapse? When there is a power outage, companies and organisations must provide their outfits with alternative power supply. That is, diesel or petrol.  This will automatically increase the cost of production. Private companies with little or no stamina to absorb the extra cost will close shop and the economy will be impacted negatively on. Workforce will be reduced or entirely laid off. Unemployment will creep in with its attendant factors of restiveness, social vices, and outright insurgency.

The country will start grappling with insecurity and its allies. Money that would have been spent on developmental projects will now be channelled to security, just as we have now. Lack of power equally brings about lack of social amenities, such as lack of potable water, healthcare services and poor infrastructures.In a situation like this, investors will take flight and the economy will collapse. We pray that our situation in the country does not get to this stage, because that will amount to a socio-economic crisis that no nation longs to experience.

What is the way out? The reason is that wishes and prayers are not economic strategies. The remedy of course is within our reach. The operators of the power sector often complain of gas supply challenges. The question is who is holding the gas from being supplied? Are there rough curves that should be smoothened in the contractual agreements? Who is responsible for tidying up such spots? It is a matter of putting the round peg in a round hole and the results will be natural.

There must also be commitment, patriotism on the part of the supervising agencies. Enough political will must be generated to drive these processes. This, of course, boils down to good leadership. And we strongly believe that the Renewed Hope Agenda of the President Ahmed Bola Tinubu-led Federal government is out to provide that. So there is nothing stopping us from achieving any goal we set for ourselves.

Another cause of national grid collapse is poor transmission. Others are poor infrastructures, vandalism, and liquidity crisis. These problems are not insurmountable.  All hands must therefore be on deck to achieve this.

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