DPR, FIRS overpaid N837.082bn 324 MDAs fail to submit their accounts for audit
By 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.”
- ThisDayLive
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