ICPC Cautions Hospitals, Finance Directors against Budget-Padding

Chairman of the Independent Corrupt Practices and Other Related
Offences Commission (ICPC), Prof. Bolaji Owasanoye, SAN, has
condemned the padding of budget by government officials, warning
that the Commission won’t tolerate breach of government financial
rules and regulations.

Prof. Owasanoye gave this warning during a meeting with the
Forum of Directors of Finance of federal hospitals convened by the
Budget Office of the Federation to review a position paper
presented by the Forum on the challenges of implementation of the
2021 budget recently in Abuja.

“Once you breach the rules, sanctions must follow,” the ICPC
boss told the directors.

He pointed out that it was an aberration for Federal Medical
Centres to have more staff than teaching hospitals and criticised
the fraudulent practices associated with outsourcing of services
which was prevalent in the hospitals.

Owasanoye advised the management of the hospitals to carry out a
proper evaluation of the actual number of personnel needed and for
which services so as not to go beyond the number of non-regular
staff required.

He noted that a review of the health sector undertaken by the
Commission revealed that funds meant for specific projects in
hospitals had been diverted to other unimportant areas.

On internally generated revenue, Owasanoye told the finance
directors that agencies which receive allocations from government
were expected to pay 100 per cent of their IGRs into the government
treasury to avoid abuse.

“There are some agencies and institutions that pay severance
packages but do not remit their IGRs to the government. If an
agency or institution is 100 per cent funded by the government, it
is expected that such agency will remit its IGR to the government,”
he declared.

On their part, the Chairman of the Forum, Dr. Samson Adegoke
raised the issue of non-regular staff whose allowances were not
captured in the budget, especially house officers and interns, and
wondered how they were supposed to be taken care of.
He also spoke on the challenge of outsourcing, claiming that funds
were not usually made available in the overheads to pay for the
services.

While appreciating the government for fulfilling its capital
obligations to the hospitals, Dr. Adegoke criticised officials of
the Budget Office of the Federation, Ministry of Finance, Budget
and National Planning, and the Office of Accountant General of the
Federation for putting too much burden on the hospitals during
oversight functions to take care of their welfare, even when
provisions had already been made for them in their respective
budgets to carry out their assignments.

On the IGR, the chairman of the Forum also raised the issue of
remittances and requested that the hospitals be allowed to use the
funds for their operations and not to remit the entire internally
generated revenue to government.

However in his response, the representative of the
Director-General of Budget Office of the Federation debunked the
accusation made by the Chairman of the Forum that officials of the
Budget Office usually make unnecessary demands from the hospitals
during oversight, describing the allegation as unfounded and
frivolous.

Chairman of the Independent Corrupt Practices and Other Related
Offences Commission (ICPC), Prof. Bolaji Owasanoye, SAN, has
condemned the padding of budget by government officials, warning
that the Commission won’t tolerate breach of government financial
rules and regulations.

Prof. Owasanoye gave this warning during a meeting with the
Forum of Directors of Finance of federal hospitals convened by the
Budget Office of the Federation to review a position paper
presented by the Forum on the challenges of implementation of the
2021 budget recently in Abuja.

“Once you breach the rules, sanctions must follow,” the ICPC
boss told the directors.

He pointed out that it was an aberration for Federal Medical
Centres to have more staff than teaching hospitals and criticised
the fraudulent practices associated with outsourcing of services
which was prevalent in the hospitals.

Owasanoye advised the management of the hospitals to carry out a
proper evaluation of the actual number of personnel needed and for
which services so as not to go beyond the number of non-regular
staff required.

He noted that a review of the health sector undertaken by the
Commission revealed that funds meant for specific projects in
hospitals had been diverted to other unimportant areas.

On internally generated revenue, Owasanoye told the finance
directors that agencies which receive allocations from government
were expected to pay 100 per cent of their IGRs into the government
treasury to avoid abuse.

“There are some agencies and institutions that pay severance
packages but do not remit their IGRs to the government. If an
agency or institution is 100 per cent funded by the government, it
is expected that such agency will remit its IGR to the government,”
he declared.

On their part, the Chairman of the Forum, Dr. Samson Adegoke
raised the issue of non-regular staff whose allowances were not
captured in the budget, especially house officers and interns, and
wondered how they were supposed to be taken care of.
He also spoke on the challenge of outsourcing, claiming that funds
were not usually made available in the overheads to pay for the
services.

While appreciating the government for fulfilling its capital
obligations to the hospitals, Dr. Adegoke criticised officials of
the Budget Office of the Federation, Ministry of Finance, Budget
and National Planning, and the Office of Accountant General of the
Federation for putting too much burden on the hospitals during
oversight functions to take care of their welfare, even when
provisions had already been made for them in their respective
budgets to carry out their assignments.

On the IGR, the chairman of the Forum also raised the issue of
remittances and requested that the hospitals be allowed to use the
funds for their operations and not to remit the entire internally
generated revenue to government.

However in his response, the representative of the
Director-General of Budget Office of the Federation debunked the
accusation made by the Chairman of the Forum that officials of the
Budget Office usually make unnecessary demands from the hospitals
during oversight, describing the allegation as unfounded and
frivolous.