SERAP Writes Buhari, Seeks Probe Of ‘Missing N106bn In 149 MDAs In 2018’

Socio-Economic Rights and Accountability Project (SERAP) has
urged President Muhammadu Buhari to “direct the Attorney General of
the Federation and Minister of Justice Mr Abubakar Malami, SAN, and
appropriate anti-corruption agencies to investigate allegations
that N106bn of public funds are missing from 149 ministries,
departments and agencies (MDAs), as documented in the 2018 annual
audited report by the Auditor-General of the Federation.”

SERAP said: “Anyone suspected to be responsible should face
prosecution as appropriate, if there is sufficient admissible
evidence, and any missing public funds should be fully
recovered.”

SERAP also urges him “to direct Mrs Zainab Ahmed, Minister of
Finance, Budget and National Planning to create a system of public
announcements to name and shame the indicted 149 MDAs, including
those that reportedly failed to remit over N55bn of their revenue;
awarded contracts of over N18bn for services not rendered; and
spent over N23bn without any supporting documents.”

In the letter dated 17 April 2021, and signed by SERAP deputy
director Kolawole Oluwadare, the organisation said: “The reported
missing public funds reflect the failure of the indicted MDAs to
ensure strict compliance with transparency and accountability rules
and regulations, and the failure of leadership of the MDAs to
foster institutions that uphold the rule of law and human
rights.”

According to SERAP, “Recovering the alleged missing public funds
would reduce the pressure on the Federal Government to borrow more
money to fund the budget, enable the authorities to meet the
country’s human rights obligation to progressively realize
Nigerians’ rights to quality health care and education, as well as
reduce the growing level of public debts.”

The letter, read in part: “SERAP urges you to ask Mrs Ahmed and
Mr Ahmed Idris, the Accountant-General of the Federation to explain
why they allegedly failed to ensure strict compliance with relevant
legislation, rules and regulations across all MDAs, despite the
warning and recommendations by the Auditor-General.”

“SERAP also urges you to direct Mrs Ahmed to publish full
details of the yearly budgets of all MDAs, and issue regular
updates that accurately detail their expenditures, including by
making any such information easily accessible in a form that can be
understood by the public.”

“The Auditor-General stated that the alleged infractions by the
149 MDAs could have been prevented if the Minister of Finance,
Budget and National Planning, and the Accountant General of the
Federation had heeded his warning to ensure strict compliance with
relevant legislation, rules and regulations across all MDAs.”

“SERAP is concerned that the alleged missing public funds have
hampered the ability of the MDAs to meet the needs of average
citizens, as the missing funds could have helped your government to
invest in key public goods and services, and to improve access of
Nigerians to these services.”

“Investigating and prosecuting the alleged grand corruption
documented by the Auditor-General would improve the chances of
success of your government’s oft-repeated commitment to fight
corruption and end the impunity of perpetrators. It will improve
the integrity of MDAs, as well as serve the public interest.”

“Any failure to promptly investigate the allegations and
prosecute suspected perpetrators would breach Nigeria’s
anti-corruption legislation, and the country’s international
anti-corruption obligations.”

“We would be grateful if the recommended measures are taken
within 14 days of the receipt and/or publication of this letter. If
we have not heard from you by then, the Incorporated Trustees of
SERAP shall take all appropriate legal actions to compel your
government to comply with our request in the public interest.”

“SERAP has carefully analysed the recently released 2018 audited
report by the Auditor-General of the Federation and our analysis
reveals the grim allegations that N105,662,350,077.46 of public
funds are missing, misappropriated or unaccounted for across 149
MDAs in 2018.”

“According to the Auditor-General, 35 MDAs failed to remit
N48,551,274,468.35 of generated revenue, and N5,418,780,747.23 of
statutory deductions including value added tax, withholding tax,
and stamp duties in 2018, thereby ‘depriving the government of the
much-needed fund to pursue its agenda.’”

“Similarly, 25 MDAs awarded contracts amounting to
N18,369,595,564.47 in violation of the Public Procurement Act
(PPA), 2007, including disregard to due process, irregularity in
payment for contracts, excessive pricing of procurements, payment
for services not rendered, and payment in full for uncompleted
projects.”

“Another N23,486,881,920.49 was spent by 48 MDAs without
following the rules and regulations relating to spending procedures
and policies, and without any documents to support such spending.
Furthermore, 11 MDAs paid N8,389,842,637.88 for store items that
were not taken on store charge. The Auditor-General fears that the
items may be ‘missing/misappropriated.’”

“In addition, 18 MDAs paid N354,223,774.67 as cash advances to
staff without duly retiring the money, contrary to the Financial
Regulation 1405 and Financial Regulation 1420. According to the
Auditor-General, ‘unretired cash and personal advances may be a
deliberate attempt to divert public funds for personal use.’”

“Moreover, 12 MDAs spent N371,750,964 as cash advances, above
the approved threshold of N200,000.00, contrary to the Treasury
Circular Ref. No. TRY/A2&B2/2009OAGF/CAD/26/V, which requires
all local procurement of stores and services costing above
N200,000.00 to be made only through the award of contracts.”

“There are several other infractions documented in the report, a
copy of which can be obtained from the Auditor-General’s office.
The 2018 audited report therefore suggests a grave violation of the
public trust. These damning revelations also suggest that the
indicted MDAs lack effective and credible internal processes to
prevent and combat corruption.”

“Our requests are brought in the public interest, and in keeping
with the requirements of the Nigerian Constitution 1999 [as
amended]; anti-corruption legislation, and the country’s
international obligations including under the UN Convention against
Corruption; and the African Union Convention on Preventing and
Combating Corruption to which Nigeria is a state party.”

The letter was copied to Mr Malami; Professor Bolaji Owasanoye,
Chairman Independent Corrupt Practices and Other Related Offences
Commission (ICPC); Mr Abdulrasheed Bawa, Chairman, Economic and
Financial Crimes Commission (EFCC); Mrs Ahmed; and chairmen of the
Public Accounts Committees of the National Assembly.

Socio-Economic Rights and Accountability Project (SERAP) has
urged President Muhammadu Buhari to “direct the Attorney General of
the Federation and Minister of Justice Mr Abubakar Malami, SAN, and
appropriate anti-corruption agencies to investigate allegations
that N106bn of public funds are missing from 149 ministries,
departments and agencies (MDAs), as documented in the 2018 annual
audited report by the Auditor-General of the Federation.”

SERAP said: “Anyone suspected to be responsible should face
prosecution as appropriate, if there is sufficient admissible
evidence, and any missing public funds should be fully
recovered.”

SERAP also urges him “to direct Mrs Zainab Ahmed, Minister of
Finance, Budget and National Planning to create a system of public
announcements to name and shame the indicted 149 MDAs, including
those that reportedly failed to remit over N55bn of their revenue;
awarded contracts of over N18bn for services not rendered; and
spent over N23bn without any supporting documents.”

In the letter dated 17 April 2021, and signed by SERAP deputy
director Kolawole Oluwadare, the organisation said: “The reported
missing public funds reflect the failure of the indicted MDAs to
ensure strict compliance with transparency and accountability rules
and regulations, and the failure of leadership of the MDAs to
foster institutions that uphold the rule of law and human
rights.”

According to SERAP, “Recovering the alleged missing public funds
would reduce the pressure on the Federal Government to borrow more
money to fund the budget, enable the authorities to meet the
country’s human rights obligation to progressively realize
Nigerians’ rights to quality health care and education, as well as
reduce the growing level of public debts.”

The letter, read in part: “SERAP urges you to ask Mrs Ahmed and
Mr Ahmed Idris, the Accountant-General of the Federation to explain
why they allegedly failed to ensure strict compliance with relevant
legislation, rules and regulations across all MDAs, despite the
warning and recommendations by the Auditor-General.”

“SERAP also urges you to direct Mrs Ahmed to publish full
details of the yearly budgets of all MDAs, and issue regular
updates that accurately detail their expenditures, including by
making any such information easily accessible in a form that can be
understood by the public.”

“The Auditor-General stated that the alleged infractions by the
149 MDAs could have been prevented if the Minister of Finance,
Budget and National Planning, and the Accountant General of the
Federation had heeded his warning to ensure strict compliance with
relevant legislation, rules and regulations across all MDAs.”

“SERAP is concerned that the alleged missing public funds have
hampered the ability of the MDAs to meet the needs of average
citizens, as the missing funds could have helped your government to
invest in key public goods and services, and to improve access of
Nigerians to these services.”

“Investigating and prosecuting the alleged grand corruption
documented by the Auditor-General would improve the chances of
success of your government’s oft-repeated commitment to fight
corruption and end the impunity of perpetrators. It will improve
the integrity of MDAs, as well as serve the public interest.”

“Any failure to promptly investigate the allegations and
prosecute suspected perpetrators would breach Nigeria’s
anti-corruption legislation, and the country’s international
anti-corruption obligations.”

“We would be grateful if the recommended measures are taken
within 14 days of the receipt and/or publication of this letter. If
we have not heard from you by then, the Incorporated Trustees of
SERAP shall take all appropriate legal actions to compel your
government to comply with our request in the public interest.”

“SERAP has carefully analysed the recently released 2018 audited
report by the Auditor-General of the Federation and our analysis
reveals the grim allegations that N105,662,350,077.46 of public
funds are missing, misappropriated or unaccounted for across 149
MDAs in 2018.”

“According to the Auditor-General, 35 MDAs failed to remit
N48,551,274,468.35 of generated revenue, and N5,418,780,747.23 of
statutory deductions including value added tax, withholding tax,
and stamp duties in 2018, thereby ‘depriving the government of the
much-needed fund to pursue its agenda.’”

“Similarly, 25 MDAs awarded contracts amounting to
N18,369,595,564.47 in violation of the Public Procurement Act
(PPA), 2007, including disregard to due process, irregularity in
payment for contracts, excessive pricing of procurements, payment
for services not rendered, and payment in full for uncompleted
projects.”

“Another N23,486,881,920.49 was spent by 48 MDAs without
following the rules and regulations relating to spending procedures
and policies, and without any documents to support such spending.
Furthermore, 11 MDAs paid N8,389,842,637.88 for store items that
were not taken on store charge. The Auditor-General fears that the
items may be ‘missing/misappropriated.’”

“In addition, 18 MDAs paid N354,223,774.67 as cash advances to
staff without duly retiring the money, contrary to the Financial
Regulation 1405 and Financial Regulation 1420. According to the
Auditor-General, ‘unretired cash and personal advances may be a
deliberate attempt to divert public funds for personal use.’”

“Moreover, 12 MDAs spent N371,750,964 as cash advances, above
the approved threshold of N200,000.00, contrary to the Treasury
Circular Ref. No. TRY/A2&B2/2009OAGF/CAD/26/V, which requires
all local procurement of stores and services costing above
N200,000.00 to be made only through the award of contracts.”

“There are several other infractions documented in the report, a
copy of which can be obtained from the Auditor-General’s office.
The 2018 audited report therefore suggests a grave violation of the
public trust. These damning revelations also suggest that the
indicted MDAs lack effective and credible internal processes to
prevent and combat corruption.”

“Our requests are brought in the public interest, and in keeping
with the requirements of the Nigerian Constitution 1999 [as
amended]; anti-corruption legislation, and the country’s
international obligations including under the UN Convention against
Corruption; and the African Union Convention on Preventing and
Combating Corruption to which Nigeria is a state party.”

The letter was copied to Mr Malami; Professor Bolaji Owasanoye,
Chairman Independent Corrupt Practices and Other Related Offences
Commission (ICPC); Mr Abdulrasheed Bawa, Chairman, Economic and
Financial Crimes Commission (EFCC); Mrs Ahmed; and chairmen of the
Public Accounts Committees of the National Assembly.