The House of Representatives Committee on Public Accounts has commenced investigations into how Nigeria’s foreign mission engaged in extra budgetary spending and refusal to remit internally generated revenue into government coffers as provided for in the nation’s extant laws, despite cries from the embassies of paucity of funds.
This followed the multiple queries raised to this effect by the office of the Auditor General of the Federation on the alleged reckless extra budgetary spending by the Foreign Missions and refusal to account for their internally generated revenue
The audit queries revealed how some embassies spent over N13 billion not budgeted for and other activities of the foreign missions and the Federal Ministry of Foreign Affair between 2010 and 2019 which the Public Accounts Committee is currently looking into.
However, the Auditor General said in the report that efforts to audit the accounts of some of the missions were rebuffed by staff of such embassies acting on the directing of the Permanent Secretary, Ministry of Foreign Affair who directed them not to allow staff of the Auditor General access to their books.
In the over 450-page document submitted to the National Assembly, the Auditor General raised the alarm over the habit of the foreign missions to engage in extra budgetary expenses and refusal to remit generated revenue into the Consolidated Revenue Fund of the Federation, while also engaging in activities that has negative impact on the nation’ finances.
According to the report, “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 sub-head of the Recurrent Estimates in excess of the provision in the approved estimates or supplementary estimates may be authorized 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 sub-head of the Recurrent Estimates in excess of the provision in the approved estimates or supplementary estimates may be authorized 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 authorized by any officer controlling a vote without approval of the National Assembly,” it said.
It further added that that while the landed properties of the Nigeria Embassy in Brassila have been left in a dilapidated position without any effort to renovate them, the Embassy has been spending a staggering amount of USD50, 247.89 (N7,500,000.00) annually on rent for two of its staff, adding that the USD50,247.80 spent on rent for three years could be utilized to renovate the landed properties which are deteriorating and a lot of savings made for Government.
It also said that the embassy exchanged six old vehicles whose prices were not made available for two new one purchased at a total cost of USD95,211.00 (N11,754,444.44), while an additional amount of USD17,642.08 (N2,375,224.28) was expended on shipment, insurance and clearing of these new vehicles even when there was no budgetary provision for the purchase.
The report said that in 2010, the then Nigerian Ambassador to Poland claimed over N9.777 million annually for non-existing domestic staff, saying that even though the ambassador’s letter of engagement provides for the engagement of a cook/steward, house maid and gardener who should be engaged locally at the post and enrolled on the payroll of the Mission, such staff were never employed.
The AuGF said that in 2011, the Nigeria Ambassador to France spent over N1.75 million from government coffers on entertainment of guests without any record of he guests, haircut, manicure, hair colouring and cost of ticket to Nigeria for consultation without any evidence of any official invitation/approval for the journey, describing them as very private expenses that should not have been borne by public funds.
The report added that acting on a circular from the Permanent Secretary, Ministry of Foreign Affairs, several Nigeria Missions denied Audit staff from the office of the Auditor General were denied access to financial records, saying “the circular prohibits the staff of the Office of the Auditor-General for the Federation from scrutinizing the books of the dedicated accounts,” in contravention of extant laws in the country.
In the United States of America, the report said “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.
“A Tax refund of USD1, 550,000.00 which was inadvertently deducted from the sale of the Embassy’s property situated at 6705 Connecticut Avenue, Cherg Cheses, Maryland, had been withheld by the Solicitors on the sales since 2007. In a letter dated 12th December, 2007, the Solicitors informed the Embassy of the receipt of a cheque in the sum of USD1,550,000.00 being the refund and promised “disbursing the check (sic) to the Embassy of Nigeria promptly upon its clearance by 22nd December, 2007”. However, this was not done. Eight (8) months after the due date of the clearance of the cheque, the Embassy sent a reminder to the Solicitors requesting for immediate disbursement of the sum of USD1,550,000.00 plus interest accrued thereon, to the Embassy,” the report stated.
Source:Nigerian Tribune
