Secrets Reporters
A recent federal audit report obtained by SecretsReporters on the Nnamdi Azikiwe University Teaching Hospital (NAUTH) in Nnewi, Anambra State, has peeled back the curtain on a financial anomaly, revealing an “extra-budgetary expenditure” that has raised eyebrows and sounded alarm bells. The hospital appears to have sailed perilously close to the wind, spending N3,724,153.67 above the approved sum for the construction of its Male Surgical Ward in 2021, an issue that’s become a thorn in the flesh for accountability watchdogs.
The crux of the matter revolves around a clear N70,000,000.00 appropriation for the Male Surgical Ward within the 2021 Appropriation Act. However, the financial expenditure, as noted by the audit, went off the rails, ultimately totaling a staggering N73,724,153.67. This N3.7 million difference is the elephant in the room, representing funds spent without the required budgetary backing.
This financial overreach is not merely a bookkeeping error; it strikes at the heart of the matter regarding fiscal discipline, according to the audit findings. The report explicitly cites Section 80(4) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), which mandates that “No moneys shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly.” This foundational legal framework makes it clear that government spending isn’t just a matter of convenience; it’s a matter of law.
Furthermore, the audit highlighted that the extra-budgetary spending flew in the face of the established Financial Regulations, 2009. Specifically, paragraph 417 states that “Expenditure shall strictly be classified in accordance with the estimate, and votes must be applied only to the purpose for which the money is provided. Expenditure incorrectly charged to a vote shall be disallowed.” The fact that evidence of approval for this supplementary spending was not presented for audit is the final nail in the coffin for the hospital’s financial defense in this matter.
The auditors, acting as the watchdogs of public funds, pulled no punches in their analysis, attributing these unsettling developments to “weaknesses in the internal control system at the Nnamdi Azikiwe University Teaching Hospital.” This lack of a tight grip on finances, they argue, lays the hospital open to significant and potentially costly risks, chief among them the “waste of government funds” and the highly sensitive “diversion of public funds.”
Perhaps the most damning aspect of the entire affair is the Management’s Response: a resounding “No response.” This silence speaks volumes, leaving the audit’s findings unchallenged and therefore valid in the eyes of the Auditor’s Evaluation. Management’s failure to address the issue head-on has only intensified the spotlight on the irregularities, leaving their side of the story completely untold.
In the absence of a satisfactory explanation, the auditors have laid out a comprehensive set of recommendations for the Chief Medical Director (CMD), who is now between a rock and a hard place. The CMD is requested to justify the N3.7 million extra-budgetary spending to the Public Accounts Committees of the National Assembly.
Beyond mere justification, the audit report demands a tangible measure of accountability: the recovery and remittance of the full sum of N3,724,153.67 back to the Treasury. Furthermore, they must forward evidence of this remittance to the National Assembly’s committees, effectively requiring the hospital to cross every ‘T’ and dot every ‘I’ in their restitution efforts.
Should the hospital management fail to adhere to these directives, the auditors recommend that sanctions relating to irregular payment and failure to manage public funds effectively be applied. This invokes specific paragraphs 3106 and 3115 of the Financial Regulations, 2009, ensuring that the hospital’s leadership is held to account and that this breach of financial trust is not simply swept under the carpet.