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Government assets worth ₦16,619,185,636.00 held by the National Metallurgical Development Centre (NMDC), Jos, were found without insurance coverage during the Centre’s 2023 financial year, as a review of its records identified combined irregularities amounting to ₦17,306,697,838.76.
The uninsured assets represent the largest of the findings recorded at the Centre, while other issues identified include unapproved staff allowances, extra-budgetary expenditure, payments made without pre-payment review, mobilisation fees paid without the required advance payment guarantee, tax under-deduction and non-remittance of internally generated revenue.
The review found that government assets valued at ₦16,619,185,636.00 were not insured. Paragraph 112(i) of the Financial Regulations 2009 places responsibility on Accounting Officers for the safety and proper maintenance of government property under their care. The absence of insurance coverage for the identified government assets therefore constitutes a failure to comply with the financial-control requirements governing the protection of government property.
Similarly, ₦300,060,010.19 was paid to staff as allowances without the required approval or an approved scale authorising the payments. Government remuneration and allowances are subject to approved conditions of service and financial authorisation under the Financial Regulations 2009, making payments outside approved scales or without the requisite authority a breach of the applicable financial procedures.
Additionally, two separate extra-budgetary expenditure findings amounted to ₦311,680,875.65. The expenditure was incurred beyond the recurrent expenditure conveyances authorised by the Accountant-General. Paragraph 313 of the Financial Regulations 2009 governs the Accountant-General’s authorised conveyance of recurrent expenditure and requires government expenditure to remain within the limits of approved financial authority. Spending beyond the authorised conveyance therefore contravenes the provision.
Moreso, ₦50,516,499.65 was paid without the mandatory pre-payment audit review. The Financial Regulations 2009 require government payments to undergo the prescribed pre-payment checks before funds are released. The payment made without the required review therefore breached the applicable pre-payment control procedure.
Furthermore, ₦23,778,000.00 was paid to a contractor as mobilisation fees without an advance payment guarantee. Under the Financial Regulations 2009, advance payments to contractors are subject to safeguards, including the requirement for an appropriate guarantee to protect public funds. The release of the mobilisation payment without the required guarantee therefore constituted non-compliance with the financial regulations.
The review also identified ₦949,053.69 in tax under-deduction. The applicable tax laws require government entities making qualifying payments to deduct and remit the prescribed taxes. The under-deduction therefore represents a breach of the statutory tax-withholding obligations applicable to the Centre.
Similarly, ₦527,763.58 in internally generated revenue was not remitted as required. The Financial Regulations 2009 require revenues collected on behalf of government to be properly accounted for and remitted to the appropriate government account. The non-remittance therefore constitutes a breach of the applicable financial regulations.
Professor Linus Asuquo served as Director-General of the National Metallurgical Development Centre during the period covered by the review and remained in the position into 2024.
Source: …Secretsreporters