The Security and Exchange Commission (SEC) spent N24,958,628,455.67 as allowances for its management and workers between 2017 and 2019, the 2020 audit report of the Auditor General for the Federation (OAuGF) has revealed.
The list of allowances is contained in the report of non-compliance/internal control weaknesses of Ministries, Departments, and Agencies (MDAs) of the Federal Government for the year ended December 31, 2020, submitted to the National Assembly on December 20, 2023.
The report, with reference number AuGF/AR.2020/02 and signed by OAuGF Shaakaa Kanyitor Chira, was addressed to the Clerk to the National Assembly.
The list includes dressing allowance, leave allowance, medical allowance, monetised allowance, education allowance, rent allowance and mineral allowance, acting allowance, overseas leave allowance, car grant, furniture allowance, severance allowance, medical bills, and off payroll allowances.
The report said SEC paid N11.087 billion as dressing allowance, leave allowance, medical allowance, monetised allowance, education allowance, rent allowance, and mineral allowance as off-payroll allowances between 2017 and 2019.
The OAuGF’s report said there was no evidence that the payments were approved by the National Salaries, Income and Wages Commission (NSIWC) before they were paid out to the affected workers.
It demanded a refund of the money to the government treasury.
The audit report also said SEC paid two acting directors general and four acting commissioners N625.915 million as acting allowances, overseas leave, and monetised allowances between 2018 and 2019.
It said another N444.825 million was paid as a car grant to the officers as a motor vehicle loan at four percent interest.
The report also said SEC paid N77.685 million as monetised and other allowances without evidence of Pay As You Earn (PAYE) deduction, contrary to the provisions of extant regulations.
It added: “Audit observed that N545,027,411.21 was the Pay As You Earn (PAYE) tax liability, penalty and interest due from allowances paid to its officers, and these allowances include dressing allowance, leave allowance, medical allowance, monetised allowance, education allowance, furniture allowance, rent allowance, mineral allowance and productivity allowance.
“The sum of N33.424 million, representing Pay As You Earn (PAYE) arising from previous years’ workers’ tax liabilities, penalties and interests, were paid by the commission. There was no evidence that the amount was deducted from the emolument of the workers.”
In its management’s response to the issue, SEC said: “At the end of the tax audit exercise, the tax authority observed an under-deduction and consequently applied penalty with a deadline within which to effect payment. The commission effected the payment with the view to recover same from the said workers to avoid further penalty.”
The OAuGF also averred in the report that despite being registered under the National Health Insurance Scheme and monthly remittance of Health Insurance premium, the commission paid N241.865 million to workers in 2017, 2018, and 2019 as quarterly medical allowance.
But the management defended the payment, saying the “medical allowance is part of the Consolidated Salary Structure, as approved by National Salaries and Wages Commission. This allowance is always provided for in the budget of the commission. Section 4 (1)(d) of the Investment and Securities Act (ISA), 2007 empowers the board of the commission to consider and approve the annual budget of the commission as may be presented to it by the management. The Minister of Finance, in absence of the board, approved the 2017 to 2019 budget of the commission and the budget, which were duly appropriated by the National Assembly.”
Also, SEC reportedly spent N173.033 million as medical bills for workers without approval, despite having this enrolled into the National Health Insurance Scheme (NHIS) with over N100,000,000.00 already remitted as premium.
The management said the money was expended since the NHIS does not cover all illness, adding: “By the powers conferred on the board of the commission through Section 20 of the ISA 2007, empowering the commission to apply the proceeds of its regulatory activities to meet the cost of administration, reimburse members of the commission or any committee set up by the Commission for expenses authorised or approved by the commission, the board considered the effect of certain.”
The commission allegedly committed many other financial infractions within the period of the report.
