The National Economic Council (NEC) committee of governors probing remittances into the federation account has indicted some agencies for lack of accountability and transparency in remitting monies into government coffers.
The agencies indicted include the Nigeria National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigeria Ports Authority, Nigeria Customs Service among others
In a preliminary report submitted to NEC during Wednesday’s meeting, the Governor Adams Oshiomhole-led ad-hoc committee explained that there were no checks and balances in the manner the agencies remitted their revenues into government treasury, thereby paving way for all forms of corruption.
Oyo state governor, Isiaka Abiola Ajimobi briefed State House Correspondents after the meeting chaired by Vice President, Prof. Yemi Osinbajo.
“We discussed the issue of NEC-Ad-hoc committee on the management of the ECA and the federation account, the main point he raised which we discussed extensively was divided into six.
“First, he presented to us on behalf of the Chairman of the committee Edo State governor, Adams Oshiomhole who was unavoidably absent, and it was in agreement with all of them that they confirmed that the committee interacted with revenue generating agencies of the federal government and it was established among others that there was lack of transparency and accountability in the operation of the federation account, and they also noted that there were no checks and balances in the operation.
“Secondly, they also told the Council that the work of the committee is ongoing, so we still have so more reports to receive from them.
“That in its interaction with the revenue generating agencies, it was revealed that a number of issues with rope to accruals into the federation account and the management of it necessitated the forensic audit.
“That the engagement of the audit firms is essential and the terms of reference have already been finalized with the audit firms.”
The ad hoc committee had appointed KPMG and Price Copper Water House as consultants to carry out forensic audit on the agencies.
Other members of the five-man Ad-Hoc Committee are Gombe State Governor, Ibrahim Dankwambo; Kaduna State Governor, Nasir El Rufai; (who presented the report to Council) Akwa Ibom State Governor, Emmanuel Udom and Lagos State Governor, Akinwunmi Ambode.
Ajimobi also disclosed that the Federal Government had paid out N13 billion to 13 states which applied for refund on federal roads rehabilitation undertaken by them.
A total of N535.5 billion is being demanded by 21 states for road repairs, according to him.
The Oyo governor, who was flanked by his counterparts from Benue, Delta, and Kano states, said DMO reported that the13 states were those that complied with the full conditions for refund; while eight states had only complied partially.
“Another issue discussed is on refund of expenses incurred on repair of federal roads by states. As listed here, we have 13 states that have fully complied with the reimbursement requirements, we have eight states that have partially complied, and the total sum of claims to be reimbursed is N535.5 billion.
“Then we have N13 billion that has been disbursed to the states already as at 2013. The challenges they face had to do with inadequate funding in the ministry,” he said.
Ajimobi said NEC was also briefed by the Accountant-General of the Federation that Nigeria’s Excess Crude Account as at September 15, 2015, stood at $2.25 billion.
He also disclosed that the Debt Management Office (DMO) briefed council that about N500 billion is involved in the debt rescheduling for state governments seeking financial bailout from the federal government.
Ajimobi explained that so far, 26 states applied for the debt rescheduling out of which 11 had completed the requirements; while 13 states were in the 2nd phase.
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