The House of Representatives has tackled the management of the National Hydrological Service Agency (NIHSA) over full payment of multi-billion naira to contractors for ongoing projects in the 2023 fiscal year.
Chairman, House Committee on Hydrological Service Agency, Hon. Pascal Agbodike, and members of the Committee made the observation during the 2023 budget performance and 2024 budget defense.
During the budget appraisal, the lawmakers who frowned at various infractions in the implementation of the 2023 Appropriation Act, accused the Agency’s helmsman of embarking on “extra-budgetary spending”.
In his presentation, NIHSA Director General, Engineer Clement Nze stated that the agency officially informed the office of the Accountant General of the Federation on the unspent fund meant for outstanding projects in the 2022 Appropriation Act.
According to him, the OAGF in its response wrote back to the Agency that the money has been returned to the Agency’s coffee in 2023 to ensure the Agency completes the projects.
While presenting the 2024 budget, Engineer Nze disclosed that the sum of N1.266 billion was proposed for capital expenditure, while personnel is for N472.914 million and overhead is N118.411 million under the recurrent expenditure.
He added that the Agency is expected to generate N5 million for the 2024 fiscal year.
While describing the NIHSA Director General’s presentation as a piece of information, a member of the committee, Hon. Ahmed Jaha said: “Does that mean all your activities are about contract awards? How many people are on your payroll?
Have they reflected federal character?”
In his intervention, Hon. Nwogu who pleaded that the Committee should not starve the agency of funds, urged his counterparts to adopt the budget proposal and continue the scrutiny during the oversight function.
While accusing the NiHSA Director General of misappropriation of public funds, Hon. Jaha observed that the delay in the presentation of the Agency’s budget can’t truncate the passage of the 2024 budget before the end of the year in line with President Bola Ahmed Tinubu’s request to maintain January to December budget cycle.
Jaha said: “The first item to be considered is the personnel, int the personnel you are going to state month-to-month releases and payment of salaries and other emolument, for personnel – January x-figure, February – y-figure. In most cases, they are of the same figure from January to October. We may not ask you about November because maybe when you’re preparing this bill, November’s salary was not paid.
“If at all it’s laid, you have to include November. In addition to this, you’re going to attach the nominal roll of the agency to justify the releases from the head of service or accountant general of the Federation.
“Secondly, it’s the overhead. The overhead cost is sacrosanct, we must have details of expenditure from overhead from one penny to the last kobo spent within the first month to the 11th month which is November.
The only outstanding that may be in your account since you have 100 percent releases is the overhead for December.
“Thirdly, the capital. In the capital, you have to state categorically the date of award of that particular project, which is not here.
“You wrote to us the date of the award but it’s not written. Does that mean they were all awarded at the same time? You have to state there. In your remarks, you said ongoing after paying 100 percent, you have already paid the contractor 100 percent and you are still out ongoing.
“In other words, the project is under execution. Why will you pay a company ahead of a certificate tendered by the company for payment? It’s misappropriation!
“So Sir, we have to have this detail, company A was paid a, x, y on so so so date, and was paid x, y on so so date; x, y on so so date. Now the organization is owing the contractor x figure.
“I hope you go with what I’m saying, it’s simple. Present it on Monday so that the chairman will not be late in submitting his report to the Appropriation Committee because of any attempt…it was the President that put us in this high jump to complete the budget before December ends so that we can maintain the budget cycle of January to December. Your agency alone can delay the directive or change the directive of Mr. President.
“So, on Monday unfailingly, you can come; we’ll be here to see a new look of this document,” Hon. Jaha stated.
In his ruling, Hon. Agbodike directed the NIHSA Director General and his team to re-present and submit the 2023 Appropriation performance and the 2024 budget proposal on Monday for further legislative scrutiny.