the Federation and Minister of Justice Mr Abubakar Malami, SAN, and
appropriate anti-corruption agencies to urgently investigate allegations
that over N300bn of public funds are missing, mismanaged, diverted or
stolen, as documented in the 2017 audited report by the Auditor General
of the Federation (AGF).”
SERAP also urged him to “ask Mr. Malami and the anti-corruption agencies
to promptly investigate the extent and patterns of widespread and
endemic corruption in the ministries, departments and agencies (MDAs)
indicted in the audited report. We urge you to take meaningful and
effective measures to clean up an apparently entrenched system of
corruption these MDAs.”
In the letter dated 4 July, 2020 and signed by SERAP deputy director
Kolawole Oluwadare, the organization said: “The 2017 audited report
reveals grim allegations of mismanagement, diversion, and stealing of
public funds, as well as unaccounted-for spending. The report suggests a
grave violation of the public trust, and that the indicted MDAs and the
National Assembly lack effective and credible internal processes to
prevent and combat corruption.”
According to SERAP, “Investigating and prosecuting the alleged grand
corruption documented by the AGF would improve the chances of success of
your government’s oft-repeated commitment to fight corruption and end
the impunity of perpetrators. It will improve the integrity of MDAs,
serve the public interest, as well as improve Nigerians’ access to
public services and goods.”
SERAP said: “Any failure to promptly investigate the allegations and
prosecute suspected perpetrators would breach Nigeria’s anti-corruption
legislation, including the Public Procurement Act, the 1999 Nigerian
Constitution (as amended) and the country’s obligations including under
the UN Convention against Corruption and the International Covenant on
Economic, Social and Cultural Rights to which Nigeria is a state party.”
The letter, read in part: “It would also mean that Nigeria is failing to
fulfill the obligations under the covenant to use its “maximum of
available resources” to progressively realize and achieve basic economic
and social rights, including access of Nigerians to public services and
goods like quality education, healthcare, clean water and regular
electricity supply, as well as the right to honest public services.”
“SERAP has carefully analysed the 2017 audited report by the AGF and our
analysis reveals the following grim allegations of mismanagement,
diversion and stealing of public funds, as well as unaccounted-for
spending.”
“The Federal Civil Service Commission spent ₦25,856,279.00 on behalf of
Federal Ministry of Foreign Affairs to develop online recruitment in
April 2014 without any supporting memo from the Ministry of Foreign
Affairs, and without due process. Although the project was suspended,
the Commission went ahead and paid ₦25,856,279.00 for contract not
executed. The AGF recommended the full recovery of the public funds.”
“The Commission granted cash advances totaling ₦8,590,000.00 to 25
officials between February and December 2016 but failed to retire or
account for the money. Also, ₦6,850,000.00 was paid for store items that
were never supplied. Another ₦2,619,210.00 was spent without receipts.
The AGF expressed concern that the money may have been misappropriated
or stolen, and recommended the full recovery of public funds.”
“The former Chairman of the Commission whose tenure of office ended in
May 2017 took away with him four vehicles (One Toyota Hilux, one 407
Classic Peugeot, One Toyota Land Cruiser Jeep and One Toyota Corolla)
belonging to the Commission, despite the Monetization Policy of
Government clearly stating that all vehicles of MDAs belong to the pool,
and are not expected to be taken away as part of severance package at
the expiration of an officer’s appointment.”
“The Ministry of Foreign Affairs failed to show any receipts for the
payment of ₦4,385,230,763.25 between January and December 2016. The
Ministry also had no insurance cover for all its motor-vehicles, despite
the budgetary allocation of ₦11,805,802.00 for insurance premiums. The
Ministry spent ₦105,000,000.00 to buy computer consumables, photocopy
machine consumables, papers and other store items, contrary to official
circular, and without any receipts. The AGF recommended the return of
the money to the public treasury.”
“The Ministry also spent ₦72,000,030.00 to improve power supply to the
Ministry but the contract for this was not captured in the 2017
appropriation. Despite the purported spending, the power supply to the
Ministry has not improved. Also, ₦7,520,000.00 was spent by 20 officials
to visit 8 out-stations of the Ministry without due process and without
any receipts. ₦234,622,718.00 was also spent but remained unretired or
unaccounted for. The AGF recommended the full recovery of public funds.”
“The Ministry also paid ₦83,719,500.00 to a company for the
rehabilitation and reintegration of released Chibok girls in August 2017
without any agreement between the Ministry and the contractor, and
without any evidence of the purchase of the back-to-school materials,
and job completion certificate. The AGF recommended the full recovery of
public funds.”
“The Ministry also transferred a take-off grant of ₦83,317,257.00 for
Consulate-General of Nigeria, Guangzhou to the personal account of the
Ambassador of Nigeria in Rome in 2013 to be remitted to Guangzhou. But
the money was never remitted to Guangzhou and has remained outstanding
to date. The AGF expressed concern that the money may have been diverted
and misappropriated, and recommended that the Ambassador of Nigeria in
Rome whose account was used be asked to account for the money.”
“The Ministry of Justice disbursed ₦10,460,950,841.00 judgment debt in
2017 without due process. The committee to manage the funds was
dissolved after the 2013 financial year was not reconstituted as at the
time of the 2016 and 2017 appropriations but funds were nonetheless
disbursed. Also, ₦32,353,693.00 was spent between March and September
2017 on international travels without approval or evidence of spending.
The AGF recommended the full recovery of public funds.”
“At the National Assembly, the House of Representatives spent
₦95,212,250.00 without due process and without any receipts. The
National Assembly Management Accounts also showed spending of
N673,081,242.14 between April–October 2017 without any documents. The
AGF expressed concerns that the money may have been misappropriated and
recommended that the Clerk of the National Assembly should fully recover
the money and return it to the treasury.”
“The Senate also spent ₦1,364,816,397.95 to renovate a store at the
National Assembly but the AGF was denied access to the store and
records, thus expressing concerns that ‘public funds may have been
diverted for unappropriated purposes.’ The AGF recommended that the
Clerk of the National Assembly account for the money.”
“The National Institute for Legislative and Democratic Studies
misappropriated ₦67,296,478.00, as payments were made to unknown
persons. The AGF expressed concerns that the money may have been
diverted and recommended that the Director-General should fully recover
the money and return it to the treasury.”
“The Public Complaint Commission spent ₦63,826,941.30 on contract to
renovate State offices in Delta, Kwara, Akwa– Ibom, Taraba, Borno,
Ekiti, and the Niger States without due process, valuation certificates,
and without receipts. The AGF expressed concerns that the money may have
been diverted and recommended the full recovery of public funds.”
“The Federal Ministry of Water Resources spent ₦343,957,350.60 without
due process, receipts, and without any evidence of work done or services
rendered. Also, ₦14,993,950.00 granted as cash advances to staff was not
accounted for. The AGF expressed concerns that the money may be missing
and recommended that the Permanent Secretary is made to account for it.”
“The Lower Benue River Basin Development Authority, Makurdi
misappropriated ₦42,277,285.50 of contract money for project management.
Similarly, the National Agricultural Extension and Research Liaison
Services, Ahmadu Bello University, Zaria paid a contractor
₦33,425,000.00 in March 2017 for awareness training but there was no
evidence that the contract was executed. The AGF expressed concerns that
the money may have been diverted and recommended that the Executive
Director should recover and return it to the treasury.”
“The Cross-River Basin Development Authority, Calabar, overpaid a
contractor to the tune of ₦10,387,490.00 for construction of Link Road
between Cross River and Ebonyi State without any justification. Also,
₦30,616,110.00 was spent for construction of erosion control works at
Nguzu but remained unaccounted for. The AGF expressed concerns that the
contractor may have received money for a project not executed, and
recommended that the Managing Director should recover the money and
return it to the treasury.”
“The Lake Chad Research Institute, Maiduguri, Borno State failed to
account for 2 Nos. Toyota Prado Jeeps were purchased in 2013 and 2014
with registration No. 45KOIFG for one Jeep but the second Jeep was not
registered, and no reason was given for this. The AGF expressed concerns
that the Jeeps may have been diverted to private use, and asked the
Executive Director to account for the vehicles.”
“The National Water Resources Institute, Mando Road, Kaduna paid
₦84,401,940.74 to a company on 4th May 2017, being 10% payment on the
construction of a 2-story building for UNESCO without any existing
contract, and without receipts. The AGF recommended the recovery of the
money.”
“The Nigeria Hydrological Services Agency, Abuja paid ₦24,800,000.00
into a staff private account for production/prevention of the 2016
annual flood outlook (AFO) and without evidence of services performed.
Another ₦31,439,300.00 was paid in September 2016 into the account of
another staff for sensitization workshops. The AGF expressed concerns
that the money may be missing and asked the Director-General to recover
it.”
“The Hadejia – Jama’are River Basin Development Authority, Kano State
paid ₦204,893,978.09 to contractors without any receipts. The Nigeria
Institute for Oil Palm Research, Benin City, Edo State paid
₦210,921,849.66 and ₦30,010,963.65 without any receipts. Another
₦15,630,050.00 cash advances to staff in 2017 were also not accounted
for, as of 2018. The AGF expressed concerns that the money may have been
mismanaged and asked the Accounting Officer to recover it.”
“The Federal Capital Territory Administration spent ₦393,254,000.00 to
support security agencies without due process and without receipts.
Another ₦362,481,173.52 was paid for the procurement of stores locally
without due process. The AGF expressed concerns that the money may be
missing and asked the Permanent Secretary to recover it.”
“The Ecological Funds Office misappropriated ₦1,257,791,992.86 meant for
the contract for Canalization and Desilting of OKOKO and Ogbagba Rivers
in Osogbo Township, Osun state. There was no evidence that
₦30,000,000.00 meant for compensation to owners of marked-to-demolish
structures and economic trees affected by the project, received any
payment. The AGF expressed concerns that the money may be missing and
asked the Permanent Secretary to recover it.”
“The Office of The Head of The Civil Service of The Federation paid
₦301,984,103.00 for projects without accounting for it. ₦36,641,528.00
was also paid for seminars, conferences, and workshops without any
receipts. Also, ₦16,096,712.00 was spent on projects not executed. The
AGF expressed concerns that the money may have been diverted and asked
the Permanent Secretary to recover it.”
“The Federal University of Petroleum Resources, Effurun spent
₦830,267,951.23 as Special Presidential Needs Assessment Phases I and II
to the Federal University of Petroleum Resources, Warri for the
Construction of Building, Procurement of Laboratory Equipment and
Capacity Building/Staff training but the funds were misapplied.
₦190,495.824.75 was approved for a project to construct and furnish
workshop and laboratory but the contractor was paid ₦199,324,657.10 and
without any evidence of request by the contractor.”
“The University also spent ₦990,621,753.29 to construct and furnish a
3-story, 4-floor structure Student Residential Building Complex but the
contract for the spending was awarded without due process. Also, only a
2-story, the 3-floor building was constructed. Several other infractions
are documented in the report. The AGF expressed concerns that the money
may have been diverted and asked the Vice-Chancellor to account for it.”
“The National Office for Technology Acquisition and Promotion spent
₦2,270,000.00 for a 2-day workshop but without any receipts. The AGF
asked the Director-General to recover the money. The Nigerian Railway
Corporation failed to remit ₦122,242,337.63 in taxes to the authorities.
The National Power Training Institute of Nigeria (NAPTIN) paid
₦20,569,398.20 for the supply of Power System Simulator without evidence
of supply. It gave ₦6,187,393.50 as cash advances to 17 officers which
remained unaccounted for.”
“The Advertising Practitioners Council of Nigeria paid ₦3,604,000.00 for
the services of solicitors without the consent of the Attorney-General
of the Federation. Another payment of ₦13,542,822.82 for the completion
of the machine tools workshop was made without contract agreement or
receipts. In total, ₦126,533,197.08 was paid without contract agreement
or receipts. The AGF expressed concerns that the funds may have been
misappropriated and asked the Managing-Director to recover the money.”
“The National Health Insurance Scheme paid ₦4,931,475,094.63 as cash
advances to staff without due process. ₦72,383,000.00 was also
supposedly paid for verification exercise but the AGF found no evidence
that the verification took place. Another ₦31,478,400.00 was purportedly
paid for accreditation of Health Maintenance Organizations (HMOs) but
again the AGF found no evidence of this.”
“The National Information Technology Development Agency paid
₦28,525,000.00 to a Security company for the production of procurement
manuals for the Agency. 300 copies of the manual were produced although
only 5 copies were needed and utilized, with a copy of the manual
costing ₦95,083.33. The agency also paid ₦15,842,970.00 printer
tonners.”
“There are several other infractions documented in the report, a copy of
which can be obtained from the Auditor-General’s office.”
“We request that you take the recommended action within 14 days of the
receipt and/or publication of this letter, failing which SERAP will
institute legal proceedings to compel your government to act in the
public interest.”
The letter was copied to Mr Abukabar Malami; Professor Bolaji Owasanoye,
Chairman Independent Corrupt Practices and Other Related Offences
Commission (ICPC); Ibrahim Mustafa Magu, Acting Chairman, Economic, and
Financial Crimes Commission (EFCC); and Mrs Zainab Ahmed, Minister of
Finance, Budget and National Planning.