{"id":90128,"date":"2021-12-21T08:30:30","date_gmt":"2021-12-21T07:30:30","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=90128"},"modified":"2021-12-21T08:30:30","modified_gmt":"2021-12-21T07:30:30","slug":"how-justice-ministry-diverted-mismanaged-n113-2-million-in-2019-audit-report","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/exclusive\/how-justice-ministry-diverted-mismanaged-n113-2-million-in-2019-audit-report\/","title":{"rendered":"How Justice Ministry Diverted, Mismanaged N113.2 Million In 2019 \u2014 Audit Report"},"content":{"rendered":"

The Federal Ministry of Justice spent over N113.2 million in breach of the various provisions of the Nigeria\u2019s financial regulations in 2019, the latest audit report of the Office of the Auditor-General of the Federation (OAuGF) has disclosed.<\/p>\n

<\/div>\n
The suspicious expenditures, according to the report, ranged from misapplication of funds meant for capital projects, misappropriation of other funds, to payment of contractors without supporting documents.<\/div>\n
\nIt said the transactions highlight issues of misapplication, diversion, and misappropriation of public funds.<\/p>\n

Some of the transactions could also be payments for unapproved expenditures, the report added.<\/p>\n

\u2018N35.8 million capital votes diverted\u2019
\nIn an instance of the alleged breaches, the report stated that 12 payments totaling N35, 776,700 diverted from the ministry\u2019s capital vote of 2019 were made to officials.<\/p>\n

Instead of being spent on capital projects, the funds, according to the report, were diverted into air tickets, boot camp registration, servicing of monthly meetings, workshop fees and conferences, the report stated.<\/p>\n

Giving further details of how the funds were expended, the report states that, in another transaction, \u201cN30 million was raised as cash advance to an officer of the ministry.\u201d<\/p>\n

According to the report, the retirement particulars of the cash advance of N30 million was for a conference that turned out to be a \u201cvirtual meeting\u201d in 2019.<\/p>\n

The officers that attended the conference were from the South-south states, and from different agencies and commands, which the audit report said, \u201ctheir offices should have catered for their logistics and other benefits instead of the (Justice) ministry.\u201d<\/p>\n

The spendings, the report said, violated the provision of Paragraph 316 (iii) & (iv) of the Financial Regulations, which states, \u201cVirement from one Head of Account in the Recurrent Expenditure estimates to another Head of account in Capital Expenditure estimates shall not be allowed and vice versa\u2026All applications for virement shall be collated by the Minister of Finance and submitted to National Assembly for approval before virement warrant shall be issued.\u201d<\/p>\n

The report said it was likely a case of \u201cMisapplication of funds\u201d and \u201cDiversion of public funds\u201d.<\/p>\n

\u2018Unjustified N53.8 million payments\u2019
\nThe report also said the ministry could not provide documents to substantiate over N53.8 million raised and paid to contractors for works and procurements in 2019.<\/p>\n

It said \u201cnine payment vouchers amounting to 53, 797, 299.50, for works and procurement were raised in 2019 and paid to contractors,\u201d while \u201celevant supporting documents such as approvals, invoices\/receipts, letters, store receipt vouchers, store issue vouchers, project files were not presented for examination.\u201d<\/p>\n

Relevant documents such as approvals, invoices\/receipts, Store Receipt Voucher (SRV), Store Issue Voucher (SIV), project could not be provided by the ministry, the report stated, raising concerns about likely \u201cdiversion of public funds\u201d.<\/p>\n

The report cited a breach of Paragraph 603(i) of the Financial Regulations, which states, \u201cAll vouchers shall contain full particulars of each service, such as dates, numbers, quantities, distances and rates, so as to enable them to be checked without reference to any other documents and will invariably be supported by relevant documents such as local purchase orders, invoices, special letters of authority, time sheets, etc.\u201d<\/p>\n

It said the \u201canomalies\u201d could be attributed to weaknesses in the internal control system at the Federal Ministry of Justice, and could have led to \u201cdiversion of public funds\u201d, and \u201cdifficulty in funding budget\u201d.<\/p>\n

\u2018N23.6 million vouchers not presented for audit\u2019
\nIt said, similarly, \u201cfourteen payment vouchers amounting to N23, 581, 944.20 (Twenty three million, five hundred and eighty one thousand, nine hundred and forty four naira, twenty kobo) paid between July to December 2019 were not presented for audit examination.\u201d<\/p>\n

It noted that the \u201canomaly\u201d were a breach of ) Paragraph 601 of the Financial Regulations, which stipulates, \u201cAll payment entries in the cash book\/accounts shall be vouched for on one of the prescribed treasury forms. Vouchers shall be made out in favour of the person or persons to whom the money is usually due. Under no circumstances shall a cheque be raised, or cash paid for services for which a voucher has not been raised.\u201d<\/p>\n

\u201cThe above anomaly could be attributed to weaknesses in the internal control system at the Federal Ministry of Justice,\u201d the report stated, adding that it raises concerns about \u201cmisappropriation of funds\u201d and \u201coayment for unapproved expenditure\u201d.<\/p>\n

Ministry\u2019s responses
\nIn response to queries over the allegedly misapplied N35.8 million capital vote, the audit report said the management of the Federal Ministry of Justice claimed that all the expenditures were \u201ccaptured in the 2019 Capital Appropriation Bill of the Ministry and they were duly approved as contained in the Appropriation Acts for the year under consideration.\u201d<\/p>\n

For the N53.8 million spent without supporting documents, the audit report said, \u201dthe management said ministry there was an urgent need for an award and execution of those contracts in order to salvage lives and properties in public interest due to the siege of possible attack by the protesters\u201d at the time.<\/p>\n

\u201cWe are not unaware of the facts that those contracts were supposed to go through the Procurement Planning Committee in compliance with the due process procedures,\u201d the management said.<\/p>\n

For the 23.6 million vouchers not presented for audit, the report said the management claimed that the violation of the Financial Regulations 629 as stated \u201cwas not deliberate\u201d.<\/p>\n

It added that it was \u201cdue to exigencies of work then that made it difficult for us to access those payment vouchers for presentation to the auditors as requested.\u201d<\/p>\n

Recommendations
\nIn addressing the issues, the audit report specifically asked the Solicitor-General and Permanent Secretary, who is the accounting officer of the Ministry to: \u201cfurnish reasons for payment of allowances for a conference that was held virtually and payment to officers of another agency.\u201d<\/p>\n

The Permanent Secretary was also asked to \u201caccount for the sum of N35,776, 700.00 million, transferred from capital vote to finance overhead expenditure.\u201d<\/p>\n

He was told to \u201crecover the sum of N30 million paid as advance as the retirement documents are flawed with irregularities.\u201d<\/p>\n

In the same vein, the Solicitor-General was asked to \u201crecover and remit the sum of N53, 797, 299.50 as well as the sum of N23, 581, 944. 20 to the treasury,\u201d which were shrouded in \u201dunclear financial dealings.\u201d<\/p>\n

If the payment could not be substantiated, the report recommended that sanctions relating to irregular payments be applied as stipulated in paragraph 3106 of the Financial Regulations.<\/p>\n

The audit report, the latest in the OAuGF\u2019s annual series, is titled, \u2018Non-compliance\/Internal Control Weakness Issues in Ministries, Departments and Agencies of the Federal Government of Nigeria for the Year ended December 31, 2019\u2019.<\/p><\/div>\n

\nIt was recently submitted to the Clerk of the National Assembly by the AuGF, Adolphus Aghughu, in accordance with section 85(2) and (4) of the Nigerian constitution.<\/div>\n","protected":false},"excerpt":{"rendered":"

The Federal Ministry of Justice spent over N113.2 million in breach of the various provisions of the Nigeria\u2019s financial regulations in 2019, the latest audit report of the Office of…<\/p>\n","protected":false},"author":1,"featured_media":90129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-90128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\nHow Justice Ministry Diverted, Mismanaged N113.2 Million In 2019 \u2014 Audit Report - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/exclusive\/how-justice-ministry-diverted-mismanaged-n113-2-million-in-2019-audit-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Justice Ministry Diverted, Mismanaged N113.2 Million In 2019 \u2014 Audit Report - 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