Adeosun set to recover un-remitted N450bn operating surpluses from MDAs

Adeosun set to recover un-remitted N450bn operating surpluses from MDAs

The Federal Ministry of Finance has announced the constitution of a
committee to recover unremitted operating surpluses of agencies of
government, running into N450billion.
The committee led by the Accountant General of the Federation, Alhaji
Ahmed Idris, is to reconcile the operating surpluses of 31 revenue-
generating agencies of government for the period 2010-2015.
The findings of the committee so far, have shown under-remittance of
over N450 billion, which has accrued within the period.
The Finance Ministry stated that staff of the Office of the Accountant
General of the Federation have critically reviewed the accounting
statements of these agencies, which include the Central Bank of
Nigeria (CBN), Petroleum Technology Development Fund,
(PTDF), National Agency for Food and Drug Administration and Control
(NAFDAC), Nigerian Television Authority (NTA), and the Securities and
Exchange Commission (SEC), among others.
The Committee will therefore be inviting the management of these
agencies to explain why their operating surpluses have not been
remitted as mandated by the Fiscal Responsibility Act 2007.
It will be recalled that Sections 21 and 22 of the Fiscal Responsibility
Act 2007, specifically states that:
“21. (1) The Government corporations and agencies and government
owned companies listed in the Schedule to this Act (in this Act
referred of as “the Corporations”) shall, not later than six months from
the commencement of this Act and every three financial years
thereafter and not later than the end of the second quarter of every
year, cause to be prepared and submitted to the Minister their
Schedule estimates of revenue and expenditure for the next three
financial years.
2) Each of the bodies referred to in sub-section (1) of this section
shall submit to the Minister not later than the end of August in each
financial year:
1. An annual budget derived from the estimates submitted
in pursuance of subsection (1) of this section; and
2. Projected operating surplus which shall be prepared in line
with acceptable accounting practices
3) The Minister shall cause the estimates submitted in pursuance
of subsection (2) of this section to be attached as part of the
Appropriation Bill to be submitted to the National Assembly.
22. (1) Notwithstanding the provisions of any written law governing
the corporation, each corporation shall establish a general reserve
fund and shall allocate thereto at the end of each financial year,
one-fifth of its operating surplus for the year.
2) The balance of the operating surplus shall be paid into the
Consolidate Revenue Fund of the Federal Government not later than
one month following the statutory deadline for publishing each
corporation’s accounts.”
Some of these agencies have incurred huge expenses on overseas
training and medicals, and huge expenses on behalf of supervisory
ministries and/other organs of government involved in oversight or
regulatory functions without appropriate approval.
Other infractions include payment of salaries and allowances to staff
and board members, governing councils, and commissions which are
outside or above the amount approved by the Revenue Mobilisation
and Fiscal Allocation Commission (RMFAC) and the National Salaries,
Income and Wages Commission.
The list also includes unacceptable expenses incurred on donations,
sponsorships, etc; unfavourable contract signed for revenue collection
by a third party; granting of staff loans that have not been repaid as
well as sale and transfer of assets to board members, among others.
According to the Finance Ministry, the overall effect of these practices
is that operating surpluses of these agencies are lower than should be.
As a result of this, the Honourable Minister of Finance, Mrs. Kemi
Adeosun has directed the Accountant General of the Federation to
issue a circular that will limit allowable expenses that can be spent as
part of measures to ensure these agencies face strict monitoring.
This development is part of the resolve of the Honourable Minister to
ensure that leakages are tackled.