Prof. Joseph Eberendu Ahaneku and The N348.86m Questionable Expenditure, Investments, and Allowances in Nnamdi Azikiwe University

Secrets Reporters

A review of the Nnamdi Azikiwe University (NAU), Awka, Anambra State, has exposed  about N348.86 million in five financial issues, including unauthorised investments, unapproved expenditure, irregular allowances, and payments to external solicitors, according to a review by SecretsReporters.

The findings, covering the 2018 financial period and related activities extending into 2019/2020, raise concerns over the university’s compliance with financial regulations governing the use and investment of public funds under the leadership of Prof. Joseph Eberendu Ahaneku, the Vice-Chancellor at the time, having served from June 2014 to about June 2019.

The largest issue involved N165.86 million invested outside approved Treasury investment channels. The university funds were placed in ventures including N85 million in the “American Hospital Abuja”, N62 million in an “NAU OSIL” water project, N10.55 million in a local innovation project, N8.26 million in shares and N41,482.50 in broadcast rights. 

The investments allegedly lacked the required approval of the Accountant-General of the Federation. The absence of share certificates, CSCS records, and evidence showing that the investments generated interest or other returns. These actions contravene Financial Regulations 2009, paragraphs 739 and 711(ii), as well as Treasury Circular TRY A2&B2/2014.

Another N106.87 million was reportedly spent on Christmas hampers, cows, redemption of thanksgiving pledges, and productivity bonuses paid to board members and others, without evidence that the expenditure had been appropriated. 

Section 80(4) of the Constitution and Financial Regulations 2009, paragraphs 417 and 415, warning that such spending could lead to waste of public funds and undermine the government’s ability to finance approved budgetary programmes.

Further identified in the period of the review was N41.20 million in sitting allowances paid in connection with a Council Committee meeting held on December 21, 2018. 

According to the finding, two vouchers carrying identical details were used for the payment, while the beneficiaries, being full-time officers, were reportedly not entitled to sitting allowances under Establishment Circular SWC/S/04/S.310/T/65 of April 8, 2016. Raising concerns over possible duplication, waste and diversion of public funds.

In another case, the university spent N17.5 million on furniture allowance despite only N10 million having been approved in the 2018 Appropriation Act, resulting in an unauthorised N7.5 million overrun. The expenditure is contrary to Section 80(4) of the Constitution and Financial Regulations 2009, paragraph 417.

Finally, N27.43 million was paid to external solicitors for legal services without evidence that the university obtained the required approval from the Minister of Justice/Attorney-General of the Federation. This action was in contrary to establishment Circular SGF/PS/CIR/625/1 of July 16, 2003, which governs the engagement of external solicitors by government institutions.