By Secrets Reporters
In the mathematics of public expenditure, figures can reveal what official explanations leave unanswered. At Obafemi Awolowo University, Ile-Ife, documents obtained by SecretsReporters have identified ₦306,883,028.45 in financial irregularities across four findings relating to the institution’s 2023 financial year, while Professor Simeon Bamire served as the vice-chancellor of the university.
It was discovered that the sum of ₦178,721,828.80 was paid to contractors through 18 payment vouchers for the renovation, supply and installation of an office laboratory, health centre and other construction and upgrading works. The documents show that the mobilisation fees were supported only by conditional advance payment guarantees.
Section 71(1) of the Finance Act 2020 provides for mobilisation fees of up to 30 per cent for local contractors, subject to the provision of an unconditional bank guarantee or insurance bond. There was a discrepancy between this statutory requirement and the conditional guarantees used to support the payments, with the university’s bond templates not meeting the prescribed requirement at the time.
Reacting to the finding, the university’s management maintained that no funds had been lost and that the contractors had executed the relevant works. However, the management acknowledged the issue going forward, stating that its legal unit had amended the guarantee templates to align with the statutory requirement. The response was nevertheless considered unsatisfactory, and the finding remained valid pending implementation of the recommendations.
Similarly, the documents identified ₦63,270,000 paid for the procurement of a truck from a local manufacturer that was not accredited to supply the vehicle. The finding raised an issue of compliance with the applicable procurement requirements governing the selection and eligibility of suppliers. The procurement was also covered by Paragraphs 3106 and 3115 of the Financial Regulations 2009, which address irregular payments and failure to account for public funds.
Moreso, the university recorded ₦61,654,375.63 in store items that had not been taken on ledger charge. The failure to enter the items in the relevant stores records raises an accountability issue under the Financial Regulations 2009, particularly Paragraph 3115, which addresses failure to account for public funds. Paragraph 3106, which deals with irregular payments, was also cited as applicable to the findings.
Additionally, ₦3,236,824.02 was paid as a retention fee without the certification required before the release of such funds. The payment was identified as irregular because the required certification had not been obtained before the money was released. Paragraphs 3106 and 3115 of the Financial Regulations 2009 were cited in connection with the irregular payment and the obligation to account for public funds.
The recommendations direct the Vice-Chancellor to account for each of the identified sums to the Public Accounts Committee of the National Assembly, recover and remit the amounts to the Treasury, and submit evidence of the remittances to the relevant authorities.
