Secret Reporters No place to hide
Secrets Reporters
In another scandalous development, the Federal Ministry of Transportation has come under scrutiny following an audit report that uncovered irregular payments amounting to N68,591,119 for overseas travels undertaken without the necessary approvals. The financial mismanagement, flagged by auditors, highlights a breach of government regulations and raises concerns about internal control failures within the ministry.
According to the Establishment Circular Ref No. SGF/OP/I/S.3/XII/158 dated October 15, 2019, all yearly travel plans for statutory meetings and engagements must receive express clearance from the Office of the Secretary to the Government of the Federation (SGF) or the Office of the Head of the Civil Service of the Federation (HCSF) before implementation. The same circular mandates that all publicly funded travels, particularly foreign trips, must be for essential, statutory engagements that serve Nigeria’s interests.
The audit report revealed that six payment vouchers totaling N33,563,469.10 were raised in favor of ministry officials for conferences and other official programs held in Kenya, South Africa, Morocco, Greece, and France. However, there was no evidence of approval from the SGF or HCSF attached to the payment vouchers, nor was such authorization presented during the audit review.
Further findings indicated that three officers of the ministry received an additional US$3,000 as contingency allowances for the trips, but these funds remained unretired at the time of the audit exercise. According to the audit, the anomalies detected suggest weaknesses in the internal control system at the Federal Ministry of Transportation, creating risks such as the diversion, waste, and misappropriation of public funds.
In response to the audit report, the ministry’s management stated that the study mission on Local Government and Rural Development had been rescheduled twice and would be held at a future date. They assured that relevant travel documents would be provided after the program and that delegation heads who received contingency allowances had been reminded to retire the funds as required.
Despite the management’s response, auditors deemed it unsatisfactory, insisting that the findings remain valid until proper recommendations are implemented. The audit team emphasized that financial accountability must be upheld and that all irregular expenditures must be accounted for or refunded.
To address the issue, the auditors recommended that the Permanent Secretary of the Ministry justify the N33,563,469.10 payment before the Public Accounts Committees of the National Assembly. Additionally, the ministry is required to provide evidence of the utilization of the US$3,000 contingency allowance and recover the N33,563,469.10, remitting it to the treasury.
Failure to comply with these directives could result in sanctions under Nigeria’s financial regulations. The regulations prescribe penalties for irregular and wrongful payments, failure to ensure effective public fund expenditure, and non-retirement of advances as outlined in paragraphs 3106, 3115, and 3124 of the Financial Regulations, 2009.
