Ja’afaru Ahmed disbursed ₦21.5 billion in 2019 as revealed by data available at the Open Treasury Portal;
Save one entry titled “Capital Payment”, worth ₦39.4 million, 860 entities were devoid of descriptions;
The trend of non-descriptive transactions by MDAs is a recurring challenge experts have since decried;
This fraudulent practice violates the Financial Responsibility Act, watering down the Federal government’s claim on fighting corruption.
Latest in nameless transactions is Ja’afaru Ahmed’s Nigerian Correctional Service (NCS) expenditure of ₦21.5 billion. An analysis by Dataphyte speaks to this, showing how the agency spent exactly ₦21,541,031,853 on contractors in 2019.
Save one entry titled “Capital Payment”, worth ₦39.4 million, 860 entities were devoid of descriptions. And the one named transaction NCS paid to Bienvenue International Limited on February 8, 2019, is unclear. What is “Capital Payment”? Payment for what services, is it a service or equipment?
Timeline of NCS’ payments without description
Aside from the non-descriptive payments that characterised payments made by the Nigerian Correctional Service in 2019, the agency violated the Public Procurement Act as some of the companies awarded contracts failed to meet all the requirements set out in section 16(6) of the Public Procurement Act. The requirements include tax payment, pensions and social security contributions, amongst others.
It further contravened section 48(1) of the Fiscal Responsibility Act, 2007 which states that:
“The Federal Government shall ensure that its fiscal and financial affairs are conducted in a transparent manner and accordingly ensure full and timely disclosure and wide publication of all transactions and decisions involving public revenues and expenditures and their implications for its finances”.
For instance, the Nigerian Correctional Service made a payment of ₦7,756,351 and ₦14,524,664 to BAMSAL & SONS NIG ENTERPRISES on January 29, 2019, and failed to state the transactions’ description. Search on the BPP website revealed that BAMSAL & SONS NIG ENTERPRISES showed no details in their record.
Again, NCS paid TATA AFRICA SERVICES (NIGERIA) LIMITED, one of the beneficiary companies ₦29,722,695, ₦32,117,521, ₦35,788,095 and ₦28,446,947 in a single day of February 2, 2019, without stating the reason for the payment.
On March 11, LEWANDO MULTIPURPOSE COMPANY MINNA received three payments on the same day amounting to ₦111 million (₦49,783,957.00, ₦40,075,598.00 and ₦21,331,386.00). All with zero description.
Further, on April 5, 2019, the NCS in two batches paid the sum of ₦18 million (₦8,921,574.00 and ₦9,167,242.00) to EUGENE AGRO NIG LTD.
Payments without descriptions: a Pattern by MDAs
Making questionable transactions now seems like a practice that is well perfected by most MDAs of the federal government, as billions of naira get disbursed without clear descriptions. In fact, Dataphyte reported 1,742 non-descriptive transactions out of 27,763 entries by Federal MDAs between January and October 2020. These zero description transactions amounted to ₦210 billion. This figure was higher the previous year, ₦510 billion in 2019.
Blame National Assembly for not sanctioning erring Agencies
With the continued violation of the OTP guidelines and financial transparency policy, experts have pointed fingers to the National Assembly for failing to take actions that will end this financial irresponsibility perpetrated by MDAs.
In response to Dataphyte’s report on how Dr Kingsley Achibuthe, Director for the Federal Medical Center, Owerri mismanaged government funds, Kolawole Oluwadare, the Deputy Director of Socio-Economic Rights and Accountability Project (SERAP) blamed the National Assembly for not sanctioning erring MDAs.
Mr Kolawole puts it succinctly:
“We need to blame the National Assembly, which continues to sign these MDAs allocation and the President. It is not enough to expose these, but proper sanctioning of the erring agencies has to be put in place”.
“The goal of the OTP looks defeated”- Expert
To demonstrate transparency and accountability to the public, all MDAs must ensure a detailed description of all payments according to the financial transparency policy and adhere to the BPP rules in awarding contracts. However, Dataphyte’s analyses show many MDAs are not following the laid down procedures.
Charles Uche Esq, the Staff Attorney of Connected Development (CODE) condemned the trend of zero or vague description of transactions.
“The OTP was set up to ensure transparency and accountability in government spending. However, with zero or vague description of payments, the goal looks defeated.”
On awarding contracts to companies that failed to meet the Public Procurement Act requirements, the Attorney calls for appropriate actions to be taken.
NCS negligence threatens welfare of inmates
Again, NCS’ negligence has further implications for inmates. Already, Nigeria’s prison system suffers from a deluge of problems, ranging from reported exposé of poor inmates’ welfare, lack of adequate medical care, infrastructural deficit, proper rehabilitation programmes, amongst others.
It stands to reason that the transparent utilization of these funds could alleviate some of these challenges. But the absence of details on the ₦2.1 billion could mean worse conditions for the inmates, with a majority awaiting trial.
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those in d corridor of power wil stil not do anytn to dos corrupt officers
Thank you so much for the hard work you ‘ve done. Please go deep into staff welfare and arrears… Reckless deduction of staff salary with no genuine reason