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Audit Report: Senate directs budget office to recover N19bn given to MDAs

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The Senate has indicted the Budget Office of the Federation for given out N19 billion to four MDAs without the approval of the Minister of Finance.

The Senate, however, asked for a refund of the money from the four unnamed MDAs.

Senate in October last 2022 had commenced an investigation into alleged illegal payment of N19bn to four unnamed federal agencies, by the Budget Office.

However after the investigation by the Senate Public Accounts Committee, the budget office was unable to present evidence of approval from the Ministry of Finance before payment of N19 bn from Service Wide Vote to the four unnamed federal agencies.

The Budget Office of the Federation in its response to the query claimed that it had written to the office of the Auditor General of the Federation requesting for details for the four MDAs without response.

But, the Committee Chaired by Senator Mathew Uhroghide noted that the Budget Office did not present the letter it claimed to have written to the office of the Auditor General requesting for details.

Due to the failure of the budget office to present approval for the payment of N19bn to the four MDAs, the Senate adopted the report of Senate Public Accounts Committee on the matter asking for refund of N19bn to Nation’s purse.

The query is in the 2016 report of Auditor General of the Federation which was submitted and approved by the Senate.

The query by the Auditor General reads, ” Four MDAs were paid the sum of N19 billion from the Service Wide Vote without the approval of the Honorable Minister of Finance, some of the payments were made on purported verbal directives from the Director General.

“This act is against the financial Regulation 301 and 302 which state that recurrent expenditure is paid from the CRF and no expenditure may be incurred except on the authority of a warrant issued by the Minister of Finance.

“In view of the above, it is difficult to accept the payment to the MDAs as proper and legitimate charges against the public funds.

“The Director General should provide evidence of approval from the Minister of Finance for these expenditures or recover the sum of N19bn from the benefiting MDAs”


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