The Auditor-General's Office of Sierra Leone has released a report highlighting significant financial irregularities at the National Power Training Institute of Nigeria in Abuja. The report, part of the 2024 Annual Report on Non-compliance, covers the period from 1 January 2022 to 31 December 2023. It details various financial discrepancies, including unremitted tender fees, questionable contract payments, and unverified purchases of supplies. These issues have raised serious concerns about the institute's financial management and internal controls.
The largest discrepancy found involves N2.77 billion from the sale of bid documents and tender fees. According to the report, these funds were not transferred to the Consolidated Revenue Fund as required by law. The Auditor-General's Office noted that no supporting documentation was provided for the audit of these transactions. This lack of transparency and accountability has sparked concerns about potential revenue loss and the institute's adherence to financial regulations.
The report also revealed other financial irregularities, including missing financial records, underpayment of taxes, and unverified consultancy payments. Additionally, expenditures were improperly charged to constituency project accounts. The auditors found a lack of proof for various store item procurements costing N547.21 million across 11 transactions. This raises concerns over payments made without evidence of delivery, highlighting weaknesses in the institute's internal controls.
The institute's financial management issues extend to constituency projects. The report questioned N196.59 million used for three projects involving transformers and solar streetlights across Ogun, Lagos, and Osun states. The institute failed to provide proof of contractor eligibility and that monitoring was conducted as required. Furthermore, N29.65 million charged to the constituency project account for allowances lacked proper approval documentation.
The auditors also identified issues with tax remittances. Only N6.14 million of the expected N10.26 million in Value Added Tax had been remitted. This highlights further financial management issues within the institute. Other discrepancies include N24.4 million in unapproved administrative charges, N10.68 million linked to certification without evidence, and N22.45 million earmarked for a training programme that lacked proof of execution.
The institute's lack of essential documents significantly hampered the audit's effectiveness. The management did not respond to the auditor's findings, leaving many issues unresolved. The Auditor-General has recommended that the Director-General explain the absence of records to the National Assembly and submit the necessary documents for verification. This emphasizes the need for improved internal controls to mitigate risks of revenue loss and inadequate financial documentation.
The Auditor-General's report underscores the importance of transparency and accountability in financial management. The institute must take immediate action to address these irregularities and implement robust internal controls. Failure to do so may lead to further financial mismanagement and undermine public trust in the institution. The report's findings and recommendations will likely be scrutinized by the National Assembly, and the institute's response will be crucial in resolving these issues.
Key points
- The Auditor-General's report reveals N3.62 billion in financial irregularities at the National Power Training Institute of Nigeria.
- The largest discrepancy involves N2.77 billion in unremitted tender fees.
- The institute's lack of essential documents hampered the audit's effectiveness.
