- Auditor-General’s report reveals stench in MDAs
The report forwarded to the National Assembly by Mr. Anthony Anyine, Auditor-General of the Federation (AuGF), is a sad commentary on the Federal Government’s compliance with statutory requirements for transparency by ministries, departments and agencies (MDAs). The damning report shows that, despite the change mantra and the much talked-about war against corruption, the Buhari administration has failed to compel the public sector corporations to follow extant rules and regulations.
As the 2016 Annual Report of the AuGF shows, 65 agencies have never bothered to comply with Financial Regulation 321v that mandates chief executive officers of all statutory corporations to submit both audited accounts and their management reports to the office of the auditor-general not later than May 31 of the following year. The report indicates that 321 agencies failed to render account in 2016, 215 defaulted in 2015 and 148 in 2014. This is an indication that rather than improve, things have been deteriorating. The report to the National Assembly also shows that 109 agencies have not bothered to observe the rule since 2013.
Since this is a presidential system of government, the buck stops on President Muhammadu Buhari’s table. When things go right, he takes the credit, and, when his subordinates shun the rules, he should accept the blame. We find it difficult to accept that the president and his key officers, including the finance minister, Minister of Budget and National Planning, the accountant-general as well as the chief economic adviser are unaware of this sad development. The president should immediately ask for explanations.
As the AuGF has recommended, chief executive officers of the errant agencies should be punished for flouting the rules. This will serve as deterrence to others. Government should not expect it could obtain a different result when its agencies keep repeating foul practices.
It is no surprise that the Nigerian National Petroleum Corporation (NNPC) has hardly kept clean and acceptable account of its operations. Every month, state representatives reject the corporation’s report, for understating receipts. Despite panels set up in the past to recommend what must be done to make the NNPC more open and comply with extant rules and regulations, the corporation keeps operating in flagrant violation of the rules. We call on President Buhari to crack the whip immediately in the interest of the country and the federating units.
The auditor-general’s report also specifically calls to question transparency in the management of the Joint Venture (JV) accounts maintained by the corporation with its partners, mainly oil multinationals. If we are tardy at keeping internal accounts, it is understandable that partners who are adept of manipulating things technically would take advantage of the situation. In view of what other underdeveloped oil producing countries have achieved with oil proceeds, Nigerians should demand the corporation’s compliance with international best practices.
Where Angola is making advances and Ghana that is new in oil exploration is ensuring that no one takes undue advantage of the sector, Nigerians cannot be experts in bemoaning their situation only. Foreign partners should not be allowed to decide their operation and remittances. Indigenisation of all the processes is long overdue.
We call on the National Assembly that has the responsibility for receiving the auditor-general’s report to pay closer attention. Its public accounts committee should be more alive to its responsibilities. Presiding officers of both chambers owe Nigeria the duty of leaving indelible marks in the record, rather than concentrating on political wrangling with the executive.
