Audit Report Reveals Over N4.6 Billion in Unapproved Spending at Ministry of Works Under Fashola
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An audit report by the Office of the Auditor-General of the Federation (OAuGF) has uncovered financial irregularities totaling over ₦4.64 billion within the Federal Ministry of Works and Housing during the tenure of former Minister Babatunde Fashola. The findings covered activities from 2020 to 2021, highlighting weak internal controls and violations of financial and procurement regulations.
The audit identified unapproved expenditures, improper payments, and violations of procurement laws. Key findings include:
- Unapproved Payments and Extra-Budgetary Spending:
- ₦1.08 billion was disbursed from government accounts without proper payment vouchers, violating the 2009 Financial Regulations.
- ₦546 million was transferred to project accounts without budgetary provisions.
- An additional ₦2.89 billion was spent on projects without legislative approval, including ₦1.88 billion for road construction in Katsina State.
- Noncompliance with Procurement Laws:
- Contracts worth ₦493.97 million were awarded to companies not registered with the Corporate Affairs Commission (CAC).
- One company was awarded a contract in 2016 but registered with the CAC only in 2019.
- Mobilization fees exceeding the prescribed 15% threshold were paid in multiple cases, including ₦110.81 million (22.61% of a contract sum) in Oyo State.
- Lack of Documentation and Due Process:
- Contracts were awarded without essential documentation, including advertisements, tender evaluations, or meeting minutes.
- Five contracts worth ₦27.84 million were awarded without bids from three unrelated contractors as required under procurement laws.
- Anomalous Practices:
- A project contract in Edo State saw 88.18% of the sum paid upfront, exceeding mobilization limits.
- A contract was irregularly awarded on a Sunday, raising concerns about adherence to procurement laws.
The report called for the recovery of unauthorized funds, strict sanctions against officials involved, and reforms to strengthen financial controls and prevent further mismanagement.
Current Minister of Works, Dave Umahi, inherits the ministry as it faces significant scrutiny. Governor Babagana Zulum of Borno State has urged stricter accountability measures in government ministries, emphasizing the need for integrity in public service.
