Nigeria: House Investigates N17bn Alleged Unauthorised Transfer By Nsitf

Udora Orizu

The House of Representative Committee on Public Accounts yesterday queried the National Social Insurance Trust Fund (NSITF) over the alleged transfer of the sum of N17, 158, 883, 034.69 to companies without payment vouchers and other supporting documents.

The probe into the transaction, which occurred in 2013, was a continuation of the ongoing investigative hearing on the 2018 audit queries by the Auditor-General of Federation, on Ministries Departments and Agencies (MDAs) over dwindling revenue.

The Auditor-General had in the query stated that payment entries in the cashbook/accounts shall be vouched for on one of the prescribed treasury forms.

According to the AuGF, “Vouchers shall be made out in favour of the person or persons to whom the money is actually due, and under no circumstances shall a cheque be raised, or cash paid for services for which a voucher has not been raised.”

He explained that where funds are transferred without adequate records, there may be the possibility of diversion of such funds for personal use.

The report stated: “Audit observed from the fund’s statements of account number 1750011691 with Skye Bank plc, for the period January 1, 2013, to December 20, 2013, and the statements of account number: 2001754610 with First Bank for the period January 7, 2013, to February 28, 2013, that amounts totaling N17,158, 883, 034.69 were transferred to some persons and companies from these accounts.

“However, payment vouchers relating to the transfers together with their supporting documents were not provided for audit. Consequently, the purpose(s) for the transfers could not be authenticated. The managing director is required to account for the sum of N 17, 158, 883, 034.69, failing which the amount shall be recovered and paid back to the Consolidated Revenue Fund, and sanctions should apply.”

Other queries against the agency are the diversion of N5.5 billion into a commercial bank account not approved by the Accountant General; irregular payment of unapproved allowances to the tune of N1.87 billion; unauthorised investment without adequate records to the tune of N2.2 billion; under-deduction of PAYE tax to the tune of N1.4 billion; and non-remittance of value added tax to the tune of N1.4 billion among others.

In his response, the agency Managing Director, Mr. Michael Akabogu, said he just got into office on June 1, 2021, and requested the lawmakers to invite the executives in charge of the Fund at the time the financial infractions occurred to answer for the money.

In his ruling, the Chairman of the committee, Hon. Wole Oke, accused previous management of toying with the mandate of the agency.

He opined that there should be legislation to empower conventional insurance companies to take over the functions of the NSITF in the private sector and restrict the Fund to the government sector alone since contributions are mismanaged and people who have claims find it difficult to get their claims.

He directed the agency to return next week for continuation of the probe.

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