An audit report has uncovered financial irregularities totalling over N4.64bn in the Federal Ministry of Works (Housing Sector).
This has raised concerns about systemic non-compliance with financial regulations and procurement laws.
The findings, contained in the Auditor-General for the Federation’s Annual Report, cover activities between 2020 and 2021 and reveal significant lapses in internal controls under Babatunde Fashola, the former Minister of Works and Housing.
The report details several issues, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.
A sum of N1.08bn was paid from the Government Integrated Financial Management Information System account without the requisite payment vouchers, violating Paragraph 601 of the Financial Regulations, 2009.
Also, N546m was transferred to project accounts without adequate documentation or budgetary provision.
The Auditor-General’s report attributed these anomalies to weak internal control mechanisms in the Ministry and warned of risks such as fund misappropriation and loss.
Despite queries, the ministry failed to respond to these issues.
The Auditor-General recommended that the Permanent Secretary justify the payments, recover the funds, and remit them to the Treasury.
The audit report also recommended that evidence of compliance should be submitted to the National Assembly’s Public Accounts Committees, failing which sanctions under Paragraph 3106 of the Financial Regulations should apply.
The audit unearthed extra-budgetary expenditures amounting to N2.89bn, including N1.88bn spent without legislative appropriation.
Also, over N1bn was paid to contractors for road projects in Katsina State, which were only included in the 2017 Appropriation Act.
These expenditures contravene Section 80(4) of the 1999 Constitution, which mandates legislative approval for all withdrawals from public funds.
The audit report read, “The sum of N1,883,795,670.51 (One billion, eight hundred and eighty-three million, seven hundred and ninety-five thousand, six hundred and seventy naira, fifty-one kobo) was expended by the Ministry without evidence of appropriation.
“The sum of N1,003,039,708.79 (One billion, three million, thirty-nine thousand, seven hundred and eight naira, seventy-nine kobo) was paid to four contractors for the construction of roads in Daura, Katsina State. The project was budgeted for in the 2017 Appropriation Act, and
“Approval for the extra-budgetary expenditures in (i) and (ii) above, totalling N2,886,835,379.30 (Two billion, eight hundred and eighty-six million, eight hundred and thirty-five thousand, three hundred and seventy-nine naira, thirty kobo) by the National Assembly was not presented for audit.
“The above anomalies could be attributed to weaknesses in the internal control system at the Federal Ministry of Works (Housing Sector).”
The lack of adherence to financial accountability standards raises concerns about the potential diversion of public funds.
No response was provided by the Ministry to clarify these expenditures.
