Termites 'eat' NSITF documents containing expenses worth N17 billion
Termites are said to have gobbled up some Nigeria Social Insurance Trust Fund (NSITF) documents containing expenditures worth N17.1 billion, agency officials told the Senate.
These documents reportedly contain details of the agency's spending in 2013.
NSITF leadership said as much during its appearance before the Senate Public Accounts Committee (SPAC) on Friday.
Details of these and other expenses are contained in the Office of the Auditor General of the Federation (OAuGF) 2018 audit report.
In the report, which is currently being reviewed by SPAC, the OAuGF questioned the agency for spending billions without proper supporting documentation.
Management, however, could not justify spending the money when confronted by the panel.
The requestThe OAuGF said the N17.158 billion was the total amount transferred by the NSITF from its Skye Bank and First Bank accounts to various untraceable accounts between January and December 2013.
These accounts, he says, belong to individuals and businesses.
The report also issued 50 different claims for alleged embezzlement against the agency.
“Management of NSITF, as set out in statements of account number 1750011691 with Skye Bank Plc, for the period from 1 January 2013 to 20 December 2013, and statements of account number 2001754610 with First Bank Plc for the period from January 7, 2013 to February 28, 2013, transferred amounts totaling N17,158,883,034.69 to certain persons and companies from these accounts,” reads the report.
“However, the payment vouchers relating to the transfers and their supporting documents were not provided for verification. Therefore, the purpose(s) of the transfers could not be authenticated.“
The OAuGF noted that these are in violation of Financial Regulation 601 which states that "all payment entries in the cash book/accounts must be evidenced on one of the prescribed cash forms. The vouchers are established for the benefit of the person or persons to whom the money is actually owed.
READ ALSO: Alleged N1.3 Billion Fraud: Trial of Former NSITF Boss Olejeme Adjourned"Under no circumstances should a check be issued or paid in cash for services for which a voucher has not been issued."
Termites, the rain takes the blamePast and current leaders of the agency were summoned by Senate panel chairman Matthew Urhoghide.
When confronted with questions from the audit report, no official could give a satisfactory explanation of the expenditures.
The former management who ran the agency in 2013 told the panel that they left behind the cash receipts relevant to the transactions.
The agency's chief executive from 2010 to 2016, Umar Abubakar, reportedly claimed he was aware of the request and had no explanation to offer since the audit exercise had no not performed during his tenure.
For his part, Adebayo Somefun, who led the agency from May 2017 to July 2020, insisted that people in the accounts section of the agency be able to trace the documents.
But the current chief executive, Michael Akabogu, said the documents were in the possession of the organization.
He said that "the container in which the said documents were kept by the old management has not only been beaten by rains over the years, but may have even been devoured by termites", he said. he told the panel.
"I told the former management officials that they should help us answer this question with the necessary documents which were not made available to us."
Another agency official, whose name could not be determined, told the panel that the container in question was locked and abandoned in a secluded area at the organization's premises in Abuja.
Mr. Urhoghide, subsequently, mandated members of the past and current leadership of the NSITF to reappear before the panel with all necessary evidence regarding no-fault transactions on Thursday, September 22, 2022.
Inexplicable expenses are some of the many requests made by the OAuGF each year.
In the 2017 report, the OAuGF revealed how certain Ministries, Departments, and Agencies (MDAs) would pay salaries to deceased or retired employees...
Termites are said to have gobbled up some Nigeria Social Insurance Trust Fund (NSITF) documents containing expenditures worth N17.1 billion, agency officials told the Senate.
These documents reportedly contain details of the agency's spending in 2013.
NSITF leadership said as much during its appearance before the Senate Public Accounts Committee (SPAC) on Friday.
Details of these and other expenses are contained in the Office of the Auditor General of the Federation (OAuGF) 2018 audit report.
In the report, which is currently being reviewed by SPAC, the OAuGF questioned the agency for spending billions without proper supporting documentation.
Management, however, could not justify spending the money when confronted by the panel.
The requestThe OAuGF said the N17.158 billion was the total amount transferred by the NSITF from its Skye Bank and First Bank accounts to various untraceable accounts between January and December 2013.
These accounts, he says, belong to individuals and businesses.
The report also issued 50 different claims for alleged embezzlement against the agency.
“Management of NSITF, as set out in statements of account number 1750011691 with Skye Bank Plc, for the period from 1 January 2013 to 20 December 2013, and statements of account number 2001754610 with First Bank Plc for the period from January 7, 2013 to February 28, 2013, transferred amounts totaling N17,158,883,034.69 to certain persons and companies from these accounts,” reads the report.
“However, the payment vouchers relating to the transfers and their supporting documents were not provided for verification. Therefore, the purpose(s) of the transfers could not be authenticated.“
The OAuGF noted that these are in violation of Financial Regulation 601 which states that "all payment entries in the cash book/accounts must be evidenced on one of the prescribed cash forms. The vouchers are established for the benefit of the person or persons to whom the money is actually owed.
READ ALSO: Alleged N1.3 Billion Fraud: Trial of Former NSITF Boss Olejeme Adjourned"Under no circumstances should a check be issued or paid in cash for services for which a voucher has not been issued."
Termites, the rain takes the blamePast and current leaders of the agency were summoned by Senate panel chairman Matthew Urhoghide.
When confronted with questions from the audit report, no official could give a satisfactory explanation of the expenditures.
The former management who ran the agency in 2013 told the panel that they left behind the cash receipts relevant to the transactions.
The agency's chief executive from 2010 to 2016, Umar Abubakar, reportedly claimed he was aware of the request and had no explanation to offer since the audit exercise had no not performed during his tenure.
For his part, Adebayo Somefun, who led the agency from May 2017 to July 2020, insisted that people in the accounts section of the agency be able to trace the documents.
But the current chief executive, Michael Akabogu, said the documents were in the possession of the organization.
He said that "the container in which the said documents were kept by the old management has not only been beaten by rains over the years, but may have even been devoured by termites", he said. he told the panel.
"I told the former management officials that they should help us answer this question with the necessary documents which were not made available to us."
Another agency official, whose name could not be determined, told the panel that the container in question was locked and abandoned in a secluded area at the organization's premises in Abuja.
Mr. Urhoghide, subsequently, mandated members of the past and current leadership of the NSITF to reappear before the panel with all necessary evidence regarding no-fault transactions on Thursday, September 22, 2022.
Inexplicable expenses are some of the many requests made by the OAuGF each year.
In the 2017 report, the OAuGF revealed how certain Ministries, Departments, and Agencies (MDAs) would pay salaries to deceased or retired employees...
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