Nigeria's Auditor-General of the Federation (AuGF) has uncovered contract fraud amounting to N197.72 billion across several government agencies, including the Central Bank of Nigeria (CBN), Rural Electrification Agency (REA), and Nigerian Bulk Electricity Trading Plc (NBET).
This discovery was detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, covering activities from 2020 to 2021.
The report highlights various financial irregularities, such as payments for contracts that were either partially executed or not executed at all, which contravene Nigeria's financial regulations.
Specifically, the REA was noted for having the highest irregularities, totaling N2.12 billion, while the Nigerian Security Printing and Minting Company (NSPM) recorded the least at N11.7 million.
One of the most alarming findings was that NBET accounted for N100 billion in irregular payments for unexecuted contracts. The report states, "The sum of N167.59 billion was paid for jobs or contracts that were either partially executed or not executed at all," highlighting a severe breach of Paragraph 708 of the Financial Regulations, which prohibits such payments.
Additionally, the report uncovered violations of due process in contract awards amounting to N20.33 billion across 24 ministries, departments, and agencies. NSPM was responsible for the highest amount of due process violations, totaling N14.14 billion.
These violations are against Section 16(21) of the Public Procurement Act (PPA) 2007, which mandates strict adherence to procurement plans and approvals before awarding contracts.
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