The House of Representative Public Accounts Committee on Monday probed the National Social Insurance Trust Fund (NSITF) over the transfer of the sum of N17, 158, 883, 034. 69 to persons and companies without payment vouchers and other supporting documents provided for audit.
The probe into the transaction which occurred in 2013, was a continuation of the ongoing investigative hearing on audit queries by Auditor-General of Federation on Ministries Departments and Agencies (MDAs) over dwindling revenue.
The query was contained in the 2018 report of the Auditor-General which stated that “payment entries in the cashbook/accounts shall be vouched for on one of the prescribed treasury forms.”
It was one of 50 cases against the Fund as its Managing Director, Dr Michael Akabogu, appeared before the Committee on Monday.
According to the report, 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.
It read, “Audit observed from the Fund’s Statements of Account No. 1750011691 with Skye bank plc, for the period 1st January, 2013 to 20th December, 2013, and Statements of Account No.2001754610 with First Bank Plc for the period 7th January, 2013 to 28th February, 2013, that amounts totaling N 17,158,883,034.69 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 Auditor General said where funds are transferred without adequate records, there may be the possibility of diversion of such funds for personal use.
The report recommended that the Managing Director is required to account for the sum of N 17,158,883,034.69, failing which the amount should be recovered and paid back to the Consolidated Revenue Fund and sanctions should apply.
Other queries against the agency in the 2018 report 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; unauthorized 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 MD, Akabogu, said while some persons involved with the issues were being prosecuted by the Economic and Financial Crimes Commission.
He said after due diligence and following the process to be able to identify most of the other transactions, they could not lay their hands on them.
He said he just got into office on June 1, 2021, and requested the committee to invite the executives in charge of the Fund at the times the financial infractions occurred to answer for the money.
Chairman of the Committee, Wole Oke, accused previous management of toying with the mandate of the agency.
He suggested 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.
The Fund was directed to return next week to continue the probe.
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