An audit report has uncovered financial irregularities totalling over ₦4.64 billion in the Federal Ministry of Works (Housing Sector), raising 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, according to The PUNCH.
A sum of ₦1.08 billion 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, ₦546 million 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.
