FG losses N2trn assets in 7 years – Reps

The House of Representatives, on Tuesday, mandated all its standing committees, overseeing Ministries, Departments and Agencies (MDAs), to verify assets from contracts awarded by MDAs, from 2010 to date.
The resolution followed a motion moved by Hon. Kehinde Agboola and seven others.

In the motion, Agboola noted that MDAs were not accountable for their assets or maintain adequate bookkeeping and records of assets as required by paragraphs 2106 and 2128 of the Financial Regulations.
He explained that, most MDAs, in proposing award of contracts for capital, consultancy and supplies, make provisions for purchase of assets such as project vehicles, computers, earth moving equipment, among others, in their Bills of Quantity.

He further stressed that, the assets were usually never purchased or accounted for, and in most cases, the costs were deducted from final payment to contractors without any of the assets being traced, thus, accounting for losses to the federal government of over two trillion naira, in the last five years.

He also expressed concerns over the practice by MDAs, which dispose assets without due process and the failure to pay the revenues amounting to over N50bn accruing from them into government coffers.
He said, “cognizant that if nothing is done to check these nefarious activities, corruption will remain endemic in the public sector and revenue leakages will persist”.
Also speaking, Hon. Ossai Nicholas Ossai, called on all standing committees, to brace up to the challenge and hold MDAs accountable.

The committees are expected to report back within twelve (12) weeks, for further legislative actions.