An audit report has revealed financial irregularities amounting to N4.64bn in the Federal Ministry of Works (Housing Sector), highlighting systemic breaches of financial regulations and procurement laws.
The findings, contained in the Auditor-General for the Federation’s Annual Report, detail lapses in internal controls under Babatunde Fashola, former Minister of Works and Housing, covering activities between 2020 and 2021.
These include unauthorised payments, extra-budgetary expenditures, and contracts awarded without following due process.
According to the report, N1.08bn was paid from the Government Integrated Financial Management Information System account without requisite payment vouchers, violating Paragraph 601 of the Financial Regulations, 2009. Additionally, N546m was transferred to project accounts without adequate documentation or budgetary provision.
The Auditor-General attributed these anomalies to weak internal control mechanisms, warning of risks such as misappropriation and fund loss. Despite queries, the Ministry failed to provide clarifications.
The report recommended recovering the funds and submitting compliance evidence to the National Assembly’s Public Accounts Committees.
Extra-budgetary expenditures amounting to N2.89bn were also uncovered, including N1.88bn spent without legislative appropriation, contravening Section 80(4) of the 1999 Constitution.
Over N1bn was paid to contractors for projects in Katsina State, which were only included in the 2017 Appropriation Act.
Contracts worth N493.97m were awarded to companies not registered with the Corporate Affairs Commission, raising concerns about compliance with the Public Procurement Act, 2007.
In one instance, a company awarded a contract in 2016 was only incorporated in 2019.
Other infractions included mobilisation fees exceeding the prescribed 15% limit, contracts awarded without competitive bidding, and payments made without necessary documentation.
In Oyo State, the Ministry paid N110.81m, representing 22.61% of a contract sum, breaching financial regulations.
The report called for the recovery of unauthorised funds, enforcement of sanctions against those responsible, and the implementation of stricter internal controls to prevent recurrence.
The revelations highlight the urgent need for reforms to ensure transparency and accountability in the management of public funds. The Ministry is yet to respond to the findings.
