The Senate has approved the report of its Committee on Public Accounts on the Status of Parastatals who have complied with the time frame for submitting of Audited Accounts (Auditors Report) to the Office of the Auditor-General for the Federation (OAGF).

Presenting the report at the plenary session of Wednesday, 7 March 2018, Chairman of the Committee, Sen. Matthew Urhoghide (PDP: Edo) expressed with dismay the failure of parastatals to comply with Section 85 (3)(b) of the 1999 Constitution (as amended) which mandates them to submit their audited accounts and auditors’ report annually to the OAGF.

Sen. Urhoghide explained that for the purpose of promoting accountability and transparency in the management of public funds and accounts of the Federation, the Committee embarked on an oversight visit which was conducted between the period of September, 2015 and December, 2017, after which the Committee analyzed the submissions of the parastatals which forms the basis of its report.

Sen. Urhoghide informed lawmakers that the AGF’s report covered 491 Federal Government Parastatals out of which only 47 had fully complied with the mandate. He stated the Committee had observed that:

1. Many parastatals were unwilling to submit their audited accounts.
2. Some parastatals lacked accountability for public expenditure.
3. There were no prescribed penalties for offenders who failed to submit report of audited accounts.
4. The status of privatized or non-existing parastatals is not clearly defined. For instance, Nigerian Coal Corporation and National Board for Commercial Banks.
5. The AGF is incapable of enforcing a deadline for the submission of audited accounts.
6. The Economic and Financial Crimes Commission had misinterpreted its reporting requirement in their Acts.
7. Some parastatals cited the absence of Board of Directors to approve the appointment of External Auditors as reason for non-submission of audited accounts.

In accordance with the observations highlighted above, the Committee recommended the following for Senate approval:

1. That defaulting parastatals that have failed to submit reports of their audited accounts should be compelled to do so.
2. That the Senate withholds budgetary approvals for parastatals that fails to comply with the deadline of 29^th March 2018.
3. That the OAGF should update the status of compliance by parastatals.
4. That the OAGF liaise with the Bureau of Public Enterprise (BPE) and the Office of the Secretary of the Government of the Federation (SGF) to obtain clarity on the status of privatized, merged and non-existing parastatal.
5. That there should be provisions for adequate budgetary allocation to the OAGF.
6. To urge the Executive to promptly reconstitute Boards of Parastatals to enable them approve the appointment of external auditors.
7. That the Senate considers and passes the Federal Audit Service Bill, which stipulate penalties for offenders.

Following the submissions, the Senate adopted and approved the recommendations of the Committee.

Click here to view the full Committee’s report