Some Federal Government Ministries, Departments and Agencies in three months paid N4.08 billion into personal accounts, a breach of the Nigerian financial regulation.
The payments were made between June and August 2021 into personal accounts belonging to individuals who are neither contractors nor suppliers.
Dataphyte analysis from the Open Treasury Portal showed that amounts totalling N2 billion (2,022,215.301.00) was paid in June, N1.8 billion (1,833,481,669.50)was paid in July while N193 million (193,110,472.00) was paid in August. All payments were made into personal accounts.
Some of these payments appear to be duplications,others reflect different payments made to the same beneficiary with different amounts and with the same description.
These payments were made by the Federal Ministry of Women Affairs, Centre for Management, Budget Office of the Federation, National Centre for Technology Management, Ministry of Petroleum Resources, National Universities Commission Secretariat, Federal Road Maintenance Agency, Office of the Special Adviser to the president on Niger Delta, Federal Ministry of Transport,New Partnership for African Development,Federal Ministry of Justice and National Social Investment Office, Pension Transitional Arrangement Department (PTAD).
June payments
In June, a sum of N2 billion (2,022,215.301.06) was disbursed into accounts belonging to Miss Afangekung Okon, Sani Saleh and Aniegboka O. Peter by the New Partnership for African Development (NEPAD) and National Investment Office respectively.
Sani Saleh and Miss Afangekung Mfon Okon received the largest sum. They received N121 million and N106 million from the National Social Investment Office and NEPAD respectively.
Miss Afangekung was paid multiple times by NEPAD,first, she received N8 million and N9 million for” Specialized Training on review process and NIPoA for management staff, desk officers in NEPAD Nigeria.”
She also received N9 million and then N7 million from the same Agency as payment “for interactive summit on Economic governance and management with the Chambers of Commerce and Standard Organization and other on 2nd peer review of Nigeria.”
In the same month, Aniegboka Peter received the sum of N60 million from the National Social Investment Office for “the distribution of Tablets to Independent Monitor.” Mr. Aniegboka received the payment twice with a breakdown of N48.9million (N 48,992,500.00) and N11 million(N11,007,500.00) for the same purpose.
Likewise, N38 million ( N38,314,500.00) was paid to Olu Akanni from the Office of the Special Adviser to the President on Niger Delta,”being payment to OLU AKANNI for renewal of rent for one year 2021-2022 for property at 37A, Nile street, maitama,Abuja.”
July payments
In July, a total sum of N1.8 billion (1,833,481,669.50) was paid into the accounts of some beneficiaries. Miss Afangekung Mfon Okon again received the highest payment with a total amount of N135 million from NEPAD.
An analysis revealed that N25 million each was paid into the accounts of Binga Dinshiya,Idowu Adebayo Isaac,Obutor Onome, and Abdulrahman Maitama by the Federal Ministry of Justice being the payment” for 2021 Allowance to Judicial Officers posters.”
Likewise, N5 million each was paid into the account of Ilemona Abraham Sunday, Ekpenyong Antigha Edet,and Akpan Umoh Micah by the Pension Transitional Arrangement Department(PTAD) being payment “for outstanding balance of final entitlement.”
In the same month, Adewale O. Ebenezer received N46 million being payment “for Data collection” while Mariam S. Hassan received the sum of N5 million “to review the 1999 constitution as it affects the right of persons with disabilities.” Both payments were paid by the National Commission for Persons’ with Disability.
August payments
In August, a total of N193 million (193,110,472.00) was disbursed. Amubiaya Olushola received a double payment of N7 million from National Agriculture Seed Council, being payment for”Research for seed multiplication and mini seed increase for EGS of wheat,SOY beans, groundnut ,cowpea.”
Same month, N5 million was paid thrice into the account of Idowu Adebayo from the Federal Ministry of Justice as” cost of honorarium in favor of five (5) members of the inter-ministerial committee (IMC), on the deposit of the Federal government forfeited assets.”
In the same vein, Adamolekun Funmilola; Mohamed Adamu; Ahmed Ismail and Aboh Peter received the sum of N15 million; N14 million; N 15million and N16 million respectively from the National University Commission Secretariat,with the description,” payment IFO resource person for the 2021 comprehensive curriculum review exercise (virtual MODS) of 17 disciples.” All payments serve the same purpose.
MDA’s reaction
Mr. Eric Ojiekwe,Director of Press, Federal Ministry of Transportation, when asked, said “he’s not in the position to give an answer to payment into personal accounts.”
Also, the Media Assistant to CEO, AUDA-NEPAD Nigeria, Abolade Ogundimu, said” payments into personal accounts do not happen and if there is evidence, it needs to be addressed.”
Meanwhile, Mr. Afolabi Olajuwon, the Public Relations Officer (PRO) of the Budget Office of the Federation, explained that “the ministry is allowed to make payment into private accounts, which do not necessarily have to belong to suppliers or contractors.”
Breach of law
The Federal government, on December 1 2019, launched the Open treasury portal to increase transparency and accountability in governmental activities.
The portal aims to provide a comprehensive space for the collation of data by all Ministries, Departments and Agencies (MDAs) on budget implementation and financial records.
Chapter 7 section 713 of the Nigeria Financial Regulations states that under no condition should personal money be paid into the government’s bank account nor shall any public money be paid into a private account.
“Personal money shall in no circumstances be paid into a government bank account,nor shall any public money be paid into a private bank account. An officer who pays public money into a private account is deemed to have done so with a fraudulent intention.” the section reads.
Since government contracts are signed with companies, the expectation is that payments are to be made to companies and not individuals.
Vahyala Kwaga, Head of Research and Analyst at BudgiT Nigeria, explained that payments into personal accounts, if such is investigated and proven, should lead to dismissal according to Financial Regulations.
“In the Financial Regulations (revised edition, 2009), in Chapter 7 “Bank Accounts and Cheques” (specifically, regulation 713) provides that: “Personal money shall in no circumstances be paid into a government bank account, nor shall any public money be paid into a private bank account.
“An officer who pays public money into a private account is deemed to have done so with fraudulent intention”. This means that the action will be automatically inferred to be fraudulent.
“The context will determine whether the act is “Misconduct (Section 030301)” or “Serious Misconduct (Section 030401)”. Both have differing punishments and sanctions.
“Misconduct would result in “termination and retirement”, while Serious Misconduct is defined as a specific act of very serious wrongdoing and improper behavior which is inimical to the image of the service and which can be investigated and if proven, may lead to dismissal.”
A punishable offense
Meanwhile, Barrister Oladipupo Oloko, a corporate commercial lawyer agreed that payments should not be made into personal accounts. Any amount that would be disbursed must go into either the contractor or the supplier’s account not into personal accounts. IF such order is being violated, it attracts a punishment under chapter 31, section 3106 of the Financial regulations act.
The section reads “A public officer who makes an irregular payment from public funds, shall be given 21days notice to offer an explanation. Where no satisfactory explanation is given,the amount involved shall be recovered from the officer and such officer shall be removed from the schedule.”
“On no condition should the Federal government Ministries, Departments and Agencies(MDAs) pay money into personal accounts.They are not permitted to do so. The idea of paying into personal account is a fraudulent act. It is a punishable offense under chapter 31,section 3106 of the Financial Regulations Act.”
The extensive review of the 2019 audit report done by Dataphyte revealed that issues such as payments into personal accounts are flagged by the Auditor-General of the Federation.
However, when audit reports are released 2 years after the fact and there is often no corresponding action to the revelations of the report either by defaulting MDAs or anti-corruption agencies; the Financial Regulations Act and all the sanctions it contains to punish defaulters is all bark and no bite.