The Office of the Auditor General for the Federation has stated that the Federal Ministry of Labour and Employment must provide an account for the expenditure of over N3.106 billion incurred in the 2020 financial year, which failed to follow due process and necessary approval.
It said that failure to do so would require the ministry to refund the funds to the government’s treasury.
In its report submitted to the National Assembly in December 2023 on noncompliance with extant government regulations in government expenses for 2020, the Auditor General accused the ministry of various infractions and failure to show evidence of expenses carried out within the period under review.
The Nation however observed that while the Ministry responded to some of the issues contained in the 32 audit queries from the Office of the Auditor General, they chose to remain silent on many others.
For example, the Auditor General’s report alleged that the Ministry failed to provide documents, files, correspondences, returns, and accounting records relating to the running of the Geneva Desk Office and how a total of N351.252 million was spent in 2019 and 2020.
The report also said that the Ministry paid its staff the sum of N226.078 million for monitoring and inspection of capital projects and updating of fixed assets register in the 6 geopolitical zones, monitoring and inspection of capital projects in 2020 and monitoring and inspection of zonal/state labour offices, job centres, capital projects, and skills acquisition centres without evidence specific timelines of visits, scope of work and reports on such inspections.
Also, the report said that out of the sum of N653,669,705.00 granted as cash advances in 2020, the Ministry failed to account for N344. 027 million, alleging multiple advances granted to staff when the previous ones had not been retired leading to loss of government funds
It alleged that after awarding a contract for upgrading Skills Vocational and Training Centres in Warri, Calabar, Lagos, and Ibadan in December 2020, based on bids and quotations submitted, the Ministry issued another letter two weeks later revising the schedule of requirements to enable.
It said: “The revised schedules were inflated and in some cases, especially for the capital items, the quantities to be supplied were reduced to accommodate the inflated prices. The revised schedule made the government to lose a total of N15,502,677.07.
“Evidence of justification for the variation in prices and quantities such as applications by the contractors, appropriate approvals from the initial approving authority who approved the original contracts, reports of market survey to support the prices reviewed, and Need Assessment Report to justify that these items and the quantities were needed were not produced for audit.”
The OAuGF also alleged that the Ministry paid the sum of N261,502,802.54 to 54 contractors in 2018, N209,267,695.26 to 32 contractors in 2019 and N26,528,204.59 to 4 contractors in 2020 for the renovation of non-existent Job Centres in the geo Political Zones of the country, across the country and in Akwa Ibom, Kaduna, Kano and Sokoto respectively.
The report said the Ministry failed to provide records such as the Schedule of Assets and fixed Asset Register to support the existence of the Job Centres and supporting documents such as Job completion Certificates, photographs before and after the renovation, reports, etc, to support the expenditure.
Furthermore, the report said that the Ministry awarded the contract for the procurement of equipment for the specialist skill acquisition centres at Alor, Idemili North L.G.A and lfitedunu, Dunukofia L.G.A, Anambra State in 2018 and paid the contractor N46,353,415.50, adding that “the existence of the items could not be verified despite the presence of records such as Store Receipt Vouchers (SRV) and Job Completion Certificate issued in December 2019 by the Ministry.
“Evidence of procurement due process and contractors’ eligibility for the contract award such as open competitive bidding, company profile, certificate of registration, tax clearance certificate, PENCOM registration certificate, VAT registration certificate, etc, were not produced for scrutiny.
“Efforts made by Audit to carry out a physical inspection of the items supplied were unsuccessful as the team was told that the items supplied were packed at the Minister’s private residence and therefore, not accessible.”
It also said that the Ministry awarded the contract for the procurement of equipment for the specialist skill acquisition centre at the cost, of N41,224,455.00 and paid the contractor N11,610,094.04 (net of taxes) without evidence that the items were supplied.
It said further that “evidence of procurement due process and contractor’s eligibility for the contract award such as open competitive bidding, company profile, certificate of registration, tax clearance certificate, PENCOM registration certificate, VAT registration certificate, etc, were not produced for scrutiny.
“Efforts made by Audit to carry out a physical inspection of the items supplied were unsuccessful as the team was told that the items supplied were packed at the Minister’s private residence and therefore, not accessible.”
It also accused the Ministry of disregarding the advice of the Bureau of Public Procurement to invite bids from the local vehicle Assembly plant for the procurement of two pickup utility Vehicles and went ahead to spend about N49 million for the vehicles even after the BPP rejected its request.
It also reported that the Ministry spent a total of N58.217 million on Revenue Monitoring visits despite low revenue generation by the Ministry without evidence of the exercise. Was carried out, while the sum of N32.209 million was granted as cash advances to officers of the Ministry for the procurement of stores and services.
It said that the sum of N235.920 million was paid through various vouchers for different activities such as National Employment Council Meeting, sensitization and advocacy on the “ills of irregular migration by the Honourable Minister and his aides to South East, monitoring and licensing private employment agencies, training on recruiters’ license, and International Labour Organization standards training for labour officers.
The money, the report said was also listed for monitoring and licensing private employment agencies, while part of the money was allegedly paid to 14 officers for various purposes relating to Cooperative Societies including cooperative project monitoring, inspection and supervision, promoting and forming new cooperative societies for job creation, monitoring, inspection and supervision of cooperative societies.
It also said part of the money was also paid to an official of the Ministry with two (2) paid vouchers without evidence such as a proposal showing dates, team list, or programmes’ reports, adding that the said monies were paid without relevant supporting documents.
Other payments to be accounted for by the Ministry include N47.734 million paid to a consultant for services not rendered, N30. 998 million was also paid as a consultancy contract for the implementation of the international Public Sector Accounting Standards (IPSAS) inclusive of Assets/Liabilities management in Zonal Offices, State/FCT and job centres.
The report also accused the ministry of making payment for non-existent contracts in Anambra state including the Fencing of a specialist Skill acquisition Centre at Awka, the construction of a borehole at the Skill acquisition Centre, the construction of a Generator house and procurement and installation of Generator set at skill acquisition Centre, Awka, construction of Generator house and procurement and installation of Generator set at skills acquisition centre, correctional centre Prison, Onitsha and construction of solar powered borehole at skill acquisition centre, Bison, Onitsha.
It said: “Efforts to carry out a physical inspection of the projects were unsuccessful as the Officers at the state office were unable to provide details of the location of the project sites and other relevant information about the execution of these projects”.
In addition, the report said the Ministry awarded and paid for three contracts for fencing, construction of a borehole, generator house and procurement/installation of a generator set at Specialist Acquisition Center, Neni Aniocha LGA, Anambra State without evidence of contract execution, such as functional borehole at the Centre and the generator set was not provided for audit.
The report identified duplication of contracts for the Construction and Equipping of Skill Acquisition Centres in Akure, Ondo State and Effurun, Uvwie LGA, Delta State which it said was awarded twice.
It also alleged that four contracts worth N178.169 million were awarded for the construction of the Skill Acquisition Center at Ifitedunu Dunukofia, Anambra State, amounting to duplication of contract and payment for job not executed.
It also said that the three contracts valued at N150.843 million were awarded for the construction, fencing and landscaping and equipping of the Bungalow Skill Acquisition Centre, at Owowo, Igalamela Odolu LGA, Kogi, adding that the contractor only constructed the Perimeter Fence and Gatehouse.
It also reported that the Minimum awarded two contracts for the construction and equipping of the Skills Acquisition Center at Dambo, Zaria, Kaduna State worth totalling N144.885 million with the contractor receiving his payment six weeks after the contract award, while four officers of the Money were paid N680, 000 to ascertain the completion of the construction, fencing and landscaping of the Center before handover to the ministry.
The report said further that “Physical inspection of the Construction, Fencing and Landscaping project by audit showed that the project belonged to the Federal Ministry of Agriculture and Rural Development and was awarded to a different contractor”.
In Kano state, the report said the Ministry paid N56. 869 million for three contracts for the construction of one bungalow Skill Acquisition Centre at Sheka, Kumbotso LGA, Kano State, renovation of the Federal Ministry of Labour and Employment State Office, Kano and the procurement of some office Equipment for State Labour Offices and Headquarters, North East Zone without the contracts being executed.
It also identified irregularities in the contract awarded to two contractors for the construction of an Ultra-Modern Skill Acquisition and Vocational Center at Okpokuegbe, Ezza North LGA, Ebonyi State as well as the construction of Skills and Vocational Training Centre in ljebu-Ode, Ogun State.
It also alleged that the Ministry paid for q contract for the construction of Skills and Vocational Training Centres in Jibia LGA, Katsina state, in Isin Local Government Area, Kwara State, and Ikenne, Ogun state without the approval of the Ministerial Tenders Board.
(The Nation)