I’m A recent audit report by the Auditor-General for the Federation has uncovered financial irregularities amounting to over N4.64 billion in the Federal Ministry of Works (Housing Sector), covering activities from 2020 to 2021. The findings, which reveal widespread non-compliance with financial regulations and procurement laws under former Minister Babatunde Fashola, raise serious concerns about governance and accountability within the ministry.
The report highlights payments made without documentation, extra-budgetary expenditures, mobilisation fees exceeding thresholds, and contracts awarded without due process. Notably, N1.08 billion was paid from the Government Integrated Financial Management Information System account without the required payment vouchers, violating Paragraph 601 of the Financial Regulations, 2009. An additional N546 million was transferred to project accounts without adequate documentation or budgetary provisions.
Extra-budgetary expenditures totalling N2.89 billion were flagged, including N1.88 billion spent without legislative approval. Over N1 billion was paid to contractors for road projects in Katsina State that were only included in the 2017 Appropriation Act, breaching Section 80(4) of the 1999 Constitution, which mandates legislative approval for public fund withdrawals.
The audit also revealed that contracts worth N493.97 million were awarded to companies not registered with the Corporate Affairs Commission (CAC), with N170.36 million paid to unregistered entities. In one instance, a company awarded a contract in 2016 was not incorporated until 2019, violating the Public Procurement Act, 2007, and the Companies and Allied Matters Act, 2020.
In Oyo State, the ministry paid N110.81 million as mobilisation fees for a project—22.61% of the total contract sum—exceeding the 15% limit prescribed by Paragraph 2933 of the Financial Regulations. Meanwhile, a contract worth N46.31 million for classroom construction in Edo State was irregularly awarded, with 88.18% of the contract sum paid to the contractor in advance.
The audit also highlighted five contracts worth N27.84 million awarded without competitive bidding, contravening Section 24(1) of the Public Procurement Act, 2007. Essential documents, including advertisements, tender evaluations, and meeting minutes, were also missing.
The Auditor-General attributed these anomalies to weaknesses in internal controls and warned of risks such as fund misappropriation, incomplete projects, and payments to ghost entities. The report called for the recovery of unauthorised funds, stricter adherence to financial regulations, and sanctions for officials responsible for the infractions.
In response, the Senate has vowed to enforce parliamentary sanctions against heads of Federal Government agencies indicted in the report. Senator Garba Madoki, Chairman of the Senate Committee on Legislative Compliance, criticized the frequent disregard for Senate summons by agency heads and warned that further non-compliance would not be tolerated.
The audit report underscores the urgent need for reforms to improve financial management, enforce accountability, and safeguard public funds within the Federal Ministry of Works and other government agencies.
