FG To Recover N450b Unremitted Surpluses From MDAs

Advertisement

Federal Government To Recover N450billion Unremitted Surpluses From MDAs.

The Federal Government on Tuesday in Abuja constituted a committee to recover unremitted operating surpluses from different agencies of government.

The unremitted surpluses of the MDAs are running into a cummulative N450billion within the last five years.

The committee led by the Accountant General of the Federation, Alhaji Ahmed Idris, is to reconcile the operating surpluses of 31 revenue-generating agencies of government for the period 2010-2015.

The agencies of government whose books the committee is expected to examine include: Central Bank of Nigeria (CBN), Petroleum Technology Development Fund, (PTDF), National Agency for Food and Drug Administration and Control (NAFDAC), Nigerian Television Authority (NTA), and the Securities and Exchange Commission (SEC), among many others.

READ ALSO:  Former Customs Boss, Abdullahi Dikko Returns N1bn To FG

A statement by the Minister of Finance Mrs. Kemi Adeosun said findings of the committee have so far shown under-remittance of over N450 billion accrued within the period.

The Finance Ministry stated that staff of the Office of the Accountant General of the Federation have critically reviewed the accounting statements of these agencies.

The Committee will, therefore, be inviting the management of these agencies to explain why their operating surpluses have not been remitted as mandated by the Fiscal Responsibility Act 2007.



Sections 21 and 22 of the Fiscal Responsibility Act 2007 states that:

“21. (1) The Government corporations and agencies and government-owned companies listed in the Schedule to this Act (in this Act referred of as “the Corporations”) shall, not later than six months from the commencement of this Act and every three financial years thereafter and not later than the end of the second quarter of every year, cause to be prepared and submitted to the Minister their Schedule estimates of revenue and expenditure for the next three financial years.

“(2) Each of the bodies referred to in sub-section (1) of this section shall submit to the Minister not later than the end of August in each financial year: An annual budget derived from the estimates submitted in pursuance of subsection (1) of this section; and projected operating surplus which shall be prepared in line with acceptable accounting practices.

MDAa In Trouble Over Unremitted Surpluses In Billions

“The Minister shall cause the estimates submitted in pursuance of subsection (2) of this section to be attached as part of the Appropriation Bill to be submitted to the National Assembly.

“22. (1) Notwithstanding the provisions of any written law governing the corporation, each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one-fifth of its operating surplus for the year.

“(2) The balance of the operating surplus shall be paid into the Consolidated Revenue Fund of the Federal Government not later than one month following the statutory deadline for publishing each corporation’s accounts.”

READ ALSO:  Defying Recession: FG To Procure 40 Rice Mills

The statement from the Finance Ministry also disclosed that some of these agencies have incurred huge expenses on overseas training and medicals.

The statement further revealed that some MDAs incurred huge expenses on behalf of supervisory ministries and other organs of government involved in oversight or regulatory functions without appropriate approval.

Topics: