The report also accused the university of making several
other financial infractions including payments of N41 million ‘sitting
allowance’ to persons who are not entitled to such.
Other infractions include N7.5 million unauthorised
spending; N165 million unauthorised investments, and failure to account for the
interests accrued from the investments.
This revelation is coming at a time the Nigerian
universities are hiking fees payable by students, insisting the hike was a
result of the increasing cost of running the institutions and maintaining their
facilities.
In 2021, the university hiked fees payable by students, a
development that sparked students’ protests on campus. After meeting with
student representatives, the institution reached certain agreements but much of
the new fees remained.
Again, the management of Nnamdi Azikiwe University also
jerked up its fees by almost 100 per cent in 2023 when many Nigerian
universities announced new fees.
When contacted on the phone, the spokesperson for the
university, Ene Chika, insisted the reporter, who is based in Abuja, must meet
her at the office in Awka before she would respond to any question.
Christmas hamper, productivity bonus
The audit report, which is for the year 2020 and submitted
to the National Assembly in December, said the university spent N106 million on
“Christmas hampers, cows, the redemption of thanksgiving pledges and
productivity bonus to Board Members”.
The auditor general disclosed that there was no evidence of
appropriation for the spending.
The audit report, therefore, recommended that the House of
Representatives’ committee on public accounts should ask the institution’s
vice-chancellor to provide a justification for the payment.
“Otherwise, sanctions relating to irregular payments and
failure to spend public funds effectively specified in paragraphs 3106 and 3115
of the Financial Regulations 2009 respectively, should apply,” it stated.
Unmerited sitting allowances
An April 2016 Establishment Circular stipulates that the
Chief Executive Officers and other public servants on monthly salaries who are
board members in their institutions’ establishments are not entitled to a
sitting allowance.
However, the university allegedly violated this by paying
N41 million to some officers of the universities as sitting allowances for the
institution’s 115th council committee meeting held on 21st December 2018.
The report also noted that the amount paid through two
vouchers resulted in the duplication of payment for sitting allowances.
The Audit report, therefore, asked the university to justify
the irregular payment to the Public Accounts Committees of the National
Assembly or “recover and remit the sum of N41,203,465.00 to the Treasury.”
“Otherwise, sanctions relating to irregular payment, failure
to manage public funds effectively, and gross misconduct prescribed in
paragraphs 3106, 3115, and 3129 of the Financial Regulations 2009 respectively,
should apply,” it stated.
Unauthorised Investments
Also, the university was accused of making unauthorised
investments and failing to account for the interest accrued from the
investments.
According to the report, the university put N165 million in
five different investments, in violation of investment directives as contained
in the financial regulations.
Paragraph 739 of the Financial Regulations (FR) 2009 states
that “idle funds in the Bank Accounts of Ministries, Departments, and Agencies
shall only be invested in Treasury Bills in accordance with extant circulars.”
A January 2014 circular from the Accountant-General of the
federation also informed all MDAs that they must inform the Accountant-General
office of the terms of the investment and obtain approval before doing so.
“All such interests earned on any invested fund must be
remitted on a monthly basis into the CRF failure of which shall be deemed as a
violation of the extant rules and therefore attract appropriate sanction,” the
circular stated as quoted by the audit report.
The audit report, therefore, noted that there was no
evidence of approval from the Accountant-General of the Federation authorising
the investments. Also, evidence of interest that accrued from the investments
was not produced for audit.
The report listed the investments to include the NAU local
innovation project in which the university invested N10.5 million. It added
that the university invested N8.2 million in investment shares; N85 million
investment in American Hospital Abuja; N62 million investment in NAU OSIL
(Water project); and N41,482 Broadcast Right.
“Relevant documents and information such as share
certificates, Central Securities Clearing System (CSCS) records showing details
of the companies and the number of shares held amounting to N8,260,254.00
(Eight million, two hundred and sixty thousand, two hundred and fifty four
naira) in serial number 2 in the Table above, were not presented for audit,”
the report added.
Overspending
The report noted that the institution also violated the
constitution and financial regulations by spending more than the appropriated
amount on projects.
In 2018, the university spent N17.5 million on furniture
allowance, N7.5 million above the approved N10 million naira, the report
stated.
“Evidence of approval for the extra-budgetary spending was
not produced for audit,” the report added.
This spending violated Section 80(4) of the Nigerian
constitution, which stated that: “No money shall be withdrawn from the
Consolidated Revenue Fund or any other public fund of the Federation, except in
the manner prescribed by the National Assembly.”
Meanwhile, the Financial Regulation 2009 also states that
the “expenditure shall strictly be classified in accordance with the estimate,
and votes must be applied only to the purpose for which the money is provided.
Expenditure incorrectly charged to a vote shall be disallowed.”
University keeps mum
When contacted for reaction on the allegations contained in
the report, the spokesperson for the university, Ms Chika, insisted on seeing
the reporter one-on-one before making any comment on the matter.
Despite listing the allegations and referencing the report
by the Office of the Auditor General for the Federation as the source of the
allegations, the official declined comments. PREMIUM TIMES