Reps query NRC over N12.9bn financial discrepancies

File photo: House of Representatives

The House of Representatives Public Accounts Committee on Monday questioned officials of the Nigerian Railway Corporation over unresolved financial discrepancies involving about N12.91bn, warning that agencies found wanting in the management of public funds would face appropriate sanctions.

The committee raised concerns over the corporation’s handling of public funds following the examination of audit queries contained in the 2023 Auditor-General for the Federation’s report.

At an investigative hearing on Monday, the committee, chaired by its deputy chairman, Jeremiah Umaru, scrutinised the NRC’s responses to three major audit queries involving unaccounted transfers to its outstations, discrepancies in internally generated revenue and alleged under-remittance of revenue to the Consolidated Revenue Fund.

The NRC’s Managing Director, Dr Kayode Opeifa, represented the corporation at the hearing.

The committee expressed dissatisfaction with some of the explanations and supporting documents presented by the railway authorities, and set up reconciliation committees to establish the actual financial position of the Corporation.

It also requested additional documents to determine the extent of the alleged financial infractions and the outstanding liabilities, where applicable.

On the reported N6.62bn in transfers to the corporation’s outstations, the committee examined the NRC’s explanation, particularly the utilisation of N5.16bn reportedly transferred to various districts.

Although the corporation presented evidence of diesel purchases, lawmakers demanded further clarification on the outstanding transactions.

The committee subsequently constituted a reconciliation committee to scrutinise the records and establish how the funds were utilised.

A similar concern arose over a reported N2.86bn discrepancy between revenue captured in treasury receipt booklets and the amount recognised in the Corporation’s audited accounts.

The committee expressed dissatisfaction with the explanation offered by the NRC and directed a reconciliation of the figures to resolve the discrepancies.

The lawmakers also examined an audit query involving the alleged under-remittance of N1.71bn in internally generated revenue.

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Following the corporation’s presentation, the committee requested additional supporting documents to establish the actual amount remitted and determine whether any liability remained outstanding.

The audit findings also raised questions about the corporation’s compliance with financial regulations in the award of contracts, management of investment income, expenditure on official travel, and retirement of cash advances.

Among the other queries were the award of 26 contracts valued at N858.6m without appropriate authorisation; non-remittance of N410m in investment income to the CRF; and expenditure of N19.6m on a chartered flight without sufficient evidence of utilisation.

The report further identified N221.8m in expenditure “on store items without ledger charges, N136.3m spent on residential buildings without corresponding rental income, and N39.45m in unretired cash advances.”

Other flagged transactions included “N28.13m spent on foreign trips without the required approvals and N4.64m in training fees paid in violation of the Federal Government’s e-payment policy.”

The committee warned that it would not “hesitate to impose appropriate sanctions on any agency found wanting in the discharge of its financial responsibilities.”

The warning underscores the House’s efforts to strengthen accountability in the management of public resources, particularly through the examination of annual audit reports submitted by the Auditor-General of the Federation.

The Public Accounts Committee, chaired by the member representing Ede North/Ede South/Ejigbo/Egbedore Federal Constituency of Osun State, Mr Bamidele Salam, is constitutionally empowered to examine accounts showing the appropriation of sums granted by the National Assembly and the reports of the Auditor-General, with a view to ensuring that public funds are properly accounted for.

The NRC, a major public institution responsible for railway operations and infrastructure, is expected to provide satisfactory explanations for the flagged transactions and demonstrate compliance with applicable financial regulations.

The reconciliation committees are expected to establish the actual figures and provide a basis for the committee’s further decisions on the outstanding audit queries.

Since its inauguration, the Salam-led committee has recovered revenue for the Federal Government in both local and foreign currencies, particularly from oil companies and government-owned enterprises.