MDAs defy FG’s order on mandatory filing of assets

.CBN, NNPC, BOI, others yet to file returns
.’We’re not under obligation to file assets report’

Six months after the Minister of Finance, Mrs. Kemi Adeosun, passed a circular directing Ministries, Departments and Agencies (MDAs) to mandatorily file all movable and immovable assets of their respective organisations, none of the MDAs has complied with the directive of the Federal Government.

The Daily Times investigation revealed that none of the MDAs has complied with the directive of the Federal Government issued by the Minister of Finance in a circular dated December 2016 which mandates all MDAs to file to the Assets Registry.

But the Bank of Industry (BOI) said that it was not under any obligation to file its assets.
The circular obtained from the Ministry of Finance titled ‘Federal Government tracks assets held by MDAs, creates assets register,’ requested Federal Ministries, Departments and Agencies (MDAs) through their Accounting Officers to prepare an inventory of all fixed assets held as at December 31, 2016, to facilitate physical verification by the Project Team.

The aim of the Asset Tracking and Management Project (ATMProject) is to enable the government “to locate, identify, assess and evaluate all its moveable and immoveable assets, the Minister of Finance, Mrs. Kemi Adeosun, had announced.

The ministry thereafter moved ahead to open a Central Asset Register and domiciled it in the “Ministry of Finance for recording the actual quantity, value, condition and location of all the capital assets belonging to the Federal Government.

Under the International Public Sector Accounting reporting Standard (IPSAS), Government is expected to record both its assets and liabilities.

“For the first time, a central and Unified National Database of Assets (Asset Register) would be generated and maintained for the purpose of recording, tracking and managing the huge investments in capital assets owned by Government,” the Minister had explained.

The Assets Tracking and Management Project and the creation of the Assets Register were new initiatives of the Federal Ministry of Finance designed to enhance accountability, promote transparency and deepen efficiency in government.

“The Asset Tracking exercise and Register will make planning and control easier and improve accountability for assets. With the increased allocation to capital expenditure to 30%, it is important that all assets are recorded and accounted for. Where disposals occur, they must be in line with the laid down procedures and must be transparent,” she had pointed out.

The Asset Register would afford the Government to know and monitor in real time online information on the inventory of Government Assets.

The Daily Times gathered that a Project Coordinator was appointed by the Minister of Finance in March for the immediate take-off of the Asset Tracking and Management Project and the creation of the first Central Asset Register for the Federal Government.

The circular communicating this policy position further requested all heads of MDAs “to ensure that any assets held by current and former staff are fully accounted for. In this regard, you may find it necessary to contact any former staff and/or political office holders to avail them the opportunity to return relevant assets in their possession.”

The circular emphasised that “all inventory records submitted will be cross-checked to capital releases and project account purchases to ensure completeness. Where assets have been sold or otherwise disposed of, they must be recorded with supporting authorisation for sale and evidence of payment, where applicable.”

The circular drew the attention of Heads of MDAs to Chapter 26 of the Financial Regulations, with regards to disposals of assets and warned that “any asset not accessible for physical inspection and not disposed of in accordance with financial requirements will be deemed to have been illegally withheld or converted.

“Please record such assets so as to enable the investigative agencies to be notified,” it added.
The records of the assets disposed of should cover the last five years and all accounting officers of the MDAs were to submit their reports not later than three weeks from the date of receipt of the circular.

Six months on, Central Bank of Nigeria, Nigerian National Petroleum Corporation (NNPC), Bank of Industry (BOI) and others have failed to comply according to the information obtained from the Ministry of Finance.

When The Daily Times contacted BOI, one of the MDAs over the development, a State Officer with BOI, Ogo Ifeoma Akabogu, stated that BOI is not under the Ministry of Finance and as such, was not covered by the directive.

Akabogu said: “Who owns BOI? It is under the Ministry of Trade and Investment but owned by the Ministry of Finance. The ministry whose minister was at the bank’s Annual General Meeting and signed the bank’s report cannot turn around and ask us to furnish her with our assets.

“Who told you BOI has failed to comply? Please was it the Ministry of Finance that told you BOI had failed to comply or is it under obligation to file assets report?

“BOI annual report suffices and removes any obligation from us from filing such report. If you are not satisfied, you can go to Lagos where our National Headquarters is to further your investigation.”