Senate mandates FRC to refund N94m
The Senate ordered the Financial Reporting Council of Nigeria to refund the sum of N66 million it spent on a two-year unused accommodation on Wednesday, March 24.
This mandate was issued by the Public Accounts Committee headed by Senator Mathew Urhoghide.
Urhoghide also faulted the agency’s use of 64 vouchers to allegedly divert N28 million.
Accordingly, the Senate Committee scrutinised the reports of the Auditor General for the Federation between 2015 to 2018.
The AuGF had queried the FRC for investing N66m on accommodation it never occupied.
“It was observed that on November 21, 2016, the sum of N42 million was paid as rent to Japaul Oil and Maritime Services for an office space at Japaul Building,” the AuGF query stated. Sola Oluseyi & Co was paid N23.4 million as a legal and agency fee for the office space, for a total of N66 million over two years ending January 1, 2019.
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“The Council is yet to move into the building, 20 months running with 4 months to its expiration. (as of 2019).
“This anomaly resulted from the Executive Secretary’s (of the FRC at the time) failure to exercise due diligence in the application of public funds by ensuring that value for money spent was received.
“Huge sum of money was paid for rent by the Council, but failed to occupy the building, this amounts to waste of government resources.”
However, the FRC in its written response claimed that it was carrying out repairs and partitioning of the building while the rent was running.
“Management’s response was that, after acquiring the office space at Japaul House, it was necessary to give the property a facelift, which included office-appropriate partitioning.
“The Landlord was not willing to renew the tenancy agreement after the expiration of the current agreement.
The FRC explained, “The Management further commented that the Council is taking steps to use the building and secure a new lease from the Landlord.”
The Chairman of the Committee, on the other hand, asked Jim Obazee, the former Executive Secretary of the FRC, to return to the Federation Account a total of N94 million spent during his tenure at the agency.
