Audit indicts former INEC chairman of unaccounted N288 billion financial irregularities

 

The Auditor-General’s 2022 report has flagged N288 billion in financial irregularities within INEC’s operations 

Findings revealed questionable procurement processes, undocumented contractor payments, and unretired advances between 2018 and 2019 

Despite INEC’s defence citing presidential approvals, auditors described several responses as unsatisfactory and called for accountability 

The Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments and Agencies (MDAs) for 2022 revealed that a total of N288,188,772,947.06 was flagged in the operations of the Independent National Electoral Commission (INEC). 

According to PUNCH, the report detailed several issues in the commission’s financial activities between 2018 and 2019 under the chairmanship of Mahmood Yakubu. 

These included irregularities in procurement processes, payments to contractors, non-retirement of advances, and failure to remit statutory deductions.  

One of the key audit observations involved the payment of N5,312,238,499.39 for the supply of Smart Card Readers ahead of the 2019 general elections. 

The procurement was carried out through a restricted method without prior approval from the Bureau of Public Procurement (BPP).

The contract exceeded the approval threshold of the Tender Board and was not cleared by the Federal Executive Council, PUNCH reported. 

Instead, presidential approval was obtained under Section 15(2) of the Public Procurement Act, which auditors noted did not apply to the procurement of smart card readers. 

Additional mobilisation fees and disbursements were reportedly made without adequate documentation or evidence of supply. 

INEC management responded: “The observation is noted. However, due process was strictly adhered to in the award of the contract. Approval was obtained from the Presidency, vide a letter with Ref. No. PRES/122/INEC/2 of 21 June, 2018.” 

The commission added that mobilisation was necessary to ensure timely delivery of the Smart Card Readers before the elections. 

However, the Auditor-General described the response as unsatisfactory. 

Payments without evidence of supply 

The audit also queried N4,505,220,044.06 paid as 35 per cent contract sums to six contractors without documentary evidence of supplies. 

Conditional Advance Payment Guarantees were reportedly used in violation of regulations, while procurement records and contractors’ eligibility documents were not made available for review. 

Another finding involved N331,228,070.04 paid to contractors under doubtful circumstances, with inconsistencies in supporting documents.

Some payments were said to have been made before contract awards. 

Stamp duty and advances irregularities 

The report revealed that payments totalling N235,799,616,436.77 were made to contractors without the mandatory deduction of one per cent stamp duty, amounting to N2,193,484,804.06. 

INEC was said to have provided no justification for failing to remit the statutory charge. In addition, N630,625,319.80 granted as non-personal advances to officials remained unretired at the time of audit. 

Some officers reportedly received multiple advances without retiring previous ones.

Ballot printing and vehicle procurement issues Contracts worth N41,312,066,801.00 for the printing of ballot papers and result sheets were flagged due to the absence of evidence showing contractors’ eligibility or relevant experience. 

These contracts were also awarded without Federal Executive Council approval or a “No Objection” from the BPP. The supply of four Toyota Land Cruiser vehicles at N297,777,776.00 was also questioned, with auditors noting that the contract sum exceeded prevailing market prices at the time of purchase. 

INEC maintained that due process was followed in its procurements and payments, citing presidential approvals and the urgency of election-related activities. The Auditor-General, however, insisted that several responses were unsatisfactory and stated that the findings would remain valid until recommendations were implemented. 

The report recommended that the INEC Chairman account to the Public Accounts Committees of the National Assembly for the queried sums, recover irregular payments, and remit them to the treasury. 

It warned: “Otherwise, sanctions relating to irregular payment, and failure to manage public funds effectively prescribed in paragraphs 3106, and 3115 of the Financial Regulations (2009) respectively, should apply.”