₦3.2m Store Fraud: FSTC Otukpo Management Paid Officers for Electrical Materials with Zero Proof of Delivery

NewsNGR 

Federal Science and Technical College (FSTC) Otukpo, Benue State is at the centre of a financial scandal after investigators found that ₦3,203,350.00 paid for electrical materials and store items was never recorded in the institution’s store ledger.

The findings concern the Federal Science and Technical College, Otukpo, where the Principal serves as head of the institution.

Checks revealed that the money was paid to four officers between August and October 2020 for electrical materials and other store items. However, no Store Received Vouchers were produced to show that the items were ever received, and the purchases were never entered into the store ledger.

Treasury Circular No. TRY/ A2&B2/ 2009/ OAGF/ CAD026/V OF 24th March 2009 states that, “All procurement of stores and services exceeding N200,000.00 shall be made only through the award of contract”. 

Similarly, Treasury Circular Ref. No. TRY/A2&A3/2013 OAGF/CAD/026/V.1/188 OF 9th April, 2013 emphasized that, “cash advance in excess of N200,000.00 should not be granted to any officer for procurement of goods and services but the procurement should be given out as a contract”.

Financial Regulation 603 states, “All vouchers shall contain full particulars of each service such as dates, numbers, quantities, distances and rates….and will invariably be supported by relevant documents such as LPOs, invoices, special letters of authority, time sheets, rates etc.”

The review, which relied on the Federal Republic of Nigeria Financial Regulations 2009, specifically paragraphs 2402(i) and 2107, identified serious risks, including the loss of government funds, payment for items never supplied, and the possible diversion of public money.

The Auditor-General has now recommended that the college account for the full sum of ₦3,203,350.00 and recover it, with the money to be remitted to the Treasury. Failure to do so, the recommendation warns, should attract sanctions under Financial Regulations 3106 and 3115.

The case adds to growing concerns about weak internal controls in federal institutions, where payments are sometimes made without corresponding evidence of delivery. For students and staff of the Otukpo college, the hope is that the missing funds will be traced and returned to public coffers.

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