Secrets Reporters
A review of the 2020 financial operations of the Veterinary Council of Nigeria (VCN), Abuja, has identified about ₦35.46 million in financial irregularities across seven issues, including extra-budgetary spending, overpayment to contractors, failure to submit audited financial statements, and the award of contracts without required due diligence reports.
The finding, covering transactions between January and December 2020, examined the activities of the Council when Dr. Aishatu Abubakar-Baju served as Registrar, the Council’s Chief Administrative Officer and Secretary to the Council.
According to the findings, the Council paid ₦1,465,300 to an external solicitor to represent it in several suits, including matters relating to DTA and other benefits meant for civil servants, without obtaining the required approval from the Attorney-General of the Federation. It was discovered that no competitive process involving the invitation of two or more bidders was followed. This requirement is contained in Establishment Circular SGF/PS/CIR/625/1 of 16 July 2003, which provides for Attorney-General approval and fee clearance for the engagement of external solicitors.
Furthermore, ₦3,996,585 was spent above the approved budget on board honoraria. The Council paid ₦5,357,720 in board honoraria against an approved provision of ₦1,361,135, resulting in an excess expenditure of ₦3,996,585. Financial Regulations 2009, paragraphs 419 and 417, and Establishment Circular SWC/S/04/S.310/T/65 of 8 April 2016, provide restrictions on sitting allowances for chief executives and public servants on salary and limit meetings to four in a year.
The Council also failed to submit its 2020 audited financial statements and management report for vetting. No reason was given for the failure, contrary to paragraph 3210(v) of the Financial Regulations 2009.
In addition, the Council incurred ₦2,054,438.69 in extra-budgetary expenditure on advertisement, publicity, water bills, and media activities. ₦3,198,516.69 was spent against an approved budget of ₦1,144,078, producing an excess of ₦2,054,438.69. Further found was another ₦1,173,960.34 spent on media activities from internally generated revenue despite having no budgetary provision. No evidence of National Assembly or Minister of Finance approval was produced for the additional expenditure. Violating sction 80(4) of the Constitution and paragraphs 417 and 301 of the Financial Regulations 2009.
The review further uncovered an overpayment of ₦1,638,003 to service providers. Two contractors engaged for cleaning, fumigation, and security services were paid ₦13,001,973, despite their combined contract value being ₦11,363,970, resulting in the excess payment. The contracts, dated 2013 and 2016, did not clearly state their duration, while the review found no evidence of annual renewal. The issue is contrary to paragraphs 708 and 603(i) of the Financial Regulations 2009 and paragraph 75.1(vi) of the Procurement Procedures Manual.
Another ₦13.91 million in contracts was awarded without the required due-diligence reports. The Council awarded contracts worth ₦6,906,434.45 and ₦7 million, totalling ₦13,906,434.45, for the furnishing of conference halls and the establishment of an e-library. However, it was found that the required due-diligence reports were not produced, despite the requirement contained in the Bureau of Public Procurement’s Certificate of No Objection, referenced as BPP/S.1/SP/20/Vol.IV/495, paragraph 8(c), and also violates paragraph 113 of the Financial Regulations 2009.
The largest individual extra-budgetary expenditure identified was connected to the construction of a Veterinary Specialist Hospital. The Council had appropriated ₦7,928,087 in its 2020 budget for the construction of a six-storey Veterinary Specialist Hospital but approved and paid ₦19,770,303.48 for the project. This produced an excess expenditure of ₦11,842,216.48. No record of approval from the National Assembly or Minister of Finance for the additional expenditure, contrary to Section 80(4) of the Constitution and paragraphs 417 and 301 of the Financial Regulations 2009.
Taken together, the issues identified in the audit amounted to approximately ₦35.46 million, with the largest exposures arising from the Veterinary Specialist Hospital expenditure, contracts awarded without due diligence, and excess spending on board honoraria, among others.
