Secrets Reporters
A review of the Cross River Basin Development Authority, Calabar, by SecretsReporters has exposed financial and administrative irregularities involving approximately ₦4.91 billion across several issues during the period under review, with the largest amount, ₦3.59 billion, relating to paid vouchers that were not presented for audit. The Authority was headed by Engr Bassey E. Nkposong, who served as Managing Director throughout the 2018–2020 audit period.
It was first identified that 731 paid vouchers totalling ₦3,589,200,461.72, raised in 2019, were not presented for audit inspection. According to the report, no documents were produced to justify the expenditure. Financial Regulations (FR) 2009, paragraph 601, which requires every payment to be properly vouched and made available for audit inspection. The absence of the vouchers prevented verification of the payments and raised concerns regarding unbudgeted expenditure, loss of government funds, and diversion of public funds.
Furthermore, the Authority was found to have failed to remit ₦41,420,498.47 deducted as statutory stamp duty from contracts executed in 2019. The amount was deducted but was not remitted to the Federal Inland Revenue Service (FIRS). Treasury Circular TRY A1&B1/2017 requires one percent stamp duty on contract agreements to be remitted to FIRS.
In addition, ₦278,813,822.44 was paid as contingency provisions under 108 contracts executed between 2014 and 2019. The contingency amounts were paid even though no contingency event had occurred, while no approval or retirement records were presented to support the payments. FR 2009, paragraphs 415 and 417, require due economy in government expenditure and strict adherence to budget classification.
Similarly, the Authority disbursed ₦133,615,734.48, providing for land compensation under contracts executed between 2010 and 2019. The money was paid to contractors through 19 vouchers in 2019, but no evidence was provided showing that the funds were subsequently paid to the affected landowners or other purported beneficiaries. FR 2009, paragraphs 415 and 417, relating to due economy and compliance with budget classification.
Meanwhile, the Kwa Falls Dam Embankment Phase 1 project in Akamkpa Local Government Area had an extra-budgetary payment of ₦7,776,264. ₦150 million was appropriated for the project in 2019, but the Authority paid ₦157,776,264, exceeding the approved allocation by ₦7,776,264 without evidence of approval from the Minister of Finance or the National Assembly. According to FR 2009, paragraph 417, and Section 22(5) of the Corrupt Practices and Other Related Offences Act 2000, which it stated criminalises the use of appropriated funds for a different project.
Also, the Authority failed to remit ₦24,485,606.58 deducted from 12 contractor payments in 2019 as statutory taxes. The deductions were not remitted to the relevant tax authorities. Treasury Circular TRY A1&B1/2017 and FR 2009, paragraphs 234–235 require the deduction and remittance of withholding tax, Value Added Tax, and stamp duty to FIRS.
It was further found that the Authority did not submit its 2019 audited financial statements to the Auditor-General as required. No reason was provided for the failure to submit the accounts. The FR 2009, paragraph 3210(v), which stipulates that audited financial statements should reach the Auditor-General by 31 May of the following year.
In another finding, the Authority had 50 unretired cash advances totalling ₦17,108,798.96 granted in 2019. The report stated that the advances remained unretired as of the 2021 audit. The requirement cited was FR 2009, paragraphs 1405 and 1420(i), which provide for the prompt recovery and retirement of cash advances.
Furthermore, contract files relating to nine payments made to three contractors, valued at ₦652,168,427.05, were not presented for audit. The report stated that no justification was provided for withholding the documents. It cited Section 85(2) of the Constitution, Section 38(5) of the Public Procurement Act, and FR 2009, paragraph 110, which provide the Auditor-General with access to relevant government records for audit purposes.
Finally, the audit identified ₦169,199,550 earmarked for land compensation under the Bunyaia-Akatom Irruan Dam project. The report stated that the amount was paid to contractors through 10 vouchers in 2019, but there was no evidence that the money reached the purported beneficiaries for whom the compensation was intended. The audit cited FR 2009, paragraphs 415 and 417, requiring economy in expenditure and adherence to approved budget classifications.
