Mike Inegbenose Indicted in N13.4 Million Cash Scandal As Federal Government College Warri Violates Federal E-Payment Rules

NewsNGR 

A troubling financial discrepancy has emerged from Federal Government College (FGC), Warri, Delta State, where a staggering sum of ₦13,440,319.12 was disbursed in cash to five officers in 2020, flouting established federal regulations. 

The payments, intended to cover examination fees, electricity bills, and other sundry services, were allegedly processed outside the mandated banking system, raising serious concerns about financial mismanagement under the leadership of Mr. Mike Inegbenose, who served as Principal of the college at the time.

According to findings from the Auditor-General’s report for the year ended December 31, 2020, the management of FGC Warri authorized the withdrawal of these funds rather than transferring them directly into the individual bank accounts of the intended recipients or service providers. 

This action stands in direct contradiction to the Federal Government’s E-Payment Policy, specifically referencing the Financial Regulations (FR) 2009 paragraphs 713 and 613, alongside Treasury Circular TRY/A88&B8/2008. These regulations strictly mandate that all payments to government workers and service providers must be made electronically to ensure transparency and traceability.

The financial irregularities occurred during a period when Mr. Mike Inegbenose was serving as the Principal of the college. Available records confirm his tenure at the institution, with his leadership noted in various capacities around the 2020-2021 period. Under this administration, the school bypassed the standard e-payment framework, opting instead to hand over the substantial sum in cash.

The decision to disburse such a large amount in cash has been flagged as a high-risk practice. The primary concern is the potential for the diversion of public funds. Without the digital trail provided by bank transfers, it becomes exceedingly difficult to verify if the funds actually reached the intended beneficiaries or if they were misappropriated. 

Furthermore, the practice opens the door to paying for jobs that were never executed, as the lack of electronic records makes it challenging to link specific payments to verified services rendered.

The violation of the e-payment circular is particularly significant given that the policy was introduced to curb exactly these types of fraudulent activities within government institutions. By reverting to cash payments for services like electricity bills and examination fees, the school effectively side-stepped the transparency measures designed to protect public funds. 

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