NRC: Reps Query ₦12.91bn Audit Discrepancies, Demand Reconciliation

• The House of Representatives Public Accounts Committee questioned the Nigerian Railway Corporation over ₦12.91 billion in financial discrepancies.
• The audit queries stemmed from the 2023 Auditor-General for the Federation's report, highlighting issues like unaccounted transfers and revenue under-remittance.
• Specific concerns included ₦6.62 billion in transfers to outstations, a ₦2.86 billion revenue discrepancy, and ₦1.71 billion in under-remitted internally generated revenue.
• Other irregularities involved unauthorized contracts worth ₦858.6 million and unremitted investment income of ₦410 million.
• The committee expressed dissatisfaction with the NRC's explanations and warned of sanctions for agencies mismanaging public funds.

The committee issued a stern warning, indicating that any government agency found to be mismanaging public funds would face appropriate sanctions, underscoring a broader push for Nigeria public funds accountability.

The Nigerian Railway Corporation (NRC) recently faced intense questioning from the House of Representatives Public Accounts Committee (HoR PAC) regarding financial discrepancies amounting to approximately ₦12.91 billion. During an investigative hearing held on a Monday, the committee, led by its Deputy Chairman, Jeremiah Umaru, scrutinized the NRC's responses to audit queries detailed in the 2023 Auditor-General for the Federation's report. Dr. Kayode Opeifa, the Managing Director, represented the Nigerian Railway Corporation at the proceedings.

Central to the HoR PAC's investigation were three primary audit queries. One significant area of concern involved reported transfers totaling ₦6.62 billion to the NRC's various outstations. Specifically, ₦5.16 billion was identified as transferred to different districts. While the Corporation presented evidence of diesel purchases, lawmakers sought further clarification on the remaining transactions, prompting the formation of a reconciliation committee to meticulously examine records and confirm the utilization of these funds.

Another major discrepancy highlighted was a ₦2.86 billion difference between revenue recorded in treasury receipt booklets and the amounts reflected in the Corporation's audited accounts. The committee found the NRC's explanation for this disparity unsatisfactory and mandated a reconciliation of these figures. Additionally, the Auditor-General's 2023 report NRC flagged an alleged under-remittance of ₦1.71 billion in internally generated revenue to the Consolidated Revenue Fund. The committee requested further supporting documents to determine the precise amount remitted and any outstanding liabilities related to this under-remittance.

Beyond these major queries, the financial audit of the Nigerian Railway Corporation revealed a range of other compliance issues. These included the unauthorized award of 26 contracts, collectively valued at ₦858.6 million, indicating potential NRC contract irregularities investigation. The audit also identified a non-remittance of ₦410 million in investment income to the Consolidated Revenue Fund, a critical aspect of public funds management.

Expenditure on official travel also came under fire, with ₦19.6 million spent on a chartered flight lacking sufficient evidence of utilization, and ₦28.13 million on foreign trips without the necessary approvals. Further findings included ₦221.8 million in expenditure on store items without proper ledger charges, ₦136.3 million spent on residential buildings that generated no corresponding rental income, and ₦39.45 million in unretired cash advances. The audit also noted ₦4.64 million in training fees paid in contravention of the Federal Government's e-payment policy, signaling systemic issues within the NRC's financial operations.

The rigorous questioning of the NRC by the House Public Accounts Committee NRC underscores the legislature's commitment to strengthening accountability in the management of public resources. The committee's warning about imposing sanctions on non-compliant agencies serves as a clear message to all government entities regarding their financial responsibilities. This development signals increased parliamentary scrutiny and potential legal or administrative sanctions for financial non-compliance within Nigerian public corporations.

The ongoing investigation, triggered by the Auditor-General's 2023 report, highlights the critical importance of meticulous record-keeping, robust internal controls, and strict adherence to financial regulations for all government agencies. The HoR PAC's actions demonstrate a concerted effort to ensure that public funds are managed transparently and efficiently, reinforcing the broader objective of Nigeria public funds accountability.

This development signals increased parliamentary scrutiny and potential legal/administrative sanctions for financial non-compliance within Nigerian public corporations. Lawyers advising government agencies or entities contracting with them must ensure rigorous adherence to financial regulations, meticulous record-keeping, and robust internal controls to mitigate exposure to audit queries and subsequent investigations by oversight bodies like the House Public Accounts Committee.

Source: Original reporting via PUNCH.