October 16, 2014 Micheal Abimboye
A government audit of 57 local councils in
Lagos State has indicted eight, accusing
their officials of squandering at least
N224 million of public funds on a range of
questionable expenditure and unimplemented
contracts.
The 2012 audit report covers the state’s
Local Government Areas, LGAs, created and
recognised by the Nigerian
government, as well as Local Development
Council Administration, LCDAs, created by
the Lagos State government, but
not recognised by the federal government.
Those accused of wasting public funds are
Agbado Oke-odo, Surulere, Coker-Aguda,
Egbe-Idumu, Eredo, Iba, Ikosi-
Isheri, and Lagos Island East.
The audit assessment, seen by PREMIUM
TIMES, accused officials of the affected local
authorities of “financial
recklessness”, and blamed them for wasteful
spending.
The report also criticised another set of
eight local government areas of piling up
debts and failing to meet targeted
revenue projections.
The LCDAs in this category are Eti-Osa
East, Ikoyi-Obalende, Iru-Victoria Island,
Yaba, and Agabo-Oke LCDAs.
The LGAs are Eti-Osa, Lagos Mainland,
Somolu.
Together, the eight councils accounted for
N788.3 million in debt, and fell short of the
projected N831.5 million self-
generated revenue, the report states.
The respective debt profiles of each council
were listed as Eti-Osa East N23.7m; Eti-
Osa N52m; Ikoyi-Obalende N220.3m,
and Iru Victoria Island N50m.
Others are Lagos Mainland N163.8m; Yaba
N51.2m; Somolu N147.5m and Agbado Oke-
Odo N79.6m.
Unaccounted funds
The report highlights a series of disturbing
spending and practices which the auditors
said cost the 16 councils an
“unquantifiable financial shortfalls that
could have been used for development
projects at the grassroots”.
In Agbado Oke-Odo for instance, officials
paid out N11.5m as personal advance for
staff of the council since 2010 but
failed to deduct the payments from salaries
of the beneficiaries.
Also, the council failed to remit statutory
deductions from contracts awarded to the
tune of N40.9m.
In Surulere, auditors found that N17.5 m, as
against the agreed N12.8m, which was 30
percent of the mobilization sum,
was paid to a contractor for the installation
of a Colour Led Display solution screen at
Masha Road, Lagos State Water
Corporation Junction in Surulere Even so,
“the project has not taken off since February
2011 when the agreement was
signed”, the report stated.
Tajudeen Ajide, the Chairman of Surulere
Local Government, told PREMIUM TIMES that
the allegations were false.
To prove his innocence, he presented
documents and video clips showing that the
Colour Led Display solution Screen
project actually kicked off, but was stopped
by the Lagos State Advertising Agency,
LASSA, which refused to grant
approval for the installation of the screen.
Mr. Ajide took a PREMIUM TIMES’ reporter
to the proposed site of the Colour Led
Display solution Screen project at
Masha Roundabout, Surulere, where work
was yet to commence.
“The Led Display solution screen actually
kicked off but the state advertising
regulatory agency refused to approve the
locations we offered, the stadium junction
and the roundabout at Masha, even after the
state government approved the
project,” he said. “And this project would
have boosted our revenue generation which I
had planned to use to put into
education, and some key areas of the
society.”
The council boss however did not explain why
N17.5 million was paid instead of N12.8
million, the stipulated 30 per
cent mobilization fee.
Other local areas too
At Coker-Aguda LCDA, “spurious
expenditure” totalling N1.3m was made by
staff on behalf of the Local Council, the
report said.
“The payment appeared spurious because the
minutes of the meetings were not provided to
the audit team and pictorial
evidence of performance was not attached to
the payment vouchers,” it stated.
A total of N29.1 m was unaccounted for in
Egbe-Idimu LCDA.
“Expenditure Not Accounted For: Audit
examination of the payment vouchers revealed
that the sum of N10.0m paid to
various officers of the Local Council for
sundry expenses was not accounted for,” the
report said.
“Audit examination of the payment vouchers
during the period under review revealed that
the twenty-one payment
vouchers totalling N12, 652,000.00 were
doubtful and unreasonable.
“Payments for Jobs not Executed Audit
examination of payment vouchers showed
that the sum of N6, 500,000.00 was
expended on spreading of loose laterite and
stabilization of roads during the period
under review. Further inspection to
the site revealed that these projects were
not executed.
“Unpresented Payment Vouchers: Five
payment vouchers totalling N10,
200,000.00 duly posted in the Combined
Cashbook were not produced for audit
examination”.
Also, officials of the Eredo LCDA made
unauthorized excess expenditure totalling
N15m in 2012, just as 52 payment
vouchers amounting to N30.2m and duly
paid and posted in the treasury cashbook,
were not produced for audit
verification.
Officials of Iba LCDA were also indicted for
overpayment of security allowance to the
chairman by N2million in 2012.
Ramat Oseni-Adeyeri, the chairperson of Iba
LCDA, dismissed the claims against her and
other officials.
“It’s a fallacy,” she told PREMIUM TIMES.
At Ikosi-Isheri LCDA, the audit report noted
an irregular auto loan facility to the tune of
N100m from Fidelity Bank Plc
for the purchase of vehicles for various
functionaries of the Local Council.
The transaction was observed to be fraught
with various irregularities such as lack of
proper documentation.
An audit of Lagos Island East LCDA also
revealed expenditure not accounted for to the
tune of N6.3million.
The council chairmen of Eti-Osa LGA, Iru
Victoria Island LCDA and Surulere LGA
responded to PREMIUM TIMES
inquiry.
Yisa Owolabi, the chairman of Eti-Osa East
LCDA denied being in debt.
“The council took a facility of N100 m that
year on capital project with d approval of
the state government and as we
speak we will finish servicing it by the end of
next month. We are among the most prudent
council,” Mr. Owolabi said.
Also, Abayomi Daramola, the chairman of
Iru-Victoria island LCDA said he was sure
his council remitted all tax
deductions.
“We are not in any debt neither did we not
remit any statutory tax deductions. I’m very
sure,” he said.
The chairpersons of other indicted local
government/councils did not respond to our
requests for comments.
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