A confidential federal audit report obtained exclusively by The News Chronicle has unearthed a multi-billion-naira extra-budgetary expenditure at the Federal Ministry of Works’ Housing Sector during the tenure of former Minister Babatunde Fashola, raising serious concerns about financial discipline and adherence to constitutional provisions.
Like water slipping through a cracked jar, the report reveals that the Ministry spent a staggering sum of N2,886,835,379.30 (two billion, eight hundred and eighty-six million, eight hundred and thirty-five thousand, three hundred and seventy-nine naira, thirty kobo) without securing the constitutional seal of the National Assembly.
This financial breach appears to run afoul of Section 80(4) of the 1999 Constitution (as amended), which states, “No moneys shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly.”
Delving deeper, the audit discovered that N1,883,795,670.51 was disbursed by the Ministry without any documented evidence of legislative appropriation. This expenditure, not backed by any known vote or parliamentary approval, is seen as a contravention of Financial Regulations guiding public spending in Nigeria.
Further scrutiny revealed that an additional N1,003,039,708.79 was funneled to four contractors for road construction projects in Daura, Katsina State.
While the projects were captured under the 2017 Appropriation Act, the funds were reportedly released outside the officially approved budgetary allocations, with no documentation to show approval from the National Assembly—a move auditors say is like throwing money into a black hole.
The audit report did not mince words in attributing the lapse to “weaknesses in the internal control system” within the Ministry, effectively painting a picture of a financial house in disarray. It also pointed fingers at possible risks such as waste and diversion of public funds, casting a long shadow on the integrity of fiscal management under the then leadership of the Ministry.
Attempts by the auditors to get a formal explanation from the Ministry hit a brick wall. The management failed to respond to queries raised during the investigation, leaving the findings hanging like a sword of Damocles over the heads of those responsible. The auditors, therefore, maintained that their observations “remain valid until the Management implements the recommendations.”
The audit committee did not stop at pointing out the rot; it rolled out a list of recommendations aimed at plugging the leak.
The Permanent Secretary of the Ministry has been urged to appear before the Public Accounts Committee of the National Assembly to justify the N2.88 billion expenditure.
In addition, the Ministry has been directed to recover and return the entire sum to the public treasury and provide evidence of remittance to the appropriate committees.
The report further warned that failure to comply could trigger sanctions in line with paragraphs 3106 and 3115 of the 2009 Financial Regulations—provisions dealing with irregular payments and inefficient use of public funds.
