In what appears to be another dent in Nigeria’s public financial management framework, the Court of Appeal in Enugu has been fingered in a fresh audit query detailing circumvention of procurement procedures and unauthorized cash advances amounting to ₦7.38 million.
The audit report, exclusively obtained by The News Chronicle, paints a troubling picture of how established rules were seemingly swept under the carpet.
The report reveals that 24 separate payments totalling ₦7,380,000.00 were disbursed to the Deputy Chief Registrar (DCR) of the Court for various services, ranging from fumigation and horticulture to vehicle fuelling.
While on the surface these may seem routine, a deeper dive shows they were executed in direct violation of federal financial regulations.
According to Paragraph 3 of the Treasury Circular Ref. No. TRY/A7 & B7/2015/OAGF/CAD/026/V.1/178, any local procurement of goods and services above ₦200,000.00 must pass through formal contract award processes, unless explicitly exempted by the Public Procurement Act, 2007.
Additionally, Paragraph 2302(ii) of the Financial Regulations 2009 prohibits the use of special imprests or cash advances in place of formal procurement orders for store items. These financial safeguards, however, were reportedly ignored.
Rather than follow the due process of contract bidding, the Court took a detour, engaging the Deputy Chief Registrar in direct cash transactions well beyond the approved threshold.
This not only flouted procurement rules but also left the government high and dry with an estimated loss of ₦996,300 in unremitted taxes, including 7.5% VAT, 5% Withholding Tax, and 1% Stamp Duty. In essence, public funds were disbursed without the mandatory tax deductions and without generating revenue for the government.
To make matters worse, the paid vouchers were allegedly processed without the statutory internal audit “STAMP PAID”—a red flag in public sector financial management. The absence of this vital audit control, the report suggests, further exposes the fragility of internal checks within the Enugu appellate court.
Despite the gravity of the infractions, the management of the Court of Appeal, Enugu, was silent. The audit pointed out that no response was received from the Court’s leadership. As a result, the Auditor’s Office upheld its findings, stressing that the issues raised remain valid until fully addressed.
The audit warned of two major risks: the loss of government revenue and the potential diversion of public funds, both of which carry severe implications for transparency and accountability in the judiciary.
As part of its recommendations, the audit demands that the Chief Registrar be summoned by the Public Accounts Committee of the National Assembly to justify the ₦7.38 million payments.
In addition, it calls for a full recovery and remittance of the funds to the Treasury, accompanied by documentary evidence. Should these steps not be taken, the audit recommends invoking sanctions for irregular payments and gross misconduct, in line with Paragraphs 3106 and 3129 of the Financial Regulations.
