Reps panel probes NIPC Over N1.19bn Extra Budgetary Expenditure

House of Representatives panel on Public accounts has turned its searchlights on the Nigeria Investment Promotion Commission, (NIPC), a Federal Government agency under the Federal Ministry of Industry, Trade and Investment to investigate extra budgetary expenditure of N1.19 billion in the 2018 and 2019 financial years by the commission

The Auditor General of the Federation’s report indicated that the NIPC had a budget of N194 million in 2018, and NN180.6 million in 2019, but spent N700 million and N871 million respectively.
Consequently, the Committee chaired by Hon Whole Oke, (PDP-Osun) ordered the management of the Agency to provide full explanations on why the agency would spend government money at their disposal without the approval of the National Assembly in form of appropriation.

In addition, the Committee is also investigating why the Commission would re-award a contract for the supply and installation of 50 units of complete computer sets and UPS at the cost of N28.9 million when an upward review of the same contract demanded by the original contractor was N27.6 million.

A brief from the Public Accounts Committee on the query revealed that “N180.6 million was budgeted for overhead cost in the year 2019, but NIPC ended in spending N871 million excluding depreciation without the approval of the National Assembly.

According to panel, “There was extra budgetary spending on overhead in the year 2018 without supplementary approval from the National Assembly. N194 million appropriated but NIPC spent over N700 million.”

The Committee therefore directed the Commission to provide the National Assembly’s approval for extra budgetary spending of N690 million.

The query alleged that the contract for the supply and installation of 50 units of complete computer sets and UPS to Digital Communication Konsult at the cost of N22.5 million in 2020, but repudiated the contract on account that the contractor requested for upward review to N27.6 million citing unstable exchange rate as an excuse, but the contract was later re-awarded to Dotmac Technologies Limited at the cost of N28.9 million.
The committee also wanted the Executive Secretary of the NIPC to explain why the Commission was not implementing the provisions of the Pensions Reform Act which stipulate 18 percent contribution, while the agency is implementing 15 percent.

A close study of the 223 paged document presented to the Committee by the Commission showed a line item suggesting that the Commission may have spent its internally generated revenue for 2019 to service its recurrent and capital budget.

For example, the statement indicated that comparison between budget and actual transaction as at 31st December, 2019 shows under Internally Generated Revenue, a recurrent item which states that there was a personnel cost budget of N500 million and actual of N349,750,700.50, overhead budget of N966 million and actual of N749,811,184.32 as well as capital budget of N149 million and actual of N91,123,865.07.

It was also discovered that the NIPC with a staff strength of about 210 with 63 of them being management staff, 137 as senior staff with only 10 junior staff spent about N38.5 million on overseas and local training and a whooping N81.7 million on travels alone in 2019.

The Committee had earlier rejected the submission made to it on the query saying that the supporting documents were neither signed nor authenticated by any authority which made the submission invalid in the eyes of the law..

Consequently, the Committee stepped down all its queries and directed its new Executive Secretary, Mrs Saratu Umàr to go back with the Submission to enable her to familiarise herself with it and come back to defend it by next week Wednesday

The Director of Finance of the Commission, Mr Akwada James had stunned the Committee members while defending the submission as he said that he was at loss while preparing the submission and that he did not know how to explain the item by item in the queries as demanded by the Committee.

The Committee members one after the other pointed out several flaws in the submission which they said looked like forged document that would not stand the test of time before the law.

In his remarks on the development, the Chairman of the Committee, Hon Oke said,” Madam New Executive Secretary, in line with the principle of fair hearing they operate, the Committee should allow them to pick a date, so that they can go and familiarise themselves with the submission and the relevant documents and come back to defend the query since they just assumed office and those on ground before them are not helping the matter”

Mrs Umar while appreciating the gesture extended to her promised to appear before the Committee for proper defence in the second week of September this year.