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AuGF’s audit report on N375.8 million vehicle purchase misleading – NILDS

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The National Institute for Legislative and Democratic Studies (NILDS), has reacted to a report by the Office of the Auditor General of the Federation on alleged purchase of N375.8 million vehicle sometime in 2016.

The reaction followed the report’s allegation that NILDS inflated the cost price of eleven vehicles, which were purchased, thereby causing the Federal government of Nigeria to pay additional N36 million.

In the report, the erstwhile Director General of NILDS, Prof. Ladi Hamalal suspiciously paid another sum of N67 million into another account with a commercial bank.

The query reads, “At the National Institute for Legislative Studies, it was observed that 11 (eleven) motor vehicles were purchased at a contract sum of N375,867,000.00 (Three hundred and seventy-five million, eight hundred and sixty-seven thousand naira) in April 2016.

“Examination of the Capital Account Cashbook revealed that an additional sum of N36,610,000.00 (Thirty-six million, six hundred and ten thousand naira) was paid in favour of the contractor in September 2016 under the same contract, without approval.”

The Auditor General, Aghughu Adolphus Arhotomhenla in the query demanded explanation from management of NILDS on excess of N36,610,000.00 (Thirty-six million, six hundred and ten thousand naira).

He also told NILDS to recover the excess amount and pay it into the Federal Government coffers and forward receipts for further verification.

Another query reads, “Payments totalling ₦67,296,478.00 (Sixty-seven million, two hundred and ninety-six thousand, four hundred and seventy-eight naira) were revealed to be made to payees other than the payees specified in the payment vouchers, a development that was contrary to the provision of FR 613.”

Accordingly, the former DG was asked to refund the amount of ₦67,296,478.00 (Sixty-seven million, two hundred and ninety-six thousand, four hundred and seventy-eight naira).

Reacting, NILDS faulted the report, saying the Auditor General wasn’t detailed before rushing to submit the controversial report to the Senate Committee on Public Accounts chaired by Senator Mathew Uroghide.

NILDS explained that the difference of N36 million
arose from price variation due to change in the model of the vehicle supplied which was done in compliance with laid down rules.

The Institute on the alleged N67 million paid to payees not on vouchers said the infraction has been sorted out with the contractors who supplied the vehicles.

When NILDS was contacted, it was found out that the issues had been addressed in 2018 when they were first raised.

A source in the institute explained that “NILDS had in 2018 responded by giving all the information to the public Accounts Committee and the matter was cleared.