When Dr. Michael Akabogu, managing director of the Nigeria Social Insurance Trust Fund, testified before the Senate Public Account Committee, he caused a stir by revealing that N17 billion in vouchers had been eaten by termites from a container at the fund’s office.
The theft of N17 billion from First Bank and Skye Bank has prompted an investigation by the Senate Committee on Public Account.
Because of this turn of events, lawmakers invited NSITF’s current and former administration.
The probe was predicated on the 2018 report from the Auditor General of the Federation.
The study claims that the N17 billion was stolen from the government coffers between 2010 and 2016 when it was headed by Mallam Umar Munir Abubakar.
But when the Committee’s chairman, Senator Matthew Urhoghide, asked the current managing director to look for vouchers of the N17 billion at the office so that the Committee could see exactly how the money was spent, the director said that he could find no such records.
According to Akabogu, “the container the abovementioned records were kept in by previous management has not only been weather beaten over the years, but perhaps being devoured by termites.”
Following the committee’s instructions, I informed the previous management officials of the necessity for their assistance in addressing this query by providing the appropriate documents, which have not been made accessible to us.
After hearing the testimony of former and current NSITF officials, the committee’s chairman became enraged and issued an order compelling them to appear before the committee on September 22, 2022, armed with all the needed evidence.
In response to the criticisms leveled at NSITF in the 2018 Audit report by the office of the Auditor General of the Federation, Urhoghide said, “This committee has given you people more than enough time to react to queries slapped on NSITF.”
We’ve received 50 questions about alleged financial wrongdoings totaling billions of Naira.
There has been no response to the question of the N17.158 billion in repeated transfers made in 2013, much alone the N5.5 billion reportedly moved into a commercial bank account without clearance, the N2.2 billion in unauthorised investment without proper records, etc.
Statements such, “These are entirely inappropriate, and the committee will make sure that these queries are sustained if requisite evidentiary records on cash spent or misappropriated are not produced,” are not acceptable.
Since the audit did not take place during his position as Managing Director of NSITF (2010-2016), he had previously stated in his responses that he was unaware of the query and had no reasons for it.
The current General Manager, Finance, has claimed that important documents are locked away in an abandoned container on the Trust Fund’s premises in Abuja, but his successor, Adebayo Somefun, who served as head of the agency from May 2017 to July 2020, has said that the account section should be able to locate them.
Statements of Account No. 1750011691 with Skye Bank plc, for the period 1 January 2013 through 20 December 2013, and Statements of Account No. 2001754610 with First Bank Plc, for the period 7 January 2013 through 28 February 2013, show that the management of NSITF transferred funds totaling N17,158,883,034.69billion to certain individuals and businesses.
However, transfer payment vouchers and supporting paperwork were not made available for audit. As a result, there was no way to verify the motive(s) behind the transactions.
It is required that “All payment entries in the cashbook/accounts shall be vouched for on one of the prescribed treasury forms,” and these do not comply with this regulation. To whomsoever the funds are rightfully owed, vouchers should be made payable.
It is strictly forbidden to pay in cash or write a check for services that have not been properly vouchered.