The Senate has begun a probe of the National Institute for Legislative Studies over the inflation of purchase of 11 motor vehicles at the cost of N375.8 million and illegal payment of N67 million to another account.
The Senate Committee on Public Accounts, led by Senator Matthew Urhoghide, is carrying out the investigation, following the report of the Auditor General of the Federation which was submitted for consideration.
The committee is currently looking into the Auditor General’s report between, covering 2016-2018.
It was learned that the National Institute for Legislative Studies inflated the purchase of 11 vehicles by N36 million, just as the agency was expected to appear before the committee last Wednesday for physical appearance, but failed to appear.
Meanwhile, NILDS picked holes in the claims made by the Office of Auditor General of the Federation on alleged N375.8million vehicle purchase in 2016.
The AGF had in the 2016 Audit Report, alleged that NILDS cornered N36million from inflation of prices of 11 vehicles it purchased in the year totalling N375.8million .
AGF in the Audit report, also alleged that NILDS, under the leadership of Professor Ladi Hamalai, also illegally paid N67million into another account.
In its response to the queries, NILDS said the alleged N36million difference in the purchase of the vehicles arose from price variation due to a change in the model of the vehicle supplied.
According to the institute, the purchase was done with full approval of appropriate authorities and in line with laid down processes and procedures.
The Institute, on the alleged N67 million paid to payees not on vouchers, said the infraction had been sorted out with the contractors who supplied the vehicles.
The query read: “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 in April 2016. Examination of the Capital Account Cashbook revealed that an additional sum of N36,610,000.00 was paid in favour of the contractor in September 2016 under the same contract, without approval.
“The management of the Institute should justify the over-payment, which is in excess of the contract sum, otherwise the sum of N36,610,000.00 overpaid should be recovered from the contractor and recovery particulars forwarded for verification.”
Another query read: “Payments totaling ¦ 67,296,478.00 were revealed to be made to payees other than the payees specified in the payment vouchers.
“This is contrary to the provision of FR 613 which stipulated that “Payments shall be made only to the persons named in the vouchers or their properly authorized representatives”. Risk This irregularity could result to diversion and misappropriation of government funds.
“The Director-General is required to recover the total sum of¦ 67,296,478.00 and refund back to Treasury with evidence of recovery forwarded to my office. 88 Office of the Auditor-General for the Federation.”
Meanwhile, the Chairman of the Senate Committee on Public Accounts, Senator Matthew Urhoghide, directed the Clerk of the Committee to invite NILDS management for physical appearance and defend itself.
