CEM REPORT | The job of the Director of Finance of the Federal Competition and Consumer Protection Commission (FCCPC), Akinyoghon Ojo may be on the line as the House of Representatives Committee on Finance has frowned at the excess budgetary spending incurred by the agency.
The committee decried the remittances of Ojo and FCCPC internally-generated revenue despite being a fully funded agency that ought to remit all revenue to the Consolidated Revenue Account.
At the public hearing on the 2023-2025 Medium Term Expenditure Framework (MTEF) on Tuesday, it was revealed that the agency generated N4.021 billion in 2021 but remitted N1.3 billion, while in the current fiscal cycle, the agency generated N3.661 billion but remitted N1.2 billion.
“You earned N4 billion and spent N3 billion. I will not take it. The DFA has the responsibility to obey finance regulations. If he violated financial regulations, he should leave the place. Clerk, write to the minister of finance, that in respect of this agency, no fund should be released until we have seen the letter of the redeployment of the DFA. No fund should be released.”
Faleke also noted that the agency has N280 million as overhead but spent millions on welfare.
“On welfare package, the whole of last year, it was N11 million. Six months now, it is already N89 million. In another six months, it will be N200 million. Is it welfare for the commissioner or staff? We want to see the details, so that you don’t overpay yourself, leaving the staff. I want to see the approved IGR budget you are talking about.”
Chairman of the committee James Faleke, noted that the director of finance violated the constitution by approving the spending of the funds without the approval of the National Assembly.
“Despite having a budget for overhead, you now took money that is supposed to go to Consolidated Revenue Fund.”
He added that the action was in contradiction with section 81 of the 1999 constitution and the Fiscal Responsibility Act
Section 81 reads, “All revenues or other money raised or received by the Federation (not being revenues or other money payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.”
The chairman who asked the Minister of Finance and National Planning, Zainab Ahmed, to sack the Director of Finance (DFA) of the Federal Competition and Consumer Protection Commission (FCCPC), Akinyoghon Ojo also added that no fund should be disbursed to the agency until the director had been redeployed.
“Clerk, collect his service number, I want to write a letter to the minister of finance. He must be removed. If everybody spends their income, how will the government fund the budget?”
The Executive Commissioner of the Commission, Adamu Abdulahi, said the agency increased expenditure to generate money, noting that “it takes money to generate money.”
Ojo explaining the expenditure said the funds were used to augment the operational expenses of the agency adding that a committee of the National Assembly approved an internally generated budget.
He also said the agency has applied to be given financial autonomy but is yet to be approved.
“We presented our IGR budget to our committee and it was approved by the committee. The money they allocated to us from the treasury, we have not touched it? We did that because we have applied for financial autonomy through our minister – the Minister of Trade and Investment, Niyi Adebayo.”
Faleke discredited his explanation insisting that no committee has the power to approve expenses outside the budget.
“You would have submitted an amendment or supplementary. It is the law. No committee has the power to approve IGRs outside the national budget because all the IGRs have been collated. It is every IGR that is collated to form the national income.”
The Executive Commissioner of the Commission, Adamu Abdulahi, said the agency increased expenditure to generate money, noting that “it takes money to generate money.”
Speaking on the expenses of the agency, the Deputy Chairman of the committee, Sabiu Abdullahi (APC, Niger), accused the agency of frivolous expenses.
“Last year, you spent N38 million on publicity and advert placement. So far, in seven months, you have spent over N142 million. The same thing applies to all your overheads. If you look at local training, you spent N198 million. In seven months, you have spent over N266 million. If you look at local transport, it is the same thing.
“All we get is that you are just creating expenses around these items. More unfortunate that you are a fully funded agency. We are not prudent in the way we manage resources.”
In his ruling, Mr Faleke directed that the existing funds in the account of the agency should be barred.
“There is N570 million in that account, block that money, it must not be spent until we clear them. On Monday. all your officers must appear. Come with a new director of finance.”
