Audit Reveals Over N4.6 Billion in Unapproved Spending in Ministry of Works Under Ex-Minister Fashola

A government audit has revealed over N4.64 billion in financial irregularities at the Federal Ministry of Works and Housing, now led by Minister Dave Umahi.

The audit looked at activities from 2020 to 2021 and found several problems with how money was handled under former Minister Babatunde Fashola.

What the Audit Found

The report showed many issues, including unapproved payments, spending beyond the budget, and contracts not following proper procedures. Key findings include:

• Unauthorized Payments: N1.08 billion was paid without proper documentation, breaking financial rules.
• Budget Violations: N546 million was transferred to project accounts without approval or proper records.
• Extra Spending: N2.89 billion was spent without approval from the National Assembly, which is required by law.
• Contractor Payments: Over N1 billion was paid to contractors for road projects in Katsina State that were only budgeted for in 2017.

Contracts Given to Unregistered Companies

The audit also found that contracts worth N493.97 million were awarded to companies that were not registered with the Corporate Affairs Commission (CAC), which is against Nigerian law.

• N170.36 million was paid to companies that had not been officially registered.
• One company awarded a contract in 2016 was only registered in 2019.
• Payments were made to some companies that appeared to not exist at all.

In Oyo State, the ministry paid N110.81 million as an advance for a project, which is higher than the 15% limit allowed by law. In Edo State, a contract for classroom construction saw an even higher advance payment of 88% of the total contract amount.

The audit revealed that several contracts were awarded without following the rules:

• Five contracts worth N27.84 million were awarded without bids from at least three unrelated contractors, as required by law.
• Many key documents, like advertisements and tender evaluations, were missing.

What the Audit Recommends

The audit called for:

1. Recovering the Money: The ministry should recover the unauthorized payments and return them to the government’s account.
2. Holding Officials Accountable: Staff responsible for these irregularities should face penalties under financial laws.
3. Fixing Internal Controls: The ministry should improve its processes to prevent such issues in the future.
4. Reporting to Lawmakers: The ministry must provide proof of compliance to the National Assembly.