SCANDAL: The Nigeria Social Insurance Trust Fund (NSITF) has told the Senate that termites have eaten most of the vouchers containing details of how N17.158 billion yet to be accounted for was spent.
In a 2018 audit report, N17.158 billion, was the total amount of money transferred by NSITF from its Skye Bank and First Bank accounts into various accounts belonging to individuals and companies that can’t be traced from January to December 2013.
Basic Facts
- The senate is investigating N17.1bn unaccounted fund of the NSITF.
- The office of the Auditor-General had in the 2018 audit report raised queries on misappropriation of funds by the NSITF.
- The incumbent head of the NSITF has in his response to the senate said termites has eaten the vouchers of payment of the N17.1bn.
What We Know
The Nigeria Social Insurance Trust Fund (NSITF), last weekend (Friday) told the Senate committee that termites have eaten most of the vouchers containing details of spending of N17.158 billion stated in the 2018 audit.
The N17.158 billion, contained in the 2018 audit report, was the total amount of money transferred from NSITF First Bank and Skye accounts to various unknown accounts belonging to individuals and companies from January to December 2013.
The office of the Audit General, had in a 2018 audit report raised 50 queries on alleged misappropriation of funds by management of the NSITF. The NSITF is currently been probed by the Senate committee on Public Accounts.
The query in part reads “Management of NSITF as shown in statements of Account No. 1750011691 with Skye bank plc, for the period 1st January, 2013 to 20th December, 2013, and Statements of Account No.2001754610 with First Bank Plc for the period 7th January, 2013 to 28th February, 2013, transferred amounts totalling N 17,158,883,034.69 billion to some persons and companies from these accounts.
“However, payment vouchers relating to the transfers together with their supporting documents were not provided for audit. Consequently, the purpose(s) for the transfers could not be authenticated.”
The Senate committee headed by Senator Mathew Urhoghide representing Edo South, interrogated NSITF’s past and present managements on where monies totaling N17.158billion were transferred to, between January and December 2013.
However, none of the managements, past or present offered satisfactory explanation on the multiple transfers without vouchers.
While NSITF Managing Director from 2010 to 2016, Umar Abubakar, claimed that he was aware of the query and had no explanations to render since the audit exercise was not carried out during his tenure.
Mr. Adebayo Somefun, head of NSITF from May 2017 to July 2020, said those in the account section of the NSITF should be able to trace the documents.
Nonetheless, Dr. Michael Akabugu, the incumbent Managing Director of NSITF, said no such document exist. It is Dr. Akabogu that told the senate committee that container where the documents were kept by past management has not only been beaten by rains over the years but even possibly being eaten up by termites.
Angered by the submissions of management of NSITF officials, the committee chairman, Senator Urhoghide, ordered them to reappear before the committee with all the requested evidential documents unfailingly on Thursday, September 22, 2022.
Notable Quotes
The query from the auditor general reads in part, “Management of NSITF as shown in statements of Account No. 1750011691 with Skye bank plc, for the period 1st January, 2013 to 20th December, 2013, and Statements of Account No.2001754610 with First Bank Plc for the period 7th January, 2013 to 28th February, 2013, transferred amounts totalling N 17,158,883,034.69 billion to some persons and companies from these accounts.
“However, payment vouchers relating to the transfers together with their supporting documents were not provided for audit. Consequently, the purpose(s) for the transfers could not be authenticated.
“These are in violation of Financial rule 601 which states that “All payment entries in the cashbook/accounts shall be vouched for on one of the prescribed treasury forms. Vouchers shall be made out in favour of the person or persons to whom the money is actually due.
“Under no circumstances shall a cheque be raised, or cash paid for services for which a voucher has not been raised”.
Responding to the senate committee on Public accounts, the incumbent managing director of the NSITF said,
“The container the said documents were kept by past management has not only been beaten by rains over the years but even possibly being eaten up by termites.
“As directed by this committee, I told the past management officers the need for them to help us out in answering this query with necessary documents which have not been made available for us.”
The Senate committee on Public accounts, chaired by Senator Mathew Urhoghide (PDP Edo South), visibly angered by the response from the NSITF said,
“This committee has given you people more than enough time to respond to queries slammed on NSITF in the 2018 Audit report by the office of Auditor General of the Federation.
“The queries are 50 in number ranging from one misappropriation to the other in billions of Naira. The one on N17.158billion multiple transfers carried out in 2013 has not been answered at all, not to talk of N5.5billion allegedly diverted into a commercial bank account without approval, N2.2billion unauthorized Investment without adequate records etc.
“These are completely unacceptable and the committee will make sure that these queries are sustained if required evidential documents on monies spent or misappropriated, are not provided.”
Catch-up
The senate committee on Public accounts chaired by Sen. Mathew Urhoghide, has since 2018 been probing the NSITF. Recall the NSITF is supposed to be a social security network for Nigerian workers.
However, social security has not been the experience of many Nigerians with the NSITF. The investigation came as a result of irregularities in the audit carried out by the office of the Auditor general of the Federation. The auditor covered periods dating back to 2013, as the over N17 bn unaccounted
Takeaway
For the umpteenth time, Nigerians watch in a state of shock as they are again told stories of how animals and insects made away with national treasure.
We have heard of how snake(s) swallowed monies belonging to JAMB, we heard of how rodents stopped our president from resuming to his office. Now it’s termites eating vouchers.
How can this be true in office that without doubt have a budget for cleaning and fumigations. Wait didn’t it occur to any of the admin staff to scan the documents? Are there no soft copies?
Did the termites eat the document with vengeance that nothing can be traced? Again, Clariform is forced to ask for a logical conclusion to this probe.
