Senate mandates FRC to refund N94m

The Senate on Wednesday, March 24, mandated the Financial Reporting Council of Nigeria to refund the sum of N66 million expended by the agency for a two-year unused accomodation.

This mandate was issued by the Public Accounts Committee headed by Senator Mathew Urhoghide.

Urhoghide also faulted the agency’s use of 64 vouchers to allegedly divert N28 million.

Accordingly, the Senate Committee scrutinised the reports of the Auditor General for the Federation between 2015 to 2018.

The AuGF had queried the FRC for investing N66m on accommodation it never occupied.

The AuGF query read, “It was observed that, on 21/11/16 the sum of N42m was paid as rent to Japaul Oil and Maritime Services for an office space at Japaul Building. N23.4m was paid to Sola Oluseyi & Co, as legal and agency fee for the office space, making a total of N66m for two years ending 1/1/2019.

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“The Council is yet to move into the building, 20 months running with 4 months to its expiration. (as of 2019).

“This anomaly was due to the failure of the Executive Secretary (of the FRC during the period) to exercise due diligence in the application of public funds by ensuring that value is received for money expended.

“Huge sum of money was paid for rent by the Council, but failed to occupy the building, this amounts to waste of government resources.”

However, the FRC in its written response claimed that it was carrying out repairs and partitioning of the building while the rent was running.

“Management’s response was that, upon the acquisition of the office accommodation at the
Japaul House, there was need to give the property a face-lift including partitioning befitting of an office.

“The Landlord was not willing to renew the tenancy agreement after the expiration of the current agreement.

“The Management further remarked that, the Council is taking steps to utilize the building and secure a further lease from the Landlord,” the FRC explained.

The Chairman of the Committee however ordered a former Executive Secretary of the FRC, Jim Obazee, to return a total of N94m spent under his watch at the agency, to the Federation Account.

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