A total sum of N288,188,772,947.06 has been flagged in the operations of the Independent National Electoral Commission (INEC).

This was revealed by the newly-released Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses in MDAs for the year 2022.

The report detailed multiple audit issues relating to procurement processes, payments to contractors, non-retirement of advances, and failure to remit statutory deductions by the commission between 2018 and 2019 under Mahmood Yakubu as chairman.

Under one audit observation, the Auditor-General reported that N5,312,238,499.39 was paid for the supply of Smart Card Readers for the 2019 general elections through a restricted procurement method without prior approval from the Bureau of Public Procurement.

The contract, which exceeded the approval threshold of the Tender Board, was not approved by the Federal Executive Council. Instead, presidential approval was obtained under Section 15(2) of the Public Procurement Act, which the audit noted did not apply to the procurement of smart card readers.

Additional payments, including mobilisation fees and further disbursements were reportedly made without adequate documentation or evidence of supply.

Reacting, INEC management said, “The observation is noted. However, due process was strictly adhered to in the award of the contract. Approval was obtained from the Presidency, vide a letter with Ref. No. PRES/122/INEC/2 of 21 June, 2018.

The commission leveraged the mobilisation to encourage and ensure that the contractor meets the deadline for the production and supply of the SCR.

“Enhancement was already in the process before the payment of 15% mobilisation because of the urgency of the contract towards the 2019 general election. All documents required are in the file for the project. Approval was granted by the Presidency via a letter with Ref.No.SH/COS/28/A/394 of 30th July 2018. See the Attached for the 15% and 25% Advance Payment Guarantee as Law requires. 15% was first paid before the 25% payment, and it was due to the urgency of the contract and Approval from the Presidency for the procurement of Components for the Smart Card Reader.”

However, the auditor said the management’s response was not satisfactory.

The audit also queried N4,505,220,044.06 paid as 35 per cent contract sums to six contractors without documentary evidence of supplies, alongside the use of conditional Advance Payment Guarantees contrary to regulations. Required procurement records and contractors’ eligibility documents were also not made available for audit review.

Another issue involved N331,228,070.04 paid to contractors under doubtful circumstances, with audit findings indicating inconsistencies in supporting documents, including supplies and payments reportedly made before contract awards.

The report further revealed that payments totalling N235,799,616,436.77 were made to contractors without the mandatory deduction of one per cent stamp duty, amounting to N2,193,484,804.06. The commission was said to have provided no justifiable reason for the failure to deduct and remit the statutory charge.

In addition, N630,625,319.80 granted as non-personal advances to INEC officials remained unretired as at the time of audit, while some officers reportedly received multiple advances without retiring previous ones.

The audit also flagged contracts valued at N41,312,066,801.00 for the printing of ballot papers and result sheets, citing the absence of evidence showing that contractors met eligibility requirements or possessed relevant experience.

The contracts were also reportedly awarded without Federal Executive Council approval or a “No Objection” from the BPP.

Another finding involved the supply of four Toyota Land Cruiser vehicles to the Commission at N297,777,776.00, with the audit noting that the contract sum exceeded prevailing market prices at the time of purchase.

In its responses, INEC maintained that due process was followed in its procurements and payments, citing presidential approvals and urgency of election-related activities. However, the Auditor-General described several of the responses as unsatisfactory and stated that the audit findings would remain valid until recommendations were implemented.

The report recommended that the INEC Chairman account to the Public Accounts Committees of the National Assembly for the queried sums, recover irregular payments, and remit them to the treasury.

“Otherwise, sanctions relating to irregular payment, and failure to manage public funds effectively prescribed in paragraphs 3106, and 3115 of the Financial Regulations (2009) respectively, should apply,” the report warned. (The PUNCH)

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