House Probes N2tn Losses in FG Assets

James Emejo in Abuja
The House of Representatives on Tuesday passed a resolution mandating all its Standing Committees to verify assets from contracts awarded from 2010 to date by federal ministries, departments and agencies (MDAs).

The lawmakers observed that MDAs currently do not account for their assets or maintain adequate book keeping/records of assets as required by financial regulations.

The lower House further held that often times, in proposing award of contracts for capital, consultancy and supplies, the agencies make provisions for purchase of assets including project vehicles, computers, earth moving equipment, among others in their bills of quantity.

But, most assets are usually never purchased or accounted for, and in most cases, the costs are deducted from final payment to contractors without any of the assets being traced.
The green chamber further held that the development had led to over N2 trillion losses to the federal government within the last five years.

The House resolution followed a motion moved by Hon. Kehinde Agboola (Ekiti, PDP)  and seven others on the need for verification of moveable assets from contracts awarded by MDAs.

Lawmakers were concerned over the practice of disposing assets without due process and the failure to pay the revenues amounting to over N50 billion accruing from them into government coffers.
They argued that if nothing was done to check these nefarious activities, corruption would remain endemic in the public sector while revenue leakages will persist.