Nigeria’s Supreme Court spent over 12 Billion in breach of financial regulations for five years, the latest audit report of the Office of the Auditor-General of the Federation (OAuGF) has revealed.
The funds should be recovered and remitted to the treasury by the Chief Registrar of the court, the audit report, released in December 2023, recommended.
The report essentially covers the expenditures and finances of ministries, departments and agencies of the federal government for the 2020 fiscal year, but for the Supreme Court, it stretches forward and backwards to touch on some major payments and transactions executed from 2017 to 2021.
The current Chief Registrar of the Supreme Court, Hajo Sarki-Bello, assumed office in 2021, a year after the alleged infractions took place under Hadizatu Uwani-Mustapha.
Mrs Uwani-Mustapha, who was the Supreme Court’s chief registrar for most of the period when the flagged transactions took place, retired from the court as Chief Registrar in June 2021.
Walter Onnoghen, who was the Chief Justice of Nigeria (CJN) between 2016 and 2019, and his successor Tanko Muhammad, who was CJN between 2019 and 2022, oversaw the Supreme Court during the period of the controversial payments and transactions spotlighted by Nigeria’s auditor-general.
Mr Muhammad abruptly resigned from office, citing health issues in June 2022, amid a raging, unprecedented protest from his colleague justices of the Supreme Court about his handling of the finances and other affairs of the court at the time.
Highlights of the issues raised concerning the transactions totalling 12.335 billion in the 2020 audit report include – payments for contracts without budgetary provisions, diversion of government assets for private use, inflation of contract price, irregular award of contracts and overpayment to contractors, among others.
In one of the key violations of extant regulations, the report revealed that the Supreme Court appropriated and received the sum of 645 million for the procurement of broadcast equipment in 2017.
However, the court failed to produce “relevant documents such as vouchers, vote book, store receipt vouchers, store ledger and invoices” for audit.
Following the silence of the court to provide any explanation for its failure to tender the documents, the audit report attributed the “anomalies” to “weaknesses in the internal control system at the Supreme Court.”
Also, the report said, contrary to constitutional provisions and financial regulations, the court funnelled over 10.223 Billion through 124 vouchers to “various beneficiaries” in 2020.
But the payment vouchers and other supporting documents were not presented for audit, the report said.
Citing a case of irregular award of contract and overpayment to a contractor, the report requested the Chief Registrar to justify the sum of 826.75 million to the National Assembly.
In addition, it asked the Supreme Court’s chief registrar, who is the accounting officer of the court to recover the 826.75 million and remit it to the national coffers, as failure to do so would attract statutory sanctions in the Financial Regulations (2009).
Narrating the circumstances around the issue of overpayment to a contractor, the report revealed that a contract was awarded for the construction of an access road to Justices’ quarters (Yellow Houses) in Abuja in April 2021, the twilight of Ms Uwani-Mustapha’s exit from the Supreme Court.
The contract was awarded at the cost of 990 million (N990,494,207.80 in total).
The level of work done was valued at 50 per cent, which should have amounted to 495 million (N495,247,103.90).
But “the contractor was paid 827 million (N827,075,713.04 in total) being 83.5 per cent of the contract sum resulting in an overpayment of 331,815,559.61,” the report said, adding that the court offered no explanation for the violation.
In another instance, the court awarded contracts totalling 371.5 million (N371,541,636 in total) for supplies, works and services in 2017 without budgetary provisions.
However, payments amounting to 112 million (N112,117,106.37) were made in 2018, 2019 and 2020 “with no evidence of appropriation.”
The report also uncovered the sale of four landed properties belonging to the court in Lagos.
The plots of land located at 72 Alexander Avenue, 2 Club Road, 20 Cameron Road and 15 Ikoyi Crescent, all in Abuja, were “disposed of without following due process.”
It added that “evidence of the disposal such as authorisation, report from board of survey, engagement of auctioneers, advertisement, proceeds from disposal, among others were not produced for audit.”
In a case of illegal possession of government property, the report said the Supreme Court paid over 3 Billion for 45 vehicles between the 2017 and 2021 fiscal years.
Giving details of the vehicle purchase, the report disclosed that 18 of the 45 vehicles costing over 515 million were attached to seven justices of the Supreme Court for official use.
But after the Justices retired from the court, the official cars attached to them were not returned for inspection, a scenario the report described as “diversion of government assets for private use.”
In the myriad of violations detailed by the audit report, the court management responded to the issue of Justices’ retirement with official vehicles attached to them.
“The vehicles are part of Supreme Court justices’ entitlements,” the court responded in the report.
But it kept mum on other egregious violations in the report.
With the Supreme Court’s silence over the infractions highlighted in the latest audit report, Nigeria’s auditor-general’s office requested the chief registrar to account, recover and remit the funds into the federation account.
It specifically asked the chief registrar to show proof of compliance with the recommendations to the Public Accounts Committee of the National Assembly.
But this is not the first time the office of the Auditor-General of the Federation has indicted ministries, departments and agencies of government over serious violations of financial regulations but the recommendations of the audit reports are never implemented by the National Assembly, or taken up by Nigeria’s law enforcement agencies, a development that has emboldened public institutions to perpetrate grand corruption in the form of diversion of public funds.
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