A total sum of N288,188,772,947.06 has been flagged in the operations of the Independent National Electoral Commission, INEC.
This was discovered in the recently released Auditor-General’s Annual Report on Noncompliance and Internal Control Weaknesses in MDAs for 2022.
The report discovered various audit irregularities relating to procurement processes, contractor payments, non-retirement of advances, and the commission’s failure to remit required deductions between 2018 and 2019 while Mahmood Yakubu was chairman.
According to one audit observation, the Auditor-General found that N5,312,238,499.39 was paid for the provision of Smart Card Readers for the 2019 general elections using a restricted procurement technique without prior approval from the Bureau of Public Procurement.
The Federal Executive Council did not approve the deal, even though it exceeded the Tender Board’s approval criteria.
Instead, presidential clearance was required under Section 15(2) of the Public Procurement Act, which the audit pointed out did not apply to the purchase of smart card readers.
Additional payments, such as mobilization fees and subsequent disbursements, were allegedly issued without proper documentation or proof 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 vie a letter with Ref. No. PRES/122/INEC/2 of 21 June, 2018.”
INEC leveraged the mobilization 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% mobilization 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 guarantees 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 stated that the management’s response was not satisfactory.
The audit also raised concerns about N4,505,220,044.06, which was paid as a 35% contract payment to six contractors without documentary evidence of supply, as well as the use of conditional Advance Payment Guarantees in violation of laws.
The necessary procurement records and contractor eligibility documentation were also not made available for audit scrutiny.
Another issue involves N331,228,070.04 given to contractors under questionable conditions, with audit findings suggesting anomalies in supporting papers, including supplies and payments allegedly made prior to contract awards.
The audit also indicated that payments of N235,799,616,436.77 were issued to contractors without the necessary deduction of 1% stamp duty, equivalent to N2,193,484,804.06. The commission was accused of failing to deduct and refund the required charge without providing a reasonable explanation.
Furthermore, N630,625,319.80 in non-personal advances to INEC officials remained unretired as of the audit date, and several officers apparently got repeated advances without retiring earlier ones.
The audit also highlighted contracts for N41,312,066,801.00 for the production of ballot papers and result sheets, citing a lack of evidence demonstrating that the vendors satisfied eligibility standards or had appropriate experience.
The contracts were also reportedly awarded without the Federal Executive Council’s consent or a “No Objection” from the BPP.
Another finding concerned the provision of four Toyota Land Cruiser cars to the Commission for N297,777,776.00, with the audit noting that the contract total surpassed current market pricing at the time of procurement.
INEC said that due process was followed in its procurements and payments, citing presidential clearances and the importance of election-related activities. However, the Auditor-General deemed several of the responses inadequate and ruled that the audit results would be valid until the recommendations were executed.
The study recommended that the INEC Chairman account to the National Assembly’s Public Accounts Committees for the disputed monies, collect any irregular payments, and refund 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.
