(NAFDAC), has been indicted over non-remittance of
N1.439 billion operational surplus to the Federation
Account.
The development, according to the Fiscal
Responsibility Commission (FRC), contradicts the
Fiscal Responsibility Act of 2007, Section 2 of which
makes it mandatory for government agencies to remit
certain percentage of their operational surplus to the
Federation Account.
The Act states that ‘’Notwithstanding the provisions of
any written law governing the corporation, each
corporation shall establish a general reserve fund and
shall allocate thereto at the end of each financial year,
one-fifth of its operating surplus for the year, the
balance of the operating surplus shall be paid into the
consolidated Revenue Fund of the Federal Government
not later than one month following the statutory
deadline for publishing each corporation’s accounts’’.
Head of Policy & Standard of FRC, Mohammed Ola Ti
jani, said that following the review of NAFDAC’s
account it was discovered that the agency has a
deficit of N1.439 billion.
‘‘We have reviewed your accounts from 2007 – 2009
and has discovered that you have to pay N1.439
billion to the Federation Accounts as demanded by
law’’ he said.
According to Tijani, a close look at NAFDAC’s ac
count shows that it generated N491,252 million
surplus in 2007, N857,132 million in 2008 and
N607,680 million in 2009 but paid N64, 048 million to
the federation account in 2007, N93 million in 2008
and N105,000 million in 2009. The account books, he
said, also indicates that NAFDAC 2007outstanding
stood at N427,204 million, N763,565 in 2008 and
N502,680 millions in 2009. Acting Chairman of FRC,
Mr. Victor Chinemerem Muruako, said that NAFDAC
would be sanctioned if it delays the payments further.
‘‘I would have appreciated it if the DG of NAFDAC
himself was here. I will only appeal to your
management to hurriedly pay this money to the
government’s purse, failing which, we will write dam
aging reports on your agency.”
The Federal Government, he said, needs this money to
build infrastructure and create employment for the
youths and “we will not relent on our efforts to assist
government recover all the monies out there?”
In his remarks, the representative of NAFDAC and
Director of Finance and Accounts, Mr. Ademola Mog
bojumi, said he will take the message back to the
Director-General, Dr. Paul Orhii for action.
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