Mohammed Shosanya
The House of Representatives Committee on Public Accounts,has initiated the first phase of its oversight function to scrutinize the spending by agencies in the Southwest.
The investigation began with an oversight hearing on Wednesday, August 21st, 2024, and will continue until Friday, August 23rd, 2024, in Lagos State.
In his opening remarks,its chairman, Rep.Bamidele Salam emphasized that the agencies must demonstrate clear value for any funds they have received. He warned that any violations would not be tolerated and cautioned that appropriate sanctions, in accordance with the law, would be imposed on defaulters.
During the hearing, the committee received presentations from the Federal Neuro-Psychiatric Hospital Yaba and the Lagos University Teaching Hospital.
The Chief Medical Director (CMD) of the Neuro-Psychiatric Hospital Yaba, Dr. Olugbenga Owoeye, was probed on various financial and regulatory infractions from the committee,
The committee during the question and answer session queried Owoeye over the recurring non-remittance of the Internally Generated Revenue (IGR).
He was also questioned for engaging in extra-budgetary spending and failing to adhere to financial regulations, thereby violating multiple sections of these guidelines.
The committee also expressed concern over the hospital’s employment practices, particularly its failure to uphold the federal character principle, which mandates the equitable distribution of job opportunities across the country’s geo-political zones.
The committee also demanded that the hospital account for the contract sums totaling N422.3 million, as well as the expenditure of N50.3 million on staff training.
The explanations provided by the Chief Medical Director (CMD) were deemed insufficient by the committee. Consequently, the committee requested comprehensive records of all paid-for, completed, and ongoing contracts.
“The Chief Medical Director (CMD) highlighted the urgent need for support to enable the 500-bed facility, established in 1907, to effectively fulfill its mandate.
Besides,the Lagos University Teaching Hospital (LUTH), represented by its Medical Director, Prof. Lanre Adeyemo, emphasized the significant challenges hindering its operations. Chief among these challenges, he noted, is the persistent issue of inadequate power supply, which continues to severely impact the hospital’s efficiency.”
He revealed that at one point, the cost of powering the hospital exceeded N181 million monthly until a federal government intervention provided 300 solar panels.
He also faced intense scrutiny over several financial issues, including the non-remittance of internally generated revenue (IGR), discrepancies in Remita payments totaling over N2 billion, and unauthorized extra-budgetary spending amounting to N150.3 billion during the period under review.
He was also questioned about the untidy work by the LUTH Tender Board, the contravention of the circular prohibiting the payment of staff’s professional membership fees, among other related issues.
His justifications for the issues under investigation failed to convince the committee, which then requested the necessary evidence to support approvals, spending, and adherence to financial regulations.
In its ruling on the matters, the committee concluded that the excuses provided to explain the contraventions were unconvincing and unacceptable.
The committee stated that these actions amounted to gross violations of extant laws.
Both hospitals expressed concerns over personnel losses due to the “japa syndrome” and the untimely release of budgetary allocations. They appealed to the committee for intervention in addressing these challenges to enable them to meet public expectations.
“Other Ministries, Departments, and Agencies (MDAs) scheduled to appear before the committee include the Nigerian Institute for Medical Research (NIMR), the National Orthopaedic Hospital, Igbobi, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Shippers Council (NSC), the Nigerian Ports Authority (NPA), the Nigeria Railway Corporation (NRC), and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), among others.”
Chairman of the House of Representatives Committee on Public Accounts, Hon. Bamidele Salam, has vowed to hold all government agencies accountable to strict adherence to budgetary appropriations.
Salam emphasized that the Committee’s mission is not to engage in witch-hunting, but rather to ensure that Nigerians receive value for every naira spent by Ministries, Departments, and Agencies (MDAs).
