In a bid to ensure greater transparency and accountability in the public sector, the National Assembly is seeking powers to appoint auditors that will audit the Office of the Auditor-General for the Federation (OAGF).
Consequently, the Senate is proposing a Bill for an Act for the Establishment of the Office of the Auditor-General for the Federation, Audit Service Commission, Additional Powers and Functions of Auditor-General and for Matters Connected Therewith 2011, which is awaiting third reading and passage in the Senate.
Ahmad Lawan, Chairman of the Senate Committee on Public Accounts and nine others, including Olubunmi Adetunmbi, Abdul Ningi and Umaru Dahiru are sponsors of the Bill which seeks, among others, to create an enabling environment for real financial and administrative autonomy for the OAuGF.
Prompt News Online, gathered that the Committee working on the bill has recommended that the OAuGF be on first line charge on the Consolidated Revenue of the Federation (CFR), in order to assert its full financial independence.
However, the recommendation is pending until after the relevant proposed constitution amendments sail through before the establishment act can be pushed through.
Besides, the Bill is out to help management meet up with the enormous task of the OAuGF by proposing fifteen departments and two Deputy Auditors-General for the Federation.
The Bill also seeks to establish an Audit Service Commission that will function as a governing body for the OAuGF and will be specifically saddled with the responsibilities of appointing the two Deputy Auditors-General from among the Directors of the Office and handle all matters of recruitment, promotion and discipline of members of staff of the Office and other staff members, including pensions and retirement issues.
The Bill proposes that the Commission shall be composed of the Auditor-General who shall be the chairman; six other commissioners, one from each geo-political zone who shall be professional accountants from any recognized accounting body with not less than 15 years standing as a member of such body shall be appointed by the President subject to confirmation by the Senate; a Permanent Secretary, office of the Head of Civil Service of the Federation; and three former Auditors-General.
Section 52(1) of the Bill states: “The National Assembly shall appoint an Independent Auditor to audit the accounts of the Commission for each financial year” while Section 53 (1) provides: “The Commission shall prepare its statement of accounts and a report of its performance in the previous year, and submit to the National Assembly not later than three months after the end of the financial year.”
According to the Bill in Section 53 (2), the independent auditors appointed by the National Assembly, in pursuance of this Section and Section 52 of this Act shall submit their audited accounts to the National Assembly.
The Bill, in addition, seeks to empower the Auditor-General to undertake performance audits of the operations of any Ministries, Departments and Agencies (MDAs) or institutions for which appropriations are made.
Section 21(1) provides inter alia: “The Auditor-General shall, for the purpose of establishing the economy, efficiency and effectiveness of the operations of any MDA(s) or institution(s) in respect of which appropriation, or other accounts are required to be prepared under any Act of the National Assembly or the Constitution of the Federal republic of Nigeria 1999 (as amended), enquire into, examine, investigate or undertake performance audits and report as he considers necessary on:
The expenditure of public moneys and the use of public resources by MDAs and all public institutions;
The conduct of, and performance of their functions by-accounting officers, heads of MDAs and public institutions;
The extent to which a public entity including ministries, statutory corporations, parastatals, commissions, authorities, agencies, persons and bodies established by an Act of the National Assembly, is carrying out its activities economically, efficiently and effectively;
Any act of omission of a public entity to determine whether waste has resulted or may have resulted or may result;
Any act showing or appearing to show a lack of probity or financial prudence by a public entity or any of its members, office holders and employees; and
Any other activity undertaken by the MDAs and all public institutions referred to in this Section.
The Auditor-General, according to the Bill, may inquire into, examine, investigate and report, as he considers necessary, on the expenditure of public monies disbursed, advanced or guaranteed to a private organization or body in which Government has no controlling interest.
The proposed law also prescribes the manner in which the Office of Auditor-General can report fraud to the National Assembly.
Section 19 (1) states: “When, in the course of conducting a financial, compliance or performance audit or any merging audit, staff from the Office of the Auditor-General, or auditors appointed under this Act, discover what they believe to be criminal, fraudulent or corruption acts, they shall immediately notify the Auditor-General.
It further provides in subsection 2 thus: “If the Auditor-General is satisfied that sufficient evidence exists to warrant special investigation, he shall carry out detailed investigation and make a special report on his findings to the National Assembly.”
