The Fiscal Responsibility Commission has dragged the Securities and Exchange Commission (SEC) before the House of Representatives Public Accounts Committee over the Non-remittance of N45 billion operating surplus between 2007 to 2021.
The constituted committee chaired by Rep. Bamidele Salam at its hearing on 15th April 2024, charged both to reconcile within 21 days.
Speaking before the committee, Fiscal Responsibility Commission representative, Mr. Bello Aliyu said, “We have written them on the 20th December 2022 intimating them of our computed liability for them for the period 2007 to 2021 and the said liability amounted to N45,013,010,229 only and up till now we have not received any response from them, so as far as we are concern they have accepted the liability and that’s is what we have recorded against there commission sir.
This was because between this period we have not had any reconciliation with them.
According to sections 21 and 22 of the Fiscal Responsibility Act; notwithstanding the provision of any law governing the corporation, each corporation should establish a general reserve fund and should allocate there at the end of each financial year 1/5 of its operating surplus for the year.
The balance of the operating surplus should be paid into the consolidated revenue fund of the federal government nothing less than one month following the statutory deadline for publishing each corporation account.”
Reacting to the allegation, The Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda said, “We have not had any reconciliation.
The commission reconciles operating surplus with the office of the accountant general of the Federation and not with the fiscal responsibility commission.
And I think if the FRC had actually done a little more work they would have really seen from the OAGF all the effort that we have made to reconcile as the figure as the operating surplus from 2007 when the fiscal responsibility came into being and until 2021.”
According to the Chairman of the Committee, “There is no doubting the fact that the act of the Parliament empowers FRC to ensure that all agencies and government corporations listed in the act behave responsibly concerning their remittances and management of their revenue and I doubt if the SEC will contend that.
I don’t know why SEC is more comfortable with the Accountant General office and I don’t want to insulate anything.
But I want to assure the Fiscal Responsibility Commission that from now on all that will stop because we are going to ensure that all agencies by this hearing make FRC the major body of government that should ensure compliance with the provision of the act, the accountant general is the treasurer of government, he(s) keeping the money of government. It’s after you have done the needful with the fiscal responsibility commission that you transmit what you have done to the accountant general for her verification, that’s the standard practice and we are going to ensure that is enforced going forward.”
The Committee unanimously gave the Fiscal Responsibility Commission and Security and Exchange Commission 21 days for reconciliation.
