SHA’ABAN 18, 1429 A.H.
THURSDAY AUGUST 21 2008
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Spending in excess: Kano govt officials clear air
By USMAN GWADABE
SOME accounting officers of Kano state establishments yesterday appeared before the state Assembly over the report of the audited account of the state fiscal year 2008, adopted by the Assembly, last week.
According to the findings of the Public Account Committee, (PAC) of the House, the ministry of land and physical planning, education and that of environment, spent in excess the sum of N510,925, N759,550 and N569,910 respectively, while over N2 billion invested in the state Investment and Property (KSIP) is not yielding fruitful result.
Speaker Abdul-Aziz Garba Gafasa stressed that the defence by the government officials would provide public with the reality of the audited account as against the report of Daily Trust which inflated the figures to the sum of N510.7 million, N759.5 million and N569.9 million instead of N510,729, N769,550 and N569,910 respectively, stressing that the N2.3 billion investment of KSIP was not embezzled.
He thanked the government officials for provid
ing the House with the relevant documents which would assist the House Standing Committee on Public Account (PAC) to rectify the grey areas.
Defending KSIP, Acting Managing Director, Alhaji Abdul-Rahman Jibrin Madigawa disclosed that N16 billion invested in the company by the state government 30 years back is what translated to over N2.3 billion quoted and unquoted shares as against the expectation of the Office of the Auditor-General which said the state government invested N2.3 billion on shares, but are not yielding dividends.
Madigawa further explained that N189 million profit of the KSIP was reinvested in the company, while N22 million out of the amount was remitted to the state government treasury as a dividend.
On Ja’iz Bank, the acting managing director revealed that apart from the initial N16 billion invested in the company, only the present administration of Governor Ibrahim Shekarau reinvested N450 million in KSIP which was used for the purchase of the bank’s shares with a view to yielding more profit for the company, pointing out that as a result of non-accreditation by the Central Bank of Nigeria (CBN), the bank could not operate, saying however, some foreign investors have indicated interest in the bank.
On the N510,725 of the ministry of land and physical planning, the permanent secretary, Alhaji Salisu Alhassan revealed that at the time of PAC’s, compilation of the report, the commissioner and the then permanent secretary were sick, but when the ministry sent a representative, the PAC rejected him.
Alhassan further explained that the supportive document of the said excess money spent has now been re-presented to the PAC for authentication.
On this, PAC chairman, Hon. Ado Muhammad Hotoro (ANPP-Nassarawa) confirmed that the committee had rejected the representative because they needed somebody like a commissioner or a permanent secretary for the exercise.
Others who asked the representative of ministry of land and physical planning included Hon. Ibrahim Dawo (PDP-Albasu) and Hon. Aminu Sani (ANPP-Kumbotso), Chairman House Committee on Land.
Permanent secretary ministry of education, Dr. Tajuddeen Gambo explained that the Office of the Auditor-General did not include the 25 per cent VAT proceeds and others while the office only took the lowest market survey of the materials purchased, explaining that the ministry had purchased the best quality products, noting that this is why the contract worth N2 million was awarded.
Gambo responded to the question asked by Hon. Hussaini Isa Zakirai (ANPP-Gabasawa) on whether they have presented a supportive document to the PAC for which he answered in the affirmative.
On the ministry of environment, the permanent secretary, Alhaji Muktar Usman said the sum of N569,910 was used to purchase 10 items which their supportive receipts have now been presented to the PAC for scrutiny.
Commenting on the defence, Hon. Sani Lawan Burji (PDP-Doguwa) stated that the exercise is part of the lawmakers’ constitutional duties to investigate how public funds are spent.
Speaker Gafasa then directed the on Public AccountCommittee to present to the House its findings on the documents presented by the establishments next week.
