Reps allege N3.2bn fraud in Labour Ministry

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  • Urge EFCC, ICPC to probe two former Permanent Secretaries
  • Ondo PDP, APC bicker over alleged padding of 2025 budget

The Public Accounts Committee of the House of Representatives on Monday urged the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to invite two former Permanent Secretaries in the Federal Ministry of Labour, Williams Alo and Yerima Tafa, for questioning over alleged financial mismanagement of N3.2bn while in office.

The committee chaired by Bamidele Salam, who represents Ede North/Ede South/Egbedore/Ejigbo Federal Constituency in Osun State, expressed concern over the persistent disregard for its summons by Ministries, Departments, and Agencies.

It decried the growing trend of government bodies refusing to honour invitations to respond to audit queries issued by the Auditor-General for the Federation.

According to Salam, the committee has written to the ministry seven times, yet none of the invitations was honoured.

He added that the ministry also failed to provide the relevant documents required to clear them of the 32 audit queries raised in the 2020 audit report.

Salam stated that although the Auditor-General made specific recommendations, the committee decided to give the ministry an opportunity to defend itself. However, the Minister has consistently refused to appear before the committee.

He added that Williams Alo and Yerima Tafa, who were the Permanent Secretaries when the infractions occurred, should be held accountable, as they were the ministry’s accounting officers at the time.

The committee also gave the current Permanent Secretary of the Ministry, Saliu Usman, 72 hours to appear before them to respond to the seven audit queries raised in the Auditor-General’s 2021 financial report or risk having the committee uphold the recommendations of the Auditor-General.

“Today, we expected to meet with the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, which has six major queries raised by the Office of the Auditor-General for the Federation. The Federal Ministry of Labour and Employment has seven major queries against it. The Federal Ministry of Women Affairs had five major queries, while the Federal Ministry of Transportation had five queries,” Salam said.

Speaking at the public hearing, Salam emphasised the need for Nigeria to plug revenue leakages and loopholes, stressing that an effective auditing system was crucial.

He said, “We have had several instances where civil society organisations and members of the public have criticised the National Assembly for not doing enough in terms of oversight and using our statutory powers to keep MDAs in check. These agencies must be accountable to ensure they deliver on the government’s intentions and justify the budget allocations they receive.

“The Federal Ministry of Labour and Employment has been invited seven times in the past five months, but on each occasion, it has ignored the summons. The ministry has also refused to provide documents to address the audit queries against it.

“The Auditor-General’s report flagged an unaccounted allocation of N351m to the Geneva Labour Desk, despite the desk already receiving an appropriation from the National Assembly.”

The People’s Democratic Party lawmaker also noted that the Ministry was queried for “The payment without evidence of execution of project amounting to N226m. There are also unretired cash advances amounting to N344m, and payment for consultancy service without execution of N7m and the abuse of cash advance policy and regulation to the tune of N238m.”

Others according to Salam included “Payment for non-existent job centres in three parts of the country for a total amount of N497m. There is also the payment for a non-executed contract in Kaduna for N144m and an unsubstantiated contract award for N67m, among others, totaling about N3.2bn.

The Permanent Secretaries of the Federal Ministries of Transportation, Women Affairs, and Humanitarian Services — Adeleye Ayodeji, Mariam Keshero, and Yakubu Adams Kofamata, respectively — were also given a 72-hour ultimatum to appear before the committee.

Ondo PDP, APC bicker over alleged padding of 2025 budget

In a related development, the Ondo State chapter of the PDP has called for the removal of the state Commissioner for Finance, Omowumi Isaac, over alleged padding of the 2025 budget.

Isaac and the Attorney General and Commissioner for Justice, Kayode Ajulo, are the only two commissioners remaining in the State Executive Council after Governor Lucky Aiyedatiwa recently dismissed others.

In a statement released on Monday, the state PDP Publicity Secretary, Kennedy Peretei, accused Isaac of abusing her office, citing irregularities in the 2025 Appropriation Bill.

“The Ondo State 2025 Appropriation Act contains some scandalous items in the office of the Commissioner for Finance that have been the subject of public agitation in the last two weeks. The Lucky Aiyedatiwa government has maintained such a deafening silence and complicity that tongues are wagging over whether there is more to it than meets the eye.

“The N11.5 billion security vote allocated to the Ministry of Finance in the 2025 approved budget has not been explained to the people of the state, despite public outcry. The provision of N250 million as an honorarium and sitting allowance in the Ministry of Finance is another padded item in the budget for the commissioner’s enjoyment and pleasure. Perhaps the most insensitive of the items is the procurement of one Toyota Prado SUV for the Commissioner for Finance at a princely sum of N230 million,” the statement read.

The PDP insisted that Isaac must be sacked immediately, stating, “In view of the above budgetary allocations, the People’s Democratic Party, Ondo State chapter, believes that Mrs. Omowumi Isaac, the Ondo State Commissioner for Finance, must be sacked immediately for criminally abusing her office. Her claim of being a UK-trained accountant falls flat if all she can do is fleece the people’s treasury—the supposed gatekeeper of our funds.”

The party further warned Aiyedatiwa that failure to dismiss the commissioner would prompt further action.

“If the governor fails to relieve the commissioner of her duties, having failed the people of the Sunshine State, steps will be taken to prove that what is at stake is the people’s funds,” the PDP stated.

The party also questioned the role of the Economic and Financial Crimes Commission in the matter, saying, “Whatever happened to the Economic and Financial Crimes Commission team that arrived in the state in the wake of the 2025 budget scandal is inexplicable. A government that presides over a huge infrastructural deficit, a totally collapsed healthcare system, and unacceptable falling educational standards can ill afford the financial recklessness of the commissioner for finance.”

However, the ruling All Progressives Congress has dismissed the PDP’s allegations, accusing the opposition party of lacking an understanding of the budgetary process.

“The All Progressives Congress, Ondo State chapter, categorically rejects the unfounded allegations made by the PDP regarding the integrity of Mrs. Omowunmi Isaac, the Commissioner for Finance. The assertions presented by the PDP are not only misleading but also demonstrate a troubling lack of understanding of the budgetary process and the responsibilities of government officials,” the party’s Director of Media and Publicity, Steve Otaloro, stated.

“It is essential to clarify that the preparation and presentation of the state budget is the sole responsibility of the Ministry of Budget and Planning. Mrs. Omowunmi Isaac, as the Commissioner for Finance, plays no role in the direct formulation of budgetary allocations, and any insinuation that she has padded the 2025 budget is entirely false. The APC stands firmly behind Mrs. Omowunmi, who has been a diligent and effective steward of the state’s finances, ensuring transparency and accountability,” he added.

Otaloro also defended the controversial budget items, stating, “The claims regarding specific budget items, including the N11.5 billion security vote and the N250 million allocated for honorarium and sitting allowances, require context that the PDP has chosen to ignore.

“These allocations are part of a comprehensive budgetary framework designed to enhance the security and welfare of our citizens. The details of the budget, including justifications for these allocations, are publicly available and can be reviewed by any interested party,” he said.

The APC urged the PDP to focus on factual discussions rather than “sensationalism.”