MDA

Nigeria Social Insurance Trust Fund (NSITF) Abuja

Project Location/State

N/A State

Award Year

2018

Contract Sum

₦₦0.00

Amount Paid

₦₦5,500,000,000.00

Unaccounted

₦₦5,500,000,000.00

Context/Observation

Audit of the Fund’s bank statements for the period under review revealed that contributions received from Federal Government in 2014, amounting to N5,500,000,000.00 were diverted to a Zenith Bank account number 1013938003, instead of the Skye Bank account number 1790122304 into which other contributions were paid, without providing any authority or any form of explanation for such diversion. Audit further observed the following:
A. The bank account was opened without the approval of the Accountant-General of the Federation, as no such approval was presented for audit.
B. The new account was opened specifically for this purpose as seen in the bank statements where a first tranche of N2,750,000,000.00 was used in opening the account on the 29th of August 2014.
C. Transfers were further made from the account to third parties, individuals and other NSITF accounts without payment vouchers and other supporting documents to authenticate such transfers.
This puts doubt in the genuineness of all the transactions in the bank account. Consequently, audit cannot accept such transactions without necessary evidence as legitimate charges against public funds.

Contractor

N/A

Beneficial Ownership Information

N/A

Legislative Recommendation

The Managing Director is required to:
i. Explain why Federal Government contribution in 2014 was diverted to a different account.
ii. Provide the authority from the Accountant-General of the Federation for opening of the account.
iii. Provide the payment vouchers and other documents supporting transfers from the account to other beneficiaries.
iv. Otherwise, the sum of N5,500,000,000.00 and all accrued interest should be paid back to the CRF. Also, the bank account should be closed immediately. Sanctions stated in FR 3106 and 3115 should apply.

Executive Action

N/A

Progress Report

N/A

Data Source

2018 Audit Report

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