Audit observed from the review of TSA statement and other books of accounts that:
i. The Centre failed to deduct taxes amounting to N477,868,009.18 (Four hundred and seventy seven million, eight hundred and sixty eight thousand and nine naira eighteen kobo) from payment made for contract and supplies between 2016-2019.
ii. There were no payment vouchers raised before these payments were made.
iii. The payments could not also be traced to the cash book.
iv. Repeated request was made for the centre to provide these vouchers but were not provided to the audit team as at the time of the audit in February 2021.
v. Since vouchers were not raised at all, there was nothing to indicate that withholding taxes were deducted and remitted, and
i. This figure is the direct charge of 5% VAT and WHT on the amounts described as other payments and 10% WHT charge on payments described as services, as the actual goods supplied and services rendered could not be ascertained.
1. Provide reasons why statutory VAT and WHT were not deducted from payments to contractors.
2. Recover the sum of N477,868,009.18 and remit same to the relevant tax authorities.
3. Forward evidence of remittance to the Public Accounts Committees of the National Assembly, and
4. Otherwise, apply sanctions relating to failure to collect and account for Government revenue in Section 3112 of the Financial Regulations.
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