I.The sum of N420,390,726.47 being second tranche of a total of N1,984,471,019.24 was paid to an insurance broker vide payment voucher No CHQ/ACCT/EXP/2017/PV/903 of 23 March, 2017 as “settlement of claims/payables under the asset insurance policy for the period Jan to Dec, 2016”;
II.The terms and conditions for the successful delivery of the contract, Reference to Article 1 (definition), Article 4 (Scope of work) and Article 5 (Obligation of the Nigeria Customs Service) failed to reflect the details of Asset Insured on which the payment of N420,390,726.47 was made;
III.The premium of N420,390,726.47 was paid in arrears (i.e., 23 March, 2017) for “settlement of claims/payables under the asset insurance policy for the period Jan to Dec, 2016” contrary to the provision of Insurance Act 2003 that states no premium no cover. This is tantamount to payment for services not rendered as the Service had no Insurance Cover because the premium was not paid;
IV.Efforts to obtain details of assets insured for audit purpose yielded no result.
The Comptroller-General NCS is requested to:
I.Recover and refund to the Treasury, the sum of N420,390,726.47 being payment to insurance brokers for non existent insurance policy, forwarding evidence of payment to the Public Accounts Committees of the National Assembly
II.Otherwise, sanctions relating to irregular or wrong payment and payment for job not executed in paragraphs 3106 and 3104(iii) of the Financial Regulations respectively should apply.
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