Audit observed that:
i. The sum of 169,708,000.00 (One hundred and sixty-nine million, seven hundred and eight thousand naira) was paid to a contractor on 19th July, 2018, for conducting ammunition production training,
ii. 5% Withholding Tax (WHT) amounting to 8,485,400.00 (Eight million, four hundred and eighty-five thousand, four hundred naira) was charged instead of 10% on consultancy services, which would have amounted to 16,970,800.00 (Sixteen million, nine hundred and seventy thousand, eight hundred naira) as stipulated by law.
iii. The wrong application of WHT rate led to under deduction of WHT of 8,485,400.00 (Eight million, four hundred and eighty-five thousand, four hundred naira).
iv. Letter of award and Legal agreement binding the contractor and DICON were not attached to the payment voucher,
v. Tenders Board minutes of meeting were not produced for audit, and
vi. Payment was made to the contractor before the execution of the job contrary to section 35(2) of the Public Procurement Act 2007.
The Director-General is requested to:
i. Furnish reasons why wrong WHT rate was applied to payment to contractors.
ii. Recover the sum of 8,485,400.00 from the affected contractor and remit same to the relevant tax authorities.
iii. Forward evidence of remittance to the Public Accounts Committees of the National Assembly, and
iv. Otherwise, apply sanctions relating to failure to provide for VAT and WHT and failure to collect and account for Government Revenue specified in paragraphs 234(ii) and 3112 of the Financial Regulations respectively.
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