Part of funds on confiscated timber used for riot gears – Report
The report on Finance and Public Accounts Committee (FPAC) of the National Assembly has revealed that government revenue from the proceeds of confiscated smuggled timbers valued at D90,618,000.00 from Senegal have been recognised under the statement of deposit as third party funds.
Contrary to management’s response, the report noted that “part of the funds was used to procure some “riot equipment” and “vehicles” amounting to D58,669,927.79 and D49,999,999.75 was paid to the Government of the Republic of Senegal.”
However, it indicated that: “There is no evidence provided to show that proceeds from confiscated smuggled timbers are held in trust or on behalf of a third party.”
According to the report, auditors’ discussion with officials at Accountant General’s Department revealed that some deposit accounts were transit account in which third party funds were held. “As a result, the account balances should be transferred to relevant accounts at the year-end. There are still eight (8) deposit accounts with balances that are not transferred to the respective beneficiaries account at the year end.”
“The Auditors’ discussion with officials of the Accountant General’s Department and review of the statement of deposits in the financial statements revealed that 3 (three) deposit accounts with balances were dormant since 2014. There was no evidence provided to show that these accounts were closed, and their balances transferred to the Consolidated Fund,” it disclosed.
The report further noted from the review of the statement of deposit in the financial statement by the Auditors, revealed that 6 (six) revenue accounts were wrongly classified as third-party deposit accounts.
The FPAC recommended that the Accountant General should make effort to reverse the accounting treatment and transfer the funds to the appropriate revenue bank account.
It also recommended that the Accountant General should ensure that the balances in the said accounts are transferred to their respective beneficiary accounts at the year end.
“The dormant accounts should be closed, and the balances transferred to the Consolidated Fund and details furnished to the Auditors for verification.”
The report further recommended that the dictates of the Financial Regulation should always be adhered to, and the Accountant General should ensure that the correction is made as soon as possible, and details furnished to Auditors for verification.
“The Committee noted the observations of the Auditor General with grave concern and further recommends that the Accountant General urgently reverse the accounting treatment and transfer the funds to the appropriate revenue bank account.”
Source: The Point