Senate Probes National Institute for Legislative Studies Over Inflation of N375.8m Vehicles contract

Senate has began Investigation of National Institute for Legislative Studies over Inflation of purchase of 11 motor vehicle which cost N375.8 million and also illegally payment of N67M million to another account.

The Senate Public Accounts Committee chaired by Senator Matthew Urhoghide hinged the Investigation on the report of Auditor General’s of the Federation which was submitted for consideration. The Committee is currently looking into Auditor General’s report between 2016-2018.

It was learnt that National Institute for Legislative Studies inflated the purchase of 11 vehicle by N36 million.

The agency was expected to appear before the Committee last week Wednesday for physical appearance, but failed to appear.

But, NILDS in its response claimed that the payment was in respect of price variation due to change in the model of the vehicle supplied and was done with full approval of National Assembly Management.

The query reads, “At the National Institute for Legislative Studies, it was observed that 11 (eleven) motor vehicles were purchased at a contract sum of N375,867,000.00 (Three hundred and seventy-five million, eight hundred and sixty-seven thousand naira) in April 2016. Examination of the Capital Account Cashbook revealed that an additional sum of N36,610,000.00 (Thirty-six million, six hundred and ten thousand naira) was paid in favour of the contractor in September 2016 under the same contract, without approval.

“The Management of the Institute should justify the overpayment, which is in excess of the contract sum, otherwise the sum of N36,610,000.00 (Thirty-six million, six hundred and ten thousand naira) overpaid should be recovered from the contractor and recovery particulars forwarded for verification.”

Another query reads, “Payments totalling ₦67,296,478.00 (Sixty-seven million, two hundred and ninety-six thousand, four hundred and seventy-eight naira) were revealed to be made to payees other than the payees specified in the payment vouchers.

” This is contrary to the provision of FR 613 which stipulated that “Payments shall be made only to the persons named in the vouchers or their properly authorized representatives”. Risk This irregularity could result to diversion and misappropriation of government funds.

” The Director-General is required to recover the total sum of ₦67,296,478.00 (Sixty-seven million, two hundred and ninety-six thousand, four hundred and seventy-eight naira) and refund back to Treasury with evidence of recovery forwarded to my office. 88 Office of the Auditor-General for the Federation.”