Reps Grill Nigerian Railway Corporation Over ₦12.91bn Audit Queries
The House of Representatives Public Accounts Committee (PAC) has grilled officials of the Nigerian Railway Corporation (NRC) over alleged financial irregularities and unresolved audit queries amounting to approximately ₦12.91 billion, as contained in the 2023 Auditor-General’s Report.
The investigative hearing, held on Monday, was presided over by the Committee’s Deputy Chairman, Hon. Jeremiah Umaru. The NRC was represented by its Managing Director, Dr. Kayode Opeifa.
During the proceedings, the Committee examined three major audit queries involving unaccounted transfers to the Corporation’s outstations, discrepancies in internally generated revenue (IGR), and alleged under-remittance of revenue to the Consolidated Revenue Fund (CRF).
One of the major concerns was the unaccounted transfer of ₦6.62 billion to the Corporation’s outstations. The Committee scrutinised the NRC’s explanation, particularly the utilisation of ₦5.16 billion reportedly transferred to various districts.
Although the Corporation presented evidence of diesel purchases, lawmakers demanded further clarification on outstanding transactions. Consequently, a reconciliation committee was constituted to examine the relevant records and establish the actual financial position.
The Committee also questioned a reported ₦2.856 billion discrepancy between revenue recorded in treasury receipt booklets and the amount reflected in the Corporation’s audited accounts.
Dissatisfied with the explanations provided, the lawmakers established another reconciliation process to verify the figures and resolve the differences.
On the alleged under-remittance of ₦1.714 billion in internally generated revenue, the Committee requested additional supporting documents to determine the actual amount remitted and establish any outstanding liability.
Beyond the three major queries, the 2023 Auditor-General’s Report also identified other financial concerns involving the Corporation, including:
- Award of 26 contracts valued at ₦858.6 million without appropriate authorisation.
- Non-remittance of ₦410 million in investment income to the Consolidated Revenue Fund.
- Expenditure of ₦19.6 million on a chartered flight without sufficient evidence of utilisation.
- Expenditure of ₦221.8 million on store items without corresponding ledger charges.
- Expenditure of ₦136.3 million on residential buildings without corresponding rental income.
- Unretired cash advances amounting to ₦39.45 million.
- Expenditure of ₦28.13 million on foreign trips without the required approvals.
- Payment of ₦4.64 million in training fees in violation of the Federal Government’s e-payment policy.
The Public Accounts Committee warned that it would not hesitate to impose appropriate sanctions on any government agency found culpable of financial infractions or failure to fulfil its financial accountability obligations.
The ongoing investigation is expected to establish the actual financial position of the Nigerian Railway Corporation and ensure that all outstanding audit queries are adequately addressed.
