FG Receives Report on Alleged Corruption in NSTIF
Paul Obi
The federal government yesterday received the report of the Administrative Panel of Enquiry on the Financial State of the Nigeria Social Insurance Trust Fund (NSITF), which was mandated to investigate cases of corruption and other ancillary matters within the agency.
Receiving the report, the Minister of Labour and Employment, Senator Chris Ngige commended the panel for the thorough job it carried out.
The federal government had on February 15, 2017 charged the panel to look into the financial state of the affairs of the NSITF.
The panel was specifically mandated to investigate and render report on the accounting procedures of NSITF in order to ensure proper accounting and management of the funds, especially on how the internal audit mechanism of the establishment broke down, allowing colossal loss of funds from the organisation.
The panel chaired by Ishaya Awotu, was also tasked to conduct proper audit of the accounts of NSITF and render report.
Submitting the report to Ngige, Awotu maintained that “the Fund had external auditors for the period 2011 to 2015”.
“The audited financial statements and the management letters for year 2011, 2012, 2013 and 2014 were submitted to the management. As at the time of forwarding this report, none of the years’ audited accounts has been concluded while the audit reports remained unsigned,” he said.
“The basis for the management’s re-appointment of the external auditors for the auditing of 2015 accounts could not be ascertained; the fund does not have Financial Operational Manual to guide in its financial activities while compliance with the provisions of the Financial Regulations in carrying out their financial transactions was very weak,” he stated.
Awotu also informed the federal government that “bank reconciliation of most of the bank accounts of the fund was not carried out”.
“Without the reconciliation of the bank statements, irregular payments and fraud committed on the accounts cannot be detected. Furthermore, financial statements prepared from un-reconciled accounts cannot be reliable.”