The House of Representatives has tackled the management of National Hydrological Service Agency (NIHSA), over full payment of multi-billion naira to contactors for ongoing projects in the 2023 fiscal year.
Chairman, House Committee on Hydrological Service Agency, Hon. Pascal Agbodike and members of the Committee made the observation during the 2023 budget performance and 2024 budget defence.
While scrutinizing the budget appraisal, the lawmakers who frowned at various infractions in the implementation of the 2023 Appropriation Act, accused the Agency’s helmsman of embarking on “extra budgetary spending”.
In his presentation, Director General of NIHSA, Mr. Clement Nze observed that the Agency wrote formally to the office of the Accountant General of the Federation on the unspent fund meant for outstanding projects in 2022 Appropriation Act and got approval.
According to him, the Office of the Accountant General of the Federation OAGF, in its response wrote back to the Agency that the money has been returned to the Agency’s coffer in 2023 to ensure the Agency complete the projects.
While presenting the 2024 budget, Engineer Nze disclosed that the sum of N1.266 billion was proposed for capital expenditure, while personnel is for N472.914 million and overhead is N118.411 million under the recurrent expenditure.
He noted that the Agency is expected to generate N5 Billion for 2024 fiscal year.
Worried about the inconsistencies in the budget presentation, Hon. Ahmed Jaha who expressed displeasure over the development, said: “after going through your submission, honestly this is not a budget document. You expect all of us to sit here and approve. You didn’t explain what constitutes your recurrent.”
To this end, he urged the Committee to step down the consideration of the 2024 budget proposal saying: “There’s a need for this Committee to step down this submission, if at the end of this exercise, your agency is not considered for the 2024 budget you will take us serious.”
Hon. Jaha said: “the first item to be considered is the personnel, in the personnel you are going to state month to month releases and payment of salaries and other emolument, for personnel – January x-figure, February – y-figure. In most cases, they are of the same figure from January to October. We may not ask you of November because maybe when you’re preparing this bill, November salary was not paid.
“If at all its laid, you have to include November. In addition to this, you’re going to attach the nominal roll of the agency to justify the releases from the head of service or accountant general of the Federation.
“Secondly, it’s the overhead. The overhead cost is sacrosanct, we must have details of expenditure from overhead from one penny to the last kobo spent within first month to the 11th month which is November. The only outstanding that may be in your account since you have 100 percent releases is the overhead for December.
“Thirdly, the capital. In the capital, you have to state categorically the date of award of that particular project, which is not here.
“You wrote it to us the date of award but it’s not written. Does that mean they were all awarded at the same time? You have to state clearly there. And in your remarks, you said ongoing after paying 100 percent, you have already paid contractor 100 percent and you still out ongoing.
“In order word, the project is under execution. Why will you pay a company ahead of a certificate tendered by the company for payment? It’s misappropriation!
“So, on Monday unfailingly you can come, we’ll be here to see a new look of this document,” Hon. Jaha stated.
However, in his intervention, Hon. Nwogu who pleaded that the Committee should not starve the agency so that it won’t die young, urged his counterparts to adopt the budget proposal and continue the scrutiny during oversight function.
In his ruling, Hon. Agbodike directed the NIHSA Director General and his team to re-present and submit the 2023 Appropriation performance and the 2024 budget proposal on Monday for further legislative scrutiny.
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