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… insist the organization needs to be overhauled
By Emman Ovuakporie
The House of Representatives has given the Corporate Affairs Commission, CAC, 48hours to submit a detailed expenditure from 2016-2020 for scrutiny or forfeit 2022 budgetary allocations.
TheNewsGuru.com, (TNG) reports House Committee on Finance threatens that until the commission submitt its detailed expenditure from 2016 to 2020 for scrutiny on Thursday, it will give it zero allocation in 2022 budget.
Chairman of the House committee on Finance, James Faleke gave the warning on Tuesday at the ongoing 2022 to 2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) interactive session when CAC Registrar General, Abubakar Garba appeared before the committee.
The Faleke led Committee frowned at the Commission for being unable to remit funds to the federal government since 2016.
According to the 2021 budget performance documents presented to the Committee, the Commission spent N52.350 million out of N72.200 million approved for staff uniforms between January and May 2021; spent N4.834 billion out of N10.713 billion on salary and allowances; N236.691 million out of N238.587 million on national health insurance scheme (NHIS); N4.744 million out of N10.454 million on entertainment/hospitality; N17.215 million out of N25 million on Audit fees; N42.574 million out of N110 million on legal feeds/expenses; N41.194 million out of N150 million on advert/publicity.
He added that CAC’s budgetary performance in 2021 had already put it in deficit due to its spending which he said was unhealthy for the organisation and overall financial status of the country.
According to him, I have worked in private outfits before coming to the House of Reps, and they will always regulate their expenses and not spend beyond what they generate
” In your case, you borrow money upfront even before the money comes, therefore, you will have to submit your 2016 -2020 financial report before you are granted an audience for 2022 budget
“You expended what you do not generate, this agency needs a total overhaul to turn it back to what is supposed to be
“Today all the registration is done online, yet you are still carrying unbearable overhead, things need to change”
The committee expressed worries that for three years the Commission has not made any recruitment of staff but has continued to increase the salary of its registrar.
Stating the reason for their inability to remit to the government, Mr Abubakar Garba said over the years the Commission have been operating in a difficult environment to pay pension.
According to him, we’re not even having enough fund to pay staff. So we’re unable to remit to the federal government.
“The Commission had N2.024 billion in liability which it has to offset, said the CAC Registrar General.
While giving its ruling that detailed expenditure be provided to the committee, chairman of the House committee on Finance warned that agencies like National Emergency Management Agency (NEMA) that failed to appear and defend their revenue will be adequately dealt with according to the law.