Kunle Aderinokun
1 September 2007
Abuja — President Umaru Musa Yar'Adua yesterday directed all Ministries, Departments and Agencies to return to the Federal Government's coffers, all unutilised funds meant for capital projects between the fiscal years 2005 and 2006.
Similarly, Yar'Adua ordered that all revenues accruing from both oil and non-oil sources, including those generated by the ministries, departments and agencies, be paid directly into the federation account.
Making these known in Abuja at the launch of the Revised Treasury Accou-nting Manual (TAM) and the inauguration of the Government Integrated Financial Management and Information System (GIFMIS), Finance Min-ister, Dr. Shamsuddeen Usman expressed the resolve of the present administration to place greater emphasis on transparency, probity, accountability and strict compliance to rule of law and procedures.
Usman expressed surprise that some ministries, departments and agencies were implementing capital budgets for 2005 and 2006 up till August 2007.
He said, "it is alarming that some ministries are still spending 2005 capital allocations. Even spending 2006 capital allocations in August 2007 is not good accounting and fiscal management. Mr. President has directed that all capital allocations for 2006 and even 2005 that have not been spent should be returned immediately to the Capital Accounts (Treasury). In fact, a circular on this will be going out within the next one or two days.
"This is an impeachable offence for the president, and the president therefore wants to do things in a proper and right way. Regarding claims by ministry, department and agency officials that the directive will affect projects being implemented, I want to say here that this will not."
Out of a total of N1.899 trillion budgeted for 2006, the capital expenditure stood at N568.56 billion while N950.32 billion and N289.50 million represented recurrent expenditure and debt servicing respectively. About N550.60 billion out of N568.56 billion capital allocations has been applied to projects by the spending ministries, departments and agencies, by the second quarter of this year.
Usman said the Finance Ministry and Office of the Accountant-General of the Federation (OAGF) would work in collaboration with the Central Bank of Nigeria (CBN) on ways to track all accruing revenues and make sure that they are paid into appropriate accounts.
The Finance Minister said, "there are pockets of government monies in the hands of the ministries, departments and agencies and others, which have to be paid into the federation account. They have no right to keep government revenues in their possession, except provided for by the laws establishing them." These, he added, included Nigerian embassies.
Usman said a team that went round Nigerian embassies discovered there were revenues in their possession, "but yet they will cry that they have no money."
He noted that the revised treasury manual was designed to reform the public sector financial management system and reduce corruption.
He said: "It will shorten the time taken to process financial transactions, which is one major motivation for corruption. The focus of the present administration is for the country to be one of the 20 largest economies in the world by the year 2020."
In his welcome address, the Accountant General of the Federation, Mr. Ibrahim Dankwambo, explained that, "the aim of the treasury accounting manual in the reform agenda is to achieve a system of timely preparation and accurate reporting of financial information at all levels and to uphold the principles of accountability, probity and transparency in the government financial system."
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