Audit Queries: Reps PAC C'ttee summons Minister, NPA Mgt over N166. 6bn

House of Representatives Committee on Public Accounts has summoned the Minister of Transportation Chibuike Rotimi Amaechi and Management of Nigeria Port Authority (NPA) to give details of revenue accruing to it as at December 31, 2016 amounting to about N166,685,929,000 which were not captured in the agency statement of account.

They duo are also, to explain cost of services rendered to the Authority amounting to about N103.996 billion including channels and water ways maintenance (N65.130 billion) and Port and Quays Expenses of N38.412 billion).

In their seperate capacities, they are expected to respond to audit queries contained in the comments of the Auditor General of the Federation on the group financial statement of the Nigeria Port Authority for 2016.

The Minister and the NPA management who were billed to appear before the Committee on Thursday were said to have pleaded for another date to cause appearance and were given a July 8th date to appear before the House Committee.

They are expected to give a breakdown of the Ports and Quays Services income stating the respective income from each of the services, scheduled oil terminal dues, details of pilotage and service boats and the nature of rentals services offered and rates applied.

In addition, the Auditor General said they are expected to answer questions from the lawmakers, giving breakdown of maintenance, budgetary provisions and evidence of work done on the channels and waterways as; examination of accounts, revealing the channels and waterways maintenance rising from N44.427 billion in 2015 to N64.130 billion in 2016, an increase of over N20 billion.

The comments suggested that the NPA incurred about N38.412 billion as service charge on the Ports and Quays and demanded that the management of the Authority, providing details of how these charges were incurred and also to explain what they meant by the term 'others' for which about N4.7 billion was spent.

The Auditor General said that further examination of the accounts of the NPA revealed that Intel's Integrated Services Limited were over paid their commission to the tune of N2.099 billion.

The Minister and the NPA management are also to explain what happened to the dividend income of N643.006 million received from their joint venture partners as well as interest income of about N97.8 million and N28.7 million, being interest from bank deposits and interest on loan and receivables.

Other queries against the NPA include administrative expenses of N61 billion which include professional charges of N638 million, donation and subscription of N1.88 billion, exchange loss of N7,3 billion, defined benefit expenses of N11.4 billion and director’s remuneration of N4.2 million.

The Auditor General’s query which was signed by Adolphus Aghughu, dated 24th May, 2021; identified what it called understatement of depreciation charges to the tune of N6.4 billion stressing that, “the provision made against eight classes of property amounted to N4.472 billion as against N10.891 million arrived at, during vetting.

“If however, the under provision of depreciation was attributable to assets which have been fully written down, the nominal values at which such assets were retained in the books should be disclosed," the query added.