Govt Set To Prosecute Agencies Over Non Remittance Of Revenues

PHOTO: FINANCE MINISTER, OLUSEGUN AGANGA.

ABUJA May 14, (THEWILL) Henceforth, the flagrant disregard of fiscal rules by ministries, departments and agencies (MDAs) who fail to remit revenues earned into the National treasury would no longer be condoned.

Director General, Budget Office of the Federation, Mr. Bright Okogwu made this known at a seminar on "Enhancing internally generated revenue collection and remittances in the Federal public service" held in Abuja.

He lamented that government agencies had in the past and even now breached the extant laws, stating that these laws were passed to ensure that the material resources of the country are harnessed and distributed to serve the common good in line with the constitution.

Okogwu however said all federal corporations, agencies and public enterprises must strictly comply with these extant regulations.

He said the 2009 fiscal year was very challenging in terms of non-oil revenue collection, higher levels of revenue were achieved than the outturns recorded in 2008 adding that, the ambitious revenue targets set for 2009 were unrealized.

"Although, actual companies income tax remittances came close to the N587 billion projected (underperforming by only N21.93 billion or 3.7 percent), value added tax collections underperformed by N111.61 billion or 19.2 percent of the N580 billion target.

"Similarly, Customs and Excise duties were N200 billion or 40 percent short of the N500 billion projected.

"Although we programmed an expected N305.97 billion into 2009 fiscal framework, as at 31 December 2009 only a paltry N 71.24 billion had been achieved, representing a shortfall of N234.73 billion or 76.72 percent.

"Indeed, the 2009 outturn was only 62.15 percent of the N114.63 billion actually achieved in 2008, we recognize that there is often a lag in remittances and we are optimistic that when the final returns are made this record performance will improve. 

"However, this poor performance of the independent revenue is inexcusable and cannot be allowed to continue, under section 80 of the 1999 constitution, all revenue or other moneys raised or received by the federation are to be paid into the consolidated revenue fund and no moneys shall be withdrawn from the consolidated revenue fund except as is authorized by an Appropriation Act duly passed into law by the national assembly and assented to by Mr. President," he further stressed.

Finance Minister, Olusegun Aganga averred that enhancing the quality and efficiency of public expenditure requires spending wisely on the outlays that represent value for money and that custodians of the treasury must be held accountable for the financial resources put in their care.

Aganga affirmed that his ministry would conduct audits of non-oil revenue remittances including independently generated revenue, adopt appropriate strategies to ensure that the relevant corporations remit their operating surpluses to the treasury as and when due and close any identified loopholes to minimize revenue leakages.

Deputy Chairman Senate Committee on Appropriation, Ahmed Mohammed Maccido, in his presentation called for reduction in deficit budget noting that financing the deficit has always been problematic.