Auditor asks NPA to refund sums citing possible diversion of revenue
By Jeph Ajobaju, Chief Copy Editor
Federal Auditor General Adolphus Aghughu has indicted the Nigeria Port Authority (NPA) for failing to recover and remit N40.126 billion, $921.636 million, and £289,931.82 to the treasury from various revenue sources in 2019.
This is contained in 13 audit queries for the NPA signed by Aghughu and submitted to the National Assembly (NASS), reported by The Nation.
The report said:
Agreements the NPA signed with terminal operators says: “A fixed annual payment of a sum as specified in the schedule be paid in 12 equal installments in each operating year, the first installment to be paid on the first day of the month after the effective date and then, on the same date of every month thereafter.”
Terminal operators failed to comply with lease agreements in terms of payment of fixed and throughput fees, holding back $852,093,730.77 and N1,878,560,509.57 that should have been remitted to the NPA.
Estate tenants, shipping companies, and service boats operating from the ports owe the NPA $67.425 million and N32.266 billion in estate rent, shipping due, and service boats.
Sizeable percentages of these debts are non-performing or dormant due to long period of non-settlement, leading to loss of revenue to the government and possible diversion of government revenue to unauthorised users.
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The report said:
The NPA failed to determine the status of about N5.260 billion and $1.250 million long outstanding debt, and all efforts to know their current status were not successful as relevant information was not provided.
Contract for shore erosion control works at Akipelai, Ayakoro, and Otuoke in Bayelsa was awarded to a company and mobilisation fees paid without performance guarantee which is a pre-condition for the award of any procurement contract upon which mobilisation fee is required.
Queried irregular payment for rehabilitation of Port Harcourt Port road network and water distribution system to the tune of N1.847 billion and irregular payment for the restoration of power supply to Tin Can Island Port.
The report also frowned at
Irregularities in the award of contract for the construction of delivery and commissioning of MDPE channel marking buoys in foreign currency.
Irregular payment for the supply of fire alarm communication and office equipment for the Lagos Port complex.
Irregular payment for the supply of fire alarm communication and office equipment for Ikorodu lighter terminal