Budget padding: Senate clears Zainab Ahmed as minister blames budget office for error

Finance Minister Zainab Ahmed

Ahmed explained to the Senate Committee that the same project was correctly captured in the MTEF because it was also presented in the MTEF.”

By Jeffrey Agbo

The Senate Committee on Appropriation on Monday exonerated the Minister of Finance, Budget and National Planning, Zainab Ahmed, from allegations of inserting strange figures into budgets of some federal ministries.

Ahmed had been accused by the Humanitarian, Health, Power and Education ministries to have inserted, N206bn, N8.6bn, N195.468bn, N2.250bn, respectively, into their budgets.

But the Senate cleared her of any wrongdoing. It however frowned at what it called, “shoddy” implementation of the National Social Investment Programme (NSIP) based on lack of records of verifiable beneficiaries.

Speaking before the Senate committee, Ahmed said, “This project in question under the Humanitarian Affairs Ministry is a project that was called National Social Safety Net project.

“This is a total sum of $473.5m which translates to N296bn.This project was correctly described by the IR departments that collated the report but in the process of collating that at the Budget Office of the Federation, a wrong code was selected. This code that was selected resulted in the description showing as purchase and security weapons.”

Ahmed explained to the Senate Committee that the same project was correctly captured in the MTEF because it was also presented in the MTEF.”

She explained to the committee that the various sums were sent to the ministries for perusal before approval by the Federal Executive Council and before the budget presentation itself by the President, Major General, Muhammadu Buhari ( retd.), on Friday, October 7, 2022.

She noted that the amount was correct and “it is correctly provided for in the ministry of Humanitarian Affairs, Disaster Management, and Social Development because they are the agency implementing this National Social Safety Net Scaleup Programme.”

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She added,” This project is described in the budget correctly as refurbishment and procurement of (RF 578 100) military communications equipment in the sum of N8.6bn.

“The Honourable Minister of Defence wrote to his Excellency, Mr. President, requesting the immediate release of $1.36 3m, and N158.928m for the implementation of phase one of this project.

Ahmed

“The Honourable Minister of Defence also requested the sum of $2.27 8m and N11.94billion to implement phase two and three of the project, all of which Mr. President graciously approved. So further to Mr. President’s approval, which was conveyed to us, 50 per cent of the requirements of phase two and three is what we provided in the budget for the Ministry of Defence.”

Ahmed added, “All the proposed budgetary sums like the N206billion in the Ministry of Humanitarian Affairs , Disaster Management and Social Development; the N8.6billion in the Ministry of Defence; N195.468billion in the estimates for the Ministry of Power were all captured before presentation by Mr President .

“Most of these sums are bilateral or multilateral loans captured in the budget of agencies selected for project execution for the sole purpose of transparency.

“The totality of such loans captured in the proposed budget of the relevant agencies is N1.771trn.

“Had heads of the affected MDAs carried out thorough scrutinisation of their approved budgetary proposals, the issue of insertion or budget padding wouldn’t have arisen at all, realisation of which made the Minister of Defence, Bashir Magashi, to apologise after feigning ignorance of N8.6billion in his ministry’s budget during interface with Senate Committee on Defence,” she said.

Ahmed further told the Senate panel that it was evident there were internal coordination issues between the project of implementation units in some ministries, departments and agencies, with the CEOs and the accounting officers of the implementing ministry.

Jeffrey Agbo:
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