Audit Flags ₦288bn in INEC Spending Irregularities Under Mahmood Yakubu

Audit Flags ₦288bn in INEC Spending Irregularities Under Mahmood Yakubu

A total sum of ₦288,188,772,947.06 has been flagged in the operations of the Independent National Electoral Commission (INEC) following revelations in the Auditor-General’s Annual Report on Noncompliance and Internal Control Weaknesses in MDAs for 2022.

The report identified widespread financial and procurement irregularities involving contract awards, contractor payments, unretired advances and failure to remit statutory deductions between 2018 and 2019, during the tenure of INEC Chairman, Prof. Mahmood Yakubu.

According to the audit, ₦5.31 billion was paid for the supply of Smart Card Readers (SCRs) for the 2019 general elections using a restricted procurement method without prior approval from the Bureau of Public Procurement (BPP).

The Federal Executive Council (FEC) did not approve the contract despite its value exceeding the INEC Tender Board’s approval threshold, while the Auditor-General noted that the cited presidential clearance did not align with Section 15(2) of the Public Procurement Act, which was deemed inapplicable to the procurement of smart card readers.

The audit further alleged that mobilisation fees and subsequent payments were released without sufficient documentation or proof of supply.

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Responding to the findings, INEC management maintained that due process was followed, stating that approvals were obtained from the Presidency and that advance payments were made due to the urgency of preparations for the 2019 elections. INEC said all required documents and guarantees were in place.

However, the Auditor-General described INEC’s explanations as unsatisfactory.

The report also queried ₦4.5 billion paid as 35 per cent contract payments to six contractors without documentary evidence of supply, as well as the use of conditional Advance Payment Guarantees, which allegedly violated procurement laws.

Further concerns were raised over ₦331.2 million paid to contractors under questionable circumstances, including payments allegedly made before contract awards.

In addition, the audit revealed that ₦235.79 billion was paid to contractors without deducting the mandatory 1 per cent stamp duty, amounting to ₦2.19 billion, which was neither deducted nor remitted to government coffers.

The report also found that ₦630.6 million in non-personal advances issued to INEC officials remained unretired, with some officers allegedly receiving fresh advances without accounting for previous ones.

Another major finding involved contracts worth ₦41.31 billion for the production of ballot papers and result sheets, with the audit stating that there was no evidence showing that the contractors met eligibility and experience requirements, nor proof of FEC approval or a “No Objection” certificate from the BPP.

The audit also flagged the procurement of four Toyota Land Cruiser vehicles for ₦297.78 million, noting that the contract sum exceeded prevailing market prices at the time.

While INEC insisted that all procurements complied with legal requirements and presidential approvals, the Auditor-General ruled that the responses did not sufficiently address the audit observations.

The report recommended that the INEC Chairman should account for the disputed funds before the National Assembly’s Public Accounts Committees, recover irregular payments and refund them to the Treasury.

It warned that failure to comply could attract sanctions under the Financial Regulations (2009) for irregular payments and poor management of public funds.

Audit Flags ₦288bn in INEC Spending Irregularities Under Mahmood Yakubu