Reps panel summons FCT councils over N100bn financial issues

The Public Accounts Committee (PAC) of the House of Representatives has sent a new seven-day summons to officials of the six Federal Capital Territory (FCT) Area Councils. This is over unresolved audit queries involving about N100 billion.

The committee, led by Bamidele Salam, announced the summons on Tuesday in Abuja.

This decision came after the six council chairpersons did not show up for the committee's meeting on 22 September, even though they had asked for that date.

Now, the committee has ordered the Directors of Personnel Management and Finance and Heads of Audit of the six councils to appear before it on 14 October. If they do not come, they will face sanctions under the relevant service rules.

The councils involved are Abaji, Abuja Municipal Area Council (AMAC), Bwari, Gwagwalada, Kuje, and Kwali.

This latest move comes from financial queries found in the Annual Audit Report of the Auditor-General for the Six FCT Area Councils for the year that ended on 31 December 2021.

The report revealed around N7.65 billion in unpaid liabilities across the six councils. This includes unremitted pension deductions, Pay As You Earn (PAYE), Value Added Tax (VAT), and unpaid contractor obligations.

AMAC had the largest unpaid liability at N2.19 billion. Bwari followed with N1.49 billion and Kwali with N1.46 billion.

Gwagwalada recorded N1.01 billion, while Kuje and Abaji had unpaid amounts of N892.2 million and N593.8 million respectively.

The auditor-general stated that these outstanding sums were owed to tax authorities, Pension Fund Administrators, and contractors. The report detailed that the liabilities included "unremitted pension deduction, unremitted Pay as You Earn (PAYE), unpaid capital projects, unpaid value added tax, and withholding tax."

In addition to the unpaid liabilities, the committee is asking for explanations and supporting documents on N24.87 billion spent by the six councils on personnel, overheads, and capital expenditure in 2021.

AMAC accounted for N5.03 billion of this spending, while Gwagwalada spent N4.66 billion. Kuje recorded N3.85 billion, Kwali N3.84 billion, Bwari N3.74 billion, and Abaji N3.71 billion.

The auditor-general also raised issues about how the councils managed their fixed assets. The report said asset registers were not well maintained or updated.

Gwagwalada was specifically questioned over non-current assets valued at N336 million. The audit report noted, "the Auditor General for the Six Area Council reported that the value of non-current assets of Gwagwalada Area Council stood at N336m."

The report observed that the records of the non-current assets were not properly kept, which could lead to loss of assets without being tracked. This issue was common among other FCT Area Councils.

Bamidele Salam, the chairman of the Public Accounts Committee, said on Tuesday that the repeated absence of the council chairpersons had frustrated efforts to clear the audit queries.

"The last date of appearance of the Abuja Area Councils was September 22, 2026, which was a date they requested and which was graciously granted by the committee. Yet, they failed to appear or send in any representation," Salam said.

He added that the committee had decided to summon the Directors of Personnel Management and Finance and Heads of Audit of the councils.

"The committee has therefore decided to issue summons to the Directors of Personnel Management and Finance of these local governments, including their Heads of Audit, to appear without fail on Wednesday, October 14. Failure to do so will lead to consequences according to service rules," he said.

Salam mentioned that the committee's review also uncovered more issues in the councils’ 2022 and part of their 2023 audit reports. These included claims of underreported Internally Generated Revenue (IGR), unauthorized disposal of assets, failure to disclose statutory revenue, and not remitting withholding tax.

He also noted that the councils did not audit and submit their financial accounts for 2023, 2024, and 2025 as required by law.

The lawmaker emphasized that the committee would demand accountability in managing public funds. He warned that officials found guilty would face legal consequences.

The Public Accounts Committee is empowered by the Nigerian Constitution to check audited accounts of public institutions and investigate financial irregularities found by the Auditor-General. The latest summons aims to ensure that the relevant officials of the six FCT Area Councils provide the necessary explanations and documents to clear the outstanding audit queries.