Crisis rocks PDP over alleged financial mismanagement by party chair, Uche Secondus | SEE DETAILS

…as N10bn spent remains unaudited for 3yrs

BY FEMI AJASA

TheNewsGuru.com, TNG has authoritatively gathered that there is crisis in Peoples Democratic Party (PDP) over the allegation of misuse of billions of naira since the advent of the present leadership.

The National Auditor of the party, Mai Adamu Mustapha made the allegations in a memo circulated among members at a meeting of the NWC last Tuesday.

In documents was alleged among others that N10 billion generated since the advent of the Prince Secondus led leadership has been unaccounted for.

Even more, it was alleged that several billions of naira realized from the sale of congress forms and membership cards have not been accounted for.

The allegation is besides irregular award of contracts sometimes inflated without the knowledge of the NWC.

Mustapha pointed out in one case, the award of contracts for the printing of congress forms for N630 million. He said had that particular contract passed through the NWC that it would not have been more than N150 million.

Mustapha who alleged that internal control and the audit system had been broken down under the Secondus leadership of the party in the memo to the NWC affirmed that it was of no use as an opposition party go to battle with a tattered financial image.

He thus called for redress.

He said:

THE AUDIT MEMO

“When the audit environment is transverse, and couldn’t operate normally for whatever reason, then an alarm must be triggered.

The purpose of this alarm is to bring to the notice of this NWC the inability of the Audit Department to perform its functions as enshrined by the constitution and the extant laws,

To illustrate as example, the Audit Department was incapacitated by lack of access to the necessary inputs that will enable it to discharge its duties.

“For whatever reasons, there is no access to all financial transactions (cash inflows and outflows) documents Of the party like cashbooks, receipts. vouchers, registers cheques and bank statements etc. all of which are necessæry input or pre-audit, due process, internal control, reconciliation as well as to draw up our Final Accounts, and all these necessary inputs are not available to the Audit Department.

“In order for the Audit to function there should be constant interaction and information flow between the Audit Department and all the arms of the party, unfortunately this has not been the practice.

“The inability of the Audit Department to discharge its functions has dire consequences to the party being the major opposition party, bearing in mind that this APC Government is vicious and desperate, so any infractions to financial and auditing practice will be a handy tool to cause dire legal and political embarrassment.

“Honourable members, I have raised these issues and predicaments of the audit department severally in our various NWC meeting but to no avail.

“It is now three years plus, through the tenure of this NWC that there was no one single financial transaction that passed through ‘the Audit from the inception of this NWC to date, despite the fact that the party have been undertaking financial transactions running into billions.

The public domain knows that the PDP conducted the following from December 2017 to date:

1. Forms were contracted, printed and sold through consultants.
2. Series of procurements and services were transacted and paid.
3. Congress and other activities were conducted and huge expenditures incurred.
4. Consultants were engaged and paid.
5. Statutory disbursement to zones. and states from the proceeds of the sales of forms,
6. Travels were undertaken in and out cf Abuja.
7. Proxy account for the sales of forms is illegal and unconstitutional (Section 55(1-3). The details of the operation of this proxy account was not known to the audit department and members of the NWC. The interest cost of 3% on this account has to be explained.
8. From the incept of this NWC to date over NI0 billion was generated and unaccounted for.
9. Non-competitive contract was assigned to print congress documents at the costs of N630 million. While is believed that the actual cost is much less than N150 million if competitively decided by the NWC.
10. A loan of N500 million was obtained without approval and paid with interest. The constitution section S3(1) and 54(1-4) and 58(L) (a) & (d) this issue was echoed by the Gov. H-E Udom Emmanuel committee on “garnishee” reported to the NEC in November, 2020.
11. Sale of last congress forms and membership cards which is in billions was not accounted for.

Honourable members it will interest you to know that:

1. All the above took place without involving the audit department.
2. There was not any cash/bank reconciliations known to the audit department since department 2017.
3. No fixed assets register maintained that will keep records of all the PDP assets e.g land and bullding, vehicles, generators, furniture etc.
4. No adequate record of the parties Iiabilitles e.g. utilities, taxes, Insurances and other accruals.

All the above issues were highlighted and copies of my 2017/2018 management reports were issued to the relevant members of the management, voluntarily and nothing has changed.

Upon the above complaints, he thus prayed:

The audit department is in uncomfortable position which is unhealthy for efficient, effective and smooth management of the parry’.

in view of the above I am making this memo to seek for redress.

Mai Adamu Mustapha, B.Sc, M.sc Accounting and Finance, Fellow CNA

National Auditor.

The post Crisis rocks PDP over alleged financial mismanagement by party chair, Uche Secondus | SEE DETAILS appeared first on IBOM LEAK NEWS – Akwa Ibom current News and Affairs.