The
Minister of Finance, Kemi Adeosun has summoned the DG of National
Agency for Food and Drug Administration & Control, Mrs Yetunde Oni
over a breach of working protocol.
Minister of Finance, Kemi Adeosun
The acting director-general of the National Agency for Food and
Drug Administration & Control (NAFDAC), Mrs Yetunde Oni has been
summoned by the Federal Government to answer queries bordering on N2.9bn
(N2, 854,095,289.02) indebtedness to the Consolidated Revenue Fund with
regards to past years’ Operating Surplus that have not been remitted.
According to Leadership, the federal ministry of finance in Abuja
had discovered that NAFDAC augmented its employees costs by N689m (N688,
421, 881.00) by using Internally Generated Revenue (IGR) in addition to
appropriated sum of N4.5bn (N4, 443, 243393.00) in 2017 draft budget.
While it was expected that full payment of the Operating Surplus be
remitted within 2017 or a repayment agreement be reached with the
Office of the Accountant General of the Federation, the NAFDAC DG would
also provide necessary explanation and authorization for the increase
outside appropriation.
Officials from the supervising ministry (Ministry of Health) will
also appear before the minister of finance, Mrs Kemi Adeosun today by
11. am.
This was revealed in a letter signed by the Minister of Finance,
Mrs Kemi Adeosun with Ref no: OAGF/R&I/1081/I/199, dated 13th March,
2017 and addressed to the Director-General of National Agency for Food
and Drug Administration & Control (NAFDAC).
The letter titled: “Review of 2017 Revenue and Expenditure Estimates and the Repayment of Outstanding Operating Surplus” was also copied to Chief of Staff to the President, Minister of Health and Director General, Budget Office.
Adeosun noted, that in line with Sections 21 and 22 of the Fiscal
Responsbility Act, 2007 (as ammended) she is required to receive and
review the Annual Estimates of Revenue and Expenditure (Draft Budgets)
of public agencies and corporations prior to their transmission to the
National Assembly for approval.
She noted that upon the review of the draft budget for 2017
submitted by NAFDAC that it was discovered that the projected cost to
income ratio of NAFDAC is 100 percent, a situation that exceeded the 75
percent target allowed for agencies that are not funded by the federal
government.
According to her, “It is therefore a matter of grave concern
that NAFDAC which is fully funded from the budget through the payment of
overhead and salary proposes to expend 100 percent of its Internally
Generated Revenue “.
This she said contravened the Finance circular FMF/HMF/2016/1/2 of 22nd November, 2016.
The minister further challenged NAFDAC to drastically review its
draft budget downwards in line with the fiscal discipline expected under
the current administration adding that President Muhammadu Buhari is
committed to fiscal discipline, financial accountability and
maximisation of revenue generation from its various agencies.
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