FRSC failed to remit N5.1bn into federation account in four years, says fiscal commission

August 25

15:56 2021

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The Fiscal Responsibility Commission (FRC) says the Federal Road Safety Corps (FRSC) failed to remit N5.1 billion into the federation account.

The unremitted fund is said to be part of the revenue generated by the agency between 2016 and 2019.

FRC made the allegation in Abuja on Wednesday at the ongoing public hearing on 2022 to 2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The public hearing is organised by the house of representatives committee on finance.

At the event, Alex Alekwo, director of policy and standard, fiscal responsibility commission, said there is no evidence that the FRSC remitted the money, adding that the non-remittance of the funds can be obtained from the audited financial report.

But Boboye Oyeyemi, FRSC corps marshal, denied the allegation, saying the funds have been remitted.

Oyeyemi asked the committee to give FRSC the needed time to reconcile with the FRC over the allegation.

He said there had been no budgetary provision for the production of plate numbers since the inception of the scheme.

According to him, some of the machines to produce plate numbers were funded from the proceed of operating surpluses.

He stated that what the corps remitted to the federation account was what it got after the production of plate numbers.

In his remarks, James Faleke, chairman of the committee, decried poor revenue generation by some agencies, saying it is the biggest problem confronting the country.

“We saw where an agency is spending N3 billion above its income, we saw where they spend money not budgeted for,” he said.

“Where this committee sees it necessary, we will expunge unnecessary budgetary provision in order to shore up revenue for the country to forestall unnecessary borrowing.”

In May, FRC announced that 32 ministries, departments and agencies (MDAs) failed to remit over N1.2 trillion of their operating surplus to the consolidated revenue fund (CRF).

The commission explained that government agencies are expected to remit 80 percent of their operating surplus to the CRF according to the Fiscal Responsibility Act, 2007.