A report by the Auditor-General for the Federal Capital Territory (FCT) Area Councils, submitted to the House of Representatives Public Accounts Committee, has indicted the six Area Councils of Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje, and Kwali over various financial infractions running into over N100 billion.
The audit report for the year ended 31 December 2021, submitted to the Committee, revealed widespread cases of unremitted tax and VAT deductions, failure to update Fixed Asset Registers, and expenditures yet to be properly accounted for across the councils.
According to the report, the six Area Councils recorded outstanding liabilities amounting to N7.6 billion as of 31st December, 2021.
The liabilities comprised unremitted pension deductions, unremitted Pay-As-You-Earn (PAYE), unpaid capital project obligations, unremitted Value Added Tax (VAT), and withholding taxes due to the Nigeria Revenue Service (NRS), FCT Inland Revenue Service, Pension Fund Administrators, and contractors.
A breakdown of the unremitted liabilities showed that Abuja Municipal Area Council (AMAC) had outstanding obligations of N2.19 billion, followed by Bwari Area Council with N1.49 billion and Kwali Area Council with N1.46 billion.
The report added that Gwagwalada Area Council recorded N1.01 billion, Kuje Area Council N892.2 million, while Abaji Area Council accounted for N593.8 million, bringing the total to N7.65 billion.
The Auditor-General also faulted the councils for failure to properly maintain and update their Fixed Asset Registers.
The report cited Gwagwalada Area Council, where non-current assets valued at N336 million were not adequately maintained or updated, creating room for asset losses without trace.
The report noted that this weakness was common across the other Area Councils.
(Tribune)
