The Fiscal Responsibility Commission in Nigeria, has called for the amendment of its act to enable it deliver on its mandate.
The Acting Chairman of the Commission, Victor Muruakor made the call in Abuja, Nigeria’s Capital.
The Commission is saddled with the responsibility of monitoring the determination and remittance of operating surplus for corporations listed in the schedule to the act establishing the Commission.
However, Mr. Muruako said while the act clearly states what infringement of the acts are, it does not provide sanctions for such infringements.
He therefore called for the strengthening of the act to enable the Commission deliver its mandate.
“Part of our challenge as operators of the Fiscal Responsibility Act had been the need to strengthen the Act by infusing sanctions for any non compliance but a situation where an Act makes it clear an infringement without a consequential sanction its not a desirable situation and that is where we find ourselves”. He explained
Mr. Muruako disclosed that 122 scheduled corporation are listed under the Act adding that most of them were not declaring surplus on their audited Financial Statements.
“Presently there are 122 scheduled corporation listed under the act, we have observed that most scheduled corporation were avoiding declaring surplus on their audited financial statements by indulging in creative accounting and incurring expenditures not included or above their annual appropriation”. He said.
The Acting Chairman disclosed that over 1.4 trillion Naira has been remitted to the Federal Government coffers since the establishment of the commission’s Act in 2007 adding that the commission has designed a template that would help block loop holes on the implementation of operating surplus across Governments Ministry Department and Agencies.
“The Commission decided to define and draw up a template for the determination of operating Surpluses after receiving inputs from relevant stakeholders and most of the initial 31 scheduled corporations including the Budget office of the Federation, the Office of the Accountant General of the Federation, ICAN and ANAN” he disclosed
“The activities of the Commission in these area are in line with the policy of the present administration to block all loopholes endangering revenue collections and to further improve on the over #1.4 trillion so far caused to be remitted into the consolidated Revenue Fund”.
He added that the template has been approved for use by the Federal Ministry of Finance.