The Securities and Exchange Commission (SEC), Abuja failed to account for N24 billion between 2017 and 2019, FIJ has gathered. This was revealed in a 2020 audit report made available by the Office of the Auditor-General of the Federation (OAuGF) in January.
According to the report, SEC was indicted for financial violations worth about N60.6 billion across 27 major issues between 2017 and 2018.
However, the commission could only justify N35.9 billion spread across 14 of the issues pointed out by the auditors. The SEC did not explain the remaining N24 billion spread across 13 different issues of financial infractions highlighted by the auditors.
Some of the major issues that SEC could not explain include irregular payment of N11 billion allowances to staff, payment of N625 million allowances to ineligible directors, non-remittance of PAYE worth N545 million, payment of staff PAYE from public funds and the diversion of N871 million worth of public funds to pension administrators.
The most noticeable violation by SEC, according to the audit report, was the irregular payment of about N11 billion naira to the commission staff for dressing, leave and medical allowances between 2017 and 2019 without approval.
According to the OAuGf, the payments were not part of the consolidated salary structure that the commission operated under. Also, SEC did not provide evidence of approval for these payments from the National Incomes and Salaries Commission.
Other noticeably flagrant violations by SEC were the under-remittance of N3 billion operating surplus, the diversion of N871.4 million to pension fund administrators and the irregular payment of N7 billion allowances within that time frame.
Meanwhile, SEC had been indicted alongside seven other ministries, departments and agencies (MDAs) for failing to account for N3 billion worth of government revenue between 2017 and 2019.
The other MDAs indicted by the report were the Niger Delta Basin Development Authority, the FCT Internal Revenue Service, the Asaba Federal College of Technical Education, the Nigeria Customs Service, the Federal Ministry of Industry and Trade and the Financial Reporting Council of Nigeria.
According to the 2007 Investment and Securities Act, SEC is the apex regulatory organisation for the Nigerian capital market. The act charges the commission with exercising financial and investment oversight in Nigeria.
SEC’s responsibilities also extend to the inspection and audit of securities exchanges, capital market operators, collective investment schemes and all other regulated entities. It is, therefore, a necessity that a regulatory entity of this status maintain fiscal responsibility and financial accountability at all times.
SOURCE: FIJ