The Senate through its Committee on Public Accounts has taken up management of the University of Abuja (UNIAbuja) on alleged mismanagement of N603million as contained in the 2017 Audit report forwarded to it for investigation by the Office of Auditor – General of the Federation.
Auditor – General of the Federation had in the 2017 Audit report , queried management of University of Abuja for allegedly spending N603million from N2.4billion internally generated revenue (IGR).
The AGF in the query, alleged that the N603million mismanaged by UniAbuja was purportedly spent on students’ ID cards.
“University of Abuja was expected to remmit the N603 million into Consolidated Revenue Fund (CRF) as 25 percent of the revenue generated by the institution during the fiscal year,” the report alleged.
The query reads, “The Federal Circular Reference No. BO/REV/12235/259/VII/201 dated 11th November, 2011 issued by the Honorable Minister of Finance restricting expenditure on IGR to 75% while 25% is to be remitted to the CRF.
“During the review of financial records and documents, it was observed that the University generated the sum of ₦2,413,787,645.48 internally in 2016 and 2017.
“The yearly revenue generated internally was ₦1,463,097,604.13 in 2016 and ₦950,690,041.35 in 2017.
“Meanwhile, the University failed to remit 25% of its IGR amounting to ₦603,446,911.37 to the Consolidated Revenue Fund (CRF).
“Non remittance of the IGR shows lack of control in the expenditure of public fund. Furthermore, funds for developmental purposes is tied down.
“The Vice Chancellor is required to remit the sum of ₦603,446,911.37 being 25% of IGR to the CRF immediately and forward evidence of remittance to my Office for confirmation.”
However in his response to the committee on Friday, the Vice Chancellor of UniAbuja, Professor AbdulRasheed Na’Allah, claimed that the money generated Internally was not enough to run the affairs of the institution, which necessitated the spending of the N603 million.
Na’Allah said, “Peculiarity of the universities in Nigeria is clear and does not have enough IGR to remit to the Consolidated Revenue Fund as adduced by the Auditor General.
“The universities collect only third party revenues from students.
“Revenue collected are for specific purpose such as Union dues, ID card, medical fees, laboratory fess usually refees to other charges .
“Cost recovery concept is adopted by the University that is charge collected were used to pay for services rendered.
“For instance , ID card charges were used to process ID cards for students . These revenues are not enough for the purpose collected and therefore the capacity for the University to remit surplus is lacking.”
But the Chairman of the committee, Senator Mathew Urhoghide (PDP Edo South), represented by the Vice Chairman, Senator Ibrahim Hadejia, demanded for the refund of N603 million to the CRF.