The Office of the Auditor-General of the Federation has flagged a total expenditure of ₦288.19 billion in the operations of the Independent National Electoral Commission (INEC) over alleged procurement and financial irregularities.
The findings are contained in the 2022 Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments and Agencies (MDAs), recently released.
According to the report, the queried transactions occurred between 2018 and 2019, during the tenure of Prof. Mahmood Yakubu as INEC Chairman, and relate to procurement breaches, questionable contractor payments, failure to retire advances, and non-remittance of statutory deductions.
Smart Card Reader Procurement
One of the major audit observations involves ₦5.31 billion paid for the supply of Smart Card Readers (SCRs) for the 2019 general elections through a restricted procurement method without prior approval from the Bureau of Public Procurement (BPP).
The Auditor-General noted that the contract exceeded the approval threshold of INEC’s Tender Board and should have received Federal Executive Council (FEC) approval. Instead, presidential approval was obtained under Section 15(2) of the Public Procurement Act, which the audit report stated does not apply to the procurement of smart card readers.
Additional payments, including mobilisation fees, were reportedly made without adequate documentation or evidence of supply.
INEC’s Response Rejected
INEC management maintained that due process was followed, citing approvals from the Presidency and arguing that mobilisation payments were necessary to meet the tight timelines ahead of the 2019 elections.
However, the Auditor-General dismissed the response, stating that it failed to address the core procurement violations identified.
Unsupported Contractor Payments
The audit also queried ₦4.51 billion, representing 35 per cent contract payments made to six contractors without documentary evidence of supplies, alongside the use of conditional Advance Payment Guarantees, contrary to procurement regulations.
In addition, payments amounting to ₦331.23 million were flagged as doubtful, with audit findings indicating inconsistencies in supporting documents, including instances where payments were reportedly made before contract awards.
Stamp Duty and Advances
The report further revealed that ₦235.8 billion was paid to contractors without the mandatory one per cent stamp duty deduction, resulting in unremitted statutory charges totalling ₦2.19 billion. INEC reportedly offered no justification for the omission.
Additionally, ₦630.63 million granted as non-personal advances to INEC officials remained unretired at the time of audit, with some officers found to have received multiple advances without accounting for earlier ones.
Ballot Printing Contracts
Contracts worth ₦41.31 billion for the printing of ballot papers and result sheets were also flagged, as the audit found no evidence that the contractors met eligibility requirements or possessed the requisite experience for such sensitive electoral materials.
