The House of Representatives Committee on Finance had directed the management of Corporate Affairs Commission (CAC) to present relevant documents to show proof of the commission’s remittances into the Consolidated Revenue Fund (CAF) between 2014 and 2018.
The chairman of the committee, Rep. Abiodun Faleke (APC-Lagos), gave the directive during committee’s meeting with the leadership of CAC led by the Registrar-General, Mr Garba Abubakar on Wednesday.
The directive was a sequel to the failure of the CAC to remit payment of 25 per cent of its Internally Generated Revenue (IGR) to the CFR in line with relevant laws.
Faleke referred the registrar-general to the report of the Auditor-General of 2017 stating “Failure to limit Corporate Affairs Commission Annual Budget to 75 per cent targeted revenue.
“In other words, the moment you make your budget, you know that your expenditure must not exceed 75 per cent.
“Audit review of the approved budget of the agency to test the level of compliance of the Federal Government’s directive dated Nov. 11, 2011, which requires that revenue-generating agencies limit their annual budgets expenditure to 75 per cent of their gross internally generated revenue while 25 per cent should be remitted to the CRF.
“However, it was observed that the CAC annual revenue budget was ₦15,019,469,986 while its projected expenditure ₦14,849,549,896.
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“This means that from the beginning CAC had budgeted to spend 98.9 per cent on revenue. This is the storyline of CAC.”
The committee also directed that the management of CAC prepare the required documents in a comprehensive manner with detailed reports on revenue projection, remittances and expenditure.
“We will give you another date to come and face a larger committee; you will come back on Feb. 13 with all relevant documents.
*Your income; audited reports; treasury receipts from the Accountant-General’s office; original receipts from Federal Inland Revenue for the VAT withholding tax; and bank statements,” he said.