The Senate, on Tuesday, through its Public Accounts Committee (SPAC), conducted an investigative session on 77 queries relating to alleged financial infractions raised against the Customs Service in the 2019 and 2020 Audit reports.
Out of the 77, it vacated a query of N62.2 billion under-remittance slapped against the Service by the Office of the Auditor-General of the Federation in the 2019 audit report.
The committee also resolved to set up a small committee to reconcile the remaining 76 queries.
The Customs Service had a smooth sail during the investigative session following the Comptroller-General of Customs, Bashir Adewale Adeniyi’s convincing responses to queries one, two and three, as read by the representative of the Auditor-General of the Federation.
The representative of the Auditor-General, as directed by the Chairman of the Committee, Senator Ibrahim Dankwabo (Gombe North), informed the Customs CG that while the Service generated a total revenue of N691.242 billion in 2017, only N629.23 billion was remitted, leaving an alleged balance of N62.2 billion unremitted into the Federation Account.
Responding to the query, the Customs CG explained that the N62.2 billion classified as unremitted or under-remitted in the 2019 audit report represented levies collected by Customs on behalf of other agencies and were therefore not meant for remittance into the Federation Account.
“The alleged under-remittance of N62.2 billion against Customs in the 2019 audit report arose from a misclassification of levies collected by the Service.
“While some of the levies are collected and remitted into the Federation Account, others, such as those on the local production of wheat, textiles and wines, do not go into the Federation Account. The total value of such levies accounted for the alleged unremitted N62.2 billion,” he said.
The Customs CG offered similar explanations on queries two and three, prompting a member of the committee, Senator Babangida Hussaini (Jigawa North-West), to question why the issues had progressed to the stage of a committee investigation.
“I was in the civil service, just like the Chairman of the Committee, Senator Ibrahim Dankwabo, before venturing into politics. Queries one, two and three, which you have responded to, ought to have been resolved at the reconciliation stage with the auditors and not allowed to get to this level,” he said.
The Customs boss, however, reminded members of the committee that the years under review coincided with a period when relations between the Senate and the Nigeria Customs Service were frosty.
On the strength of the explanations provided, the committee resolved to set up a small committee to meet with Customs officials to reconcile the issues raised in the remaining 76 queries.