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Saturday, March 19, 2016

Transparency: FMF strengthens mechanism to enhance FAAC



The Federal Ministry of Finance (FMF) has disclosed plans to strengthen and increase the capacity of the sub-Committee on Federation Account Allocation Committee (FAAC), reports ITRealms.

According to sources from the Ministry, the plan is sequel to the approval at the last FAAC meeting that three independent and experienced financial analysts to work on the process of reconciliation, be appointed.

The Ministry explained that the post-mortem Sub-Committee is to enhance accountability, improve reconciliations and ensure transparent process in respect of all the revenues accruable to the Federation Account.

The sub-committee is saddled with the responsibility of examining the books of accounts of all revenue agencies including the Federal Inland Revenue Service (FIIRS), the Nigerian National Petroleum Corporation (NNPC), the Customs Service, the Department of Petroleum Resources (DPR) and  the Ministry of Mines and Steel. It is expected to report deficiencies observed to the Federation Account Committee and recommend the way forward.

Though the un-reconciled differences are no longer there, with the increased oversight of the Federal Ministry of Finance and the transparency of the NNPC, it will be easy for the sub-committee to achieve better results. 

The committee, which reports to the Federation Account on a monthly basis, was originally set up to encourage revenue reconciliation and block leakages through the use of technology.

The NNPC had rejected the findings of the audit report submitted recently to the National Assembly by the Office of the Auditor General of the Federation, stating that the audit query it raised over the non-remittance of N3.235 trillion to the Federation Account was erroneous, insisting that its balance to the federation account remains N326 billion, as at the time of filing the audit report.
 

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