A fresh audit report has uncovered extensive financial infractions amounting to over N100 billion across six area councils in the Federal Capital Territory (FCT), raising renewed concerns about fiscal discipline and accountability at the grassroots level.
The report, prepared by the Office of the Auditor-General for the FCT Area Councils, indicts Abaji, Abuja Municipal Area Council (AMAC), Bwari, Gwagwalada, Kuje and Kwali for multiple violations of public finance regulations during the 2021 fiscal year.
The findings detail a pattern of weak internal controls, poor record-keeping and non-compliance with statutory financial obligations.
According to the audit, the infractions span unremitted statutory deductions, unaccounted expenditures and lapses in asset management.
Collectively, these violations are estimated to run into more than N100 billion, reflecting both direct liabilities and funds that could not be properly reconciled by the councils.
More specifically, the report highlights the failure of several councils to remit deductions, such as Pay-As-You-Earn (PAYE) taxes, pension contributions, Value Added Tax (VAT), and withholding taxes, to the appropriate authorities.
In many instances, deductions were reportedly made from staff salaries or contractor payments but not transferred as required by law.
Furthermore, auditors observed that some councils did not maintain up-to-date fixed asset registers, making it difficult to verify the existence, condition or value of public assets under their control.
This lapse, the report noted, exposes government property to loss, misuse or unauthorised disposal without detection.
The audit also questioned expenditures on personnel costs, overheads and capital projects, noting that significant sums were either poorly documented or lacked sufficient supporting records.
In several cases, funds earmarked for capital development could not be clearly linked to completed or ongoing projects, raising red flags about value for money.
Beyond the 2021 financial year, the report suggested that similar weaknesses persisted into 2022 and subsequent periods, including concerns about revenue under-reporting and continued non-compliance with financial regulations.
Auditors warned that unless corrective measures are taken, such practices could undermine service delivery and public trust at the local government level in the FCT.
In response to the revelations, the House of Representatives Public Accounts Committee (PAC) has stepped in, summoning the chairmen and key finance officials of the affected area councils to provide explanations.
The committee said the summons is part of its constitutional responsibility to ensure accountability in the management of public funds.
Chairman of the committee, Rep. Bamidele Salam, stressed that the audit findings were serious and could not be ignored.
He said the councils would be required to defend the queries raised against them and present relevant financial documents to justify their spending and accounting practices.
Moreover, the committee expressed concern over reports that several FCT area councils have failed to submit audited financial statements for subsequent years, describing the situation as a breach of statutory requirements.
Lawmakers warned that continued disregard for audit obligations could attract sanctions.
As scrutiny intensifies, governance analysts say the outcome of the legislative probe will be closely watched, particularly in light of ongoing debates about transparency and financial autonomy at the local government level.
The audit report, they argue, has once again underscored the need for stronger oversight mechanisms and stricter enforcement of public finance rules within the FCT area councils.
