The Public Accounts Committee of the House of Representatives led by Chairman, Hon. Bamidele Salam, has begun to probe the Lagos University Teaching Hospital over non-remittance of internally generated revenue, discrepancy in Remita payments amounting to over N2bn, extra-budgetary spendings without approval amounting to N150bn.
The committee has also demanded full explanation and justification from the Federal Neuro-Psychiatric Hospital Yaba Hospital in the sending of N422.3 million and N50.3 million on contract and staff training.
The contract infractions and excessive spending on staff training came to light during investigation by the committee during which the leadership of the hospital made a presentation.
The committee however felt dissatisfied and vowed to ensure that government agencies including the Federal Neuro-Psychiatric Hospital Yaba Hospital comply with budgetary appropriations.
To investigate the institution, the committee embarked on an oversight mission to Lagos, where it scrutinised institutions such as FMC Lagos, LUTH, NIMASA, and others for financial and extra-budgetary infractions.
During the investigative hearing, the committee grilled the Chief Medical Director of the Federal Neuro-Psychiatric Hospital Yaba, Dr. Olugbenga Owoeye, over non-remittance of Internally Generated Revenue, extra-budgetary spending, and violation of financial regulations.
Similarly, LUTH’s Medical Director, Prof. Lanre Adeyemo, faced questions over non-remittance of IGR, discrepancies in Remita payments, and extra-budgetary spending without approval.
The committee expressed dissatisfaction with the explanations offered by the heads of the institutions and requested evidence of approvals, spending, and adherence to financial regulations.
The committee uncovered gross violation of extant laws with regards to appropriation, remittance, budgeting, contracts and general management of funds.
Following glaring financial infractions, the Chairman of the committee, Salam emphasised that the committee was not out for a witch-hunt but to ensure accountability and transparency.
He emphasised that the committee’s oversight mission aimed to ensure that government agencies show value for money and comply with budgetary appropriations.
He said violations would not be tolerated and threatened appropriate sanctions according to the law against defaulters.
The committee in its hearing entertained presentations from the Federal Neuro-Psychiatric Hospital Yaba and the Lagos University Teaching Hospital.
The Chief Medical Director (CMD) of the Neuro-Psychiatric Hospital Yaba, Dr. Olugbenga Owoeye, was grilled on various financial and regulatory infractions from the committee.
The committee queried Owoeye over the recurring non-remittance of the Internally Generated Revenue (IGR), embarking on extra-budgetary spendings, inability to adhere to financial regulations thereby contravening several sections of financial regulations.
The committee also frowned at the employment principle of the hospital which failed to accommodate the federal character principle of sharing available job opportunities equitably across the geo-political zones of the country.
The committee also demanded that the hospital account for contract sums of N422.3million as well as the spending of N50.3million on staff training.
Te Salam committee frowned at the explanations offered by the CMD and requested records of all the paid for, completed and on-going contracts.
LUTH was represented by its Medical Director, Prof. Lanre Adeyemo, who was grilled on non-remittance of IGR, discrepancy in Remita payments amounting to over N2 billion, extra-budgetary spendings without approval amounting to N150.3 billion in the period under review.
He was also questioned on the untidy work by the LUTH tender board, contravention of circular on no-payment for staff’s professional membership fees, amongst other sundry issues.
The committee said it was left unimpressed by the explanation and also requested for necessary evidence on approvals, spendings and adherence to financial regulations.
Ruling on the matters, the committee resolved that the explanations were not acceptable as they failed to offer useful information on the issues raised especially in employment and financial recklessness.
It noted that the contravention amounted to gross violation of extant laws.
Other MDAs scheduled to appear before the committee include: Nigerian Institute for Medical Research, NIMR; National Orthopaedic Hospital, Igbobi; Nigeria Maritime Administration and Safety Agency, (NIMASA); Nigerian Shippers Council, (NSC); Nigerian Ports Authority, (NPA); Nigeria Railway Corporation, (NRC); Council for the Regulation of Freight Forwarding in Nigeria, (CRFFN); amongst others.
Other agencies scheduled to appear before the committee include NIMR, National Orthopaedic Hospital, NIMASA, and others.