The Senate is in the process of subjecting the Office of the Auditor-General for the Federation (OAuGF) to independent financial audit by auditors appointed by the National Assembly as part of efforts to ensure greater transparency and accountability in the nation’s public sector financial system.

This proposal is part of a Bill for an Act for the Establishment of the Office of the Auditor-General for the Federation, Audit Service Commission, Additional Powers and Functions of Auditor-General and for Matters Connected Therewith 2011, which is awaiting third reading and passage in the Senate.

Chairman of the Senate Committee on Public Accounts, Senator Ahmad Lawan, and nine others are sponsors of the Bill which seeks, among others, to create an enabling environment for real financial and administrative autonomy for the OAuGF.

Already, the Committee working on the bill has recommended that the OAuGF be on first line charge on the Consolidated Revenue of the Federation (CFR), in order to assert its full financial independence.

Besides, the Bill is aimed at helping the management to meet up with the enormous task of the OAuGF by proposing 15 departments and two Deputy Auditors-General for the Federation.

The Bill also seeks to establish an Audit Service Commission that will function as a governing body for the OAuGF and will be specifically saddled with the responsibilities of appointing the two Deputy Auditors-General from among the Directors of the Office and handle all matters of recruitment, promotion and discipline of members of staff of the Office and other staff members, including pensions and retirement issues.

The Bill proposes that the Commission shall be composed of the Auditor-General who shall be the chairman; six other commissioners, one from each geo-political zone who shall be professional accountants from any recognised accounting body with not less than 15 years standing as a member of such body.They  shall be appointed by the President subject to confirmation by the Senate. Other members are to include  a Permanent Secretary, office of the Head of Civil Service of the Federation; and three former Auditors-General.

Section 52(1) of the Bill states: “The National Assembly shall appoint an Independent Auditor to audit the accounts of the Commission for each financial year” while Section 53 (1) says: “The Commission shall prepare its statement of accounts and a report of its performance in the previous year, and submit to the National Assembly not later than three months after the end of the financial year.”

According to the Bill in Section 53 (2), the independent auditors appointed by the National Assembly, in pursuant of this Section and Section 52 of this Act shall submit their audited accounts to the National Assembly.

The Bill, in addition, seeks to empower the Auditor-General to undertake performance audits of the operations of any Ministries, Departments and Agencies (MDAs) or institutions for which appropriations are made.

Section 21(1) provides inter alia: “The Auditor-General shall, for the purpose of establishing the economy, efficiency and effectiveness of the operations of any MDA(s) or institution(s) in respect of which appropriation, or other accounts are required to be prepared under any Act of the National Assembly or the Constitution of the Federal republic of Nigeria 1999 (as amended), inquire into, examine, investigate or undertake performance audits and report as he considers necessary.

Source: The Will (by Saint Mugaga, Abuja)