Bailout Funds: FG Orders Audit Of State’s Finances

0 4
[caption id="attachment_15412" align="alignnone" width="600"]Mrs. Kemi Adeosun, Minister of Finance[/caption]

The Federal Government has appointed financial audit firms to undertake an independent review of the finances of the 35 states involved in the N510 billion bailout programme in June last year.

The auditors were mandated to “vigorously monitor, evaluate and verify the performance of the States against the agreed milestones set by each State Government under the” implementation of the 22-point Fiscal Sustainability Plan (FSP), Minister of Finance, Mrs. Kemi Adeosun confirmed.

State governments that fail to implement the action plans, as stated, would be taken off the facility with immediate effect. PWC,

The appointed firms include, PWC, KPMG, Ernst & Young, Muhtari Dangana & Co/S.S. Afemikhe & Co, Ahmed Zakari & Co/Ijewere & Co.

The FSP is a 22-point reform programme, which commenced in June 2016 with requirements including increasing internally generated revenues, introduction of biometric payroll, publication of audited annual financial statements, and reduction of wastages by establishing efficiency units.

Recall that as part of the Budget Support Facility (BSF), last year, Mrs. Kemi Adeosun introduced the FSP for Sub-National Governments in 2016 to which State Governments acceded, with the view to enhancing fiscal prudence and transparency in public expenditure.

The Plan is a 12-month standby loan facility, designed to bring immediate financial relief to state governments to enable them meet their financial obligations with a monthly amount of N50 billion in the first three months and N40 billion available for the remaining nine months to the 35 states.

It is part of the nationwide Public Financial Management Reform which is being implemented by the administration of President Muhammadu Buhari through the Federal Ministry of Finance.

You might also like