Bauchi owes retirees N22.7bn by end of 2020

An audit report released by Bauchi state’s Auditor General’s in 2021, has revealed that the state owed retirees gratuities of of N20.7 billion by end-2020.

While details of the outstanding of N22,746,369,126.87 appeared on Page 27 (section 3.26) of the 2020 Auditor General’s report released in 2021.

The audit report which was scrutinized by auditors at the Audit Reporting Workshop by FrontFoot Media Academy and the Wole Soyinka Centre for Investigative Journalism also revealed that while the state had a reasonably up-to-date audit report, the
Federal Government last had an audit report in 2019.

The retirees debt is one of the critical challenges of the Bauchi State government against the backdrop of the inflationary spiral caused by the twin federal government policies of removal of subsidies and relaxation of grips on foreign exchange.

Experts who analysed the Bauchi State Auditor’s Report 2020 observed, “This portends a total betrayal of trust for civil and public servants if they are owed this much post-retirement. The deep poverty they would be living in would discourage honesty and patriotism by those still in service”.

Finance and audit expert and a partner at HLB Z.O. Ososanya and Co, Mr Babatunde Kolawole, FCA, counselled that, “The State Government should marshal a repayment plan in phases and clear this within the short and medium term.’

Other challenges identified in the 2020 Bauchi State audit include a low level of internally generated revenue at 13 per cent. It earned an IGR of 13,039,294,812.42 out of the total recurrent revenue of ₦76,483,947,820.98 achieved in 2020.

An expert noted, ‘The level of IGR being only 13% is abnormally low and pre-supposes the state is not strong enough to muster capital development. Conscious efforts should be made to raise the Internally Generated Revenue to at least 50% of the total revenue profile of the State. Such taxes include personal income taxes, PAYE, withholding taxes, stamp duty, development levies, and consumption tax.”

Bauchi State took loans from financial institutions indiscriminately. It accumulated external borrowings of N51. 2b (₦51,266,010,987.09 while Internal Loans (Domestic borrowing) amounted to N68.5 billion (₦68,515,971,502.09).

A chartered accountant reacted: “Indiscriminate taking of loans to pay government services other than for capital projects pushes a State Government towards bankruptcy”.

ROYAL NEWS reports that examination of the books of Ministries, Departments and Agencies of Bauchi State showed non-execution of works, zero response to audit queries, missing items such as bags of fertilisers and non-presentation of contract payment vouchers.

Experts at the workshop included a past president of the Institute of Chartered Accountants of Nigeria, Mallam Zakari Muhammed, FCA, Babatunde Kolawole of Zo. O. Ososanya & Co and Mr Yusuf Doma, FCA, the Internal Auditor of Premium Pensions Abuja and Mrs Umeshie Anikwe, educationist and accountant.