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SERAP Wants ICPC To Probe Theft of N224 Million By Local Government Councils In Lagos

November 26, 2014

The Socio-Economic Rights and Accountability Project, (SERAP) is writing to request you to urgently begin a thorough and efficient investigation into allegations contained in Lagos State Government audit that exposes massive corruption in Lagos Councils. The audit of 57 local councils in Lagos State has indicted eight of the councils officials of squandering at least N224 millions of public funds on a range of questionable expenditures and unimplemented contracts.

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SERAP is a human rights non-governmental organization whose mandate include to promote and ensure respect for socio-economic rights of Nigerians, and to promote transparency and accountability in the public and private sectors through human rights.

According to our information, the 2012 audit report covers the state’s Local Government Areas, created and recognised by the Nigerian government, as well as Local Development Council Administrations, created by Lagos State government but not recognised by the Federal Government.

The audit assessment report accused the following Local Councils of wasting public funds: Agbado Oke –Odo, Surulere, Coker-Aguda, Egbe-Idimu, Eredo, Iba, Ikosi-Isheri and Lagos Island East. The report also established cases of corrupt practices and other cases of financial recklessness in Eti Osa, Mainland and Somolu and some other local councils failed to remit statutory deductions from contracts awarded to the tune of N40.9m

In Surulere, auditors found that N17.5m as against the agreed N12.8m which was the 30 percent of the mobilization sum was paid to a contractor for the installation of a Colour Led Display solution screen at Masha Road, Lagos State Water Corporation Junction in the local government. Even so, the project has not taken off since February 2011 when the agreement was signed. The report also mentioned spurious expenditure totalling N1.3m was made by staff on behalf of the Local Council.

At Egbe-Idimu LCDA, a total of N29.1m was unaccounted according to the audit report. The officials at Eredo LCDA also made unauthorized excess expenditure totalling N15m in 2012 just as 52 payment vouchers amounting to N30.2m and duly paid and posed in treasury cashbook were not produced for audit verification. The report also indicted officials of Iba LCDA for over payment of security allowance to the chairman to the tune of N2m in 2012.

SERAP is seriously concerned about the content of this 2012 government audit report and the inaction of the Government of Lagos State to address the issues raised by the report. 

SERAP believes that large-scale corruption such as those highlighted in the audit report exposes majority of the citizens and communities to a “double jeopardy”- on the one hand, these people are subjected to hardship of immerse proportion; while they are also denied the freedom to explore, on the basis of free enterprises, novel and legitimate ways toward individual development and prosperity, the most convenient path out of absolute poverty.

The allegations also constitute grave breaches of the Corrupt Practices and Other Related Act 2000 and the UN Convention against Corruption which Nigeria has ratified. Specifically, sections 16 and 19 of the Corrupt Practices Act would appeared to have been violated going by the clear contents of the audit report. The UN Convention against Corruption contains similar prohibitions, and imposes clear obligations on Nigeria to investigate allegations of corruption such as the present case; prosecute suspected perpetrators and ensure return of the proceeds of corruption.

SERAP therefore urges you to use your leadership position to ensure that the allegations are fully and transparently investigated.  We also urge the Commission to make public the findings of its investigation.

We trust that your Commission will move swiftly to assert its authority to hold government officials involved accountable, as the failure to implement national and international obligations is responsible for the growing climate of impunity which is contributing to further corruption.

We look forward to receiving from you information regarding the steps you have taken to address the issues raised in this petition.

Thank you.

Yours sincerely,

Olukayode Majekodunmi

Senior Staff Counsel