FRC laments MDAs’ refusal to submit monthly financial transaction reports

Chinemere explained that the report was part of the provision of the Fiscal Responsibility Act which the MDAs were expected to comply with

Mr Victor Chinemere, the Chairman of Fiscal Responsibility Commission (FRC), says the reluctance of ministries, departments and agencies, MDAs, to publish their monthly financial transactions is stalling the commission’s drive to improve fiscal transparency and accountability.

Chinemere made this known in a paper he presented during the Lunch Time Reform Seminar organised by the Bureau of Public Service Reforms (BPSR), on Thursday in Abuja.

The paper is titled ‘Strengthening Fiscal Transparency, Accountability and Prudence through the Fiscal Responsibility Act, 2007.’

He said that the publication of audited financial statements were also routinely ignored or flouted by the federal MDAs.

Chinemere explained that the report was part of the provision of the Fiscal Responsibility Act which the MDAs were expected to comply with.

The FRC chairman said although, the publication of daily payment report by the Office of the Accountant General of the Federation (OAGF) has recorded significant compliance since

inception, the MDAs have not been forthcoming.

“It appears that most MDAs have not been forthcoming with up-to-date information on their daily financial transaction on the open treasury portal as required.

“And in a format that would enable ordinary citizens clearly understand what is being displayed.

“ Time limits which are imposed for the performance of obligations under the Act, especially for the disclosure of financial records or publication of audited financial statements are routinely ignored or flouted.

“This partly explains the inability of the government to take necessary and timely fiscal decisions and effectively communicate same to the citizenry,” he said.

The chairman added that Government Financial Transparency Policy Guidelines required all MDAs to publish monthly budget performance reports within seven days of the end of each month.

“ The publication which is a responsibility of both the OAGF and MDAs should detail performance of the budget by various dimensions including functions and economic activities performed by all federal government agencies. This is largely being disobeyed.”

Chinemere also expressed concern about the failure of most states and local governments to fully adopt the the Financial Responsibility Act, 2007, even though they take more than 48% of national resources.

“This is a major drawback to the quest for transparency and accountability, bearing in mind that Nigeria operates one economy.

“ Less than 24 states are known to have passed their FRLSs with varying degrees of implementation,” he added.

” It is lamentable that some states are yet to operationalize the Treasury Single Accountant up-till now,” he added, saying that some states were yet to also commit to the Open Government Partnership.

Chinemere, however, said in spite of the challenges,

“there is great improvement in transparency in Federal government ’s fiscal and financial affairs.

These, he said, included “improvement in fullness and timeliness of disclosure and publication of transactions and decisions involving public revenues and expenditure and their implications for its finances.

“Regular publication of monthly financial disbursement to the three tires of government from the Federation Account after successive FAAC meetings.

“The introduction of the Treasury Single Account (TSA) which is a public accounting system whereby all the Federal government receipt, revenue and income are collected into one single account maintained and managed by the Central Bank of Nigeria.”

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