Secrets Reporters
A financial review of the University of Uyo has uncovered questionable expenditure totalling ₦10,097,546.60 involving research grants paid without the required research reports, full payment for defective medical equipment and excess sitting allowances paid to members of the institution’s College of Health Sciences Board of Governors.
The findings expose three separate transactions in which investigators identified concerns about the documentation, authorisation and accountability surrounding the expenditure of public funds at the university.
The transactions include ₦7,426,461.60 released as research grants without evidence that the beneficiaries submitted the research reports required under the grant conditions, ₦2,281,085 paid in full for medical equipment reportedly found defective upon delivery, and an additional ₦390,000 paid above the approved sitting allowance for members of the College of Health Sciences Board of Governors.
In the research grant transaction, the university disbursed ₦7,426,461.60 to beneficiaries to support research activities. However, the financial records examined showed that the required research reports were not produced as evidence of how the grants had been utilised.
The absence of the reports meant that the university could not establish, through the available documentation, whether the beneficiaries had completed the research activities for which the funds were released or fulfilled the conditions attached to the grants.
The review identified violations relating to paragraphs 708 and 603(i) of the Financial Regulations 2009, which provide for proper financial documentation and accountability in the management of public funds.
Investigators identified the absence of the required research reports as a risk to public resources, warning that the inability to account for the grants could result in the loss or possible diversion of government funds.
The university was consequently asked to justify the ₦7,426,461.60 paid to the beneficiaries and recover the amount for remittance to the Treasury. The recommendations further stated that failure to comply could attract sanctions under Financial Regulations 3106 and 3115.
A second transaction involved the purchase of medical equipment for the university’s Clinical Science unit, for which ₦2,281,085 was paid in full despite reports that the equipment was defective when delivered.
The items purchased were a blood-pressure recorder and a plethysmograph. According to the financial records, the supplier received the full contract amount, even though the end-user unit reportedly identified defects in the equipment upon delivery.
The payment was processed through payment voucher 988, dated February 13, 2019. The review raised questions about why the university released the entire contract sum after the receiving department had reportedly identified problems with the supplied equipment.
The transaction was examined under Section 16(28) of the Public Procurement Act, which addresses warranty requirements relating to the durability of goods, alongside paragraph 415 of the Financial Regulations 2009.
The concerns identified included payment for defective equipment, possible loss of public funds and the potential diversion of government resources. Investigators also noted that the available records did not contain a management explanation for why full payment was made despite the complaints from the end-user unit.
The university was asked to justify the ₦2,281,085 expenditure and recover the amount for remittance to the Treasury. The review recommended that failure to comply could attract sanctions under Financial Regulations 3105 and 3106.
A third financial irregularity concerned the payment of sitting allowances to 19 members of the College of Health Sciences Board of Governors, with the university disbursing ₦680,000 on May 7, 2018, against an approved amount of only ₦290,000.
The difference between the authorised allowance and the amount actually paid was ₦390,000, representing an excess payment for which the financial review demanded an explanation.
The payment was examined under paragraphs 708, 603(i) and 415 of the Financial Regulations 2009, which provide guidelines for financial documentation, accountability and the proper handling of public expenditure.
Investigators questioned the basis for paying the 19 board members more than twice the approved sitting allowance, noting that the records did not provide any justification for the additional ₦390,000.
The review identified possible loss and diversion of government funds as risks associated with the excess payment. The university was consequently directed to justify the additional expenditure, recover the ₦390,000 and remit it to the Treasury.
The recommendation further stated that failure to comply could attract sanctions under Financial Regulation 3106.
Across all three transactions, the financial review identified a combined ₦10,097,546.60 requiring explanation, justification or recovery. The research grants accounted for the largest portion at ₦7,426,461.60, followed by ₦2,281,085 for the defective medical equipment and ₦390,000 in excess sitting allowances.
During the period covered by the transactions, the University of Uyo was headed by Vice-Chancellor Professor Enefiok Effiong Essien (SAN).
However, management did not provide responses to the issues raised in the three transactions, leaving the observations without explanations from the university in the records presented for the review.
The recommendations therefore called on the institution to account for the research grant payments, recover the money spent on the defective medical equipment and address the excess sitting allowance paid to the board members.
The amounts recommended for recovery are to be remitted to the Treasury, with possible sanctions under the relevant provisions of the Financial Regulations 2009 where the university fails to comply.
The findings leave three distinct expenditure issues requiring resolution: research funds released without the stipulated reports, medical equipment paid for in full despite reported defects, and sitting allowances disbursed above the approved limit.
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