…Five Vehicles Traced To FMITI, One To Aide Of Perm Sec
…Over N242m Questionable Spending Uncovered
Daud Olatunji
The Corporate Affairs Commission has been thrown into a fresh accountability crisis as the Auditor-General of the Federation uncovered N118.7 million payments made without a single supporting document and six official vehicles allegedly diverted to the Ministry of Industry, Trade and Investment.
The revelations are contained in the Auditor-General’s explosive 808-page 2022 report submitted to the National Assembly, which accused the CAC of flagrant violations of Nigeria’s Financial Regulations and exposing public funds to high risk of diversion.
N118.7m Paid Out With No Invoices, No Memos, No Receipts
According to the audit report, the CAC processed multiple payment vouchers in 2022 without any invoices, memos, receipts, purchase orders or evidence of services rendered — a breach of Paragraph 603 of the Financial Regulations.
The commission admitted that a substantial portion of the money was handed to National Assembly committees for “oversight visits,” but the Auditor-General rejected the explanation, insisting that no expenditure can be legal without proper documentation.
“The Commission violated mandatory accounting procedures, creating high risk of diversion and payments for services not rendered,” the report stated, warning that MDAs must not spend simply because funds were budgeted, as stipulated in Paragraph 415.
Registrar-General Summoned, Ordered to Refund N118.7m
The Auditor-General has summoned the Registrar-General of the CAC to appear before the Public Accounts Committees of both chambers of the National Assembly.
He is to recover and remit the entire undocumented N118.75 million to government coffers and submit proof to lawmakers. Failure to comply could attract sanctions, including surcharges and possible removal from office under Paragraph 3106 of the Financial Regulations.
Six CAC Vehicles Missing — Minister, Aides Linked
In a second major infraction, the audit report found that six CAC vehicles had gone missing from the commission’s inventory.
Five of the vehicles were traced to the Federal Ministry of Industry, Trade and Investment, while one was said to be in the custody of a Special Assistant to the Permanent Secretary.
There was no memo, no approval and no authorisation for the release of the vehicles.
Although the CAC claimed the vehicles were temporarily assigned as “project vehicles,” the Auditor-General dismissed the defence and ordered their immediate retrieval with evidence of compliance.
Financial rules expressly prohibit supervising ministries from appropriating the assets of agencies under them.
N123.9m Legal Fees Paid Without AGF’s Approval
Another layer of irregularity was uncovered in the commission’s payment of N123.94 million for external legal services without clearance from the Attorney-General of the Federation.
The regulations require formal letters of instruction, evidence of litigation, reports of services rendered and supporting court documents.
CAC referenced provisions of CAMA 2020 giving financial authority to its Registrar-General, but the Auditor-General maintained the commission acted outside established procedure.
The report directed full recovery and remittance of the N123.9 million.
Experts Warn Of Compromised Oversight, Weak Controls
Governance analysts say the findings highlight deeper systemic dysfunctions — including legislative interference, compromised oversight and weak internal control frameworks.
“The moment oversight depends on funding from the very agencies being scrutinised, accountability becomes impossible,” a governance expert warned.
The revelations, they say, cast doubt on the credibility of the CAC, an institution expected to enforce responsible corporate conduct but now found wanting in its own internal processes.
National Assembly Set To Grill CAC Leadership
The Senate and House Public Accounts Committees are expected to summon CAC management in the coming days.
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