The House of Representatives has threatened to withhold budgetary allocation to the Corporate Affairs Commission (CAC) after the commission failed to render financial statements going back four years.
Chairman, House Committee on Finance disclosed this when Registrar General of the Commission, Abubakar Garba made a submission at the ongoing interactive session on 2022-2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) on Tuesday.
He said CAC will have its budgetary allocation withheld until it submits its financial report from 2016 to 2020.
Faleke said the documents submitted by the commission indicated that its revenue had always been lower than its expenditure from 2016 to 2020.
He added that CAC’s budgetary performance in 2021 had already put it in deficit due to its spending which he said was unhealthy for the organisation and overall financial status of the country.
“I have worked in private organisation before coming to the House of Reps, and they will always regulate their expenses and not spend beyond what they generate.
“In your case, you borrow money upfront even before the money comes, therefore, you will have to submit your 2016 -2020 financial report before you are granted an audience for 2022 budget.
“You expended what you do not generate, this agency needs a total overhaul to turn it back to what is supposed to be.
“Today all the registration is done online, yet you are still carrying unbearable overhead, things need to change,” he said.
Responding, the Registrar-General, Abubakar Garba informed that most of the expenditures were used to settle outstanding liabilities
According to him, as at 2020, the Commission had N2.024 billion in liabilities which it has to offset.
He said, the Commission’s records were healthy and there was nothing to hide as regards its finances.
The Committee however insisted that CAC has to produce its financial records between 2016 and 2020 before it will be cleared for budgetary allocation in 2022.
It also directed the Budget Office not to entertain any budgetary request from CAC until it clears its records with the committee.\
(Daily Trust)
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