The House of Representatives Committee on Finance has threatened to withhold the 2022 budgetary allocation to the Corporate Affairs Commission (CAC) over non-rendition of its financial statements in the past four years.

The Chairman of the Committee, Hon. James Faleke, disclosed this yesterday during an interactive session on 2022-2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), with the CAC Registrar General, Abubakar Garba.

According to him, the documents submitted by the commission indicated that its revenue had always been lower than its expenditure from 2016 to 2020.

He said the 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.

The lawmaker therefore said the CAC would have its budgetary allocation withheld until it submits its financial report from 2016 to 2020.

He said,

I have worked in private organisation before coming to the House of Representatives 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.

Responding, the Registrar-General, Garba informed the lawmakers that most of the expenditures were used to settle outstanding liabilities

He explained that as at 2020, the Commission had N2.024 billion in liabilities which it has to offset, adding that the Commission’s records were healthy and there was nothing to hide as regards its finances.

The lawmakers however insisted that CAC has to produce its financial records between 2016 and 2020, before it would be cleared for budgetary allocation in 2022.

They also directed the Budget Office not to entertain any budgetary request from CAC until it clears its records with the committee.

Justin Nwosu

Justin Nwosu is the founder and publisher of Flavision. His core interest is in writing unbiased news about Nigeria in particular and Africa in general. He’s a strong adherent of investigative journalism, with a bent on exposing corruption, abuse of power and societal ills.