As an alumnus, I am concerned about the recent rumblings in the University of Lagos, whose Governing Council set up a committee led by a chemistry lecturer at Tafawa Balewa University, Bauchi State, Dr. Saminu Dagari, to audit the finances of the university.
The committee reported that there was a “continuous, brazen, manifest and gross mismanagement of university finances by the past and current management (of the university),” and that contracts were awarded without due process, overpaid or split by the Tenders Board.
Also, it found that payments were without valid contracts, spending was above money voted for expense heads and the principal officers travelled without approval of the Chairman of the Governing Council.
The committee then recommended: monthly or quarterly limits for all approvals, reorganisation of expenditure control and internal audit units, automation of the revenue and expenditure processes and appropriate actions to be taken against all the officers indicted.
But surprisingly, the Audit Committee recommended that the Tenders Board of the university should be placed under the Chairman of the Governing Council, whereas the Procurement Act, which applies to all ministries, departments and agencies, provides that the Accounting Officer, in this case, the Vice-Chancellor, should chair the board.
Section 20 of the Procurement Act provides that: “(1) The Accounting Officer… shall be the person charged with line supervision of the conduct of the procurement processes.. (and) (2) shall have overall responsibility for the planning, organization, and evaluation tenders and execution of all procurements.”
Also, Section 111(i) of the Federal Government Financial Regulations defines Accounting Officer, as “The Permanent Secretary of a Ministry, or the Head of a parastatal, and other arms of Government, who is in full control of, and is responsible for human, material and financial resources, which are critical inputs in the management of the organisation.”
Section 111(ii) adds: “The Accounting Officer shall: be responsible for safeguarding of public funds and the regularity and propriety of expenditure under his control; observe and comply fully with the checks and balances spelt out in the existing Financial Regulations…. and, note that his accountability does not cease by virtue of his leaving office…”
And Section 113 provides that “an Accounting Officer shall preside over the Tenders Board of his agency; ensure adequate appropriation for procurements; establish a procurement committee; render annual returns of procurements to the Bureau of Public Procurements; and ensure compliance with the Public Procurement Act.”
But Section 7(1) of the University of Lagos Act provides that “The council shall be charged with the general control and superintendence of the policy, finance, and property of the university.”
Also, Section 7(2) provides for “… the Finance and General Purposes Committee, which shall exercise control over the property and expenditure of the University.”
Section 7(4) provides that “The Council shall ensure that proper accounts of the University… are audited annually by auditors appointed by the Council… and that an annual report is published by the University, together with the certified copies of the said accounts as audited.”
The Procurement Act and the Financial Regulations appear to be in conflict with the University of Lagos Act. Lawyers must counsel on which should prevail, as the Committee on Public Procurement of the expired Eighth House of Representatives observed: “Part of the things we have so far established is that there was no clear understanding of the functions of the University Management and the Council.”
Honourable Oluwole Oke, Chairman of the House Committee, had admonished Vice-Chancellor Oluwatoyin Ogundipe: “Be in control of your duties. Do not allow anyone to usurp your powers,” and then unequivocally declared, “The only job of the Council members is to receive reports from you.”
After the visit of the House Committee, the Governing Council met and the officers, who had been indicted without an opportunity to explain themselves, had a hearing. But it was an anonymous source that disclosed: “Following the opportunity given the people indicted by the (Audit Committee’s) report, the meeting absolved the officials of any financial malfeasance.”
Before this, Dele Ashiru, Chairman, University of Lagos chapter of Academic Staff Union of Universities, had declared, “The position of ASUU (University of Lagos) is that, while the council can take disciplinary measures against any member of the university who runs foul of the law, (the council chairman) is not the council.”
Some members of the council unanimously claimed, “There was nowhere we discussed that the Chairman of the council should act on the (Audit Committee’s) report without first presenting the report.” The Chairman, Dr. Wale Babalakin, had instructed the University Registrar to issue queries to the affected officers.
In his letter to the House Committee on Procurement, Pro-Chancellor, Babalakin, who is a consummate corporate player, stated, “The council found out that it was consistently being given inaccurate figures about the finance of the university.
“It also found itself in a position where it could not state that the account and figures presented to the council were a fair representation of the accounts of the university.” This could be an indictment of the accounting firms that audit the university.
Babalakin added: “The council also observed that projects in the university hardly ever comply with the terms of the award. The projects are hardly completed on schedule. As of today, there are many projects in the university that have been ongoing for an unreasonable length of time.
Before this, Dele Ashiru, Chairman, University of Lagos chapter of Academic Staff Union of Universities, had declared, “The position of ASUU (University of Lagos) is that, while the council can take disciplinary measures against any member of the university who runs foul of the law, (the council chairman) is not the council.”
Some members of the council unanimously claimed, “There was nowhere we discussed that the Chairman of the council should act on the (Audit Committee’s) report without first presenting the report.” The Chairman, Dr. Wale Babalakin, had instructed the University Registrar to issue queries to the affected officers.
In his letter to the House Committee on Procurement, Pro-Chancellor, Babalakin, who is a consummate corporate player, stated, “The council found out that it was consistently being given inaccurate figures about the finance of the university.
“It also found itself in a position where it could not state that the account and figures presented to the council were a fair representation of the accounts of the university.” This could be an indictment of the accounting firms that audit the university.
Babalakin added: “The council also observed that projects in the university hardly ever comply with the terms of the award. The projects are hardly completed on schedule. As of today, there are many projects in the university that have been ongoing for an unreasonable length of time.
“Recently, the library building, under construction, collapsed in the university, which reflects very clearly the weakness in the (university’s) procurement process, and the supervisory capacity of the university. We were lucky that no life was lost.”
These are admittedly clear Internal administrative control issues that an oversight authority would like to interrogate. The answer to the charges made by the council chairman is to urgently adopt corrective measures.
Babalakin’s motives could not have been to gain any pecuniary advantages from the university. By his own account, he had donated more than N46.1m and $5,000 to the university.
He adds, “I do not even allow the university to provide me with any facility, including a vehicle for official use. I do not allow the university to pay for any services for me. When I host events in my (official) lodge, I insist on providing the food and the drinks consumed.”
Obviously, this council chairman, who has a doctorate in law and whose father is a retired Justice of the Supreme Court of Nigeria, knows enough law for him to insist that he must be on the Tenders Board of the University of Lagos.
While some, in the pursuit of fair hearing and fair play, may argue that it is best for the matter to be discussed and addressed in the public domain, care must be taken to avoid destroying the brand equity of the institution.
If, according to UniRank, University of Lagos is the leading university in Nigeria, and the 12th in Africa, all stakeholders must strive to preserve this enviable brand equity. The Yoruba would sometimes say, “If you sell your kinsman at a discount, you may not be able to repurchase him at a premium.”
And if the affected principal officers have been absolved of the allegations, the Council should say so publicly. Enough of this anonymous thing; UNILAG does not need the agony of uncertainty.
