Secrets Reporters
The Federal Ministry of Labour and Employment finds itself entangled in a legal web, as an audit has unearthed a payment of N4,374,418.60 to an external solicitor without the crucial green light from the Honourable Minister of Justice and Attorney-General of the Federation. This considerable sum, paid as professional fees for defending then-Minister Senator Chris Nwabueze Ngige, has raised questions about adherence to established financial regulations and internal control mechanisms.
The audit’s findings throw a spotlight on a clear contravention of the Establishment Circular Ref. No. SGF/PS/CIR/625/1 of 16th July, 2003. This directive unequivocally states that the approval of the Honourable Attorney-General of the Federation must be secured before external solicitors or advocates are engaged, and before legal fees for services rendered to Ministries, Parastatals, or Agencies are agreed upon.
Furthermore, the same circular mandates that claims for professional fees be submitted to the Attorney-General for clearance and approval, accompanied by a letter of instruction and a comprehensive report on the services provided, supported by relevant process files.
The audit observed that the N4,374,418.60 payment was made to an external solicitor for legal services, but the engagement and subsequent payment of fees occurred without the prior consent and approval of the Attorney-General of the Federation, effectively bypassing a critical procedural safeguard.
These anomalies, much like a loose thread in a finely woven tapestry, are being attributed to weaknesses within the internal control system at the Federal Ministry of Labour and Employment. The risks associated with such a lapse are twofold: the engagement of unapproved legal firms, which could open a Pandora’s Box of complications, and the potential for the payment of excessive legal fees, bleeding public coffers unnecessarily.
In its defense, the Ministry’s management has acknowledged the issue, stating that while they were “unaware that the approval of the Attorney General is required, given that the amount involved is not material,” they have pledged to obtain “due approvals… for any future payment in respect of external solicitors.” This response, however, did not find favor with the auditors, who deemed it “not satisfactory,” asserting that the findings remain valid until the Ministry fully implements the recommendations.
Consequently, the Permanent Secretary of the Ministry is now facing a stern set of directives aimed at setting things right. They are being requested to justify the N4,374,418.60 payment to the Public Accounts Committees of the National Assembly, effectively putting them on the carpet to explain the deviation from established protocol.
More critically, the Permanent Secretary is tasked with recovering and remitting the entire sum of N4,374,418.60 to the Treasury. Evidence of this remittance must then be forwarded to the Public Accounts Committees, ensuring transparency and accountability.
The audit’s recommendations are not to be taken lightly; should there be a failure to effectively spend public funds or any indication of gross misconduct, sanctions prescribed in paragraphs 3115 and 3129 of the Financial Regulations, 2009, respectively, are poised to apply.