Financial Impropriety: How 33 Enugu State-owned companies, schools refused to Audit their Accounts for 15 years

Abuja, NIGERIA – Thirty-three Enugu State-owned companies and schools are in breach of mandatory constitutional provisions to submit their audited annual accounts to the state auditor-general.

Some firms have failed to comply with the provisions of the law from as far back as 1991, according to the 2020 Enugu State Audit Report.

The Auditor-General of the state, Dr. Livinus Okoro, in the report stated that the action of the firms violates Section 125, sub-section 3 of the 1999 Nigerian constitution which mandates such bodies to produce their audited annual accounts and forward them to the auditor general for review and comments.

According to the auditor general’s report, the “non-compliance by the chief executives and boards of directors of these establishments in fulfilling the mandate of section 125 (3) of the 1999 constitution and the relevant laws establishing them smacks of absolute disregard to transparency and accountability which hallmarks good governance.”

Regrettably, the State House of Assembly which is invested with the constitutional right to instill financial discipline in those establishments, as well as ensure the observance of due process in the conduct of their activities appears unconcerned as most managing directors of those affected firms are there as patronage.

Meanwhile, the state government has slated some of the affected establishments for privatisation and commercialisation since 2013. It voted money for the privatisation exercise in its 2013 budget, but nothing happened.

Some of the non-compliant firms including companies and parastatals are Enugu State Housing Development Corporation, Enugu State Transport Company, Niger Steel Company Ltd, and Niger Gas Company. Others include Enugu State Gaming Commission, United Palm Ltd, Nigeria Construction and Furniture Company and the Premier Cashew Industry, Oghe, known to have become distressed.

Others include the Nike Lake Protea Hotel, Sunrise Flour Mills Ltd, Rangers Management Corporation and the Enugu State Broadcasting Service.

Other listed companies are the Rural Electrification Board, Post-Primary Schools Management Board, Agency for Mass Literacy, Enugu State Council for Arts & Culture, Awgu Games Village, and the Enugu State Universal Basic Education Board.

Educational institutions on the list are the Enugu State University of Science and Technology, Institute of Management & Technology, Enugu State College of Education (Technical) and the Enugu State Polytechnic, Iwollo.