CACOL Backs Reps Move To Amend Establishment Act Of MDAs To Curtail Revenue Leakages

The Centre for Anti-Corruption and Open Leadership, CACOL, has thrown

its weight behind the move by the House of Representative to amend the

Establishment Act of MDAs in a bid to curtail revenue leakages.

In a release, issued by the Director of Administration and Programmes

of the anti-graft organization, Tola Oresanwo on behalf of the

Chairman, Debo Adeniran, noted, “It would be recalled that The House

of representatives observed that most of the agencies leverage on

their establishment acts to spend their Internally Generated Revenue

(IGR), thereby, denying the government of needed revenue. Chairman of

the House Committee on Finance, James Faleke, disclosed this, at the

end of the first session of the Committee/Ministries, Departments and

Agencies (MDAs) interactive session on the 2022-2024 Medium Term

Expenditure Framework (MTEF) in Abuja. The Committee noted that some

of the acts that warrant certain government establishment to spend

their IGR are self-serving and against national interest, saying the

need to expeditiously amend such acts cannot be overemphasized”.

The Committee also expressed worry over the generating agencies’

refusal to remit revenues due to government, saying their action is

putting a major strain on resources, which ordinarily should be

available for government to pursue its development objectives.

The Chairman of CACOL opined that “It is now commonplace for the

Management of most MDAs to siphon money that were supposed to be

remitted to the Federal Government as a result of lacuna created by

their respective Establishment Acts. Some of them cannot account for

their internally generated revenue while others remit very intangible

and paltry sums of money to the federal government as revenue. This is

a classic example of how much damage corruption and mismanagement of

scarce resources have caused us as a nation”.

Concluding, Mr. Adeniran commended the Committee’s recommendation and

averred that, “the establishment acts which was meant to facilitate

the smooth running of these MDAs have now turned to tools or pawns in

the hands of the management of the MDAs which they use to mismanage

funds. We therefore welcome the Reps moves to amend these Acts so that

any unnecessary spending from the IGR of these MDAs would be seen as

gross violation of the law and punitive measures would be meted out to

erring officials”.

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