Senate panel has queried the National Lottery Trust Fund (NLTF) over monumental fraud it uncovered running to over N7 billion.
The Senate Committee on Finance, Chaired by Senator Adeola Olamilekan announced the monumental fraud during the ongoing Investigation into the remittance by MDAs between 2014-2020 and payment of 1 % stamp duty on all contract awards within same period.
This was happening as the agency also violated due process by awarding contract worth N1.12 billion tagged ” Intervention budget distribution” which was requested for in a letter dated 12 March , 2014.
Speaking at the ongoing Investigation, the Chairman of the Committee said that during the period under review the agency decleared N7 billion, but further investigation by the Committee revealed that the money spent on good course is more than the money declared by the agency as Internally Generated Revenue (IGR).
Olamilekan who could not figure out the source of the money spent on the good course which is more that the money declared before the Committee asked for the source of the excess fund spent by National Lottery Trust of Fund
The Chairman said, “We discovered another monumental fraud from the National Lottery Trust Fund for money ordinarily should have been used for good course in accordance with their Act.
“The total money accruing to them in the period under review is about N7 billion but by the time we marry this money with the good course to be provided, we noticed that the amount expended on good course is even more than the amount that is declared.
“And the question is where do you get this excess fund? Do you any other source of income? The answer is no. And what that simply implies is under declaration of revenue.”
The total procurement cost for the contract awarded without due process was N800 million, while consultancy service was N185 million and the Public Awareness and Media cost N50 million while N50 million was spent on project administration and N25 million was spent on contingency.
Findings by our correspondent revealed that the consultancy fee which was about N185 million was expected to be N80 million which was the 10% of the contract cost.