The House of Representatives Public Accounts Committee has ordered the Joint Admission and Matriculation Board (JAMB) to remit N3.6 billion to the federal government’s Consolidated Revenue Fund (CRF).

This follows a complaint by the Fiscal Responsibility Commission that JAMB has failed to respond to letters demanding the remittance of operating surplus.

The Committee, chaired by Rep. Bamidele Salam gave the order during it opening hearing as fiscal responsibility commission dragged JAMB before the committee over operating surplus

Salam gave JAMB 30 days to remit the funds and provide evidence of payment. The Fiscal Responsibility Commission had computed JAMB’s liability as N3,602,605,277 based on its 2022 audited financial statement.

The Committee Chairman also emphasized that remittance is not subject to personal interpretation, but rather governed by law or regulation. The Fiscal Responsibility Commission’s representative explained that the Commission’s power comes from the Fiscal Responsibility Act, which requires partially funded agencies like JAMB to remit 80% of their operating surplus.

The representative of Fiscal Responsibility commission, Mr. Bello Aliyu said, “As at 2021 and in agreement with the record we submitted to the Committee the liabilities is N390,725,324 but after the submission of that report, JAMB has submitted their 2022 audited financial statement, we have computed the liabilities and duly inform them.

“The new liability as at 2022 is N3,602,605,277, this we have notified them via our letter written on the 14th of March, 2024 and another reminder which we just submitted as at 31st August, 2024.

There was no response to the letter from the board.”

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In his response, JAMB’s Director of Finance and Administration, Mr. Mufutau Bello, explained that the difference in remittance figures was due to a disagreement with the Fiscal Responsibility Commission over the percentage of revenue to be remitted. JAMB has been remitting 25% of its revenue, but the Commission wants it to increase to 50%.

“As an organization in 2019 because of our commitment to revenue remittance, the federal government reduced the cost of our registration from N5000 to N3500 for the benefits of all Nigerians, we have been following with passion with remittance of 25% on yearly basis and we are in education sector we have not increase any of our charges with 1kobo in last 8years rather we reduce the fee from N5000 to N3500 which is 30% portion of our revenue.

The Accountant General always give us the concession to operate 25% of remittances.

The Accountant General reckon with us with 25% but fiscal responsibility commission believe that we should move to 50% that’s the area of difference.

If you judge us on 25% we have over remitted over the years and that’s what we have been doing.”

In his Comment, the Committee Chairman said he believe strongly that remittances is not one that is subject to personal interpretation.

“It’s a matter of law or regulation, so how does the different between 25% and 50% position now arise.

What exactly does the law says or does the law apply to JAMB.”

Responding to the Chairman question on how does the law apply to JAMB, Fiscal Responsibility commission representative said the commission got it’s power from fiscal responsibility act which says all schedule agencies under it should remit 80% of it operating surplus.

“There was finance act 2021 which appeal exception of our act to now categorize these agencies, fully funded agencies, partially funded agencies and self funded agencies.

“JAMB falls under partially funded and as I read here sir, “All partially funded federal government agencies parastatal receiving capital or overhead allocation from the federal government budget should limit their annual budgetary expenditure from the internally Generated Revenue to not more than 50% of their gross IGR and remit 100% of the remaining 50% to the sub-precurrent account and at the end of the year a reconciliation should be carried out for the 80% and 20% thing, then the actual liability for that agency for that year is actually the higher of the two.

It’s based on this one that we computed their liability for the period to be 50% of their gross revenue.”

The Committee slammed the board for not reply to the fiscal responsibility commission letters.

Public Accounts Committee unanimously ordered that JAMB should pay the sum of N3,602,605,277 to the federal government consolidated revenue fund (CRF) as demanded by the fiscal^ responsibility commission and provide the evidence of the remittance within 30 days.

In another development, the Public Accounts Committee (PAC) of the House of Representatives has directed the Investment and Security Tribunal (IST) to remit N6,327,049.85 to the federal government.

The Committee led by Rep. Bamidele Salam gave the directive as the Tribunal appeared before it over the Auditor-General’s Report 2020.

The audit report by the Auditor-General raised four issues against the agency bordering on payment without supporting documents totaling N11,698,329.40 and non-remittance of statutory taxes totaling N1,407,544.85.

Also extra budgetary spending from various sub-heads totaling N3,159,129.75 and cash advance above N200,000 totaling N1,760,376.00.

The Chief Registrar of IST, Mr. Shehu Kuta, said that the Auditor never brought up the issue during the audit exercise, and supporting documents for the payment are available for committee verification.

He admitted that the Tribunal didn’t deduct the statutory taxes totaling N1,407,544.85 and agreed to the violation of cash above N200,000 totaling N1,760,376.00.

The Chief Registrar said that all their payment throughout that period was through the Government Integrated Financial Management Information System (GIFMIS), and the Extra budgetary was caused by Gifmis default.

The Committee unanimously directed the Tribunal to remit N6,327,049.85 the federal government and other financial regulations sanctions will follows.