At the Conference of
Auditors-General
Abuja, March 2, 2004
It
gives me great pleasure to be with you today at this timely conference which
has brought together Federal and State Auditors-General. I am informed that the
purpose of this Conference is, among others, to identify and examine in a broad
sense, the crucial problems and weaknesses within the audit institutions and
proffer solutions for improvement in the interest
of
accountability and probity.
Your
profession plays the role of an umpire in the financial relationship between
transacting parties in the public and private domains. Therefore, in your
continuing pursuit of excellence, it is essential to seek avenues to facilitate
an exchange of ideas on how to enhance the efficiency and effectiveness of the
audit institutions to discharge their responsibilities, both to government and
the general public, with total commitment and dedication.
The
way governments spend money is very important because the control of the public
purse is carried out on behalf of the people by their elected representatives,
namely, the elected members of the National and State Assemblies.
While
it is the responsibility of government to draft budgets and estimates, tax
payers' money cannot be collected or spent without the approval of their
respective legislative Assemblies. In addition, the Executive arm of government
also has the responsibility to account for the way and manner the approved
appropriations have been applied in terms of programmes,
projects
and activities.
As
a result, budgetary implementation powers must, of necessity, be supplemented
by powers of audit. In the stricter sense, this means the right to verify
compliance with the budget whilst in the broader sense, it is the right to
exercise public auditing as such. Consequently, budgetary implementation powers
without powers of audit run the risk of sinking into insignificance and
becoming mere formality. Of course, for auditing to have meaning, the auditor
must be truly independent and free from bias and conflict of interest.
Accordingly, anything that impedes an honest, straightforward and
sincere approach to the performance of an audit will reduce public
confidence in the institutions as well
as in governments.
To
separate accountability and service improvements is an inherently elitist and
anti-democratic approach. To link them is to use audit as a tool for improving
governance and promoting a society that is more effectively engaged in
democracy.
One
essential factor for genuine auditing and for ensuring its independence of the
audited agencies is, therefore, the democratic context in which it is set. Only
a democratic form of government can offer the audit institution, all those
guarantees that it requires to discharge its functions. Only in a democracy is
auditing a genuine product of the powers of control of the people's
representatives. It is only under democratic conditions that the people can be
certain that an independent auditing institution can carry out unrestricted
investigations into the use to which the tax payers' monies are put.
Unfortunately, many in your profession have not lived up to their
responsibilities.
They
have taken advantage of the weaknesses in the system, poor technology, and
limited access to information to engage in so-called "creative
accounting" which is very detrimental to the profession and the nation's
economy.
This
is why this government has embarked on reforms anchored on:
1)
Sustainable
macro-economic growth through elimination of waste and inefficiency;
2)
Predictability
of macro-economic environment and efficiency of resource use;
3)
Good
governance with emphasis on service delivery, pension and local government
reforms;
4)
Anti-corruption
campaign to promote transparency, accountability and prudent deployment of
resources;
5)
Public
service reforms to increase professionalism, motivation, and efficiency;
6)
Accelerated
privatization to expand the private sector, promote job and wealth creation;
7)
Institutional
reforms- police, customs, and prisons service.
The
success of these reforms will require the active participation of all stakeholders.
The auditing profession has a major role to play in eliminating waste,
improving governance, eliminating sharp practices, promoting transparency,
eliminating ghost workers from payroll and ensuring that Nigerians get value
for money. Are you all ready for the required sacrifices, commitments, and
challenges?
You
are supposed to be watchdogs of the system through the scrutiny of contracts,
payrolls, and even monitoring delivery of projects paid for by government. On
our part, we have instituted a Due Process Mechanism that has saved over N80
billion for the nation. I have also recently inaugurated the Extractive
Industries Transparency Initiative (EITI) National Stakeholders Committee. We
have initiated a new policy of publishing allocations to States and Local
Governments as part of our accountability and transparency campaign. We are
working on a fiscal responsibility bill. All these show that we do mean
business when we say it would no longer be "business as usual." How
far has your profession gone in supporting the reform agenda especially the
anti-corruption campaign?
If
auditors were conducting effective periodic checks of all statutory
corporations, commissions, authorities and agencies at Federal and State
levels, just imagine what could have been saved in monetary terms! You must all
rededicate, refocus and redirect yourselves away from the past and look
towards, a professional future anchored on honesty, efficiency, diligence and
patriotism.
It
should be clear from the foregoing that this Conference is not expected to be a
mere formality but an essential forum for you to interact, compare notes, share
knowledge and experiences, discuss relevant issues and make highly rewarding
contributions for the improvement of the entire civil service at all levels of
government. You are also expected to address the issues of credibility and
probity in your profession. As you know, the public believes that auditors
collude with management to doctor accounts. This perception should not be
dismissed with a wave of the hand especially as most of our corporations and
agencies that are riddled with corruption and mismanagement had their accounts
audited. We have also had cases where auditors were compromised and companies
were allowed to overstate their net asset positions.
In
other cases, companies were allowed to get away with exaggerating their profits
thereby distorting the stock market and eroding corporate governance. You must
strive to put these negative attributes behind you. The new Nigeria that we are
building has zero-tolerance for professional misconduct.
I
look forward to receiving your conclusions and recommendations which, I hope,
will be concrete and far reaching as well as serve as an effective tool for
moving the nation forward in an era of democracy, transparency and
accountability in the conduct of public affairs and administration.
It
is now my pleasure to declare this Conference open.
Thank
you and God bless.