Group Uncovers N325m Fraud In Kwara Internal Revenue Service, Petitions ICPC

A non-governmental organisation, Kwara Advancement Initiative, says it
has uncovered N325m diverted from the accounts of the Kwara State
Internal Revenue Services disguised as payments for non-existing
projects done by one Compumetric Solutions Limited.

The group accused Governor Abdulrahman Abdulrazaq of running a secret
government as citizens could no longer access information that were
usually readilly available on the revenue agency’s website.

KAI in a petition signed by Ibrahim Sulyman asked the Independent
Corrupt Practices and other related offences Commission to fish out
the person(s) behind the firm for the purpose of transparency and
accountability to the people of Kwara.

The group accused Governor Abdulrahman Abdulrazaq of running a secret
government as citizens could no longer access information that were
usually readily available on the revenue agency’s website.

The group said, “This is why as responsible organisation, we decided
to beam searchlights and we are shocked to uncover so many financial
frauds that have been carried out by top management officials of KWIRS
in connivance with ministry of finance.

“On the 6th of April, 2020, we notice a payment of eighty-four
million, two hundred and sixty-four thousand, six hundred and eleven
naira forty-one kobo (#84,264,611.41) as gross payment of 15%
collection fees on spendable collections to Compumetric Solutions
Limited with voucher number 2020/0300. This payment voucher came with
another net payment of seventy-three million, eight hundred and
thirty-one thousands, eight hundred and fifty naira (#73,831,850.00)
both as payments for the month of January, 2020

“Also on the 6th May, 2020, another payment of 15% collections fees on
spendable collections was made to same company with voucher number
2020/0345 for another non existing project. This time, a gross sum of
forty-four million, three hundred and sixteen thousand, three hundred
and twenty naira (#44,316,320.00) while #40,771,014.40 was the net
amount paid according to that voucher. This brings the total amount
paid in the two vouchers for month of January, 2020 to the tune of
N114,602,864.40 (One hundred and fourteen million, six hundred and two
thousand, eight hundred and sixty-four naira and forty kobo).

“The above stated transactions have also cost the state government a
statutory sum of N18,029,844.84 deducted for VAT, WHT and
Developmental Levy expected to be paid to the FIRS and KWIRS.”

The group said it observed that there exists no agreement or any MOU
communicated to the internal audit department of KWIRS, which will
give clue on whether Compumetrics Solution Limited was due for payment
of such magnitude for the service the company is having agreement with
her for the monthly payment of 15% of spendable collections and 10% of
non-spendable collections with effect from January, 2020

It added, “It is obvious that the two payments above did not only
violates the extant law but also suggested sharp practices by agents
of government in KWIRS and ministry of finance and this must be
thoroughly investigated and anyone found culpable dealt with using the
full weight of law. It is frightening that a contract of such
magnitude did not even pass through the due process let alone have the
endorsement of internal audit before fund are being disbursed by Kwara
State Government.

“Apart from flagrant disregard for public procurement law, the
governor in conjunction with KWIRS Chairman and the head of account
has approved the monthly payments for the company which has no records
of rendering any services for the state. It should be noted that the
company, Compumetric Solution Limited, is yet to complete the
installation of it’s new platforms tagged “Project Phoenix” upon which
contract was made with state government to replace existing platforms
for tax payments.

“Also, it’s a public knowledge that the last collection platform
working with KWIRS for the purpose of tax collections is the Amanda
whose contract was terminated in January 2020 and since then, the
KWIRS is in the process of building another collection platform
through the Project Phoenix. It is therefore nauseating how such heavy
payments were being made in advance on behalf of state government for
services that is yet to be kickstart.

“For a company which is receiving heavy financial inflow from
government without providing any services, it may be a pointer that
some powerful people in government are employing private sectors
apparatus to swindle the government by engaging in serious money
laundering activities. Our organisation demands that the person(s)
behind Compumetric Solution Limited must be unravelled for the purpose
of transparency and accountability to the people of Kwara on whose
behalves the government is acting.

“From the payment vouchers numbered 2020/0300 and that of 2020/0345,
it is clear that the deductions rates of 5% and 7.5% in VAT with 5%
and 10% federal WHT are not agreeing. For instance, in one of the
payments vouchers that was observed, the net amount said to have been
paid on that voucher with code 2020/0345 stood at #40,771,014.40 which
is against the amount that appeared on the said voucher. All these
infractions and arithmetical errors does not reflect that this
government has professionals capable of delivering the services
expected from it by citizens.”