₦69.7Million Gombe Teaching Hospital Spending Under Scrutiny Over Unapproved Budget Transfers

Secrets Reporters

Behind the figures buried in the financial records of the Federal Teaching Hospital, Gombe, lie millions of naira meant for specific government purposes that were moved across expenditure lines without the required approvals, while another ₦2.64 million in statutory stamp duty was left undeducted, discovered in a review of the hospital’s financial records by SecretsReporters.

Three separate issues totalling ₦69.7 million, including ₦57.2 million spent on academic and professional sponsorship training from a capital expenditure vote without virement approval and another ₦9.86 million used for capital expenditure items from a recurrent expenditure sub-head without the required authorisation.

The largest financial irregularity is the sum of ₦57,202,291.50 spread across 239 payments for academic and professional sponsorship training.

According to findings, the expenditure was made from the Capital Expenditure sub-head without approval for virement from the Minister of Finance or the National Assembly. The transaction is not in line with Section 27(1)-(2) of the Fiscal Responsibility Act 2007 and carries the risks of misapplication and misappropriation of public funds.

Reacting, the management said the hospital’s 2020 budget under Research and Development contained a provision for training and that it had obtained approval from the Budget Office to spend on training.

A further ₦9,856,954.42, covering 98 payments, was spent on capital expenditure line items from a recurrent expenditure sub-head, also without the required virement approval. The transaction violates Section 27(1)-(2) of the Fiscal Responsibility Act 2007, with the transaction carrying the risk of misapplication and diversion of public funds.

Management’s response to the transaction was brief, stating that the matter was “noted for future correction”.

Also discovered is a separate failure involving ₦2,649,630.55 in statutory one percent stamp duty on contracts executed in 2020.

The amount was not deducted as required under Treasury Circular TRY A1&B1/2017, exposing the government to possible loss of revenue and diversion of public funds.

Management explained that the GIFMIS platform had no provision for the deduction in 2020, adding that deductions began in 2021 after contractors were advised to pay the one per cent stamp duty directly to FIRS before receiving contract payments.

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