Audit Report Flags SMEDAN's N1.97bn Procurement Violations, Unretired Advances
An audit report has indicted Nigeria's Small and Medium Enterprises Development Agency (SMEDAN) for N1.97 billion in procurement violations, unretired cash advances, and poor record-keeping in 2023. The report detailed issues like unapproved contract awards, unretired funds granted to officers, and lack of proper documentation for store items.
Why it matters
This report exposes significant financial mismanagement and corruption within a key Nigerian government agency responsible for supporting SMEs, potentially undermining economic development efforts and eroding public trust. It highlights the need for greater accountability and transparency in public spending.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has been indicted by auditors for procurement violations, unretired cash advances and poor record-keeping involving over N1.97 billion in 2023.
This is contained in the 2023 annual audit report covering the Agency’s activities from January 1 to December 31, 2023.
The audit said SMEDAN awarded contracts totaling N440 million to various Microfinance Banks for the disbursement of grants under the One Local Government One Product (OLOP) programme.
SMEDAN claimed due process was followed through a notice board advert and evaluation of MFBs. Auditors rejected the explanation and recommended that the director-general account for the N440 million, recover and remit it to the Treasury.
The report further revealed that N346,581,300.00 granted to officers as cash advances in 2023 remained unretired as at the time of audit, contrary to Paragraph 1405 of the Financial Regulations.
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