As a follow-up to last week’s article titled “Strengthening Public Financial Management Through the Audit Alarm Committee – Part 1”, it was highlighted that one of the objectives and functions of the Audit Alarm Committee is rooted in its statutory empowerment to notify the Public Accounts Committee (PAC) of significant audit alarms and serious pre-payment audit queries for which accounting officers (permanent secretaries) of ministries, departments, and agencies (MDAs) are responsible.
Beyond this primary objective, it is essential to note that strengthening public financial management and addressing incidences of financial misconduct, gross mismanagement, wastage, and leakages within the public sector require well-thought-out and calculated strategies. Among these strategies, the Public Accounts Committee (PAC) stands out as a crucial mechanism.
To further illustrate the role of PAC in enhancing public financial management within Nigeria, a recent report in one of our dailies carried a striking headline: “Reps Query NEITI’s ₦32m Budget for Meals in 2025”, credited to Peoples Daily.
Read also: Strengthening public financial management through the audit alarm committee – Part 1
The role of the Public Accounts Committee (PAC)
PAC is a committee established within each State House of Assembly, as well as the National Assembly, which consists of the Senate and the House of Representatives. Its primary responsibility is to consider, in most cases, the auditor-general’s report submitted to the assembly. Both at the state and federal levels, PAC is seen as a legislative organ that performs a critical post-mortem function.
As part of its mandate for effective legislative oversight over the executive arm of government, PAC is expected to consistently deliberate on the auditor-general’s report to address all issues raised therein. The committee has the authority to summon accounting officers—namely, the permanent secretaries of various government ministries—to answer questions or provide clarifications on their activities during the period under review.
Furthermore, PAC meticulously examines the financial records, books, and statements of MDAs to present a comprehensive report on their state of affairs. If necessary, PAC may also examine officers under oath to ensure transparency and accountability among public officials. The committee is additionally tasked with investigating any deviations from approved budgets or appropriations, seeking to understand the underlying circumstances.
“Both at the state and federal levels, PAC is seen as a legislative organ that performs a critical post-mortem function.”
It is noteworthy that PAC has the statutory power to enforce, wholly or partially, the sanctions outlined in the Auditor-General’s report. The committee also has the responsibility to report to the governor or the president concerning state and federal affairs, respectively, particularly when actions need to be taken against any officer who may have violated their duties. Moreover, PAC may undertake assignments required by the National Assembly or State House of Assembly to further strengthen public financial management.
Challenges facing PAC
Despite its critical role, PAC faces numerous challenges that hinder its ability to promote effective public financial management. One significant challenge is the delay in the preparation and submission of accounts by the Accountant-General of the State or Federation. Additionally, the committee’s work is sometimes affected by the undue influence of traditional institutions, religious leaders, and political party stalwarts.
Read also: TSA scheme: An antidote to promoting effective public financial management
Bias or sentimental attachment from the executive arm, especially when members of PAC share the same party affiliation as the government in power, can undermine the committee’s objectivity. Another pressing issue is the perceived lack of seriousness toward the committee’s reports, coupled with the challenge of implementing decisions across all relevant parties.
Conclusion
Addressing these challenges requires a collaborative effort to safeguard the independence of PAC, ensure timely submission of accounts, and foster an environment where accountability is upheld. The effective functioning of PAC is crucial for maintaining fiscal discipline, preventing financial mismanagement, and ultimately strengthening public financial management in Nigeria.
Dr Kingsley Ndubueze Ayozie, FCTI, FCA, is a public affairs analyst and chartered accountant. He writes from Lagos.
