Nathaniel Zaccheaus

The Senate has sustained the audit query issued against the Vice-Chancellor of the University of Uyo, Professor Nyaudoh Ndaeyo, by the Auditor General for the Federation Vice-Chancellor

The red chamber asked the VC to recover N635.7m his office allegedly, overpaid to the staff of the institution in 2017.

The Senate Public Accounts Committee took the decision based on the 2017 report which mandated the vice-chancellor to recover the amount of money his office overpaid to the staff of the Institution.

The AuGF in its 2017 report which is currently considered by the Senate panel, alleged that the management of the university under-deducted the Pay-as-You-Earn tax totaling ₦635,700,792.65 from staff salaries and emoluments of workers in 2017.

However, the Vice-Chancellor in his response claimed that the Akwa Ibom Internal Revenue Service which is the relevant tax authority and which regularly does tax audit had not made any claim against the university for much bogus amount.

The Vice-Chancellor added that the total sum of N87.4m was paid as tax in that same year.

The Chairman of the Committee, Senator Matthew Urhoghide, in the last sitting of the panel on Friday, rejected the explanation of the Vice-Chancellor and ordered the management of the Institution to refund N635m to the Akwa Ibom Internal Revenue Service.

The query had read, “Finance Treasury Circular No. TRY/A1 & B1/2009 OAGF/CAD/026/V/12 dated 19th January 2009 emphasized the correct and complete deduction of VAT, WHT, and PAYE and remittance of same to the Relevant Tax Authority. Paragraph VI of the Circular states that any violation of the directive will be regarded as gross misconduct and shall attract commensurate disciplinary action.

“During the periodic check, it was observed that the management of the university under-deducted Pay as You Earn (PAYE) tax totaling ₦635,700,792.65 from staff salaries and emoluments of workers in 2017.

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“Additionally, records of the amounts of PAYE that ought to have been remitted to the relevant Tax Authority were not produced for Audit. As a result, government revenue totaling ₦635,700,792.65 was lost, while the staff was overpaid in the same amount.

“This may lead to loss of Government revenues, which will impact on its ability to execute projects that will benefit the citizens.

“The Vice-Chancellor is required to recover the under deducted tax (PAYE) in the sum of ₦635,700,792.65 and remit to the appropriate State Internal Revenue Board and forward the evidence of recovery and remittance to my Office.”