Newday Reporters

Osun Auditor-General Seeks Halt to Overhead Releases for Ministries Without Proper Accounts

OSOGBO — The Auditor-General for Osun State, Kolapo Idris, has recommended the immediate stoppage of overhead releases to ministries that fail to render proper financial accounts.
Idris made the recommendation in his report on the accounts of the Osun State Government for the financial year ended December 31, 2025.
The report was presented at an audit forum held in Osogbo, the state capital, on Monday, with heads of Ministries, Departments and Agencies (MDAs), representatives of civil society organisations, professional bodies and other stakeholders in attendance.
While speaking on the audit of ministerial and non-ministerial accounts, the Auditor-General said several queries and observations were raised in areas where financial and administrative lapses were identified.
According to him, some of the issues uncovered during the audit included negligence by certain internal auditors, failure to prepare or make available relevant accounting documents, fictitious expenditures, incorrect computation of statutory deductions and abuse of approval and payment procedures.
To address the lapses, Idris called for additional training for accountants, account officers and internal auditors, saying improved capacity among financial officers would enhance efficiency and service delivery across government institutions.
He specifically recommended the withholding of overhead funds from ministries that failed to account properly for previous releases.
He said, “Direct stoppage of release of overhead to ministries that have not rendered proper accountability as noticed by the Auditor-General.
“Total adherence to standards guiding preparation of accounting books and records. Inspectorate and Management Services Department in Accountant-General’s Office should be strengthened for more efficiency and effectiveness.”
Idris, however, acknowledged the state government’s compliance with financial regulations and appropriation laws over the years.
He said Osun had recorded an improvement in revenue accruing from the Federation Account but urged the government to intensify its internally generated revenue drive, particularly by bringing more operators in the informal sector into the tax net.
According to him, a large number of businesses and operators in the informal sector remain outside the state’s revenue system, thereby limiting the government’s ability to generate funds needed for development.
“Thousands of informal sectors need to be captured. What I expect of internal revenue is to make sure they are all well-captured so that they can easily take whatever is due to the government from them,” he said.
The Auditor-General particularly raised concerns over revenue collection from motor parks across the state.
He said the law provides for 70 per cent of revenue generated from motor parks to go to the state government, while the operators are entitled to retain 30 per cent.
Idris alleged that the arrangement was not being properly implemented, claiming that operators in the parks had continued to retain the entire revenue instead of remitting the government’s share.
“For instance, now, look at the way things are done in the motor parks all around the state. The law states that whatever is accrued to motor parks, 30 per cent of it must be given to those who are operating there and 70 per cent to the government.
“But up to today, none of them has ever given anything to the government of the state. They take all 100 per cent. That is why you see them living fat.
“The normal thing is that 70 per cent of it must come back to the state government, while they retain 30 per cent,” he said.
He explained that one of the mechanisms for ensuring accountability was for the state government to produce and issue the official receipts used for revenue collection at the motor parks.
Idris also said the government had a responsibility to provide basic facilities and amenities at the garages to support the operations of motor park workers.
According to him, the state government was expected to provide facilities such as security, toilets, electricity and other necessities required to make the motor parks suitable for operators and commuters.
He stressed that improved monitoring of revenue collection and greater compliance with financial regulations would help strengthen the state’s revenue base and promote accountability in the management of public funds.

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