The Federal University of Technology Minna may soon be directed to refund the sum of N82.7 million naira to the Federal Inland Revenue Service (FIRS), being unremitted Value Added Tax (VAT) and Withholding Tax(WHT) standing against the university between 2007 and 2010. This is a fall out from the review of capital projects conducted by the ICPC at the insitution.
The review indicated that from january to may 2008 the university collected the sum of N24 million as Value Added Tax but failed to tender any evidence of remittance to the FIRS. From October to November 2009 thesum of N3.9million VAT deduction was not remitted, neither was the collection for September 2009 which amounted to N1.7million, as well as March, April and Julyof 2011 during which the university collected the sum of N7.3 million but again failed to forward the amount to the FIRS.
The Withholding Tax that was deducted but never remitted to the FIRS covered September 2010 and January to June 2011 which all amounted to N45.6 million.
The ICPC is determined to enforce the Government regulation which makes it mandatory for Ministries, Departments and Agencies to deduct and remit to the FIRS 5% Withholding Tax and 5% Value Added Tax; and any MDA that fails to remit the deductions will be prosecuted.
The review of Capital projects being conducted by the ICPC, which is at the behest of Mr President, shows that the Federal University of Technology University Minna substantially complied with due process in the award and execution of contracts between 2007 and 2010.
Following these preliminary findings, the ICPC may conduct a full blown System Study and Review to ascertain the level of corruption risks confronting the Institution. This will involve verification of registered companies from the Corporate Affairs Commission, as well as physical examination of projects,among others. The effectiveness or otherwise of the Anti-Corruption and Transparency Monitoring Unit (ACTU) of the university will be examined with a view to reinvigorating it.
Head, Public Enlightenemnt Dept.
17th November 2011