N635m Underpayment: Senate Sustains AuGF Query against University of Uyo

Sunday Aborisade, Abuja

The Senate has directed the Vice Chancellor of the University of Uyo, Prof. Nyaudoh Ndaeyo to recover N635.7 million over paid to staff of the institution in 2017.

The Senate Public Accounts Committee took the decision based on the 2017 report of the Auditor General for the Federation (AuGF), asking the vice chancellor to uncover the amount of money he overpaid to staff of the Institution.

The AuGF in its 2017 report which is currently being considered by the Senate panel, had alleged that the management of the university under-deducted the Pay-As-You- Earn tax totalling N635,700,792.65 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 N87.4 million was paid as tax in that same year.

The Chairman of the Committee, Senator Matthew Urhoghide, in the last sitting of the panel last Friday, rejected the explanation of the vice chancellor and ordered the management of the institution to refund N635 million 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 on 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 totalling N635,700,792.65 from staff salaries and emoluments of workers in 2017.

“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 totalling N635,700,792.65 was lost, while staff were 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 N635,700,792.65 and remit to the appropriate State Internal Revenue Board and forward the evidence of recovery and remittance to my Office.”