Fed Govt says FAAC deductions are lawful not missing funds
The Federal Government has dismissed claims that revenues in the Federation Account are being diverted through illegal deductions. It said all deductions made before sharing funds at the Federation Account Allocation Committee are lawful and backed by existing fiscal rules. Minister of State for Finance Taiwo Oyedele explained in a statement that recent public comments were based on a wrong reading of a World Bank analysis. According to him the deductions highlighted in that report are legitimate fiscal obligations not hidden spending or leakages. Oyedele said it is misleading to describe the items as waste or missing money. He noted that the figures cover statutory transfers savings investments security related spending and cost of collection charges. They also include refunds to ministries departments and agencies as well as targeted interventions intended to support state and local governments. He stressed that […]