Report has it that the Senate Public Accounts Committee has sustained the query of Office Auditor General of Federation (AuGF) over failure of Federal Radio Corporation of Nigerian (FRCN) to recover over N180 million advert debt.
According to report, the Chairman of the Committee, Senator Mathew Urhoghide, sustained the query following the inability of the Corporation’s Director General, Mansur Liman, to explain what happened to the outstanding advertising debts to the Committee.
The query stated that financial records maintained at Ibadan zonal office (FRCN Ibadan) revealed huge unrecovered advert debts of One hundred and twenty million, ninety-nine thousand, six hundred and sixty-six naira, eighty-eight kobo, owed to the Corporation as at December 2016, as a result of services rendered on credit to some companies by the zonal office, contrary to the provisions of Financial Regulations 224 and 230 (2009) which stipulates that all services rendered by government must be paid for immediately on completion of the service and where possible, payment may be made in advance; and where payment is outstanding, a system of follow-up by means of reminders and final demand should be made.
It also read that unrecovered advert debts of Sixty-seven million, eight hundred and forty-two thousand, eleven naira, fifty kobo, which were in respect of services provided on credit to some companies by the Lagos Operations of the Corporation were being owed to it as at December 2016; and majority of them have been outstanding for more than five years.
The Director General of FRCN while responding to the query claimed that the outstanding debts was as a result of bankruptcy of those companies which led to change of business names.
According to him, when the FRCN approached the new companies to pay the debt, they declined to pay saying it was not part of the liability inherited although N28 million has been recovered so far from the debtors.
He said the services of a legal outfit has been engaged to recover the debt.
The DG was unable to provide the advert schedule of the debtors.
The query was sustained by Senator Urhoghide until the FRCN management presents the schedule of the debtors for the Committee to peruse.
