The House of Representatives Public Accounts Committee on Wednesday issued a 72-hour ultimatum to information and communication services provider, Galaxy Backbone, over allegations of financial irregularities and violations of contractual regulations amounting to billions of naira.

The decision was reached during a public hearing at the National Assembly Complex, chaired by the committee?s chairman, Mr Bamidele Salam. The hearing focused on queries raised by the Auditor-General for the Federation?s 2021 report.

The Managing Director and Chief Executive Officer of Galaxy Backbone, Prof. Ibrahim Adeyanju, was represented at the hearing by the company?s Executive Director of Finance and Corporate Services, Mr Sani Ibrahim.

During the session, the Salam-led committee found Galaxy Backbone guilty of failing to remit taxes worth approximately N329.85 million, which should have been paid within the stipulated 21 days. The committee ruled that appropriate penalties should be applied.

It also criticised the payment of N66.80 million for a contractual obligation without the necessary supporting documentation. The committee requested that the organisation provide full details of the transaction within 72 hours.

Additionally, the committee uncovered a payment to a U.S.-based company, ST Engineering, which had the same address listed in two different states. It observed that there was no evidence of contract execution.

Galaxy Backbone was instructed to provide, within 72 hours, all details of the contractor and relevant documents required by the Bureau of Public Procurement and other regulatory agencies.

?They (Galaxy Backbone) have 72 hours to furnish this committee with the relevant documents and respond to these audit queries, including other alleged violations such as e-payment infractions totalling N12.66 million, as well as a procurement contract of $164,403,? Mr Salam said.

The company was directed to reappear before the committee on Thursday, February 27, for the continuation of the hearing.

Similarly, the Institute for Peace and Conflict Resolution appeared before the committee to respond to audit queries, particularly concerning allowances for project monitoring and evaluation totalling N25.80 million.

The institute?s Director-General, Joseph Ochogwu, explained that most of the issues raised were inherited from the previous administration, as his team only assumed office in 2024. However, the queries stemmed from financial irregularities in the 2021 fiscal year.

The committee rejected this explanation and demanded the exact locations of the projects, the basis for calculating transportation fares, a list of personnel who undertook the trips, as well as all receipts, vouchers, and payment details.

It also investigated the ?payment for doubtful training? amounting to N21.38 million and formed an ad hoc committee, chaired by Billy Osawaru (Edo State), to examine the discrepancies and report back within a week.

The institute was indicted for lacking economy, efficiency, and effectiveness. (Punch)

Update news