SERAP Sues Buhari, Others Over ‘Missing N106bn in 149 MDAs’ | GOVERNMEND

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The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against President Muhammadu Buhari “over his failure to probe allegations that N106bn of public funds are missing from 149 ministries, departments and agencies (MDAs), and to ensure the prosecution of those suspected to be responsible, and the recovery of any missing public funds.”

The suit followed the allegations by the Office of the Auditor-General of the Federation in his 2018 annual audited report that N105,662,350,077.46 of public funds are missing, misappropriated or unaccounted for across 149 MDAs.

In the suit number FHC/ABJ/CS/903/2021 filed last week at the Federal High Court in Abuja, SERAP is seeking: “an order of mandamus to direct and compel President Buhari to promptly investigate the alleged missing N106bn of public funds, ensure prosecution of anyone suspected to be responsible, and the full recovery of any missing public money.”

In the suit, SERAP is arguing that: “Recovering the alleged missing public funds would reduce the pressure on the Federal Government to borrow more money to fund the budget, enable the authorities to meet the country’s constitutional and international obligations, and reduce the growing level of public debts.”

According to SERAP: “Directing and compelling President Buhari to ensure the investigation and prosecution of the alleged grand corruption documented by the Auditor-General would be entirely consistent with the government’s own commitment to fight corruption, improve the integrity of MDAs, and serve the public interest.”

SERAP is also arguing that, “The alleged missing public funds have hampered the ability of the indicted MDAs to meet the needs of average citizens, as the missing funds could have helped the government to invest in key public goods and services, and to improve access of Nigerians to these goods and services.”

Joined in the suit as Respondents are Mr Abubakar Malami, SAN, Minister of Justice and Attorney General of the Federation; and Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning.

SERAP is arguing that, “It is in the interest of justice to grant this application, as it would improve respect for the rights of Nigerians, and improve their access to essential public goods and services. The suit is in keeping with the requirements of the Nigerian Constitution 1999 [as amended]; anti-corruption legislation, and the country’s international obligations including under the UN Convention against Corruption; and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party.”

SERAP is also seeking an order to compel the president “to publish full details of the yearly budgets of all MDAs, and issue regular updates that detail their expenditures, including by making any such information easily accessible in a form that can be understood by the public.”

The suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Ms Joke Fekumo, read in part: “The failure to investigate the allegations of grand corruption in the 2018 annual audited report constitutes a grave violation of the duty placed on the Nigerian government to take appropriate measures to promote transparency and accountability in the management of public finances.”

“President Buhari’s constitutional responsibility to ensure the investigation and prosecution of allegations of corruption, as well as recovery of any missing public funds is contained in Section 15[5] of the Nigerian Constitution, which provides that ‘the State shall abolish all corrupt practices and abuse of power’, and in the Oath of Office in the Seventh Schedule of the Constitution.”

“The Oath of Office of the President is considered of such importance that section 140 of the 1999 Constitution provides that the President cannot perform his or her respective official functions as President without taking the oath of office.”

No date has been fixed for the hearing of the suit.

Source: SERAP

BF Borgers, an accounting firm owned by former US President Donald Trump, has been accused by the Securities and Exchange Commission (SEC) of engaging in widespread fraud and operating a “sham audit mill.” The SEC alleges that BF Borgers committed “deliberate and systemic failures,” including the fabrication of audit papers and false assurances to clients regarding compliance with accounting standards.

This fraudulent activity, described as “massive,” occurred between January 2021 and June 2023, impacting over 1,500 SEC filings and more than 500 public companies. As a consequence, the SEC has permanently barred BF Borgers from practicing as accountants before the agency and imposed a severe penalty, including a collective fine of $14 million against the firm and its owner, Benjamin Borgers.

In a statement, Gurbir Grewal, director of the SEC’s enforcement division, declared that Borgers and his “sham audit mill” have been permanently shut down. The SEC has notified public companies that engaged BF Borgers to seek new accounting firms.

Trump Media & Technology Group, chaired and majority-owned by Donald Trump, was among BF Borgers’ clients. While Trump Media may be the most high-profile client, BF Borgers served around 350 clients subject to SEC rules during the mentioned period. However, the SEC review only examined BF Borgers’ work for public companies, excluding its services to Trump Media when it was private.

Trump Media, despite its significant valuation on Wall Street exceeding $9 billion, generates limited revenue. Its social media platform, Truth Social, faces challenges, with a notable decline in average daily active US users on iOS and Android in April. Despite this, Donald Trump remains a prominent user on Truth Social.

In response to the SEC’s actions, a spokesperson for Trump Media expressed readiness to collaborate with new auditing partners in compliance with the SEC’s order. BF Borgers did not provide a comment on the allegations.

In summary, BF Borgers, owned by Donald Trump, faces severe consequences following accusations of fraud by the SEC. The firm’s practices, characterized as a “sham audit mill,” have led to permanent suspension and hefty fines. Trump Media, among BF Borgers’ clients, is navigating challenges despite its substantial valuation, particularly with its Truth Social platform experiencing a decline in user engagement.

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