Paradigm Leadership Supportive Initiative serves as an intermediary between the government and the governed in public audit process. This is to increase citizens access to public audit data and other datasets in the accountability space through multiple technology platforms.
Problems and Purpose
In Nigeria, public funds are disbursed yearly for capital projects and are often open to corruption and nepotism. This corruption is most felt through the marginalization and neglect of some rural communities across the country.[1] The Nigerian Audit Act of 1956, which ensures auditing and reporting of Federal Government financial transactions, has been described as a “toothless dog.”[2] This is due to a high level of corruption, embezzlement, and waste of budgetary allocations across Nigeria. Some states in Nigeria such as Kano, Ondo, Imo states possess unaudited financial statements rather than audit reports, that is, a lack of coherent audit structure. As a result, education, health, and water projects across many states are abandoned, unexecuted, or poorly completed. According to The Nation’s publication of October 22, 2017, “in just eight states in Nigeria, over N150 billion worth of projects have been left to rot away”.[3] Therefore, Paradigm Leadership Supportive Initiative (PLSI) calls for an amendment of the Audit Act to curb corruption and wastes of resources in the public sector, ensuring a good data system, essential for national governments and institutions to plan accurately, fund, and evaluate development activities.[4]
Background History and Context
Corruption has contributed negatively to the delivery of health services, provision of quality educational facilities, availability of potable water, and necessary infrastructure to catalyze development in rural communities, hence the unending rural-urban migration.[5] With the mission to “promote citizen participation in Nigerian public audit process and findings,”[6] PLSI was established on October 1, 2016, and serves as a sister organization to BudgIT (an audit-inclined civic organization). PLSI identifies the information gap between policymakers, project implementers, and people at the grassroots and serves as a check on audit activities in Nigeria to foster transparency and accountability. It can be described as an intermediary between the government who propose and fund projects that meet basic needs; and the citizens who are beneficiaries of government-funded projects. In 2017, PLSI became a member of Open Alliance, a coalition of civil society organizations working on programs that promote accountability and transparency in Nigeria.[7] In 2018, PLSI implemented a five-year strategic plan based on four objectives: promoting citizen participation in the Nigerian public audit process and findings for increased transparency and accountability, increasing partnerships for enhanced impact, increasing funding for the Value for Money project, and strengthening the organization’s institutional capacity.[8] There have been attempts to repeal the Audit ordinance Act of 1956 through the audit bill of 2014.[9] The audit structure in South Africa, Kenya, Rwanda, Liberia, and The Gambia, as identified by PLSI, are worthy of emulation. PLSI implemented the Value for Money (VFM) project to respond to Nigeria's ineffective budgetary and audit structure.[10]
Organizing, Supporting, and Funding Entities
PLSI is headed by Olusegun Elemo (Executive Director) with support from Samuel Salami, who serves as the Financial and Administrative Manager, and Tireni Ibitoye as the Program Officer. On the one hand, the Financial and Administrative Manager handles budget preparation and conducts periodic financial analyses. On the other hand, the Program Officer is saddled with the responsibility of proposing and coordinating all projects.[11]
The funding sources are divided into three: grants, partnerships, and sustainable financing options. To receive grants, a funding proposal that aligns with PLSI’s objectives is made available to prospective donors. The grants received are channeled to specific projects based on the agreement reached between PLSI and donor organization(s). In 2018, PLSI received 14,157,500 grants from Trust Africa.[12] In 2019, PLSI received 17, 978,100 and 24,983,312 grants from OSIGWA and ROLAC (Rule of Law and Anti-Corruption), respectively. PLSI’s donor support includes Open Knowledge Foundation, The British Council, The European Union, and the Open Society Initiative for West Africa (OSIWA). Partnerships with consortiums and civic organizations such as BudgIT, Connected Development (CODE), and Socio-Economic Rights and Accountability Project (SERAP) serve as a viable source of funds for collaborative projects and strengthens PLSI’s eligibility for grants. Lastly, sustainable financial options entail internally generated funds to cover operational and program costs.[13] For instance, PLSI’s first year was funded by the board’s donation of 520,000 Naira. Also, the PLSI receives donations from individuals and groups through the ‘donate’ feature on its official website.[14] The majority of PLSI’s funding is currently based on grants received from international organizations in line with PLSI’s objectives.
Participant Recruitment and Selection
In 2020, PLSI, with its headquarters in Ibadan, established a new branch in Abuja, Nigeria, to foster its agenda of fostering political participation. Currently, each branch is made up of five full-time staff and interns. Yearly, two Corp members in compliance with the National Youth Service Corps (NYSC), a mandatory one-year national service for Nigerian graduates, work in PLSI. The volunteers, popularly referred to as VFM reporters, are responsible for tracking projects, reporting, engaging public officials and elected representatives were necessary to fast track completion of abandoned projects for which payments have been made. Currently, there are 210 members (staff, volunteers, and reporters) involved in the Value for Money project.[15] Each VFM reporter is supervised by PLSI staff to ensure delegated duties to be carried out effectively.
Methods and Tools Used
To increase citizens’ interest and active involvement in the public audit process, PLSI adopts participatory budgeting as a viable method. The purpose of this method is to enable “citizens to play a direct role in deciding how and where resources should be spent.” Participatory budgeting also helps promote transparency, which has the potential to reduce government inefficiencies and corruption.[16]
The tools applied consist of technological and non-technological initiatives. The technological initiative is centered on Value for Money, a tracking tool accessible to citizens to help report, inform and educate individuals on the status of government projects taking place in their communities. There is also media coverage and publication of its activities to sensitize the public on the importance of public accountability and fiscal transparency. Recognizing the importance of media, citizen engagement was promoted on radio and television stations such as Channels Television, Nigeria Television Authority (NTA), Core TV Nigeria Info 95.1 FM, and Splash 105.5 FM. For instance, Awaken the Citizens – a citizens-centered radio program that airs last Tuesdays of the month on Splash 105.5FM to disseminate audit findings and drive citizens’ participation in public audits and articles in Leadership Newspaper, The Nation, The Guardian, and Daily Trust[17] As well as social media activities particularly on Facebook and Twitter. Social Media platforms and official websites are also used to disseminate information and provide updates on government projects monitored. The non-technological initiative includes town-hall meetings to educate citizens on ways to demand government accountability.
What Went On: Process, Interaction, and Participation
Following its vision to “ensure public accountability necessary for good governance and development of under-served communities” (https://plsinitiative.org/about/), PLSI carried out its activities through Value for Money and Resource Benefits to track, report, and act on abandoned, unexecuted or poorly executed projects in under-served Nigerian communities.
The Value for Money initiative, launched in the first quarter of 2018, entailed four phases: audit planning, execution, reporting and dissemination, and follow-up. Audit planning began with an evaluation of the audit report for the Federation for 2016. The evaluation and findings identified illegitimate charges, cash advances, internal staff's illegal procurements, and direct deductions in Federal budgetary allocations. The Value for Money initiative bridges the information gap by linking citizens with how public funds have been utilized, building capacities to engage relevant public officials to ensure accountability and improved services in their communities. Value of Money served as a check on National budgetary allocation regarding people-oriented projects in various Nigerian communities. PLSI analyzed and tracked the previous annual federal reports for uncompleted projects. For instance, in the 2016 Audit Report of the Federation, 87 projects were identified based on the criterion that they are people-oriented projects. These people-oriented projects include providing basic amenities such as transport, water supply, education, and housing facilities.[18]
The execution entails fieldwork, evidence gathering, and drafting of reports. PLSI delegates volunteers (VFM reporters) to specific projects in various communities, which involves inspection of project sites, interview of community members, sensitization of residents on audit findings, and provision of capacity to engage their representatives with available information. Each volunteer receives a mobilization fee to cover travel expenses. Advocacy letters are written to the concerned government agencies to request additional data, explain highlighted audit cases, or demand action on critical issues. Some of these projects include the 44.6 million Naira contract for the supply of lecture seats at the Federal University of Technology Owerri in November 2016 with a completion period of six weeks; the 449.7 million Naira mini-water scheme project at Ajinapa, Orire LGA of Oyo scheduled to commence October 5, 2012, with a twelve-month completion period. PLSI discovered an allocation of 187.7 million Naira in 2015 by the constituency Project for Phase two of the mini-water scheme project.[19] VFM reporters visited the project site to determine the project's status, interviewed community members, and discovered that the project site was deserted and non-functional. According to Olusegun Elemo, PLSI Executive Director, the budget for the first phase of the project contained an unjustifiable expenditure of about 48 million.
The reporting and dissemination phase involves publishing reports on its official website (https://valueformoney.ng/) and social media accounts. Each project report is categorized by status: Abandoned, Executed by Another Agency, Executed with Irregularities, Not Executed, Funds Diverted, Ongoing, Partially Executed, and Poorly Implemented. To reach a wider audience, the VFM reporters' investigation received media coverage by Channels Television (a local television station in Nigeria). In 2018, PLSI monitored 19 projects valued at 19.8 billion Naira, which received 17 media coverages.[20] Also, there was a collaboration with stakeholders and agencies such as the Office of the Auditor-General for the Federation, National Assembly, Ministries, Departments and Agencies (MDAs); Anti-Corruption Agencies, select Civil Society Organizations, and Media to exchange ideas on reduction of bribery and corrupt practices.
Following the publication of a VFM handbook that summarizes and simplifies development projects in focused communities, PLSI wrote petitions to anti-corruption agencies such as the Independent Corrupt Practices Commission (ICPC), the Financial Reporting Council (FRC), and Economic and Financial Crimes Commission (EFCC). In 2019, PLSI filed fifteen petitions at the Independent Corrupt Practices Commission (ICPC). This resulted in the prosecution of contractors and government officials accused of corruption and embezzlement of funds allocated to provide basic amenities in various Nigerian communities. For instance, the prosecution of a senior civil servant (name withheld) involved in the supply of seat projects at the Federal University of Technology, Owerri, petition for investigation by the Fiscal Responsibility Commission, recommendation of appropriate sanctions against erring officers and suggestion of measures to forestall future occurrence.[21]
At the end of each year, PLSI released an annual report and financial statement. By 2019, PLSI evolved from one court case, two advocacy visits, 8779 Facebook reach, three report analyses (2012-2014), 5 FOI letters to 15 petitions worth 1.14 billion Naira, 40,750 estimated community beneficiaries, and reached 724,900 citizens.[22] Currently, the Value for Money has 210 members.
Influence, Outcomes, and Effects
Before the emergence of PLSI, Nigeria’s public audit space was closed to citizen involvement. On May 26, 2017, after two failed attempts, PLSI, in collaboration with SERAP, won a court case directing and compelling the Federal Government and the Auditor General of the Federation to publish audited reports for 1999-2015. PLSI piloted the use of audit data in combating corruption through its collaboration with the Independent Corrupt Practices and Other Related Offences Commission (ICPC).[23]
Also, annual campaigns carried out to track funds utilized to provide basic amenities in rural communities have drawn the attention of government and citizens to the plight of affected communities. In some cases, this has hastened the completion of abandoned projects and prosecution of government officials involved in the embezzlement of project funds. Some of the hitherto abandoned projects include the perimeter fencing of the Okene Water Works in Okene, Kogi State, completed in 2020, and the Malete Waterworks project commissioned on November 14, 2019. Total beneficiaries of PLSI”s advocacy activities in 2018 are estimated at 1.2million while the value of projects monitored is put at N10.8bn.[24]
Its audit activities have helped to provide specific data on budgetary activities. For instance, in 2018, through the Value for Money initiative, PLSI uncovered an estimated sum of N100bn unaccounted for in nine (9) ministries departments and agencies through eighty (80) projects/transactions. To ensure fiscal transparency and accountability, PLSI campaigned for the implementation of a federal audit bill. In January 2019, the Audit Bill was presented to President Mohammadu Buhari for assent by the 8th Assembly. Also, advocate for the adoption of the Citizen Participatory Audit (CPA) accountability approach and Federal Audit Service Commission Bill 2018 to strengthen the legal and regulatory framework for increased transparency and accountability in government. This is carried out by negotiations with the Office of the Auditor-General and Public Accounts Committees of the National Assembly.[25]
Some challenges experienced by PLSI and its staff include inadequate funding, bureaucracy, and insecurity. Some trackers have been threatened, arrested, and detained during the investigation of project sites. The Office of Auditor-General for the Federation has been identified for generalizations and lack of definite figures embezzled or missing. The bottlenecks put in place by the government parastatals show bias and limits prosecution capabilities.[26] However, this does not undermine the Office of Auditor-General's contributions for the Federation success recorded by PLSI. Some states that lacked audit reports adopted audit bills due to PLSI’s activities. In fostering fiscal accountability and promoting political awareness, PLSI simplifies voluminous government audit reports through infographics. Before the emergence of PLSI, Nigeria’s public audit space remained closed for citizens’ involvement. Audit reports were never made available simply to enable citizens to understand and utilize their data to demand accountability from public officials and elected representatives.
Analysis and Lessons Learned
Some citizens have called to question the animosity granted to prosecuted government officials by the PLSI. This move has undermined PLSI’s impacts and non-partisanship. The concealed identities of suspects make it challenging to confirm the reports made available by PLSI. Also, some petitions do not have a timeline for resolution. For instance, some petitions filed in 2017 have not been resolved.[27]
However, the Value for Money audit report helps provide new ideas for the lawmakers, particularly the Public Account Committee of the National Assembly, in implementing fiscal monetary policies.[28] Standard Social Innovation Review describes that PLSI’s establishment was based on recognizing that “agitation without innovation means complaints without ways forward, and innovation without orchestration means ideas without impact.”[29] Government agencies such as The Bureau of Public Procurement (BPP) have acknowledged the growing impact of the Value for Money project towards ensuring fiscal transparency and public accountability in Nigeria.[30]
References
[1] Paradigm Leadership Supportive Initiative, “Executive Summary,” VFM Magazine, 2018, 4.
[2] Adetunji Ogunyemi, “Auditing and Corruption in Nigeria: A Review of the Legal Weight of the Audit Act of 1956,” Historical Research Letter 15 (2014): 1-7, https://www.semanticscholar.org/paper/Auditing-and-Corruption-in-Nigeria%3A-A-Review-of-the-Ogunyemi/f1b5a4f7ab1d74a149775b1286cf8fc9a0ed0a2d.
[3] Olusegun Elemo, “Reporting Abandoned Projects in Your Community,” Value For Money, March 18, 2018, https://valueformoney.ng/reporting-abandoned-projects-in-your-community/.
[4] Donatien Beguy, “Poor Data is Hurting African Countries Ability to Make Good Policy Decisions,” August 29, 2018, Quartz Africa https://qz.com/africa/762729/poor-data-is-hurting-african-countries-ability-to-make-good-policy-decisions/
[5] “PLSI Strategic Plan, 2018-2022,” PLSI, accessed July 21, 2021, https://plsinitiative.org/strategic-plan/.
[6] Paradigm Leadership Supportive Initiative, “About Us” Strategic Plan 2018-2022, 4.
[7] “About PLSI,” PLSI Annual Report 2016/17:Agitation, Innovation and Orchestration, 2.
[8] “PLSI Strategic Plan, 2018-2022,” PLSI, accessed July 21, 2021, https://plsinitiative.org/strategic-plan/.
[9] “PLSI calls for assent to Audit Bill,” YouTube, July 30, 2019, https://www.youtube.com/watch?v=M1UPDLSrtUU&t=5s.
[10] Olusegun Elemo, “Reporting Abandoned Projects in Your Community.”
[11] Paradigm Leadership Supportive Initiative, “About PLSI,” accessed July 21, 2021, https://plsinitiative.org/about/.
[12] Accounts and Reports of Paradigm Leadership Support Initiative, “Notes to the Account”, December 31, 2018, 19.
[13] Paradigm Leadership Supportive Initiative, “Funding Strategy,” Strategic Plan 2018-2022, 11.
[14] Paradigm Leadership Supportive Initiative, “Support PLSI, Donate Today,” accessed July 17, 2021, https://plsinitiative.org/donate/.
[15] Interview with Bukola Sowande, 32 years, Research Officer, PLSI, Ibadan, Nigeria, on July 23, 2021.
[16] “Participatory Budgeting,” Participedia, accessed July 13, 2021, https://participedia.net/method/146.
[17] “Media Engagement,” PLSI Annual Report 2016/17:Agitation, Innovation and Orchestration, 9.
[18] Interview with Bukola Sowande, 32 years, Research Officer, PLSI, Ibadan, Nigeria, on August 10, 2021.
[19] PLSI Nigeria, “Oyo Community Denied Potable Water Since 2012 With N237m Not Accounted For,” YouTube, July 11, 2021, https://www.youtube.com/watch?v=dlF1z-pqrok.
[20] “Activity Insight,” Annual Audit Report 2017/18: Data, Power and Development, 4.
[21] Interview with Bukola Sowande, 32 years, Research Officer, PLSI, Ibadan, Nigeria, on August 10, 2021.
[22] “Visualizing the Numbers,” Annual Report 2019:Opening Government in a Closing Civic Space, 6.
[23] Ibid., 4.
[24] Interview with Bukola Sowande, 32 years, Research Officer, PLSI, Ibadan, Nigeria, on 23rd July, 2021.
[25] Paradigm Leadership Supportive Initiative, “Strategic Pathways,” Strategic Plan 2018-2022, 7.
[26] Interview with Bukola Sowande
[27] Ibid.
[28] Mbaka Ezekiel, “A Critical Analysis Of Value For Money Audit In Public Sector,” https://www.academia.edu/33975325/A_CRITICAL_ANALYSIS_OF_VALUE_FOR_MONEY_AUDIT_IN_PUBLIC_SECTOR, 84.
[29] Paradigm Leadership Supportive Initiative, “Strategic Pathways,”
[30] “Partnership/Collaboration,” Annual Report 2019:Opening Government in a Closing Civic Space, 7.
