ABUJA
The Senate has asked the vice chancellor of the University of Uyo, Professor Nyaudoh Ndaeyo, to recover N635.7 million overpaid to staff of the institution in 2017.
Senator Matthew Urhoghide, Peoples Democratic Party(PDP), Edo South led Senate Committee on Public Accounts took the decision, relying on the 2017 Auditor General of the Federation’s report to uncover the overpayment to the staff of the institution.
The auditor general’s report of 2017, currently being considered by the Senate had alleged that the management of the University of Uyo under-deducted Pay as You Earn (PAYE) Tax totalling ₦635,700,792.65 from staff salaries and emoluments of workers in 2017.
In his response, the vice-chancellor claimed that the Akwa Ibom Internal Revenue Service (AKIRS), who is the relevant tax authority and who regularly does tax audit has not made any claim against the University for much bogus amount, adding that the total sum of N87.4 million was paid as tax in that same year.
On his part, the chairman of the Committee, Senator Urhoghide, rejected the explanation of the vice-chancellor andordered the management of the institution to refund N635 million to Akwa Ibom Internal Revenue Service (AKIRS).
The query read, “Finance Treasury Circular No. TRY/A1 & B1/2009 OAGF/CAD/026/V/12 dated 19th January 2009 emphasized the correct and complete deduction of VAT, WHT and PAYE and remittance of same to the Relevant Tax Authority. Paragraph VI of the Circular states that any violation of the directive will be regarded as gross misconduct and shall attract commensurate disciplinary action.
“During the periodic check, it was observed that the Management of the University under-deducted Pay as You Earn (PAYE) Tax totalling ₦635,700,792.65 from staff salaries and emoluments of workers in 2017.
“Additionally, records of the amounts of PAYE that ought to have been remitted to the relevant Tax Authority were not produced for Audit. As a result, government revenue totalling ₦635,700,792.65 was lost, while staff were overpaid in the same amount.
“This may lead to loss of Government revenues, which will impact on its ability to execute projects that will benefit the citizens.
“The Vice-Chancellor is required to recover the under deducted tax (PAYE) in the sum of ₦635,700,792.65 and remit to the appropriate State Internal Revenue Board and forward the evidence of recovery and remittance to my Office.”
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