Galaxy Backbone must provide necessary documents on the alleged financial irregularities and appear again before the committee on Thursday, February 27, 2025
The House of Representatives Public Accounts Committee (PAC) has issued a 72-hour ultimatum to Galaxy Backbone, a federal government-owned information technology and shared service provider, to address allegations of financial irregularities and contract violations amounting to billions of naira.
At a hearing held on February 19, 2025, the committee, chaired by Rep. Bamidele Salam (PDP Osun), interrogated Galaxy Backbone following queries raised in the Auditor-General for the Federation’s 2021 report.
The Managing Director of Galaxy Backbone was represented by Mr. Sani Mohammed Ibrahim, Executive Director of Finance and Corporate Services, alongside other officials.
Key findings by the committee include the non-remittance of taxes amounting to N329,845,000, which was required to be paid within 21 days. The committee ruled that appropriate sanctions should be applied.
Additionally, the committee flagged a payment of N66,799,440 for contractual obligations without supporting documentation. Galaxy Backbone was directed to provide details of the transaction within 72 hours.
Another troubling revelation involved payments to an American company, ST Engineering, which listed the same street address in two different states.
The committee noted there was no evidence of contract execution and demanded comprehensive documentation in line with Bureau of Public Procurement (BPP) requirements within the same 72-hour timeframe.
Other violations, including e-payment irregularities totalling N12,661,300, doubtful payments amounting to N2,433,701.56, and a procurement contract worth $164,403, further angered the committee.
Galaxy Backbone was ordered to reappear on Thursday, February 27, 2025, at 1.00 PM to provide explanations on the unresolved issues.
In a related development, the Institute for Peace and Conflict Resolution (IPCR) also faced scrutiny from the PAC over audit queries involving unsubstantiated payments. The committee questioned the payment of N25,801,400 in allowances for project monitoring and evaluation (M&E).
The Director-General of IPCR, Dr. Joseph Ochogwu, claimed the infractions occurred during the previous administration, as his tenure began in 2024.
However, the committee dismissed the explanation, demanding detailed information on the location of the projects, transportation cost calculations, personnel lists, receipts, vouchers, and payment records.
The committee also investigated “payment for doubtful trainings” totalling N21,383,800, which prompted the constitution of an ad-hoc committee to resolve discrepancies. The committee indicted IPCR for a lack of efficiency and effectiveness in its operations, signalling its intent to ensure accountability in public sector financial management.
