Payroll Irregularities: Document reveals findings that led Osun govt to hire audit firm

A staff audit exercise commissioned by the Osun State Government shortly after the administration of Governor Ademola Adeleke assumed office in 2022 has resurfaced amid an ongoing controversy over alleged payroll irregularities in the state.

The report, titled, ‘Report of the Osun State Staff Audit, Appointment and Promotion,’ predates the government’s decision to engage Sally Tibbot Consulting Limited, a private forensic firm later contracted to conduct a comprehensive payroll audit.

The document was recently shared by Jiti Ogunye, a senior advocate and lawyer to Sally Tibbot Consulting Limited, whose audit report alleged last year that billions of naira were lost annually through payroll irregularities. But the Osun State Government vehemently disputed the firm’s claims.

According to Mr Ogunye, the report was produced by a committee set up by the state government following concerns about the integrity of staff records and payroll data across ministries, departments and agencies.

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Mr Ogunye said the report informed the government’s subsequent decision to engage a forensic audit firm to carry out a more extensive review of the payroll system.

“It was this report that prompted the government to hire the forensic audit expert that Sally Tibbot is, to do that work,” Mr Ogunye said in a message sent to journalists.

Findings of the committee

The committee, chaired by Muyiwa Oladimeji, reviewed staff documentation relating to appointments, promotions and payroll records across government agencies.

In its report, the committee identified challenges in verifying personnel records, discrepancies between nominal rolls and payroll figures, and lapses in adherence to established procedures for appointments and promotions.

The report noted that the committee was unable to conduct a physical staff audit across all agencies due to time constraints. It instead examined records from the Central Human Capital Management System (CHAMMS) and the most recent annual staff audit conducted by the Ministry of Human Resources in January 2022.

Based on those records, the committee reported a total staff strength of 39,106 according to CHAMMS, compared with 38,268 recorded by the Ministry of Human Resources.

The committee recommended tighter payroll controls and further verification measures to address the identified gaps.

Meanwhile, Sally Tibbot’s audit found the state payroll as of January 2023 listed 37,456 active staff and 17,918 pensioners, with a monthly wage bill of N4.48 billion. After verification, the firm said only 29,004 staff were genuine, leaving 8,452 alleged ghost workers whose removal would lower the monthly payroll to N3.34 billion and save the government about N13.72 billion annually.

However, the Osun State Government strongly disputed the claims. It said a state-led reverification exercise conducted after receiving the audit report showed that a vast majority of the names originally flagged as ghost personnel were legitimate employees or retirees.

According to the government’s statement, out of 8,448 active workers the consultancy labelled as unseen during its audit, 8,015 were confirmed as genuine, with only 433 unreachable. Similarly, of 6,713 retirees initially listed as ghost pensioners, 5,830 were verified, leaving 883 unverified.

The state said the total number of unverifiable individuals was therefore about 1,316, far lower than the 15,161 claimed by the consulting firm

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The firm accused the state government of refusing to pay agreed fees and failing to implement its recommendations.

The disagreement escalated as both sides traded accusations, with the firm insisting that the government’s re-verification exercise was flawed and conducted outside the scope of the original contract, while the government maintained that it had evidence to support its position.