Alleged Financial Infractions: Reps Committee Grills Galaxy Backbone

The House of Representatives Public Accounts Committee (PAC) has placed Galaxy Backbone, the federal government’s information technology and shared services provider, under intense scrutiny over alleged financial infractions amounting to billions of Naira.

At a hearing on February 19, 2025, the committee, chaired by Rep. Bamidele Salam, interrogated the management of Galaxy Backbone over multiple queries raised in the 2021 Auditor-General’s report. The lawmakers questioned the organization’s compliance with financial regulations and procurement laws, citing concerns over violations of extant financial and contractual guidelines.

The Managing Director of Galaxy Backbone was represented by Mr. Sani Mohammed Ibrahim, the Executive Director of Finance and Corporate Services, alongside other key officials of the company.

Following its investigation, the committee found Galaxy Backbone guilty of failing to remit taxes amounting to N329,845,000 within the stipulated 21-day period. Consequently, the committee ruled that necessary sanctions should be applied.

The committee also raised concerns over the payment of N66,799,440 for a contractual obligation that lacked supporting documentation, demanding that the organization provide full details of the transaction within 72 hours.

Additionally, the committee uncovered a questionable payment made to a U.S.-based company, ST Engineering, which listed identical street addresses in two different states, raising further red flags about the legitimacy of the transaction.

The Committee raised concerns over the absence of any visible execution of a contract awarded under Galaxy Backbone. Consequently, the committee has given the agency a 72-hour ultimatum to provide full details of the contractor, along with all relevant documents in compliance with the Bureau of Public Procurement (BPP) and other regulatory requirements.

Adding to the committee’s frustration, Galaxy Backbone failed to provide a convincing explanation for multiple financial irregularities. These include e-payment violations amounting to N12,661,300, suspicious payments totaling N2,433,701.56, and a procurement contract valued at $164,403.

The Galaxy Backbone has been summoned once again to reappear before the committee on Thursday, February 27, 2025, at 1:00 PM to address outstanding issues.

Similarly, the Institute for Peace and Conflict Resolution (IPCR) appeared before the committee to respond to audit queries, particularly regarding the payment of allowances for project Monitoring and Evaluation (M&E) amounting to N25,801,400.00.

The Director General of IPCR, Dr. Joseph Ochogwu, clarified that most of the issues in question occurred under the previous administration. He noted that his team assumed office in 2024, while the queries stem from financial infractions committed during the 2021 fiscal year.

The committee, however, rejected the explanation provided and demanded specific details, including the exact locations of the projects, the basis for calculating transportation fares, the list of personnel who participated in the trips, as well as all receipts, vouchers, and payment records.

The committee also scrutinized a questionable expenditure of ₦21,383,800 labeled as “payment for doubtful trainings.” Given that the explanation provided fell significantly short of expectations, the Public Accounts Committee (PAC) set up an ad hoc committee, chaired by Rep. Billy Osawaru (Edo State), to investigate the discrepancies and submit a report within one week.

The institute was ultimately indicted for failing to uphold the principles of economy, efficiency, and effectiveness in its operations.