KPMG Conducted A Process Review, Not Forensic Audit Of Abia’s Financial Records, Says State PDP

The Abia Peoples Democratic Party (PDP) has expressed deep concern and disappointment over Alex Otti’s use of language to drag the former PDP administration of Dr. Okezie Ikpeazu into disrepute and confuse the good people of Abia State, particularly when such motives are purely political, unwarranted, and completely unnecessary.

Abia State has been trending for the wrong reasons in the last three weeks, when Alex Otti, from the faraway United States, claimed that a forensic audit conducted by KPMG indicted Dr. Okezie Ikpeazu’s former administration and his government for paying N10 billion for a non-existent airport.

In a statement from Hon. Elder Abraham Amah, Abia PDP Vice Chairman/Acting State Publicity Secretary, the party said after he was pressured by citizens to make public the forensic audit report, Alex Otti a few hours ago, released a document by KPMG which it titled a Provisions of Financial Process Review for Abia State Government, and KPMG stated clearly in its introductory notes that the said document is not an audit of Abia financial records but a mere financial process

For those who are unfamiliar, a forensic audit report is typically conducted with the specific goal of uncovering evidence of fraud or misconduct, whereas a financial process review entails analysing operational workflows, identifying inefficiencies, and risks, and making recommendations for improvements, which may include process redesign and automation as well as other factors to increase productivity.

The PDP is not surprised that Alex Otti, an economics graduate who spent his entire career in the banking sector, rising to the position of managing director of a first-generation bank, was unable to distinguish between a forensic audit and a financial process review because he was, as usual, clouded by hatred and deep animosity towards the PDP and Dr. Okezie Ikpeazu.

To emphasise the point, the touted report is titled Provision of Process Review Services, not Forensic Audit Report, and the Restriction on Distribution of the Report page clearly states that “This final report is intended for the use of the Abia State Government (“ABSG”) and should not be used for any other purposes.”

Furthermore, on page 16 of the financial process review document, KPMG stated like Assignment:

*a*. We did not perform this assignment in our capacity as statutory auditors. Hence,
This is not a financial statement audit of ABSG or any of the entities listed in the
report. As a result, we are not required to provide an opinion on ABSG’s or any other entity’s financial statements included in the report.

*b*. Rather, we carried out the procedures we deemed appropriate in the circumstances and by the relevant KPMG methodology.

*c*. We were also not required to review the adequacy of the previous output.
ABSG’s current external auditors and/or consultants have not performed any of the
following:

*i*. Conduct a trial and/or inquiry in the course of the assignment.

*ii*. Act as a tribunal, commission of inquiry or in a judicial or quasi-judicial role.

*iii*. Perform, any adjudicatory function whatsoever in the course of the assignment.

*iv*. Conduct any exercise to determine whether any person was guilty or
innocent of any offence

From the foregoing, it is evident to discerning minds that KPMG stated very clearly that it did not conduct an audit, much less, forensic. Transparency and accountability are fundamental principles that underpin good governance and public confidence in the audit process.

Unfortunately, the operatives of the Alex Otti government have continued to anchor their indictment on the N10b payment which Ferotex, the same contractor Alex Otti is still using, made to 32 other contractors. Thankfully, the operatives of the former government have offered explanations for that and so Alex Otti has nothing to say again.

Like a drowning man who is looking for even a straw to hold onto, Alex Otti keeps referring to the N10b which he cannot prove. The refusal to allow independent scrutiny of the report suggests a lack of commitment to upholding professional standards and ethical guidelines and PDP demands that Alex Otti make public the cost of the financial process review.

The decision by KPMG to prevent public disclosure and review of the report lends credence to the fact that the exercise, for which Alex Otti made a mountain out of a molehill, was after all, just an opportunity to spite the PDP and Dr Okezie Ikpeazu and this goes against the principles of openness, transparency, accountability and good governance. The Abia state government needs to ensure that all audit processes are conducted with utmost transparency and that findings are subject to independent verification to maintain public trust.

The people of Abia deserve to know the truth about any potential financial irregularities or misconduct uncovered by any audit and we urge the authorities to prioritise transparency and accountability in all matters related to governance and financial management.

Fortuitously, the process review report indicted that Governor Okezie Ikpeazu left N3.4b in the coffers of the State, contrary to dubious claims by Alex Otti that he met an empty treasury on assumption of office.

It is clear to Abians who have been lying to them, between Alex Otti and Dr. Okezie Ikpeazu.

The Abia PDP calls on Alex Otti to render a public apology to Dr Okezie Ikpeazu for smearing his name, especially in an international arena, to Abians for misleading and lying to them serially that a forensic audit was conducted with their funds when it was a mere financial process review meant to improve the efficiency of government operations.

We also urge the good and well-meaning people of Abia State to disregard Alex Otti’s use of hatred and witch-hunting tactics and demand the good governance that he has consistently promised Abians over his eight years in opposition. To make sense, governance must take precedence over politics.