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Tag: cbn

  • NLC faults Sanusi’s suspension

    NLC faults Sanusi’s suspension

    PRESIDENT Goodluck Jonathan’s defence of Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi’s suspension seems to be unconvincing to its critics.

    To the Nigeria Labour Congress (NLC), Jonathan did not follow due process in suspending Sanusi from office.

    According to the NLC President, Abdulwahed Ibrahim Omar, Sanusi may not have finished his work on the missing fund before going public, but this is not enough justification for his suspension.

    The NLC issued a statement titled: “Sanusi’s removal failed litmus test of due process”, signed by Omar.

    He said: “While we hold Sanusi accountable for not doing his home work properly before going public on an issue as sensitive as this, especially considering the sum involved, we believe the process of his removal is patently flawed and ridicules due process as well as contemptuous of the Act establishing the CBN.”

    Omar added that the suspension was capable of discouraging whistle blowers in government as well as casting a pall on the government’s fight against corruption, neither of which is good for its image.

    The congress also noted that the “government’s action is negatively pre-emptive and malicious, by virtue of the fact that full investigations into the allegations had not been concluded before it removed Sanusi and also the fact that it had sent in to the Senate for confirmation the name of his successor”.

    Omar recalled that the NLC has “watched with concern the exchanges between Sanusi and the Nigeria National Petroleum Corporation (NNPC) on the one hand and Sanusi and the Minister of Finance on the other, which sadly has culminated in the removal of Sanusi by way of a suspension from office.”

    These exchanges, he said, dwelled on allegedly unremitted billions of dollars into the Federation Account.

    Faulting the suspended CBN governor for what he called inconsistency, he said by the time the dust had settled, Sanusi had quoted three figures as the alleged sum not accounted for by NNPC, earning him a quiet rebuke by the Senate, which is investigating the alleged fraud.

    He stated: “In saner climes, Sanusi was expected to have turned in his letter of resignation the next day for getting the figures wrong, for misleading the public and for embarrassing the government, his excuse of poor communication between the relevant institutions in question notwithstanding. The least expected of him was a public apology.

    “We are not sure if he did either of the two until his removal was announced in a typical Nigerian-government style.”

    The President of the congress was surprised that Sanusi and the government could part ways despite his anti-labour stance.

    He recalled that during the anti-fuel subsidy protest in 2012, Sanusi refused to apologise for the exposure of the scam.

    The statement reads in parts: “Sanusi’s sins notwithstanding, government must not only follow the law but must be seen to follow the law. Rather than dissipate energy on Sanusimania, government should focus on irrebuttable cases of corruption and bring the culprits to book. They are legion but we dare mention only the Sure-P missing funds, the BMW bulletproof cars, the Sanusi revelations at NNPC.

    “It is common knowledge that over the years NNPC has not come clean on the issue of remittances to the federation account, a fact responsible for the routine shunning of invitations by the National Assembly.

    “In our view, the most important thing is that government should not lose sight of its fight against corruption, which is the major issue here. Government’s commitment to this scourge should be demonstrable, clear and unambiguous.”

    Goodluck Jonathan

  • Sanusi not a whistle blower, says minister

    Sanusi not a whistle blower, says minister

    Minister of Information Labaran Maku, yesterday said it is a misnomer to call suspended Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi a whistle blower.

    Maku who spoke at the National Assembly after defending the 2014 budget of his ministry noted that no governor of any country’s apex bank could act as a whistle blower.

    The minister said President Goodluck Jonathan did not query Sanusi because he raised issues about alleged missing $20 billion in Nigeria National Petroleum Corporation (NNPC)

    He said: “I have not heard of any nation where the central bank governor is a whistle blower. He is the manager of the nation’s monetary policies as an adviser to the president on those issues. So the fact that he has moved from being the CBN governor to whistle blowing is a problem in itself.

    “No CBN governor make statement on his nation’s economy without verifying. Things were done and the president didn’t worry about it and his removal had nothing to do with that.

    “These days we see a lot of outlandish allegations. People just make allegations and turn the country into one huge investigation panel, every day the National Assembly is investigating.”

     

    “The role of the CBN governor is that of a quite role, you don’t even hear them talk and if he makes any statement, it affect the capital market and the entire economy.”

     

  • Niger Delta activist backs Jonathan on Sanusi

    Niger Delta activist backs Jonathan on Sanusi

    A Niger Delta youth activist, businessman and politician, Chief Ayiri Emami, has backed President Goodluck Jonathan on the suspension of the Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi.

    Emami, who is the Akulaga of Warri kingdom in a statement yesterday, said Sanusi ought to have been sacked long ago.

    He described the cashless policy as anti-Niger Delta, adding that he had carried out his responsibilities with arrogance.

    Sanusi said: “The huge fund running into hundreds of billions of naira that were frittered away as donations, grants to religious bodies, payments to moribund airlines, illegal loans write-off and other sundry expenditures made without recourse to the CBN Act and the board were gotten from oil revenue from the Niger Delta region.

    “Mr. Sanusi never deemed it fit to fly one of the numerous private jets to these oil bearing but underdeveloped areas of the Niger Delta region to do an on-the-spot assessment of how the cashless policy would impact negatively on their businesses and lives as it affect payment of salaries to workers and transaction of business in a largely bank-less environment with hundreds of thousands of workers.

    “So, to us in the business hub of the riverine oil bearing area, Sanusi’s cashless policy is definitely cruel and anti-Niger Delta.”

     

  • Comments

    Comments

    For Dare Olatunji

    In Nigeria of today, awards are given to the most criminal to appriciate his or her criminality in the country. Very soon our leaders will be thinking on how to give awards to terrorists for terrorising people. Our money is being wasted on daily basis in the name of award giving. From Hamza Ozi Momoh, Apapa Lagos

    The criteria used as widely advertised were Sustainability, Empowerment, Impact, Change agent, Corporate brand (SEICC) in line with the UN development outlines for MDGs. Thank you. From MVGWA Team

    Re: ‘Annals of awards and coronations.’ The award of MVGF won by Abia State Governor’s wife among other wives further revealed the joblessness of these state first ladies! What have they done and what impact did they make on citizens’ welfare, none. This to me was part of joblessness by them further impoverishing many others. Corruption unlimited! Awards without efforts! Awards without credentials and awards without requirements. One day, all these fantasies shall come to a close. Awards, my foot! From Lanre Oseni

    Some of these awards are monetary-oriented-agenda organised to get money from the awardees. Award is no longer on merit but what belly will eat. From Gordon Nnorom

    Dare, when leadership is aimless and visionless, what it offers are myriads of senseless programmes and corruption aiding devices. The issue of First Lady started with the military and in spite of its continuity, constitutional reviews over time even by the military which initiated it, First Lady office has been refused constitutional right. Where, in the world, does such a permissive fraudulent platform exist except in Nigeria? It is nauseating that the election of a leader confers automatically the “first lady office” on his wife? What an insult on the Constitution and an abuse on the freedom of electoral right of Nigerians! Don’t be surprised if in future a governor’s wife initiates an award for the “best governor’s child”. Something urgent has to be done on this nauseating “first lady office”; an unconstitutional political creation, now. Nigerians’ mandate is to the elected person only. From Lai Ashadele

    But Tunji, how will there be a quarrel among our First Ladies when more awards are going to be invented? No prize to you for guessing who and who have been selected for the following, soon to be announced: Most Winsome First Lady, Best Dressed, Most Valuable Cook, Most Inventive Hair Stylist, Best Nollywood Fan, the Omoge Faaji, Most Valuable Prayer Warrior, etc. Watch out for the announcement. But I assure you there will be enough to go round. And enough funds from the governors office to celebrate them. Cheers! From Femi Osofisan

    It is a master piece indeed. However, I pity our generation that has refused to make sacrifices and rescue this country from the deep “mess” it has been thrown into by our “supposed” leaders.

    Please help me organise an award for the Best Driver. Did you say no money would be gotten from organising it? Poor attitude to issues has been woes. Arise O! Compatriots indeed! From Amadi Nicholas U., Imo State Polytechnic, Umuagwo-Ohaji.

     

    For Gbenga Omotoso

    Gbenga, these are funny up-to-date Nigerian stories well packaged for the Nigerian readers. I cannot stop laughing. Political madness I must say, nice work! From Eniola A.

    Mr. Gbenga, please note that the village where Boko Haram killed over 146 people is Izghe village in Gwoza Local Government not Konduga you referred to in your master piece tagged “Interesting times”. From Ismail

    More power to your elbow. I like your write-ups on the happenings in Rivers State. Anonymous

    Good analysis, Gbenga. I love that. Wish you the best. From Sammy, Lagos

    Mr. Omotoso, it is so unfortunate that our own dear native land has been deprived of nourishment and now made to scavenge on the carcasses of dead conscience. From Daniel Pedro McDaniel, Kaduna

    I read your interesting column tagged, “Interesting times” and I enjoyed it, but time is interesting and very unfortunate, while other countries like South and North Koreans are busy uniting themselves in development, we are busy stealing and dividing one another in so many things. Anonymous

    Your piece “Interesting times” is quite very interesting. Kudos! From Niyi Idowu

    The Nigeria Police is under-using and misusing the talents and skills of its officers and men. CP Mbu should have been deployed to Borno State where his skills at decimating the President’s real or perceived enemies and tough guy are needed to combat Boko Haram. From John Oko, Port Harcourt

    Thanks Gbenga, you have made my evening. We are really in very “Interesting times” in a country where we are helpless with virtually everything, including human beings, sitting with on their heads. A pleasant one; but when will you talk about a state in Southeast where local government service has been exterminated? From Kalu, Umuahia

    Although today’s Editorial Notebook dealt with serious issues, it sent me reeling with laughter when I got to poor lion heart Mbu’s new assignment in Abuja! Who says Gbenga is not the fearless gladiator of modern times that uses the pen! Bravo! From Dr. Yusufu Musa CON, Former Deputy National Chairman ANPP

    Your Editorial Notebook is fantastic. Please, keep on with this type of essential points so that everybody will know how Jonathan spends our money. From Peter Olaiya, Akure

    I weep for Nigeria. At a time that $20 billion probe is ongoing, the President suspended the CBN Governor. What is President hiding? We now know where the $20 billion is. Nigerians, rise up to this looting of our money. Interesting times, indeed. Go ahead Sanusi, challenge it in court. Nigerians are behind you. Anonymous

    The President is making these times to be because he is taking a wrong decision at the right time and right one at the wrong time. Things are going wrong under him and he is happy about that. If actually the President is in charge, this is the right time for him to correct the wrong impression about him. From Hamza Ozi Momoh, Apapa Lagos

    All the principal officers that encouraged Ms Stella Oduah to purchase the N255 million bulletproof cars should be dismissed too. Anonymous

    Interesting times indeed! Kudos; so comprehensive a piece. Cheers! From Yusuf Tukur

     

    For Tunji Adegboyega

    Re: “The crucifixion of truth.” What the happiest people on Sanusi Lamido Sanusi’s removal/suspension fail to know is that as fair, strict, tough and honest to outsiders/public as Sanusi was, it was the same toughness, fairness, law-abiding and transparency tendencies that he exhibited at home – CBN. Again, if some people were happy at his removal, they need to remember that the cane previously used to deal with the senior wife is kept on the roof for a similar penalty for the new wife. Anonymous.

    I am at sea on why Sanusi’s sack is generating unnecessary press attention. Recently, Eze Festus Odimegwu revealed what had been going on at the National Population Commission as regards census figures. Some people went to the Presidential Villa and pressured President Jonathan to sack him. When President Jonathan agreed to their request, everyone had Odimegwu to blame for opening his mouth so wide. Sanusi should have learnt his lesson from what happened to Odimegwu. For failing to do that, I have no tears to shed for him. In fact, his sack is a case of good riddance to bad rubbish of an employee who wanted to become more powerful than his employer. It is the case of the proverbial bird, Nza, that challenged its ‘chi’ after a sumptuous meal, according to the late Chinua Achebe. From Chukwuma Dioka, Owerri.

    The President has finally legalised corruption in the country by removing transparency and replacing it with lies. It is very unfortunate that lies and deceit have overpowered the truth in the country we all call our fatherland. The earlier all of us stood up to challenge Sanusi’s suspension, the better. Anonymous.

    Yours was a great job; precise. Second, you hit the nail on the head. Regards. From Igbogbahaka, Enugu.

    At what point did the Presidency and Financial Reporting Council of Nigeria (FRCN) realise Sanusi’s imprudence? If those powers fail to at least restore Sanusi, they should at least condemn his suspension/sack, if only to stop such impunity. Today’s CBN population of about 9,000 from 6,000 was consequent upon many legislators, presidency, judiciary and traditional rulers lists of requests. Their quietness now is surprising. In 2009, after the promotion-appointment mess of 2008 at the CBN, Sanusi took up the massive mess that nearly threw the bank into turmoil and did justice without knowing the aggrieved. From Lanre Oseni.

    Tunji, so Jonathan even has a platform known as FRCN yet the case of Diezani spending recklessly on private jets was swept under the carpet. In fact, out of Oduah, Sanusi and Diezani, who should have been fired first? Let GEJ tell us. Anonymous, Makurdi.

    Tunji, your one-sided judgement portrayed Sanusi as a saint by making un-appropriated spending; you found nothing wrong. It is unfortunate. Please, always try to balance issues. You did not hide your hatred at all. From C.U. Onor.

    You should first ask about the veracity of the FRCN which reported Sanusi’s financial recklessness before becoming an apostle of APC. That is the right thing to do if really you are writing as an unbiased commentator. Anonymous.

     

     

     

  • GEJ vs Sanusi, the whistleblower

    GEJ vs Sanusi, the whistleblower

    Last Thursday’s sack of Malam Sanusi Lamido Sanusi as Governor of the Central Bank of Nigeria by President Goodluck Ebele Jonathan was a bombshell even though it was hardly surprising. From the moment the former CBN boss was issued a query three or so years ago by then National Security Adviser to the president, late General Andrew Owoye Azazi – a query he rightly ignored because it did not come directly from the president himself – for a remark he made abroad linking Boko Haram insurgency with what he said was the financial neglect of the North by Abuja, it was obvious that if the authorities had their way, they would’ve fired him long ago.

    What apparently stood in their way was the CBN Act which said its governor and his four deputies cannot be fired without the support of two-thirds of members of the Senate the president needs to hire them in the first place, something he could not be sure of, given the uncertain political terrain that has lately confronted his ruling party. From his defensive answers in his media chat two days ago over his firing of the governor, it is obvious that the president must have been advised, more like misadvised, that he could go round this obstacle by announcing that he was merely suspending the governor.

    Trouble is, the law is completely silent on whether or not the president can, short of firing them, suspend those he’d hired. I am told by some of my legal expert friends that a cardinal principle of law is to give the benefit of doubt to an accused where a law says nothing or is ambiguous about the issue in contention.

    A more satisfactory solution for everyone in such cases is to resort to the courts for interpretation. Obviously, this would’ve taken more than the four months or so Sanusi had left to serve out his five-year tenure. It seems the way the man started running his mouth about corruption in high places in the oil business foreclosed the option of allowing him to end his tenure quietly since there was no telling how much more damage he could do if he continued talking with the authority of a governor of the CBN.

    The President claimed in his media chat that he has “absolute” powers to suspend the governor. Perhaps he does. However, it remains no more than his opinion until the courts agree with him. Happily, Sanusi, as irrepressible as ever, has said he will go to court to challenge his suspension and has already gone to court successfully to stop the authorities from unleashing their law enforcement and intelligence forces to arrest or detain him.

    Try as he may the President and his team are highly unlikely to ever win the propaganda war between himself and Sanusi. And it’s not just because the former CBN governor, in sharp contrast to our generally incoherent and bumbling president, is as eloquent in speech and in writing as they come from anywhere in the world. It’s also not because the President does not at all have a case against Sanusi. The President may have overstated it when he accused Sanusi’s CBN of being “characterised by various financial recklessness and misconduct” but it seems to me, at least, that in going to equity the former CBN governor did not do so with clean hands.

    In an interview with Metropole magazine after his sack which Daily Trust of last Monday reproduced, Sanusi rejected insinuations by the magazine’s editors that his latest accusations of corruption in the oil business against the authorities was like taking out an insurance against being fired for the charges of recklessness and mismanagement that had been levied against him. “You can never,” he said, “have any insurance in life. What is insurance? The only insurance you have in life is to try to do the right things.”

    As CBN governor, Sanusi did many right things. If nothing else, he, as I said on these page on August 26, 2009, barely a couple of months after taking over from Professor Charles Chukwuma Soludo, cleaned up the mess his predecessor created after he had done a good job of creating 25 mega-banks in place of the odd 80 that were in existence, most of them no better than glorified family automated teller machines. Soludo had virtually ruined his good job by becoming too chummy with the bosses of the banks he was supposed to supervise and regulate. The result was a financial crisis which led to a near-collapse of the economy, and certainly of the stock market where you and I bought and sold shares of companies, including those of banks.

    By putting a stop to the casino capitalism which the new big banks had fostered while Soludo kept assuring us that all was well when it wasn’t, Sanusi brought back stability and integrity to the financial market. If that was all he did, the man deserved praise as CBN governor for his courage and competence. But that wasn’t all. His exposure a few years ago of the magnitude of the huge remunerations the federal legislators decreed for themselves in violation of our Constitution, and his refusal to back down from his charge in the face of intimidation by the law makers, if nothing else, served to underscore the public’s concern about how we’ve spent more, much more, of our annual budgets on recurrent items than we have on capital goods since the return of civilian rule in 1999.

    There are even more right things he’s done as CBN governor than these two, but even these alone suffice to show that his tenure has, on balance, done more good than bad to our political-economy.

    The trouble with Sanusi, however, was that he did not measure up to what he had led the public to expect of him as someone who had consistently spoken truth to power before he became CBN governor, and which he continued to do even after.

    The report of the Financial Reporting Council (FRC) which the president has relied upon to suspend the governor has listed his many alleged transgressions including the award of no-bid contracts in billions of Naira, the spending of billions on his own and his management’s creature comforts, overpaying legal and public relations consultants and donating hundreds of millions of Naira to victims of natural and man-made disasters without board approval, etc.

    His defence has been that he has the president’s approval for some of the expenditures he’d incurred and that with things like donations he was not the first governor to do so. He also says he has constantly reduced operating management costs since he became governor.

    The governor’s self-defence may well be tenable. But this is beside the point, which is that as a long standing social critic he should’ve known better than to give those in authority sufficient ammunition to impugn his integrity and credibility. And this is exactly what the FRC report has done, even if only a fraction of its charges are true. The specific nature of the FRC report means it cannot be easily dismissed with the wave of a hand.

    That he built a one billion Naira car park at his official residence, as is common knowledge, and the fact that he was always accompanied by a huge and expensive retinue of bank staff, friends and hangers-on alike, to receive awards and honours abroad and here at home, were enough to suggest he did not act with the degree of prudence and integrity his crusade for good governance and transparency demanded of him.

    Sanusi’s alleged transgressions as CBN governor notwithstanding, he clearly has the upper hand against the president in the war for public sympathy and support. The reason is obvious; his alleged transgressions are small beer compared to what the oil thieves and their partners in government have been stealing with impunity.

    So long as the president is seen to be incapable and/or unwilling to take on these mega-thieves, so long will anyone who poses as a whistleblower against corruption in governance win public sympathy, whether his own alleged transgressions are true or not.

    It is, of course, not realistic or even sensible to expect the authorities to fight all cases of corruption or none at all. But when they are seen to ignore cases more deserving of their attention than those they are pursuing, they will find it hard, if not impossible, to convince the public that a case like Sanusi’s is a fight against corruption not a witch-hunt.

     

     

     

     

  • NESG: N102b in TETFUND/UBEC; Sanusi and ‘kerocalamity’; Whistleblowers;

    NESG: N102b in TETFUND/UBEC; Sanusi and ‘kerocalamity’; Whistleblowers;

    As the Nigerian Economic Summit Group focuses yet another spotlight on Education, sadly, while some children have no desks, chairs, books and lab equipment, there is N69 billion in TETFUND and N33b in UBEC, totalling N102billion, un-accessed by potential beneficiary institutions. Is this an administrative, political will, red tape or corruption problem? NESG 2014 should insist that this be solved and some institution and state ministry of education officials should be investigated and perhaps removed for incompetence.

    Whistleblowing is dangerous to your employment health. But we, the honest, must improve efforts to clean up the growing cesspool. Remember the fertiliser, NITEL answering machine, NEPA guesstimeter, multiple pension, petrol, bunkering and kerosene scams, the funding of political parties from government coffers, and the questionable census figures from the 1956s? -All corruption.

    And now shamefully and perhaps illegally governments punish us for government failures by billing citizens to assess emissions from very expensive private generators bought for business survival and to replace government power failures. Is this not double punishment over-charging, illegality and government corruption? This must be challenged in court. In this cesspool, Nigeria needs many whistleblowers, websites, exhibitions and Museums.

    The exit of CBN GovernorSanusi, who is no saint, appears a vindictive step to shut him up, so close to the end of his term. Was it an attempt to prevent him using CB documents as backup when talking to NASS on the N10b kerosene scam? Sadly there are always others immediately available to take the place of fallen stars. We are all animals and the human is a very nasty animal. While one expects government agencies to cooperate we do not expect them to cooperate in corruption. No doubt he will ‘resurrect’ as the Emir of Kano and future Presidents will pay homage. Yes, he was excessively flamboyant and loud for a CB Governor. That asset will probably help him on speaking tours worldwide with the Wikileaks and the US security whistleblowers. He should be joined by Odumegwu whose successor at the Census Commission was warned against commenting on past rubbished Census figures which favour the North. It seems the politicians are the only ones who do not know that the census figures are a corrupt, malicious, malignant mathematical creation. Ostriches! Some people, and government insider Mafiosi or cabals, do not want the truth because it will question Nigeria’s foundation for unity.

    I disagreed with Sanusi’s policies like high base lending rate, the N5000 note, high interest rates, undisclosed bank bonuses and policy not to appreciate the naira to pre-Abacha levels $1:N88. His giving of billions in funds to ‘needy’ causes is not within the remit of CBN. The CBN’s job is to keep and improve the value of, and not spend, our money and to handle, hold and manage and invest our money wisely. He did not even pay CBN pensioners without a costly fight to the Supreme Court.

    However, Sanusi’s exposure of the ‘kerocalamity’ is redemptive and worthy of national honours. We need a WHISTLEBLOWERS ASSOCIATION OF NIGERIA, WAN, and a website. We should all get whistles and on a particular ‘WAN’ day, blow them at officials committing crimes. We should call carry ‘WHISTLEBLOWER WHISTLES’ and blow them whenever we see a checkpoint, or other crime being perpetrated. There is corruption everywhere, from petrol station pump supervision, to hospital admissions, to exam success, to police stations, to the electricity we generate and the water we drink or the air we are allowed to inhale. There is real war by the Boko Haram and Fulani herdsmen with many deaths and injuries and homeless. Nigeria must stand firm for Nigeria to survive. We must stop corruption at every level. Nigeria must fight but can it fight two battles on two separate fronts- corruption and the Boko Haram. Around the world, Venezuela, Ukraine, Thailand, we see the suffering and struggle for political purification. Bad politicians of every party must be forced out. Nigeria’s goose laying golden eggs days may be over. As our gallant soldiers defend Nigeria with their blood, from the internal and external war of Boko Harem, we must clean up the rest of the country. We must clean up the polity, which must not be allowed to fund itself from the treasury. We must clean up the civil service, stopping bribe-taking before every service is given or even appointing consultants as middlemen. We must clean up the bar and the judiciary. We must clean up our homes, offices and communities. Are you corrupt? Stop today before you kill Nigeria.

    One addition, can we not call on political parties not to fund, equip, use or be seen with thugs, other people’s children, for political war? Demand a ‘thug ban’? Let us have poster and advert wars but no physical violence. Sponsoring violent bodies or having them in one’s entourage should lead to expulsion from the party. The Ejigbo extortion and murder of women and girls is an opportunity to stop irregular behaviour by irregular ethnic or political militia/armies and police. To force them into visibility and responsibility there should be compulsory 1] Registration of members, 2] Name tags, large size, 3] Duty Rosters, 4] Mug shots, 5] Closer Supervision, 6] Prosecution and Punishment for breaches of the code and 7] Accessible Membership Lists. What manner of man would murder, beat and treat women this way unless he is in a criminal organisation? Go on ‘Blow a whistle!’.

     

     

  • Jonathan not serious about fighting corruption, oil theft, says Amaechi

    Jonathan not serious about fighting corruption, oil theft, says Amaechi

    •‘Jonathan should govern by the rule of law and not the rule of man’

    RIVERS State Governor Rotimi Amaechi has said President Goodluck Jonathan is not serious about fighting corruption and oil theft, especially in the Niger Delta.

    He urged the President to govern by the rule of law and not the rule of man.

    Amaechi spoke yesterday at the Government House, Port Harcourt, while receiving the British Minister for Africa and Member of Parliament Mark Simmonds.

    The NGF chairman said: “The last letter written by the (suspended) Central Bank of Nigeria (CBN) Governor, Mallam Sanusi Lamido Sanusi, was the diversion of $49.8 billion. Now, they have been able to manage the crisis to reach $20 billion, but $49.8 billion was spent outside the Appropriation Law. So, it is all about diversion.

    “While I join you to say we should fight oil theft, when the British Prime Minister meets the Nigerian President, he should also deal with the issue of financial diversion. The way the President spoke in his media chat yesterday (on Monday), there seems to be uncertainty.

    “He (President Jonathan) does not know the figures accurately. They are calling $20 billion, while others say it is $10 billion, but even if it is $1 billion, it is N170 billion, which is almost the budget for Enugu, Anambra and Kwara States combined in a year. So, when the Prime Minister is discussing with Mr. President (Jonathan), they should address these issues.

    “This is the highest level of corruption in the history of Nigeria. So, it is important that when you see President Jonathan, he should deal with these issues, so that we can develop and govern the state.

    “Yesterday (Monday), Governors’ Forum met and it appears we do not have money to pay salaries anymore. This is not caused by oil theft alone, but with financial diversion, which does not go through the Appropriation Law. It is pure impunity, illegal and a breach of the Constitution and that is against the rule of law.

    “So, it is important that when you talk with the Presidency, advise them to govern by the rule of law and not by the rule of man. You should also tell your friends and partners in Europe that since the President in Nigeria is not mindful of obeying the Constitution, those of you who are closer to him can advise him that countries all over the world are governed by rules for which everybody knows the punishment attached to offenders.”

    The Rivers governors added that the Federal Government must be more serious with the fight against oil theft.

    Amaechi said: “I do not know how much you have seen about oil theft and I do not know if the Federal Government is serious about combating oil theft. Why I say this is that for two years now, the Federal Government has refused entry into the country, two surveillance helicopters paid for by the Rivers State Government.

    “These helicopters have cameras and their job is to fly all over and whomever that is stealing oil, you will see. The helicopter will have a monitor with the Army, Police, Airforce and with the Department of State Security (DSS).

    “I suspect the refusal may be for political reasons. The helicopters have been packed in America for two years now and the Rivers State Government is paying demurrage on them. If you see how much oil we are losing, we hear it is about $7 billion annually, then you will see that we need the helicopters.

    “We paid for them, not the Federal Government and we are prepared to help them, but the President (Goodluck Jonathan) has emphatically refused to allow the two helicopters into the country for the past two years. We are still paying demurrage. The manufacturers have told us if they should sell them.

    “So, if the Federal Government says it needs help, why not bring in the helicopters, rather than run to the British Government? These are questions you should ask them. I said the same thing to the American delegation. Our problem is not just oil theft which is costing this country to lose about $7 billion a year, but financial diversion.”

    Simmonds said he was in the country to see the United Kingdom’s investments, especially in the oil and gas sector, and to also participate in Nigeria’s centenary celebration.

    He condemned the environmental degradation caused by oil theft and indicated the readiness of the United Kingdom to partner with Nigeria to to tackle the menace.

    Simmonds said: “I just came from the Niger Delta area, where I saw some of the sites affected by environmental degradation, even some of the environment damaged and it makes us to emphasise the importance of Nigeria’s authority to tackle the problem.”

    The British minister said Prime Minister David Cameron and Jonathan were discussing how the two countries could work together to make a positive difference.

  • Sanusi: Jonathan orders audit of CBN’s accounts

    Sanusi: Jonathan orders audit of CBN’s accounts

    Financial Regulatory Council to submit report in six weeks

    President: I’ve absolute powers to suspend CBN governor

    SECRETARY to the Government to the Federation Anyim Pius Anyim has asked the Financial Reporting Council of Nigeria (FRCN) to audit the Central Bank of Nigeria (CBN).

    Acting on President Goodluck Jonathan’s directive, Anyim gave the FRCN six weeks to do job.

    The audit is to examine the books showing how suspended CBN Governor Sanusi Lamido Sanusi has run the apex bank.

    Sanusi was suspended last Thursday for alleged “misconduct” and “financial recklessness”. He denied any wrongdoing, challenging his accusers to open the books.

    The presidential directive – to the FRCN – is believed to be a response to Sanusi’s stand on the row between him and the authorities.

    The fresh audit is a follow-up to an earlier on by auditing giants Coopers and Lybrand.

    Sanusi has accused the Nigerian National Petroleum Corporation (NNPC) of being unable to account for $20 billion oil revenue. The argument was still raging when he was suddenly suspended – an action the President defended last night.

    Dr Jonathan said he has “absolute power” to suspend Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi from office.

    According to him, it would have been inappropriate to have allowed Sanusi to remain in office while the report of the FRCN, which indicted the CBN 2012 audit report, was being considered. He said because Sanusi is the chairman of the CBN board of directors, it was mandatory for him to be out of office during investigation.

    Dr. Jonathan spoke during the “Presidential Media chat” aired on national television.

    “Yes, I have absolute power. The CBN is not well defined in the Nigerian Constitution,’’ he said, in response to a question by one of the panelists on the propriety of his action to suspend Sanusi.

    Dr Sarah Alade, the most senior deputy governor was appointed to act for Sanusi. Zenith Bank Managing Director Godwin Emefiele has been nominated as CBN governor, to take office on June 2 when Sanusi’s tenure is due to end. The Senate is yet to confirm the appointment.

    The President said Sanusi remained the CBN governor and would be allowed back to the office “today or tomorrow”, if he was cleared at the end of investigation.

    According to him, the president has oversight functions over the bank. The action against Sanusi, he said, was delayed because of the need to consult widely and not to send a wrong signal.

    “When dealing with the treasury of a nation, you have to be careful and consult widely,” Jonathan told the panel.

    The President also spoke on the national conference, which he said would start on March 10, his plan to investigate alleged loss of $20b at the NNPC and the Boko Haram insurgency, among others.

    Jonathan also faulted the argument that indicted deputy governors should have been suspended along with Sanusi, saying that the head was suspended in order not to interfere with ongoing investigation.

    He said the CBN Act will be amended, if need be, to tally with international best practices.

    But Jonathan stressed that he cannot direct Sanusi’s prosecution as the CBN Board and the FRCN have the responsibility.

    On Sanusi’s prosecution, he said: “People must know how government functions. The government doesn’t just prosecute anybody. No; it is not done that way. Anybody could be accused of everything. Even in normal civil service operation, when you are suspected for fraud, the best …is to place you on suspension and the matter is investigated. At the end of investigation, why they place you on suspension is so that you don’t stay in that office and frustrate the process of investigation. So, government normally places such person on suspension without salary. And if it is a grievous offence, they place you on suspension without salary, but not sacked. Until when they conclude investigations; he may go back if he has no case to answer. If he has a case to answer, that is when they prosecute. “

    “These are issues raised by a third party; the Financial Reporting Council is not a member of CBN. So, there could be some issues….probably there could be explanations. I am not saying everything raised there is incriminating on the CBN or Sanusi. No; nobody has said that. So, it will depend on when …It is the board of the CBN and the Financial Reporting Council that will look into those grey areas. And if Sanusi has no case to answer, how will you prosecute somebody that has no case to answer.

    “But if he has a case to answer; it depends on the nature of the case. In the public service, there are some cases that if it is not criminal in nature, it is either act of negligence or probably miskick a process he was supposed to follow, he may not necessarily be prosecuted. There may be other sanctions or indictment. So, everything does not end up with prosecution.

    “Prosecution can only come if a clear fraud is established. But if a fraud is not established, maybe somebody does not follow due process, or some other issues that are not clearly fraudulent, we may not necessarily prosecute him, even though the person is guilty. So, Nigerians should wait; they should not just talk about prosecution.

    He added: “Forget whether it is Goodluck Jonathan, whether the President of Nigeria by virtue of the constitution of Nigeria has power to suspend the governor of CBN, I will tell you yes, the President has absolute powers to suspend the CBN Governor.

    “The CBN is not even well defined in the Nigerian constitution. If you look at the Nigerian Constitution, Section 153 talks about executive bodies, like Federal Character Commission, Civil Service Commission, Independent National Electoral Commission, the Judicial Service Commission, about 14 of them and the Code of Conduct. These are clearly defined. The President appoints but the Senate must clear. For the president to remove anybody, he must go through the Senate. The President has oversight over the CBN; so if anybody tells you that the CBN is a different country, it is not true because for the CBN to change the colour of the Naira, the President must approve.”

    “And what happens, for the CBN account, because normally when you audit the CBN, you publish it. So, for you to even publish the CBN audited account, the President must approve it. That means the President must accept the CBN’s audited account.”

    According to Jonathan, suspension came in because the CBN Act is somehow anomalous. “We have similar issues with other organizations, not just the CBN, where the CBN Governor is also the Chairman of the CBN Board, the CBN governor is the Chief Executive of CBN and, at the same time, the chairman of the CBN Board. So, if there are allegations about the CBN governor, it becomes a problem for you to look into it,” the President said.

    He went on: “So, no President will just wake up and a decision, especially when the CBN is involved, whether suspension or removal … you need to consult, you have to do all what it takes and make sure. Probably, I would have even stayed longer than now but when I just realised that in fact February 2013 that the CBN governor sent me the report of the 2012 audit, because the audit report is supposed to be published in the first quarter of the year. So from that time through April there has been correspondence to and fro.

    He said he suspended Sanusi when he did because the 2013 audit report is supposed to be published this quarter, “but we have not even finished with 2012”. In fact, I had to give provisional approval to audit 2013 report because we have not finished with 2012″.

    Jonathan said he sent the name of Sanusi’s successor immediately, because it is “one of the things we have to do to stablise the system” and to tell the international community that the succession is already there.

    The suspension coincides with Sanusi’s alarm that $20b oil money was missing. The President said: “In terms of if the time is appropriate, there is no time that is even appropriate to suspend anybody. But if you need to be suspended, definitely you really have to be suspended.” The issue of $20 billion, well if you look at the issues, it started from February till now, so it is not as if something just came up now because Sanusi spoke about $20 billion. First of all, he spoke about $49.8 billion; everybody was alarmed. Finally, Sanusi said it was $12 billion; later on he said $20 billion.

    “Whether it is $49.8 or $12 billion, but whatever, even if is one kobo or one dollar that has disappeared from NNPC, we will find out. That I guarantee you, but while doing that, we must follow the due process.”

    On the National Conference, Jonathan said key officials of the conference would be announced on March 3. The conference will start on March 10.

    “By our thinking, March 3, we will announce the names of the chairman, the deputy chairman and the secretary and, of course, we will also engage the administrative staff that will work with them and they will start work for at least a week before we invite others to join. And then, I will formally inaugurate it,” Jonathan said.

    He also spoke about the country’s centenary celebration, which he said is solely funded by the private sector, except that he would host visiting heads of state.

    “The purpose is definitely not to prevent disintegration. Nigeria will not disintegrate. Nigeria will not disintegrate,” he said.

    On the Boko Haram insurgency and insecurity in the country, Jonathan said security agents should get kudos, rather than knocks.

    On Borno Governor Shettima’s statement – that the Boko Haram fighters are better equipped and motivated – he said: “The statement is a little bit unfortunate because you don’t expect a governor to make that kind of statement and if the governor of Borno State feels that the Nigerian Armed Forces are not useful, he should tell Nigerians. I will pull them out for one month; whether he will stay in that his Government House; just one month, but I will fly back to take over the state.

    “But if what he said is correct, I will pull out the military from Borno State for one month and I will go back and take over the state. A governor should be mindful of what he says.

    “Yes, there are issues. No matter how frustrated you are, you don’t make this kind of statement.

    He said he is not aware that a military administrator was to be sent to Borno State.

    On kerosene subsidy, Jonathan said: “I don’t need to be briefed because I was involved. I was the Vice President to the late President (Umaru) Yar’Adua. At about 2008/2009, the international crude oil price dropped significantly; it was 48 dollars and we realised that at that time, the pump price of PMS was 70 to the litre. Of course, kerosine had been 50. And we realised that if we pulled out, Nigerians at that time would have bought PMS at 50 to 60 per litre. And we agreed that we were going to pull out, completely deregulate because if we had pulled out then, the pump price would have dropped. And if the pump price drop, no body will protest. And that is the best time. So those approvals were given. But along the line, the labour leaders were even the people who said, ‘look, this may be short-lived; let’s wait for another six months and if it is stable, then government can pull out’.

    Yar’Adua made those approvals; so, we decided to just leave it that way. The petroleum law does not recognise the President but only the minister.

    “So, what happened is that instead of keeping the pump price at N70, the President now brought the pump price from 70 to 65. If you look at the whole history, that was the first time the pump price of petrol was brought down. Nigerians would have probably been buying at 60 or 62. But the President brought it at 65 and it was announced and gazzetted.

    “When people talk of kerosene that President approved, they would have also talked of PMS. Those are memos from the principal secretary to the President to commence authorising the minister to act. The president has no powers based on the law. But we know that before the minister will effect it, the President must give clearance. So, since the labour people came, every body left it at that stage. The law guiding the price of petroleum products, very clear, for you to increase or decrease the price of any petroleum product, the law says that you must advertise and inform Nigerians in some daily newspapers, state the date and time. If you listen very well, if we want to change the price of petrol, we may say Sunday night so that by Sunday 12 midnight, every station will change. So, somebody going to fill and getting photocopy of documents that were forgotten and starts circulating, I don’t know those issues. To answer your question, kerosene subsidy still remains. I don’t need to be briefed; there was a time that we announced that government had completely deregulated. It was not removed.”

     

  • Can Jonathan suspend cbn Governor Sanusi?

    Can Jonathan suspend cbn Governor Sanusi?

    President Goodluck Jonathan’s suspension of Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi has raised what lawyers perceive as “knotty legal issues.” Some argue that the president can suspend Sanusi, others say he does not have such power. Precious IgbonwelundU reports.

    One way or the other, something was bound to give. And it happened last week. President Goodluck Jonathan suspended Central Bank of Nigeria (CBN) Governor Sanusi Lamido, who had last month ignored his advice to resign. Since he suspended Sanusi, questions have been raised on the legality of his action since the CBN Act is silent on “suspension”. It only speaks of “removal”, which must be with the senate’s approval.

    Although the president hinged Sanusi’s suspension on a 13-page report from the Financial Reporting Council of Nigeria (FRC), which many, including Sanusi believe was politically motivated. Reason: the suspension came in the midst of Sanusi’s allegations of ‘‘monumental corruption in the oil sector’.

    Last year, Sanusi raised the alarm over an alleged unremitted $49.8 billion to the Federation Account by the Nigerian National Petroleum Corporation (NNPC), which the corporation denied. He later put the figure at $12 billion while NNPC said it was $10.8 billion. The matter did not end there. Sanusi went public again, putting the figure at $20 billion.

    Since then, the relationship between Jonathan and Sanusi, seemed to have gone sour, with both men barely tolerating each other.

    Allegations against Sanusi

    The Presidency argues that Sanusi’s suspension was not connected with his revelations on the monumental fraud in the petroleum sector. It claimed that following a query raised by Jonathan on the CBN’s financial statement for 2012, and Sanusi’s response, documents were forwarded to FRC around May 2013.

    Listing some of the alleged ‘sins’ of Sanusi, the Presidency noted the persistent refusal and negligence to comply with Public Procurement Act (PPA) in the procurement practices of the CBN; unlawful expenditure by the CBN on intervention projects across the country; deployment of huge sums of money as the CBN did under Sanusi’s watch without appropriation and outside the CBN’s statutory mandate, among others.

    The FRC alleged that Sanusi incurred unbudgeted purchases running into billions of Naira and failed to comply with Section 15(1)(a) of the PPA, which says that all procurement of goods, works and services carried out by the Federal Government of Nigeria and all procurement entities must do so in consonance with the provision.

    The council accused the CBN of unlawful expenditure on intervention projects across the country with over N163 billion committed on 63 projects; inability to prepare financial statement using applicable International Financial Reporting Standards (IFRS), which sends wrong signals to investors; non-establishment of Board of Trustees (BOT) to manage Banking Resolution Sinking Funds provided for in a Memorandum of Understanding (MoU) between CBN and Deposit Money Banks (DMB) in 2010.

    He was also alleged to have, contrary to Section 34(b) of the CBN Act, 2007, acquired seven percent (7%) shares of International Islamic Management Corporation of Malaysia to the tune of N0.743 billion in 2010, without the approval of the President nor board; aided CBN staff to evade tax by not implementing the provisions of the Personal Income Tax (Amendment) Act 2007;

    3.“Had an additional expenses brought forward to General Reserve Fund of N16.031 billion in 2012, but proceeded on a voyage of indefensible expenses with inexplicable increases in some heads of expenditure during the year such as N3.086 billion on promotional activities in 2012 against N1.084 billion in 2011; claimed to have expended N20.202 billion on ‘legal and professional fees’ in 2011 beyond all reasonable standards of prudence and accountability; as well as N1.257 billion in 2012 on expenses on private guards and lunch for policemen . “

    4. “While Section 6(3)(c) of the CBN Act 2007 provides that the board of the CBN is to make recommendations to Mr. President on the rate of renumeration to auditors, the bank has consistently observed this provision in breach and even went to the extent of changing one of the Joint External Auditors without notifying the office of the President.

    5. “In the explanations offered by the CBN pursuant to presidential directives, it offered a breakdown of ‘Currency Issue Expenses’ for 2011 and 2012. Interestingly, it claimed to have paid N38.233 billion to the Nigerian Security Printing and Minting Company Limited (NSPMC) in 2011 for ‘Printing of Banknotes.’ Paradoxically however, in the same 2011, NSPMC reported a total turnover of N29.370 billion for all its transactions with all clients (including the CBN);

    6. “It is significant to note that the external audit revealed balances of sundry foreign currencies without physical stock of foreign currencies in the CBN Head Office; questionable write-off of N40 billion loans of a bank.”

    Issues for determination

    Who has the power to remove a serving CBN Governor and what are the procedures for such removal? What is a suspension and does the President have such powers going by the allegations against the suspended official? Are the allegations of financial recklessness enough to occasion a suspension when he has not been pronounced guilty by a court of law? Do you think this is a worrisome precedent, giving that a President who has a grouse with a CBN governor can simply suspend him on the basis of an accusation of financial recklessness? Should there be a further review of the CBN Act to take care of any such lapse?

    What does the law say?

    Perhaps, the CBN Act, 2007 did not envisage a situation whereby a President will move to suspend the bank’s governor. Accordingly, the Act only made provisions that the president has powers to remove a CBN Governor, which is subject to the approval of two-third majority of the Senate. But the Constitution in Part D, under the Public Service of the Federation (Sections 169 to 172), gives power to the President to appoint or remove any public servant as well as the conformity and observance of the Code of Conduct by all public officers.

    However, the CBN Act under cessation of office, states thus: ‘‘(1) A person shall not remain a Governor, Deputy Governor or Director of the Bank if he is- (a) a member of any Federal or State legislative house; or (b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Act.

    “(2) The Governor, Deputy Governor or Director shall cease to hold office in the Bank if he-(a) becomes of unsound mind or, owing to ill-health, is incapable of carrying out his duties; (b) is convicted of any criminal offence by a court of competent jurisdiction except for traffic offences or contempt proceedings arising in connection with the execution or intended execution of any power or duty conferred under this Act or the Banks and Other Financial Institutions Act; (c) is guilty of a serious misconduct in relation to his duties under this Act; (d) is disqualified or suspended from practising his profession in Nigeria by order of a competent authority made in respect of him personally; (e) becomes bankrupt; (f) is removed by the President: Provided that the removal of the Governor shall be supported by two-third majority of the Senate praying that he be so removed… “

    This requirement, in the words of the Chairman, Nigerian Bar Association (NBA) Ikeja, Monday Ubani, speaks volume and ‘‘a serious matter that cannot be handled in a lackadaisical manner as President had purported to act. It is patently illegal, not well thought out and one pregnant with severe political and economic backlash that will certainly hurt this government for a very long time.

    The focal applicable law is Section 11(1) and (2) of the CBN Act which according to a lawyer, Modupe Odele, have varying interpretations- from Public Policy and Relations to moral and legal codes.

    Odele argued that the situation gets a bit dicey at the term suspension. He noted that the removal and suspension both envisage a cessation of office, ‘‘albeit in the latter this cessation is expected to be temporary; for example: until a final disciplinary decision is reached. I will concede to the fact that it is a very arguable point that Sanusi’s suspension is tantamount to a removal as he is no longer in office either way; however I will like to state two general principles of interpretation of statutes and Section 11 of the Interpretation Act of the FRN:

    ‘‘1.  A statute is to be interpreted according to the ordinary meaning of the language except where this interpretation will lead to some absurdity (Literal rule); 2.  A statute should be construed in line with what the spirit (intention) of the statute is; 3. Section 11 of the Interpretation Act –

    ”Where an enactment confers a power to appoint a person either to an office or to exercise any functions,… the power includes- (a) power to appoint a person by name or to appoint the holder from time to time of a particular office; (b) power to remove or suspend him”…

    From the interpretation Act, Odele conceded that the words ‘remove’ and ‘suspend’ mean different things as a result of the disjunctive particle ‘or’ used between them. ‘‘Technically, it seems like the President has acted within his powers as defined by statute’’. However, looking at the ‘appointers’ of a CBN governor as enshrined in the CBN Act, Odele said Jonathan has no such unilateral powers to suspend Sanusi. ‘‘Since the CBN Act does not provide for ‘suspension’ it is essential to look at the Interpretation Act; essentially he who has power to appoint also has the power to remove and suspend.  According to Section 8 of the CBN Act, the President does not have a one-sided power to appoint a Governor of the CBN as whatever selection he makes is subject to an approval by the Senate.

    Constitutional lawyer, Norrison Quakers, (SAN) said the President by the provisions of Section 11(2)(f) of the CBN Act, can remove the CBN Governor only with the approval of two-third majority of the Senate.

    Lawyers react

    Since the suspension was announced, lawyers have had differing opinions on the legality of Jonathan’s action. While some have maintained that the president was right and did not bridge any law since he did not ‘remove’ but suspended ‘his employee’, others argued that the suspension is a nullity because Jonathan has no such powers.

    A professor of International Law, Akin Oyebode, Chairman, NBA, Ikeja Branch, Monday Ubani, former Chairman, NBA, Ikorodu Branch, Prince Kazeem Adebanjo, Lagos Lawyer, Iwilade Akintayo and Activist Lawyer, Debo Adeniran differed with the President over the suspension of the CBN Governor, Sanusi.

    But the likes of Prof. Itse Sagay (SAN), Prof. Taiwo Osipitan (SAN), Mike Ozekhome (SAN) and Rotimi Ladi-Williams (SAN), argued that Jonathan acted within his purview, going by the fact that Sanusi was suspended and not removed. Conceding that the CBN Act does not provide for suspension by the president, they noted that it also did not say the president, being Sanusi’s boss cannot ask him to step aside for an investigation to be conducted.

    Oyebode posited that the President, by his action, has only shot himself in the foot since there would certainly be political costs arising therefrom, aside from other unintended consequences…

    But Quakers argued that a governor is expected to furnish the president with information as regards the affairs of the bank and the budget of the government pursuant to Section 8(5)(a), just as he noted that Sanusi’s suspension or sack was not unconnected with the act of whistle blowing on his part and by extension embarrassed the government and the office of the President.

    To Ozekhome and Williams, the suspension was long overdue following Sanusi’s errant behaviours and gross insurbodination. Ozekhome said the exchange rate of naira to dollar hit its poorest between N165 to N175 per dollar under Sanusi’s tenure.

    “Constitutionally and legally, what the president did is correct and he does not require the consent of the National Assembly to do so. Anyone who is an employee has to know that he is answerable to his employer. You cannot bite the finger that feeds you.

    “People should look at this from all sides, it is easy for people to say Sanusi’s suspension was because he revealed some issues, but no, this is not it,” argued Ozekhome.

    Constitutional lawyer, Fred Agbaje, wondered whether the allegations against Sanusi were weightier than the issue of gross corruption in the NNPC particularly, the issue of non accounted 20 billion dollars.

    “The CBN and its staff including its Governor are governed by the CBN Act. Has the President complied with the CBN laws in taking his decision? No. Therefore, what the president has done amounts to a constitutional nullity and a gratuitous violation of the CBN Act, as well as a threat to the rule of law around which our democracy revolves. Two third majority as demanded by the CBN Act is to guarantee separation of powers and avoid abuse of powers,” he said.

    Ubani remarked that the immediate nomination of another candidate for screening by the Senate when the president was purported to have suspended Sanusi, gave the president and his advisers away as having acted illegally.

    ‘‘If it is suspension as they want us to believe pending conclusion of investigation, why the hurry to screen a successor? If it is true that Sanusi has committed financial recklessness as alleged, then the security agencies ought to have been invited to investigate, and if they found any shred of evidence against him, then his prosecution should have commenced immediately. That EFCC, ICPC or the Police is not invited to investigate these monumental allegations of financial impropriety as alleged beats my imagination or is the presidency saying it has no confidence in the security agencies by its action?

    ‘‘If this is allowed to stand, it sets a dangerous precedent as any governor of Central Bank can be so accused and chased out of the seat at any time. The President has tried it with the former president of the Court of Appeal, Justice Ayo Salami (rtd) and got away with it and he has tried it now with the governor of CBN and he should not be allowed to get away with this. It is a dangerous precedent,’’ he said.

    Former chairman, NBA, Ikorodu Branch, Prince Kazeem Adebanjo said the suspension of Lamido as the CBN Governor was not only unprocedural, but illegal in view of the clear provision of the CBN Act. The President was simply being clever by half by announcing ‘suspension’ rather than ‘removal’. The relevant law gives no room for suspension. He argued that the draftsmen of the law clearly foresaw the plausibility of the current situation wherein the President becomes political in his dealings with the CBN (which symbolises the Nation’s commonwealth). Assuming but not conceding that the erstwhile Governor actually committed the ‘crimes’ (weighty ones for that matter) as alleged by the President, one expects him to have proceded by way of instituting a probe panel, which would have afforded Nigerians the opportunity of deciding whether or not to trust Lamido with any public office in the future more so in view of the latter’s recent revelation on the NNPC. This, he said, the President has failed to do, leaving us to wonder if the CBN can be dealt with as a personal estate of any President. As bad as this appears precedence-wise, it is not the first of its kind in the lifetime of this administration as he recalled with regrets, the circumstances that led to the ouster of the immediate past President of the Court of Appeal, Hon. Justice Issah Ayo Salami.

    Lagos lawyer, Iwilade Akintayo argued that the provisions of Section 11 (2) of the extant CBN Act clearly contemplates tenure certainty for a CBN Governor- subject of course to the proviso that he may only be removed by the President, upon the concurrence of ‘two-thirds’ majority of the Senate. It thus stands to reason that whatever will tamper with a CBN Governor’s tenure of office, whatever semantic coinage anybody chooses to adopt,  should first be tabled before the Senate for approval on a ‘two-thirds’ majority basis. In the present case, it is mischievous to argue that ‘suspension’ does not amount to ‘removal’ within the contemplation of the said Section 11(2) of the CBN Act. They are one and the same.

    Iwilade pointed out that it was obvious, from a cumulative reading of the CBN Act, the Legislature contemplated an independent CBN and a Governor, directly answerable, not to the President of Nigeria per se, but to the Bank’s Board in the day to day discharge of his duties.

    “While the Act did not aim to create an autocratic or sovereign CBN Governor within a sovereign nation, it provided for a stringent and open process of bringing any erring CBN Governor to account by mandating that his removal shall be with the approval of two-thirds majority of the Senate. Clearly, the manner Mr. Sanusi Lamido Sanusi was removed (though disingenuously termed ‘suspension’ which in effect also means removal, even if temporary), clearly runs foul of this legislative intention”, he said.

    He said the proper approach that accords with the rule of Law would have been for the President to submit the report, of the allegations of “various acts of financial recklessness and misconduct” leveled against the governor, to the Senate and with a formal request that the Senate should consider the report and approve Mr. Sanusi’s suspension as being proposed by the President. That way, the intention of openness, institution building and non-interference intended by Section 11(2) of the CBN Act would have been complied with. Even at that, if the Senate considers the allegations unfounded or that the CBN Governor was wrongly indicted, then the request for his suspension will be rejected while he will remain validly in office and vice-versa.

    Activist lawyer, Debo Adeniran said Jonathan has proven he is above the law by not approaching the Senate first or waiting for its confirmation before taking actions against Sanusi for his alleged offences.

    ‘‘One is tempted to ask if the president has some other things he would not want Sanusi to reveal should he stay in office a day longer. President Jonathan was so quick to suspend the CBN Governor, levelled grievous allegations against him and immediately sought a replacement.

    ‘‘Sanusi’s suspension indicates the plight of an average whistleblower in the country. The regime takes joy in dealing roughly with the few upright ones still associated with it. Even if there are allegations of financial recklessness against the man, why not wait until he is found guilty by the court of law?

    ‘‘It is worrisome that the president who could not monster enough courage to suspend erring officials in his cabinet could just develop strength overnight…It is absurd that the country glorifies its worst and disgraces its best.

    The way out

    From the diverse legal interpretations opinions that have followed the President’s action, it has become clear that there is a lacuna in the extant laws, which either sides apply to suit their desire. Hence, the need for either an amendment of the CBN Act or a Supreme Court judgment on the issue to forestall future controversies has been recommended.

    Ubani called for the review of the Central Bank Act, adding that  annual expenditure of the CBN should be appropriated by the National Assembly at all times.

    ‘‘The issue of disciplining the CBN governor should be well spelt out to avoid situation like what just happened. The Central Bank Governor’s job is a secured one for obvious reasons. No matter what is the situation, the procedures prescribed by law should be followed religiously in taking action against whosoever is occupying that position, including a mad man, even if the system is stupid enough to have allowed a mad man into that position in the first place,” said Ubani.

    Agbaje said there is need for the National Assembly to further amend the CBN Act to make the CBN Governor subjected only to the control of two third majority of the Senate so as to insulate the governor from undue executive interference.

    To Odele, it was unexpected of the president in a democracy to explore the ‘‘little lacunas in laws. It is the duty of the courts to interpret the scope of that section, however in a democratic society exploiting lacunas in laws is unexpected of a legitimate leader’’.

    Prince Adebanjo hoped that the National Assembly would rise to the occasion by refusing to approve in advance the appointment of a new Governor.

    “They cannot afford to fail in this patriotic duty once again. Discerning Nigerians are left in no doubt that Lamido was more of an activist while in office but are more convinced that the President’s action was less than altruistic”.

    Iwilade pointed out that the issues here go beyond anybody’s love or hatred for the ‘suspended’ Governor’s guts or the usual political harvest hunting by politicians who are hardly better than incumbents they purport to criticise or replace. To him, “if there are genuine allegations of Statutory infractions against the Governor, same should be fairly and very impartially investigated.

    “But the misinterpretation of Section 11(2) of the CBN Act must be definitively decided and the rule of law made to triumph since it goes to the heart of Nigeria’s imperative of building its institution.

    “ Nigeria lost an opportunity to assert the full independence of the Judiciary with the embarrassingly sad inconclusiveness of Justice Salami’s case till he reached his statutory retirement age. One hopes some useful lessons were learnt from that. But now that the opportunity to assert the independence of the apex financial institution is again here, we hope the institution will eventually be saved for today, and the next generation”.

    Adeniran said the Act should be reviewed to address the lapses.

  • Odi: Judge’s absence stalls ruling against CBN

    Odi: Judge’s absence stalls ruling against CBN

    THE Federal High Court sitting in Port Harcourt yesterday deferred ruling in a suit by Odi indigenes in Bayelsa State against the governor of the Central Bank (CBN).

    Odi, a community in Kolokuma/Opokuma Local Government, invaded by the military in 1999 on the order of ex-President Olusegun Obasanjo, was awarded N37.6 billion compensation last year by Justice Lambo Akanbi.

    Odi indigenes approached the court to challenge the destruction of their community, and sought N100 billion as damages.

    The CBN, after receiving a copy of the judgment, appealed. The plaintiff won the appeal.

    The plaintiff filed a motion ex parte asking for a garnishee order absolute to be made to the CBN, to effect the payment. The court granted the order.

    The CBN later filed an application to set aside the garnishee order absolute, arguing that it was not given time to be heard as an affected party before the order was made.

    Justice Akanbi dismissed theclaims and held that CBN was duly represented in the matter on June 17, last year, by its lawyer.

    He ordered the CBN to pay Odi the money without further delay, but all to no avail.

    Following the refusal, the people filed a suit at the International Court of Justice and filed a criminal charge against the governor before Justice Akanbi.

    They asked the court to invite the CBN boss to show cause for his disobedience to the court’s order. The governor was represented by a lawyer.

    The matter was fixed for ruling yesterday, but the judge was away in Bayelsa State.

    He doubles as a visiting judge at the Federal High Court, Yenagoa. The matter was adjourned till March 19.

    The community spokesman, Lt. Commander Koku Imananagha (rtd), regretted that the ruling did not take place.

    He said: “We are not happy because we wanted this matter to be fast-tracked; let’s see if we can get result. This come back today, come back tomorrow, we are getting tired of it.

    “If a court gives a judgment to the CBN and the governor does not obey it, I don’t know what that means, so we want to make sure that he is disgraced.”