The Nation Newspaper

Tag: corruption

Oil price crash: Mismanagement, corruption backlash hunt economy

Though a global crisis, the continued slide in oil prices is taking a debilitating toll on the Nigerian economy. Experts have blamed this on endemic corruption and mismanagement, hindering successive administrations from applying the nation’s oil wealth to provide infrastructure and diversify the economy. The consensus is that the impacts would not have been this devastating and far-reaching had the looting of the commonwealth and the structural defect been addressed. Assistant Editor CHIKODI OKEREOCHA reports.

It’s a disaster foretold. Nigeria’s oil revenue troubles, triggered by the crash in oil prices, could have been avoided or, at least, mitigated. But, because successive administrations have not been futuristic in their management of the nation’s oil and gas resources, not a few industry experts and analysts believe that the financial hemorrhage plaguing the nation was self-inflicted. Some believe the country walked into an economic cul-de sac because of corrupt and inept leadership. They said successive administrations failed to save for the rainy day by not being prudent in managing the revenues that accrued from crude oil exports when the prices were high.

The belief is that since the discovery of oil in commercial quantity in 1956, successive governments have failed to invest oil revenue windfall to close the huge infrastructure gap and also diversify the economy.

According to those who spoke with The Nation, if the nation’s earnings from oil had been invested in critical infrastructure such as steady and reliable electricity supply, the economy and Nigerians would have been reaping the benefits now that oil prices have tumbled.

For instance, the industrialisation push would have received a boost, a steady power supply attained to sustain the manufacturing sector and there would have been positive spin-offs in technology development. They also added that a vigorous pursuit of the economic diversification agenda would have mitigated the impacts of the crashing oil prices. The over-dependence on oil revenue has not only weakened the economy but made it vulnerable to global shocks.

The chickens have finally come home to roost and the country is paying for the age-long neglect and mismanagement of the fortunes of the oil and gas industry – a development seen as the ripple effects of leadership deficit.

“The mere fact that Nigerian government is rattled by the continued slide in oil prices shows that successive administrations have not been saving for the rainy day. It also underscores the leadership deficit that has continued to hold down the nation’s economic growth and development,” Obiora Akabogu, a Lagos-based lawyer and analyst, said.

He added: “Nigeria’s current revenue troubles have exposed the management failure and gross incompetence of the ruling elite.”

Since June 2014, oil prices at the global market have been on the downward slope, throwing Nigeria – the sixth largest oil producer – into confusion. From over $120 per barrel in December 2013, oil price fell to around $60 per barrel in December 2014, and last month, oil price crashed to about $32 per barrel.

By January 19, the price of Brent crude, which is the world benchmark price, crashed to below $28 per barrel, the lowest in 12 years.

As if this is not enough trouble for the country, which depends on oil for 70 per cent of its revenue and 95 per cent of its foreign exchange earnings, some analysts, including the International Monetary Fund (IMF), Goldman Sachs, and Standard Chartered, have come up with price projections that have unsettled the authorities.

The IMF and Goldman Sachs projected that crude oil price will fall to $20 per barrel this year. And from Standard Chartered came a more discomforting forecast. The investment bank downgraded its oil outlook to as low as $10 a barrel.

Expectedly, such scary forecasts have sent jitters down the spine of the Federal Government, which used a $38 benchmark to prepare its N6.08 trillion Budget of Change. There are fears that the country may be in for a prolonged economic stagnation.

Akabogu, who believes the country has been stagnated economically, said: “The way things are, Nigeria in 2016 is in the same position of economic stagnancy it was 30 years ago, precisely in 1986, when Gen. Ibrahim Babangida’s military government introduced its Structural Adjustment Programme (SAP).”

He said SAP, which came at a time of depressed oil prices, left Nigerians and the economy gasping for breath.

The analyst predicted that in the foreseeable future, the price of oil will continue on a downward spiral, a trend which he believes has raised the fundamental issue of alternative economic strategies, such as diversification into solid minerals, agriculture and exports.

According to him, Nigeria is hardest hit by the price crash because of the failure of past leaderships to walk the talk on diversification.

He identified the fate of the 2016 Appropriation Bill as his greatest concern.

“Without mincing words”, Akabogu said, “the budget is doomed to fail because it is unsustainable. The basis for its calculation was faulty and it has, once again, exposed the inefficiency of our so-called economic experts, who ought to have been abreast with the global economic trend; that oil price is in a free fall situation and nothing can wedge it.”

The lawyer argued that President Muhammadu Buhari will be making an economically wise decision by recalling the bill to rework it.

He, however, cautioned that in doing so, the President should be wary of local economic team, even as he urged the President to consult widely with foreign economic experts and indigenous stakeholders.

The chairman of the local chapter of the Trade Union Congress (TUC) in Rivers State, Chika Onuegbu, also expressed concern.

“Any keen observer of events shaping the crude oil price will recognise that we are in for a sustained low price regime. Accordingly, it is doubtful if the budgeted oil revenue of N820 billion will be realised in 2016. If the budgeted oil revenue is not realised, this will negatively impact on the 2016 Budget performance,” he said.

Onuegbu, who articulated TUC’s position on the appropriation bill, presented by the President to a joint session of the National Assembly, described the budget as “laudable and ambitious, but seems unachievable.” He urged the Federal Government to do a downward review of the proposed $38 per barrel benchmark among other recommendations.

Why economy,

Nigerians are hard hit

Because of the economy’s dependence on oil earnings, the current account balance (largely the difference between earnings on exports and spending on imports) is hurting. This also implies reduced accretions to the external reserve (on which the Central Bank of Nigeria (CBN) relies to support the naira).

Experts say that by pushing up import costs (Nigeria being an import-dependent economy), the situation will drive up inflation.

The greatest worry is government’s inability to fund the budget for the economy to run smoothly. The fate of the 2016 Budget remains inconclusive for as long as it is predicated on a benchmark of $38 per barrel.

“If there is no money to fund the budget, it means there will be no implementation of capital projects and it will be difficult to pay workers’ salaries,” said Dr Austin Nweze, a lecturer at Pan Atlantic University, Lagos.

The university don recalled that a similar scenario played out in 1998 when oil price was very low and salaries could not be paid with teachers on strike and the schools shut. He noted that although, the government has the option of borrowing to fund the budget, the lack of infrastructure from where money could be generated to repay loans remains the issue.

Dr. Nweze also said when borrowing, countries consider their percentage debt to Gross Domestic product (GDP). According to him, countries with high GDP such as United States can go as high as 80 per cent, but because Nigeria runs a rental economy, its percentage debt to GDP should not be more than 10 per cent even though the standard acceptable limit is 40 per cent. Currently, Nigeria’s percentage debt to GDP is well over 20 per cent.

To make matters worse, foreign reserves have dropped significantly. From about $42b in 2014 when the crisis started, the reserves currently stands at about $28b. Already, there are fears that if the oil price slump persists for so long, or hit $10 as predicted by Standard Chartered, economic activities and projects may be put on hold and that implies job cuts, retrenchment and downsizing of the workforce.

Akabogu said workers must prepare for the worse. “Workers are going to feel the pang, as many of them will be retrenched in the name of right-sizing or down-sizing,” he told The Nation, pointing out that already 60 per cent of governors have said they could no longer pay the N18, 000 minimum wage.

Describing the position of some governors, who have threatened to stop paying the N18, 000 minimum wage as “immoral,” Akabogu stated that in retrospect, the governors are right because the source (Federation Account) from which they get their financial obligations, including payment of salaries, has shrunk because of dwindling oil proceeds.

The implications on workers are also not lost on Onuegbu, who described the crisis a threat to workers’ operational environment, exacerbating the already oppressive work environment with serious decent work deficits, as terms and conditions of employment come under severe pressures in both public and private sectors.

Onuegbu said: “We urge workers to be prepared for a robust and vigorous engagement of our social partners in 2016 to ensure that they, and indeed, all Nigerians are not negatively affected by the situation.

“We must all be prepared to engage the government for a new and an enhanced minimum wage package across board for all Nigerian workers to cushion them from its negative impacts.”

Some governors had threatened to tinker with the minimum wage, a development that has pitted them against organised labour. The Nigerian Labour Congress (NLC) has been mobilising its affiliates for possible showdown with the governors, should they make good their threat. Akabogu said under the circumstance, raising Internally Generated Revenue (IGR) or increasing Value Added Tax (VAT) should have been viable options for cash-strapped governors.

He, however, expressed regrets that the Nigerian economy is at the moment unproductive and therefore cannot support such tax increases.

“IGR and VAT are derived from a productive economy. But, an economy that is near comatose makes it difficult for federal and state governments to raise money by increasing taxes, because the masses are impoverished,” he argued, adding that “Nigeria is operating a mono-cultural and precarious economy, which is dependent on one major revenue source, which is oil.”

He was reacting to an advice by the Managing Director, International Monetary Fund (IMF), Ms. Christine Lagarde, who, during her visit to Nigeria, advocated the broadening of the country’s revenue base by increasing the Value Added Tax (VAT) paid on goods and services. The IMF chief observed that the VAT rate was not only among the lowest in the world, but also well below VAT rates in other countries of the Economic Community of West African States (ECOWAS).

But, Akabogu insisted that imposing heavy taxation on already impoverished masses in whatever form would amount to an overkill, saying that the hash operating environment caused by the nation’s huge infrastructure gap, particularly electricity supply, has rendered the real sector, including manufacturing and agriculture unproductive and uncompetitive. “Diversification is the only way to go,” he stated.

Where Nigeria

got it wrong

Experts had a long time ago warned that depending solely on oil for revenue and foreign exchange earnings has dire consequences and its attendant risks. They also observed that global oil reserves are depleting, warning that time would come when there would be no more oil reserves to exploit.

The immediate past President of Lagos Chamber of Commerce and Industry (LCCI), Mr. Remi Bello, said divestments by major oil companies and sluggish investment in exploration as a result of policy uncertainties and security concerns, remains a source of worry.

Bello and others insist that the present economic situation has again underlined the critical imperative of economic diversification into other sectors. To them, diversification is the tonic to wean the economy from its over-dependence on oil and gas sector.

However, such counsels have so far failed to hit the right chord in the ears of the authorities.

Not keeping up

with global trend

Supply glut, coupled with weak demand, are said to be main factors behind oil’s plunge. The Nation learnt that the supply glut is likely to be exacerbated this year following the return of Iranian supply to the market, once Western sanctions have been lifted.

The rise of United States (U.S.) shale oil and refusal by some leading members of the Organisation of Petroleum Exporting Countries (OPEC), such as Saudi Arabia and Kuwait, to agree to the proposal by other members to cut production are also blamed for the situation.

Unless all OPEC members agree on production cut, the supply glut will linger. The 13-member cartel said it would only agree on lower production targets if non-OPEC states – notably Russia – also signed up to reduce their record output. Also, oil demand by other big buyers, particularly China, has dropped following a lull in the Asian country’s economy.

However, because of the seriousness of the crisis, OPEC members are said to be considering an emergency meeting to discuss a possible line of action. Nigeria’s Minister of State for Petroleum and OPEC President, Dr. Ibe Kachikwu, dropped this hint penultimate week when he said the various blocs within OPEC have been pushing for a meeting. He said the unfolding market conditions support such push.

According to him, the meeting may be convened next month or in March. He said such meeting would afford the organization to review its position and see if there was any need to change its strategy.

It however appears Nigeria has not been reading the global trend correctly. The consensus of industry experts and analysts, there is nothing abnormal in the rise and fall in prices. According to them, prices are expected to move up and come down in any normal market. They noted that Nigeria shot herself in the foot by not taking advantages of high oil prices in the past.

According to Akabogu, a colossal management failure and gross negligence of the ruling class prevented the country from anticipating issues that will drive oil prices up or down. Admitting that Nigeria lacks control over oil price, which is internationally determined by market forces, he said the country mitigate the effect locally through building infrastructure such as refineries and electricity, among others.

Despite being ranked the world’s sixth largest producer and first in Africa with proven reserve in excess of 38.5 billion barrels, Nigeria has not been able to improve and increase local refining and supply of petroleum products at affordable cost. The country still imports almost 85 per cent of its domestic fuel needs due to corruption and mismanagement of its four state-owned refineries.

The four state-owned refineries in Kaduna, Port Harcourt I & II and Warri have a combined capacity of 445,000 barrels per day (bpd), but none of them has ever been fully operational owing to low capacity utilisation, resulting from poor funding, obsolete equipment, and inadequate maintenance. Attacks on oil facilities by militants in the Niger Delta region also interrupt the flow of crude into the refineries, as well as weak management.

The sub-optimal performance of the refineries has been blamed for the continuous importation of refined products at huge cost to the economy. According to the International Energy Agency (IEA), the Federal Government is investing $3–$4 billion yearly on product imports and subsidised consumption.

January 28, 2016
New college provost fights corruption

The Provost, College of Education, Ikere Ekiti, Dr. Mojisola Oyarekua, has said her administration would not tolerate corruption.

She spoke at the inauguration of the college’s Anti-Corruption Unit, which she said would ensure probity, accountability and transparency among workers and students.

Dr. Oyarekua said last Thursday that the unit was one of the policy thrusts of her administration, which started about a month ago.

To this end, she said the Procurement Unit had been fortified to ensure due process in the purchase of materials and that the college gets value for money on purchases.

She urged workers and students who have complaints about fraudulent practices, underhand dealings, alteration of results, sexual harassment and related matters to forward same to the unit, which would investigate them.

“You can send your complaints; we will look at the case on its own merit and any one worth investigating will be investigated and any one that lacks merit will be discarded.

“There is no way I won’t step on toes. One cannot be embezzling money or engaging in alteration of results or harassing students sexually without being challenged,” she said.

Reacting to plans by the Federal Government to employ 500,000 teachers, the Provost advised President Muhammadu Buhari to place premium on quality rather than just tackling unemployment.

“Developing the education sector is beyond mere providing employment; but there should be academic quality because no education can grow beyond the quality of teachers.

“There should be incentives for teachers, facilities must be provided, schools must be refurbished, and environment must be made conducive for both teachers and students,” she said.

Mrs Oyarekua revealed that the college is strengthening its entrepreneurial and vocational education programmes in such a way that each student would be exposed to one skill per session, including farming.

“We are looking at how to increase the quality of NCE graduates in this college. That is why we are exposing our students to one vocation per session, so that they will have options after graduation.

“We are not comfortable with how they are discriminating against the NCE graduates in the labour market,” she said.

January 28, 2016
Rule of law and arrogance of corruption

It is no longer news that President Muhammadu Buhari abhors corruption like a plague. He, indeed, made the war against corruption one of the focal points of his electioneering campaigns. At every opportunity, he told Nigerians: “If we don’t kill corruption, corruption will kill us”. That, of course, underscores the endemic and institutionalized nature of corruption in our nation.

In Nigeria, corruption is worse than any killer disease one can ever think of. From independence till date, corruption has been bad news for our country. It has been estimated that over $300bn have either been outrightly stolen or misappropriated by government officials and their collaborators since the advent of the current political dispensation in 1999.

Buhari would have none of that. For him, corruption must die for our nation to live. Now, true to his promise and, perhaps, true to type, Buhari has begun to tackle corruption headlong as evident in the various on-going corruption trials and investigations in the country. Revelations from such investigations, as usual, have been mindboggling. Weird disclosures concerning the arms scandal in particular, is quite nauseating. That a group of Nigerians could boldly divert money meant for such vital national needs as purchase of arms for soldiers fighting insurgency to other use, is a reflection of how low we have sunk as a people. It is, therefore, a welcome development that legitimate means are being used to bring perceived culprits in the arms deal saga to book. The only thing that evil needs to thrive in any given society is for evil to constantly go unpunished.

But then, for the President to actually succeed in his war against corruption, he has a big hurdle to cross. This hurdle is called the rule of law. Universally, the rule of law operates on the legal theory that law should govern a nation and not capricious verdicts of ‘powerful’ individuals. The rule of law underlines the power and weight of law within society, principally as a restraint upon behaviour, including that of public officials. Democracy and the rule of law are mutually interwoven. For democracy to sufficiently thrive in any country, the supremacy of the rule of law must be jealously guarded. The guiding principle behind the rule of law is the prevention of anarchy and the creation of a just society where everyone is equal before the law. The rule of law presupposes that no lawbreaker must go unpunished.

From the foregoing, it could be affirmed, at least in theory, that the rule of law provides a legal framework for Buhari to wage his war against corruption. Since supposed looters of the treasury have actually acted in defiance of the law, the law must take its toll on them. But it is not really that simple as the rule of the law equally protects alleged looters of the nation’s economy from arbitrary persecution and prosecution. This is the beauty of the principle of the rule of law. Since offence allegedly committed by the perceived looters is yet to be substantially proven before a competent court of law, they are presumed innocent until proven otherwise.

This, however, is the dilemma of Buhari in his war against corruption. Over the years, corruption has found comfort in the provision of the rule of law to strengthen its evil hold on the nation. So, all it takes for an alleged corrupt individual to escape from or frustrate the wheel of justice is to hire a brilliant legal luminary who understands the strength and weakness of the law and uses same to the full advantage of his client. Since corruption has given the alleged looter enormous access to ill-gotten wealth, money is not likely to be a problem in the scheme to subvert justice. On the long run, rather than the law taking care of corruption, corruption takes care of the law. Ultimately, corrupt public officials and individuals become atrociously arrogant as they revel in their above the law status.

Confronted by the enormous wealth and the smart corrupt public officials and ‘powerful’ individuals, the law simply becomes a mere paper tiger and a toothless bulldog. Of what use is a properly crafted law that cannot be enforced? This is exactly the reason why many of the high profile corruption cases that have been in court for years remain mostly inconclusive. Majority of the former governors and other prominent political figures whose corruption cases were once widely celebrated in the media are now walking free in the society and equally playing vital roles in the nation’s social-political and economic spheres. This has made many Nigerians to become dispirited about the likely outcome of the current onslaught against corruption. Many believe that, characteristically, corruption would have its way, irrespective of what the law says.

Does it now follow that the law aids corruption? Has corruption become so deeply entrenched in our system that the law has become helpless to hack it down? Though, past experiences point to the fact that the law might no longer be sufficient in the war against corruption, the truth, however, is that corruption is not bigger than the law. There is enough in the law to annihilate corruption from the land. We only need to take decisive steps to reform the administration of justice in the country. The judiciary is, unfortunately, as corrupt as other institutions in the country. Allegations of fraudulent deals and gross misuse of office by judicial officers have continued to increase. Not a few judges have been accused of collaborating with criminals to undermine the judicial process. At every stage in the judicial system, one is confronted with unbelievable monumental acts of corruption. From the Investigating Police Officer, IPO, to other judicial officers involved, at one stage or the other, in a corruption case, one is bound to come face to face with the awesome ingenuity of corruption machinery in the country.

For the war against corruption to be effectively fought and won, we need to do a total overhaul of the nation’s legal institution. Justice cannot be said to be served in a system that allows ‘small’ thieves to rot in prison while ‘big’ ones walk in absolute freedom. Equally important is the need for accelerated hearing of high profile corruption cases at all tiers of courts. Ordinarily, the trial of such cases ought to be conducted on a daily basis at the Federal High Court, but this is not being strictly adhered to. This is partly responsible for why corruption cases are adjourned for every flimsy and spurious reason.

Perhaps, more importantly, government prosecuting counsels should brace up to dispel the theory that they sometimes conspire with individuals accused of corruption to go scot-free. An integral part of this theory is the constant filing of amendment of charges after the arraignment of the accused. Non-appearance in court and unending demands for adjournments are other notable ploys purportedly used by prosecuting lawyers to frustrate high profile cases.

The law is meant to trounce evil and evil doers. In any society where the reverse is the case, injustice would reign supreme. Sadly, this is the path we have trod for years. Obviously, it has led us to nowhere. Now, if we are to move forward, we must change our ways.

January 25, 2016
Corruption of conscience

How much of it was extravagant exaggeration when Economic and Financial Crimes Commission (EFCC) Acting Chairman Ibrahim Mustafa Magu spoke against corruption in the boardroom of The Nation on January 20?

“The impunity is too much,” he declared. Then he painted a picture of personal pain. He said:”Sometimes I shed tears in the morning before I go to the office. It is just unbelievable; the rot is terrible.”

When the arrowhead of the anti-corruption agency is overwhelmed to the point of tears by the sheer scale of confirmable corruption, it is a telling statement about the place of conscience in the anti-corruption war. The fight against corruption is ultimately a fight for conscience.

It is a corroboration of the conscience dimension of the anti-corruption battle that Magu said: ‘We need to let people know that corruption is bad because some people don’t seem to know.” He continued: “What I am saying is that people who know they have stolen our commonwealth should bring it back…They have taken our money and are bold enough to say they are not going to return it. The money belongs to the people; they should return the money quietly; let there be voluntary compliance. Let them voluntarily come out to say ‘this is what I have stolen’ and the government will take it. I think that is the best thing to do.”

There are concrete consequences when conscience is corrupted by corruption. The established mind-boggling official corruption in politically powerful places during the Goodluck Jonathan presidential era prompts a reflection on the possible connection between corruption status and conscience status.

At the core of the corruption complication is a failure of conscience. But what is conscience? The simple idea of a sense of right and wrong can be complicated by the complexities of perception and perspective. But conscience is more than a concept; it is a confirmation of humanity. More corruption suggests less conscience; and more conscience should suggest less corruption.

It is very likely that the corrupt politicians and their ilk who are responsible for the country’s present plight are ethically challenged, which is a way of saying they probably have a deficient conscience. Pauperisation of the people cannot be an act of conscience.

Political governance should be concerned with the operation of “the Greatest Happiness Principle.” There is no doubt that the ethical principle of working for “the greatest happiness of the greatest number”, promoted by Jeremy Bentham in his 1776 book, A Fragment on Government, is eternally relevant in the context of politics in particular. It is lamentable that individuals in the structures of power robbed the country blind, and demonstrably trivialised this pivotal principle.

It is noteworthy that the EFFC chief described corruption as “deliberate and calculated wickedness” against the country’s existence, meaning against the people. To appreciate the comprehensiveness of this wickedness, it is useful to consider the definition of poverty by the United Nations and its deep political dimension: “Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity.”

For a picture of the political element, the World Bank’s definition is clarifying: “Poverty is an income level below some minimum level necessary to meet basic needs. This minimum level is usually called the “poverty line”. What is necessary to satisfy basic needs varies across time and societies. Therefore, poverty lines vary in time and place, and each country uses lines which are appropriate to its level of development, societal norms and values. But the content of the needs is more or less the same everywhere.”

The institution continued: “Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom.”

This clarity should clear any doubt about governmental responsibility when the issue is the correction of poverty. Clearly, the poor deserve opportunities that would raise them above penury, and the provision of an enabling environment should be a major purpose of political power.

Corruption is not corrective and cannot correct poverty and underdevelopment. Evidence that corruption is “a denial of choices and opportunities” resulting in underdevelopment was highlighted by Prof. Yemi Osinbajo before his election as Vice President last year. He showed the country’s pathetic level of development in a lecture he delivered in Lagos to mark the 73rd birthday of the General Overseer, Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye.

In his talk titled “Harmonising virtues to gain heaven and earthly prosperity,” Osinbajo said: “Our challenges are poverty – 112 million extremely poor despite being the largest economy in Africa. We are one of 33 of the poorest countries in the world; infant mortality – 3.9 million children have died between 2009 and 2014; maternal mortality – 55, 000 women die every year; diarrheal diseases – 110,000 yearly deaths; literacy – 10.4 million children out of school; 80 per cent graduates jobless; corruption; missing funds – N2.6 trillion NNPC petroleum subsidy scam; $7 billion kerosene subsidy scam; $1 billion missing excess crude fund; 400,000 barrels of oil stolen everyday…”

Of relevance is the observation by the World Bank President Jim Yong Kim that Nigeria is among the top five countries with the largest number of the poor. Scandalously, the country ranks third on this unflattering list behind India (with 33 percent of the world’s poor) and China (13 percent). With 7 percent of the “wretched of the earth”, the country is ahead of Bangladesh (6 percent) and the Democratic Republic of Congo (5 percent). Together these countries are home to nearly 760 million impoverished people. It is easy to see the role of corruption in Nigeria’s tragically disappointing poverty ranking, which is ironic and inexcusable for an oil-rich country.

In the country, corruption-related news here and there not only illustrates the fashion of corruption but also the failure of containment. When official corruption becomes fashionable, it is a corruption of fashion that should be made unfashionable. In the final analysis, the question is: How did conscience become inconsequential to the corrupt?

January 25, 2016
Corruption war: Legal vs. moral issues

The nexus between law and morality was a major concern of medieval philosophers. Natural law theorists held that there is an essential connection between law and morality. St Thomas Aquinas called laws (without moral content) a “perversion of law”, thus, the maxim that an unjust law is not a true law.

But the positivists emphasized separation between the two. For them, law is man-made or posited by the legislature and until duly enacted laws are changed, they remain law and should be obeyed. Hans Kelsen captured the main thesis of this school succinctly when he posited that there is no necessary connection between law and morals, and that law does not require moral validation to be legitimate.

There are other variants of these arguments. But suffice it to say that every piece of legislation is based on society’s idea of what is good or bad. Because law springs from a system of beliefs, mores and values, every law is an instance of legislating morality.

This distinction is relevant in handling some of the complications thrown up by the current fight against corruption in the country. This is more so, given some of the issues raised by the Minister of Information, Lai Mohammed regarding public response to the war. In his attempt to further drum up public support for the war, the minister had revealed a shocking figure of N1.34 trillion allegedly stolen by 55 Nigerians within a period of just eight years (2006-2013).

A cursory breakdown of this figure showed some former governors made away with N146.84 billion while 12 former public servants (state and federal) siphoned N14 billion. But a huge chunk of this sum, N524 billion was allegedly carted away by eight people in the banking sector even as 11 businessmen made away with N653 billion. Mohammed, in an effort to stir up and garner public sympathy, went further to show how much progress (development wise) the nation would have recorded were these monies deployed for public good.

He was however disappointed that instead of the “national outrage” which such looting spree should have attracted, “all we hear are these nonsensical statements that the government is fighting only the opposition or that the government is engaging in vendetta”. He wants Nigerians to “own” the war because if they fail to cooperate with Buhari in the fight, corruption will kill the country.

Apart from the huge amount alleged to have been looted, one other significant fact from the data breakdown is that a huge percentage of the looted fund was in the private sector. Eleven businessmen and eight people in the banking sector allegedly cornered N653 billion and N524 billion respectively. Its logical corollary is the pervasiveness of corruption in our national life. And this is fundamental to the overall success or lack of it in the fight against the malfeasance.

Mohammed is within his rights to seek the support and cooperation of Nigerians in the fight against corruption. No doubt, one of the greatest problems standing against the development of this country has been the unbridled looting of our collective patrimony by sundry buccaneers disguised as leaders. The rancorous and deadly politics we have seen on these shores bears positive correlation with this.

The damage corruption has wrought on the national economy has long been recognized. That the social malaise must be stamped out before this country can record any meaningful progress has also not been in doubt. What has been lacking has been the matching political will on the part of the leadership to wrestle the cankerworm to the ground. In effect, it is the governments that have overtime, failed to show the lead in this delicate but very crucial war.

Given the foregoing, any government that is seen to be on the right path to tackling this social malaise, should ordinarily, take the support of ordinary citizens for granted. This is because the burden of the looting spree to service the gluttonous predilections of a few is largely borne by the poor. So the minister was within his rights to sensitize the public to the monumental corruption that goes on in our public life. That much can be conceded him.

But the way he spoke, gave him out as someone in panic. He could not hide his frustrations on the waning public support for the war which the current regime has declared against corruption. That he felt so disappointed and had to lampoon the public for not rising up in utter outrage against the mindboggling looting revelations of the past are indicative of one or two things.

It is either the public is not enthused by the direction of the war; not sure it will achieve the desired objective or nurses the feeling that its underlining goals are less than ennobling. Whichever the case, it is certain there is public skepticism and ambivalence to the overall objective of the war. That may account for why Mohammed is not witnessing the kind of public outrage which in his calculations, the bandied figures would have elicited.

In its stead, public temperament weighs in the direction that the war is largely targeted against political foes and therefore aimed at settling scores. They want it to cut across party lines because they know our leaders are corrupt despite whatever political party banner they now fly. That is the real issue which only those prosecuting the war can redress.

If that is the feedback the government gets from the war, the right approach is to take corrective measures to shore up public confidence in its course of action. The war must be seen to be targeted at all those who put their hands in the public till. And they cut across party lines, ethnicity and religion. The crusade must also be in keeping with extant laws of this country. Under the nation’s criminal justice system, an accused is presumed innocent until proven otherwise.

It is this cardinal principle of criminal justice that is bound to suffer irretrievably if the public buys into the unrestrained outrage Mohammed is soliciting even when the accused persons are yet to be tried and convicted. Public interest or morals have already been captured by the framers of our criminal laws when they presumed the accused innocent until proven guilty. Simulating public outrage or asking the public to own the war is nothing but an invitation to mob justice and mass hysteria which consequences nobody can guarantee. It would amount to an invitation to self help or going outside the ambit of the law all in the name of fighting corruption. These are not permissible in a democratic setting replete with extant rules on the matter. It is important that this regime succeeds in the fight against corruption. But that success cannot be procured at the expense of the laws of the nation irrespective of the frustrations of the likes of Mohammed. It is an invitation to anarchy for the government or its agencies to embark on the hazardous trip of demonizing or convicting those in their custody in the bar of public opinion as the minister would want the public to do.

The laws of the land under which the government and its agencies derive their powers to prosecute alleged offenders, also confer some protection on the accused and this must be respected. Those who blame the public for not rising in utter outrage against the accused or query why lawyers should stand in their defence are being hypocritical and should not be taken seriously.

Beyond these however, the frustrations of the government are self inflicted. The overall success of the war hinges on their actions and inactions. If they have noticed waning public confidence in the fight, it is left to them to drive the battle in such a manner as to shore up public support for it. This can hardly be achieved when different rules are set for the accused persons. It cannot be helped by the festering impression that only in the cupboards of the opposition, there are skeletons of corruption.

January 25, 2016
Nigerian authors endorse fight against corruption

Rising from its Inaugural Executive Council Meeting held on 9 January 2016 at the Women Development Centre, Central Area, Abuja, the National Exco of ANA after exhaustive deliberations on issues affecting the association and the nation hereby resolved as follows:

That the popular mandate given the current administration of the association during the election at the Annual Convention of the Association held at Kaduna State University on 14 November 2015 will be held responsibly and to the utmost benefit of the Congress of the association.

That the National Executive Council will be committed to transparency, efficiency, the guiding philosophy and ideals of the founding fathers of the Association and will promote same in all its branches across the country.

That driven by the spirit of pragmatic deliverables, the Exco extensively discussed matters relating to the ANA land at Mpape, Abuja in addition to a site inspection to the land with a view to expediting the process of its development into a literary centre of excellence in the country.

That the compilation of a membership directory and writers data base is critical to the plans of the Executive Council to ensure the institutionalisation of a very responsive membership structure and the internationalisation of the operations of the association.

That ANA is poised to deliver a commemorative 35th Anniversary Convention of the Association to be hosted in Abuja in October 2016 with the Theme: Re-contextualising African Literature for the African Renaissance: Emergent Realities, Trends and Strategies for the 21st Century.

That the Executive Council, in pursuance of its pledge of reforming and strengthening the Association institutionally, has constituted the ANA Strategic Plan Development Committee, ANA Land Development Committee and the constitutionally-provisioned National Advisory Council. The membership of the said committees and council will be made known to members.

That the government at all levels in Nigeria should undertake with urgent emphasis the need to promote book development, reading, literature based on indigenous knowledge and other spheres, the provision of a conducive environment for creative writing, debates and ideas circulation in the country.

That there is imminent need to mainstream the creative economic potentials of literature and the arts into the national economic planning through speedy passage of a proposed bill for an endowment fund for literature and the creative industries in the country especially given the global downward spiral in petroleum-driven economy and its particular impact on Nigeria.

The Association supports the ongoing crusade for the entrenchment of ethical conduct and moral re-armament in private and public spheres in the country in accordance with its founding objectives of commitment to the ideals of building a humane and egalitarian society where the cause for the greater public good is championed maximally at all times.

January 24, 2016
‘Abia has been liberated from 16 years of misrule, corruption’

A good governance advocate, Mrs. Mary Ikoku, spoke with Sunday Oguntola on the recent Appeal Court verdict that sacked Governor Okezie Ikpeazu and ordered the swearing-in of All Progressive Grand Alliance (APGA) candidate, Dr. Alex Otti. Excerpts:

Can you share the feeling of the Abians over the Appeal Court judgment on the outcome of the April 11, 2015 gubernatorial election?

The Appeal Court judgment came as the perfect New Year gift to the people. As soon as the pronouncement was made, there was spontaneous jubilation and cries of joy all over the state. It was as if a new birth was announced in every home.

The manner in which the people in the state were jubilating, it was hard to identify who was for PDP, APC, APGA or PPA. You could hardly tell because the jubilation was all over and across party lines.

If you have lived or visited Abia State in recent past, you will be able to appreciate the joy in the land. These are people whose standard of living and means of sustenance have been steadily eroded in the past 16 years by the successive PDP- led governments.

Their businesses have been ruined by government’s inability to provide the enabling environment for commerce. There has been unprecedented unemployment because businesses have moved from Aba and other cities to other states.

Civil servants, including teachers, are owed over one year salaries, hospitals are no longer functional. It appears that for several years, previous governments were in connivance with all manner of political forces to deny the good people of Abia State right to good governance, prosperity and security of life and property, but thank God, we have taken what belongs to the people back from the hand of the usurper.

Abians rejoiced because they knew that things will remain the same or even worse if the PDP government remained in power in the state. It was a judgment they fasted and prayed for, so when it came, they rejoiced to high havens.

It is reported that some local government councils and elders in the state have kicked against the judgment. What is your take on this development?

The elders you talk about are PDP chieftains who are worried that a change in government, especially one led by Dr Alex Otti, will mean an end to the stipends they receive from the PDP-led government in the state.

These stipends do not allow them to speak out as the government continues to loot the commonwealth of the people.

Definitely, you will expect them to be concerned when they know that a change will threaten their means of income.

Aba protest was also a watershed post-Appeal Court judgment. What is your view on this?

The protest in Aba was done by a crowd rented by the government to put up an appearance. The people you saw on the streets were just there to earn a living for that day. If you talk to most of them, they don’t even know why they were there beyond the fact that they will be paid for being there.

Maybe you have also heard about the fight that broke out after many of them were not fully paid. Now compare this to the spontaneous reaction when the judgment was given. That will give you a true impression of the pulse of Abians.

What is APGA’s expectation at the Supreme Court?

I know that Abians expect the Apex Court to uphold the judgment as pronounced by the Appeal Court ruling as a fair judgment anchored on the constitution and appropriate precedence.

This, I believe, is APGA’s expectation. I have been hearing PDP clamouring for a re-run. The truth remains that there is no basis for a re-run. The laws are very clear on this.

The economy is in dire need of help and this has affected the states. Why does Otti want to take over a liability?

It is true that our country as a whole is going through significant economic challenges and this has affected the allocation to states and therefore their ability to function.

Those of us from the state see this as a period when Abia needs the kind of leadership Otti provides. A leadership that is creative, determined and patriotic enough to provide policies that will cushion the effect of current economic situation.

Yes, it is a tough time but we believe that Otti’s led government has the bench strength to reposition Abia State and with God and the goodwill of the people on his side, he will make Abians and Abia State residents proud again.

What is this speculation that Otti has had a pact with the Presidency to handover Abia to APC?

Having followed events in Abia since the electioneering season, I have come to realise that Abians are up against a group of individuals with immense capacity to hatch theories and format them in such a way that they become believable to score political points. This is one of those theories they peddle.

It has no relevance to the issues at hand. The point here is that they rigged an election that Dr. Alex Otti won and he and his party are following the due legal processes to recover the mandate freely given to him by the people of Abia.

Last time I checked, APC is still a political party and not the judiciary. Don’t you find this speculation baseless? They should stop clutching on straws but rather start packing their bags. Abians are tired. More than 16 years of darkness, inept leadership and wanton corruption. We are tired, hence we voted for Otti.

January 24, 2016
Court to hear Dasuki’s application to halt trial February 4

A High Court of the Federal Capital Territory High Court in Maitama, Abuja has fixed February 4 for hearing of an application by former National Security Adviser (NSA), Sambo Dasuki with which he seeks to stay proceedings in his trial.

‎Dasuki is being tried with a former Director of Finance and Administration in the Office of the NSA, Shuaibu Salisu, a former Director of the Nigerian National Petroleum Corporation, Aminu Baba-Kusa and two others before the court on a 19-count charge in which he was accused of diverting N32bn arms fund,

Also named in the charge are two firms believed to be owned by Aminu-Kausa’s – Acacia Holdings Ltd and Reliance Referral Hospital Limited.

Dasuki is, by the application, seeking to stay proceedings in the case, claiming that the prosecution was in contempt of court for allegedly disobeying an order made by the court, granting him bail.

He is contending that the decision by the Department of State Services (DSS) to re-arrest him on December 29, 2015 shortly after he was released from prison upon fulfilling the bail conditions granted him by the court on December 18, amounted to contempt.

Friday, Dasuki’s lawyer, Joseph Daudu (SAN) stressed the relevance of the application, which he said bordered on the integrity of the court and the ability of the former NSA to prepare adequately for his defence in the trial.

“It is true that we filed an application in which we are contending that the complainant, shortly after the first defendant (Dasuki) was released on bail took him back to custody.

“As far we are concerned, they (the prosecution) are in brazen breach of the court order,” Daudu said.

He stated that Dasuki’s lawyers did not know where he was kept after he was re-arrested, a development, he claimed, has affected the ability to prepare for his defence.

“We don’t know where he is kept. Apart from the fact that he looks leaner and thinner than when I last saw him, we have not been able to discuss with him in respect of his preparation for his defence.

“It is like tying our hand and engaging us in a boxing match,” Daudu said.

Earlier at the commencement of proceedings, lead prosecution lawyer, Rotimi Jacobs (SAN) indicated his intention to open the prosecution’s case.

He said his witnesses were already in court and urged the court to direct that the trial should begin‎.

Jacobs kicked against the hearing of Dasuki’s application, citing provisions of section 306 of the Administration of Criminal Justice (ACJ) Act 2015, which prohibits a court from entertaining any application for stay of proceedings.

He equally cited Section 396 (1) to (3) of the ACJ Act, which stipulates that any any application challenging the competence of criminal charges could only be considered along with the substantive issues in the case and ruling on it delivered along with the judgment on the entire case.

Former Attorney General of the Federation (AGF), Akin Olujinmi (SAN), Solomon Umoh (SAN) and Olawale Akoni (SAN) who are lwayers to other defendants in the case, equally objected to the commencement of trial.

They said they were just served with additional prove of evidence by the prosecution, while some said they were yet to be served with the application by Dasuki.

Jacobs, in responding, said: “The additional proof of evidence was with respect to somebody’s statement which we are not going to use ‎in this case. Mr. Akoni only wrote to me asking for the document this week. So it is unfair to say that I was setting booby-trap for the defence.”

The trial judge, Justice Hussein Baba-Yusuf, in a ruling, elected to hear Dasuki’s application before proceeding to trial.

He adjourned to February 4.

January 22, 2016
FG not after Ijaw people, says Presidency

The Presidency on Friday denied the claims that the Federal Government is harrassing and persecuting the Ijaw people.

An elder statesman from the region, Edwin Clark in an open letter to President Muhammadu Buhari had accused the Federal Government of harassing the Ijaw people, citing the case of Government Tompolo.

An Ijaw Youth organization has also made similar claims.

Recent happenings in the region have also led to some Niger Delta militants taking up arms and bombing oil pipelines in the region.

Reacting to the claims on telephone with our correspondent on Friday, the Special Adviser to the President on Media and Publicity, Femi Adesina said that the claims were false.

According to him, no group in the country is being targeted for harassment or persecution.

He said: “I’m yet to read that letter but I will just say it is Edwin Clark’s personal opinion. Anybody who is a follower of events in the country knows that this administration persecutes nobody.

“The administration is just asking all Nigerians to do the right thing and anybody that goes contrary to the law will answer irrespective of where that person comes from.

“So if anybody says a particular group is being targeted for attack or assault or persecution, right thinking Nigerians know that that is not true,” he stated.

January 22, 2016
‘Buhari alone can’t fight corruption’

Former Interim Chairman of the All Progressives Congress (APC) Chief Adebisi Akande, on the occasion of his 77th birthday at Ila-Orangun, Osun State, spoke with reporters on the budget, corruption, insurgency and other issues. ADESOJI ADENIYI was there.

What is your reaction to the series of revelations coming out of the investigation of the security fund of the immediate past Federal Government?

The major problem of Nigeria is corruption either by inflating contract or using some wuru wuru to do some cover-up. The arms fund that was taken directly from the Central Bank of Nigeria and shared directly is phenomenal within the corruption phase of the Nigeria leader. We did not know it was that bad. When last I met the president and the press accost me, ? I made it known to Nigerians that the depth of the rot was great. But when we came in got to know that we are in for a big problem and the country is in for a big problem because the level and the extent of corruption was so deep that I am becoming afraid. We need to be very ready for the fight against corruption because the government alone cannot do it. Let the Nigerian people support the government in fighting corruption because if the monster, corruption fights back, the whole country is likely to be in trouble. The extent is unimaginable and threatening very frightening.

What is your take on spate of defection from the opposition, particularly, the Peoples Democratic Party (PDP), to the ruling All Progressives Congress (APC)?

Bringing together two pieces of wood to make a furniture, if the wood is weak, the furniture will not be strong enough. It is true that we put the party (APC) together in a hurry and we put it together by merging political parties but before it became a political party before it glues into one. The election had come. At that time we seemed to be more concerned with election than the making of the party. And immediately after the election, indiscipline set in and definitely, with such a situation, there will be a bickering from here to there. It is the duty of elders, including myself to remove the bickering and bring the party together in a stronger form and we are going to achieve that.

Osun State has been battling with industrial and economic crises. Are you not worried by the development?

I will say I don’t know much as to the making of the government but I see a lot of boldness in the plan of the present government about Osun. The plan was very bold and commedable and if fully implemented Osun can be turned into an eldorado. Unfortunately, the economy collapsed along the line and if the economy collapses and you don’t have a way of getting it right quickly, it might lead even to the merging of Osun state before it can be able to solve his own problem because when you are not viable, there is nothing you can do. Maybe you have seen a bank that went bankrupt before, all the staff would have to scatter, the manager will go away. When the economy is too weak to sustain Osun, the governor will go away, the commissioners will go away, all the civil servants will go away, all the doctors will go away, everybody will go away because there will be nothing to sit by anymore and that is why it is not the problem of the governor alone. It is the problem of everybody. Some six months ago, I said Osun was not a viable state and I meant it when I said so. A state that cannot generate enough money within itself to pay its own way is not a viable and a state that is waiting for the federal government allocation to run is not viable. The moment that money does not come, that state is finished and from where does the federal government gets money? – crude oil. And nobody is buying it anymore, even when you get the crude oil, our customers are no longer coming. Before, they pay three months in advance, but today, they don’t even come to ask how much we sell it. Whether the price is down or it’s up, until you sell crude oil, you can’t make any money and if there is no money, there will be no state. If the federal government likes it, it may save Osun state and we have to beg them to please save Osun state to survive. If those earning money from Osun State can’t see that, and they begin to jump and stamp the ground, “we no go gree” by the time they are stamping the ground, the ground will cave under their feet and there won’t be doctors again, there won’t be civil servants again, there won’t be commissioners again and there won’t be governor again and there will be nobody to march against. Until you know that the foundation of any state is the economy and that the economy is already crashing. You will see that it’s just like touching the leaf and not the root of a tree.

What particular thing would you do to make a difference in Nigeria, if you have the opportunity of leading the nation?

It depends on circumstances and situations when you are in office. When you get there, you look at the papers, you look at the stories, you look at what led you to that situation and from there, you take off. I think that is what Buhari did within the first 6 months; he was taking briefs from all departments of government and he must have heard a lot of stories in his head. Now he put up brilliant set of ministers, these are to advise him in the light of what he had known and it is for him to do what is right according to that circumstance. So, if I were to be president of Nigeria today, I would look at the circumstance and the situation on ground but I think as an observer and as a leader, what I think should be done is to concentrate on how Nigeria will feed itself. If its by force, I am ready to join the army of people that will go back to the farm, enough of riding Okada all over the streets. We must all go back individually to make sure that we are able to feed ourselves. In the olden days when we were young, the patriach of a home, as soon as a child becomes of age and ready to marry, they give him a portion of land where he would start cultivating. From the first harvest, he will start feeding his family, no more taking from the father; until every individual can feed himself no matter by which ever way, until we stop being parasites on government or some employers to feed, just talk of feeding, until we start doing that, we won’t come out of this problem. When India wanted to come out of it (problem), they stop importation of foods, I was a witness to it. I was going to Delhi with the late Biodun Onibokun and they saw him with some apple, I have forgotten where he got the apple from. He put them in a bag and was going to Delhi with it, they said know, he won’t bring the apples to their country. They said it’s either he sits in the airport and eat it or throw it in the dustbin; they got the apples from him. We came out into the streets of Delhi, on every street that we move, they were burning human beings by the road side who were killed by hunger; when you are moving, you don’t have any food in your stomach, you sit down somewhere and you drop dead there and the neighbourhood would put things together and start burning you because that is the way they treat their deads there. They don’t bury them. So, we saw burning from left and right of the city and yet they don’t allow food to enter that country. Today, India is exporting food. Until we are able to do something like that we are not likely going to come out of this problem.

Do you still believe in fiscal federalism as you did when your party was in the opposition?

Well, I belong to an old school and the old school which I belong never believed in 36 states. The old school which I belong believes in maximum of 18 states and minimum of six. In other words, the whole Yoruba states will be one state because I believe in the creation of state according to cultural unity of the people and the strongest element of culture is language. I believe in the creation of state according to linguistic basis and the whole of Yourbalnd will be only one state. And definitely when it was like that, the whole western government was lending money to the federal government. But today when you have 36 states, some of which are not bigger than a local government, if you are talking about fiscal federalism, I don’t know, one way or the other, merging would start because I will support it anyway because fiscal federalism means live according to your earning, live within your means. And every state will have to find money to manage its own self and it won’t be wrong then if my state is having three commissioners, your own state might have seven, the next state might have ten and the other might have fifteen; its just like when you are getting money from federal government because the idea of fiscal federalism came because of the sharing of the crude oil money. I don’t believe in that. I believe in sharing money by derivation; whatever grew from my state into the federal treasury should come back to me. If I am going to pay royalty or tax or anything, I should do it within my means. So, if Ila-Orangun becomes a state, it’s from the okro we sell that we should be able to run the government and if the government is the such that you have only the governor who will not have commissioners, so be it. But if you see Kwara, maybe selling “elubo” to make money or maybe selling than you do, if they have three commissioners and you are trying to have three, you are going to crash. So, I believe in the kind of federalism that will not allow uniformity or copying. Because they are doing it in Kano, we should do it in Osun, or because they are paying salaries in Delta, we should pay it in Osun – that kind of federalism, I don’t support. I believe in the federalism that will make you to live within your own means. Any money comes from Osun is the one you will spend, if you spend anything above that, you are a debtor and all debtors are never happy for he who goes aborrowing, goes asorrowing.

The belief in some quarters is that President Buhari is trying to edge you and Tinubu out. How true is this?

I know that I am in the best of terms with Bola Tinubu and I am in the best of agreement with Buhari. What Buhari is thinking about me is a question you have to put forward to Buhari but is it not last Monday, I was still talking to the presidency. So, I don’t feel marginalised and I don’t think anybody is marginalising me but whether anybody is planning it or not, is a question you are going to put to the right quarters.

What is your view on the Biafra’s agitation?

Well, those who were born when the idea of Biafra was first muted would be trepitated seeing anybody talking about Biafra today. If Nigerians want to disintegrate and they can’t do it by negotiation, well, what can anybody do about that? But if Nigeria would try to separate the way Biafra demanded between 1967 and 1970, it might be too bad. I was alive then, I was wise enough to know that war was not good and I will not pray that what befell the first Biafra should befall the new Biafra.

January 22, 2016