Tag: Okonjo-Iweala

  • Comrade and his women

    Comrade and his women


    [dropcap]W[/dropcap]e arrived Abeokuta in the first ink of dusk, at about 5:00pm. We were visiting the city’s most iconic figure, the white-haired, white-bearded, tall, grand fellow of many battles and accolades.

    Before we made the turn to the bush, a sign was unmistakable. Louis Odion, the writer in resting, who sat beside me in the car, read the sign. Roared Louis in a guttural register: “Any trespasser will be shot and eaten.”

    The imprimatur of the poet. All around were trees. We drove on, and a sense of rural splendour fell over me. The serenity of trees. Birds. Leaves in lush colour. Earth Edenic. Modernity alienated. A shadow cast not by twilight but by the peculiar colouring of a forest. It was as though I was on my way to my mother’s home village in Delta State.

    In a few moments, we saw what looked like a clearing. Looking farther, a big house, unpainted but tasteful, with a grandeur one would describe as quaint. Nothing ornate. Not the windows, not the stairwell. It was a house sitting in arboreal paradise.

    The vehicles parked, and in a few moments, the guest of honour, the sprightly Governor of Edo State, Adams Oshiomhole  and his elegant wife, Lara, materialised from a vehicle. We moved in and waiting was chief host, playwright, poet, writer extraordinaire Wole Soyinka. It was billed as a lunch but the vagaries of technology associated with his flight arrangement turned it into a dinner. Former governors, Babatunde Raji Fashola and Rotimi Amaechi, had visited earlier in the day.

    As we sat, I delved into wordplay and described the setting as “Adamic.” The Edo Governor appreciated it and turned to his wife and they exchanged a joke about the Garden of Eden, and the wife quipped that if the Governor was the Adam, then she would be the Eve. At that moment I started to contemplate Adams, just as W.S. served wine and later asked us to the dinner table with his wife Folake.

    I thought here was Adams, and the story of the man in the past few months revolved around women. The first was his wedding. He, a Nigerian, above 60, and the bride young and from Cape Verde. The news generated quite an attention.

    Those who attacked, especially young men, were probably envious it was not them. Those women who condemned the bride, mostly girls, were also envious she was not them. I wonder what W.S. thought about the couple during the bonhomie of conversation over wine and food.

    He, too, wedded Folake, but to less flurry of envious rage, maybe because we did not have Internet or Facebook then. But essentially he was a prophet of his own nuptials with his play, The Lion and the Jewel. I told myself, we had two lions and two jewels at the table.

    Nothing about this irony propped up in the conversation, and so I reined in my mischief. I took my time to watch, speak with and listen to a man I had admired all my life. That was enough peace for me eating his jolof rice, fried plantain and fish with the lubricating grace of red wine.

    But what I also thought of were Oshiomhole’s other women. The one was former so-called coordinating minister of the economy, Okonjo-Iweala and, of course, the big-eyed oil minister Diezani Alison-Madueke. When the Edo Governor started lashing out at the other women, attention swiftly turned from his beauty parlour to the beasts of the economy.

    Adams had noted how the so-called World Bank, Harvard and all the phony accolades of western brilliance of the finance minister gave us nothing but poverty. Ngozi was a failure. She was a disaster. When the Edo governor reeled out her financial iniquities, I felt especially vindicated.

    Very early I was not moved by her resume. She was not trained for the Nigerian economy, just like her bow-tie colleague now roosting like hens in another African agricultural employment. She was trained about the dependency of African economies.

    I know because I attended quite a few of them and I inoculated myself against their paradigms. She did not and that explains why she met a buoyant purse and left a leaky one.

    Then he visited the United States with President Muhammadu Buhari, and when he returned he unleashed a bombshell. One minister stole as much as six billion dollars from our purse.

    How much is that in naira? In my own calculation, it is at least N1.2 trillion. That money will pay all the salaries owed the state workers, build quite a respectable cancer centre in the country. He would not say who the minister is out of decency. But we cannot but know that the finger pointed at the oil minister. She was the only one who could have had that kind of access.

    The American officials cannot say such a grave thing without evidence. Diezani was the worst of the Jonathan era. She was a disgrace of a minister just as Jonathan was a scandal of a president.

    We raked in the most money in that era, we are broke today because of them. Adams had to come out with the facts because he, too, was outraged. It was Adams the activist, the fulminating labour leader that squared off against Iweala and Madueke.

    Was it not in the same era we had other women, like Mama Peace, and Stella Oduah. Mama peace, the first lady, with whom many Nigerians lost patience, spoke as though the nation was a Mammy Market and all Nigerians were subaltern, backwater denizens without culture.

    The evening eventually came to an end after close to four hours of exchange of jokes, ideas, etc. I could not but also note the sheer number of carved masterpieces in W.S. home. I called back his recollections of his search for an African artifact to as far away as Brazil. He wonderfully delineated the adventure in his memoirs, You Must Set Forth At Dawn.

    We left into the bush again, and then back into the urban jungle. But it was a gradual descent into modernity. We saw buildings here and there  interspersed with bushes until it was bricks and tars and cars.

  • Between Okonjo-Iweala and Marilyn Ogar

    Between Okonjo-Iweala and Marilyn Ogar

    Ngozi Okonjo-Iweala was the Minister of Finance and Coordinating Minister of the Economy under the Goodluck Jonathan presidency. She was effectively the country’s prime minister. But like many Nigerians, the enormous powers bestowed on her frail and eternally shrugging shoulders were not matched by a corresponding display of responsibility. Insular, cocksure of everything, and combative, she led the economy down the garden path of near total paralysis and ruination. Accused of unplanned expenditures, especially of illegal withdrawals from the Excess Crude Account (ECA) to the tune of $2.1bn, one billion of which was allegedly spent on Goodluck Jonathan’s reelection campaign, her only defence, for a woman who knows the law, is that Dr Jonathan authorised the spending. Had she been a suspect in a criminal case somewhere in Nigeria’s urban jungle, she would naturally have blamed the devil for any illegality attributed to her.

    Marilyn Ogar is another beleaguered public official. As spokesperson of the Department of State Services (DSS) until recently, she was overly enthusiastic in dishing out what the then opposition parties described as patent falsehoods. But she was unrelenting and unapologetic. Not only was she ordered, among others, to revert to her previous rank when a leadership change occurred in the agency, her friends and supporters now allege that she is being witch-hunted, as evidenced by her posting to Maiduguri, a posting that they said was immediately reversed. In a signed advertorial in the Vanguard newspaper of July 14, the South-South Congress for Justice and Equity accused the APC and the DSS of improper conduct. She should be left alone, the signatories said, for she did nothing beyond the call of duty.

    For both Dr Oknjo-Iweala and Mrs Ogar, it would be interesting to find out how the shoe pinches now that it is on the other foot. Maybe, soon, public officials will recognise how to serve the nation, not individuals.

  • Okonjo-Iweala took $1b to fund Jonathan’s re-election bid, Oshiomhole alleges

    Okonjo-Iweala took $1b to fund Jonathan’s re-election bid, Oshiomhole alleges

    Edo State Governor Adams Oshiomhole has again taken on former Minister of Finance and Coordinating Minister for the Economy Mrs Ngozi Okonjo-Iweala.

    He accused her of illegally taking $1 billion from the Federation Account to fund the failedre-election bid of former President Goodluck Jonathan.

    Explaining how he arrived at the figure, Oshiohmole said the former minister’s claim that the $2.1 billion alleged to have been illegally withdrawn for subsidy payment had been refuted by fuel importers, who said they got only $1 billion.

    “But if you talk to those oil marketers, they will tell you that within that period, they were paid $1 billion not $2.1 billion. So, in truth, about $1 billion was taken for election purposes,” he alleged.

    Speaking yesterday at a seminar organised by the government for permanent secretaries, directors and deputy directors titled: “Enhancing IGR in Edo, issues, prospects and challenges,” the governor said the former minister should explain how the Excess Crude Account (ECA) was drawn down to $4.1 billion from $10 billion without approval from the National Economic Council (NEC).

    According to Oshiohmole, Mrs. Okonjo-Iweala would have been declared a pathological liar if she were a witness in court due to the inconsistencies in her statements.

    He said a forensic audit would determine the actual amount that was withdrawn and spent without authorisation from the Federation Account under her watch as minister.

    The governor told his audience that they would henceforth be held responsible for any fraud detected in their ministries and departments, adding that his administration has trimmed down the cost of running government.

    He said: “Many things went wrong even at the federal level. As you might have read in the papers, while the Federal Government, under Goodluck Jonathan, with the then Coordinating Minister for the Economy liked to blame ‘governors’ for wasteful spending; for not saving for the rainy day and for not investing properly, the truth is the real weakness in the Nigerian federal chain has been the Federal Government.

    “Our hope is that with the new President, given his pedigree, we will break from the past. As I’m sure you will soon begin to hear when all the numbers are published, last week, I complained aloud that Edo State lost about N10 billion over a four-year period from only one source— the Nigerian Liquefied Natural Gas (NLNG) remittance to the federation account.

    “How did I arrive at the figure? I used my Four-Figure Table and I asked myself at $2.1 billion remitted by NLNG as taxes and Shell, and by the way, Shell is not the only oil operative, we have Chevron and several others.

    “They shared the $2.1 billion based on the revenue allocation formula, Edo State got about N2.27 billion. So, I said, thank God this money came after the departure of Okonjo-Iweala and President Jonathan. If the PDP were still in charge in Abuja, this money would have been taken.

    “That is not the only money Edo State government has lost. You have heard of the last installment of $4.1 billion that was in the Excess Crude Account as of November, 2014, and from that time till today, we have not; when I say we, federal, states and local governments, have not touched that money.

    “We have not agreed to take anything out of it, and yet it has been drawn down to about $2 billion. Which means, $2.1 billion disappeared. If you listened and followed the conversation, when I made this allegation after the National Economic Council meeting that the former Minister of Finance and Coordinating Minister, Dr Okonjo-Iweala, took $2.1 billion without approval and spent it in a manner that was never accounted for, she replied that I lied and said that it was the commissioners and herself who agreed to distribute that money to the three tiers of government and that FAAC is the most visible expression of our true federalism. And that we shouldn’t claim that FAAC is unknown to us. That FAAC is a creation of law and so on and so forth.

    “I’m going into this, because, as public servants, you need to understand not just the finances of Edo State but also the finances of Nigeria, particularly as they affect our state.

    “Now, the commissioners of Finance met and they looked at themselves and they looked at Okonjo-Iweala and they submitted to Okonjo-Iweala that ‘madam, you lied, not Oshiomhole, because in truth, we have no powers to decide withdrawals from the Excess Crude Account and that that power is vested in the state governors at the level of the National Economic Council.’ But, whether vested or not, we never, ever resolved to share money from that account.

    “Now the former Minister of Finance and Coordinating Minister of the Economy, Dr Ngozi Okonjo-Iweala, confronted with these hard facts, shifted the argument that ‘oh no, it is not FAAC that approved it, it was the former President Goodluck Jonathan that approved it’.

    “President Jonathan as far as the law of Nigeria is concerned, or any president, his approval is limited to funds of the federal government, not funds of the federation.

    “Funds of the federation can only be approved by Governors and representative of the President as reflected in the composition of the National Economic Council, which is made is made up by Governors and chaired by the Vice President, with the Central Bank of Nigeria (CBN) Governor and Minister of Finance and others as members. But there’s so much confusion now that Okonjo-Iweala can say one thing in the morning and tomorrow she will say I never said so. If she were a witness in a court of law, she would be declared a pathological liar whose evidence is of no value.

    “So, governments have lost a lot of money and the $2.1 billion, Edo State’s share of that, because that would have included derivation. We would have made about N2.6 billion. That, we have lost now to Okonjo-Iweala.

    “Now that she claimed she used it, between herself and the last President, they agreed to take the money to pay oil marketers. But if you talk to those oil marketers, they will tell you that within that period, they were paid $1 billion not $2.1 billion.

    So, in truth, about $1 billion was taken for election purposes and Edo State’s share of that should have been about N4.6 billion from that $2.1 billion that Dr Ngozi-Okonjo Iweala, the former Minister of Finance illegally took from Excess Crude account.

    “For clarity, that is not the only money they have so illegally taken. If you look at the total number at a point, the excess crude account peaked at $10 billion and we now heard it dropped to $4.1 billion. This means at some point, another $6 billion was taken.

    “So, we are hopeful that by the time we carry out some forensic analysis, we will be able to show clearly how much of the funds accruing to the three tiers of government were unilaterally and illegally spent by the Federal Government under the former Minister of Finance.”

    On the seminar, Oshiomhole said: “The need for this workshop arose from reports, that virtually every week when we discuss at the level of the state executive council, issues that have to do with Internally Generated Revenue. The truth is; so much money could be paid by those who are supposed to pay, in most cases when this money is paid, in some cases, they never get to the treasury.

    “Those responsible for diversion for running all these closed accounts, or pocketing or opening special accounts rather than the one known to Edo State government or so authorized are by and large civil servants. And on few occasions, they also enlist some political appointees to be part of such rackets.

    “We have over the period had cause to interrogate and fire some persons who were involved either in operating illegal accounts or undervaluing certain things that ought to have been properly valued so that correct taxes are paid the government.

    “If government must continue to provide those basic needs of our people, somebody must pay for it. People have to pay taxes.

    “Luckily, Edo is not owing workers salaries and we will do everything possible to ensure that the pay day is sacrosanct, because even the Bible says a labourer is entitled to his wages but we must understand that if we do not sustain and improve on where we with regards to Internally Generated Revenue, if the money is simply not available, something will to give.”

     

     

     

     

  • Okonjo-Iweala withdrew $1bn for Jonathan’s re-election —Oshiomhole

    Okonjo-Iweala withdrew $1bn for Jonathan’s re-election —Oshiomhole

    Governor Adams Oshiomhole of Edo State has accused the former Minister of Finance, Dr. Ngozi Okonjo-Iweala of illegally taking $1 billion from the federation account to prosecute the re-election bid of former President Goodluck Jonathan.

    Speaking at a seminar organized by the Edo State government for Permanent Secretaries, Directors and Deputy Directors, the governor said the former minister also needs to tells Nigerians how the Excess Crude Account was drawn down to $4.1 billion from the peak $10 billion when no approval was given by the National Economic Council for any withdrawal.

    The theme of the workshop was: “Enhancing IGR in Edo, Issues, Prospects and Challenges.”

    Oshiomhole, who said Okonjo-Iweala would have been declared a pathological liar if she were to be a witness in court due to the inconsistencies in her statements, said a forensic audit would truly determine how much was illegally spent from the federation account under her watch as minister.

    He said the state government would now hold Permanent Secretaries, Directors and Deputy Directors responsible for any fraud detected in their departments, saying the government has trimmed down the cost of running government.

    He said: “The truth is, many things went wrong even at the federal level. As you might have read in the papers, while the federal government, under Goodluck Jonathan, with the then Coordinating Minister of the Economy liked to blame governors for wasteful spending, for not saving for the rainy day, for not investing properly, the truth is the real weakness in the Nigerian federal chain has been the Federal Government.

    “Our hope is that with the new President, given his pedigree we will break from the past.

    “As I’m sure you will soon begin to hear when all the numbers are published, last week, I complained aloud that Edo State lost about N10 billion over a four year period from only one source, the NLNG remittance to the federation account.

    “How did I arrive at the figure? I used my 4-Figure Table and I asked myself at $2.1 billion remitted by NLNG as taxes and Shell, and by the way, Shell is not the only oil operative, we have Chevron and several others. They shared the $2.1 billion based on the revenue allocation formula, Edo State got about N2.27 billion. So I said, thank God this money came after the departure of Okonjo-Iweala and President Jonathan. If the PDP were still in charge in Abuja, this money would have been taken.”

     

  • Okonjo-Iweala lied, says forum

    Okonjo-Iweala lied, says forum

    Members of the forum of Commissioners of Finance yesterday debunked the claim by the former Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, that the Federation… Account Allocation Committee (FAAC) approved the withdrawal $2bilion from the Excess Crude (Foreign) Account.

    Reacting to Okonjo-Iweala’s claim, the commissioners’ forum in a statement said “This statement is far from the fact and it is misleading”.

     

  • Unauthorised ECA withdrawal: Okonjo-Iweala lied, says Commissioners Forum

    Members of the forum of Commissioners of Finance yesterday debunked former Finance Minister and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala’s claim that the Federation Account Allocation Committee (FAAC) approved the withdrawal of $2 bilion from the Excess Crude (Foreign) Account.

    Reacting in a statement to Mrs. Okonjo-Iweala’s claim, the commissioners’ forum said: “This statement is far from the fact and it is misleading. The FAAC does not have the authority to approve withdrawals from the Excess Crude Account (ECA), therefore it could not have approved the withdrawal from Excess Crude (Foreign) Account the sum of Two Billion U.S. Dollar ($2,000,000,000.00).”

    It added “that the law setting up the FAAC, which pre-dates the ECA, says it cannot approve withdrawal and has not done so in the past.

    “If anything, FAAC, as records of its meetings indicates, had often queried the activities on the ECA, and therefore did not decide any withdrawal”.

    The commissioners’ forum said that FAAC noted and observed the “withdrawal from the ECA of a total sum of Two Billion U.S. Dollar ($2,000,000,000.00) in December. The then Minister of State, Finance and Chairman of FAAC, when asked during the plenary of FAAC meetings of the respective months, explained that the former President gave approval for the withdrawals from the ECA to pay oil marketers subsidy claims as they had threatened to stop importing petroleum products. He further explained that this action will be ratified by National Economic Council (NEC).

    “FAAC did not, and could not have approved, nor taken the decision to withdraw the sum of Two Billion U.S. Dollar ($2,000,000,000.00) from the Excess Crude Account.”

    The statement said the forum “would want to excuse the ex-Minister, Dr Ngozi Okonjo Iweala, on this misrepresentation because she was not in attendance during FAAC plenary and may not have been fully and adequately made abreast with every FAAC activity”.

    The former minister has been locked in a war of words with some governors, who have been accusing her of being economical with the truth on the management of the ECA, especially alleged illegal withdrawals from the ECA late last year.

    The governors accused Mrs. Okonjo-Iweala of making an unauthorized withdrawal of $2 billion from the ECA in December 2014 but the former minister fired back by saying that the withdrawal was done with the knowledge of the governors, who were represented at FAAC meetings by their commissioners of finance.

     

     

  • Okonjo-Iweala ‘must state how $2b oil cash was spent’

    Edo State Governor Adams Oshiomhole insists former Minister of Finance and Coordinating Minister for the Economy Dr Ngozi Okonjo-Iweala must explain how the  Excess Crude Account crashed to $2billion.

    She ran the economy aground, said the governor, who accused the former minister of toying with figures and being economical with the truth on the state of the economy inherited by President Muhammadu Buhari.

    Oshiomhole insists the Federal Government is broke and would have been in a worse shape than the states if it had not resorted to borrowing to pay wages. He accused Dr. Okonjo-Iweala of granting multi-billion naira waivers to various organisations.

    Speaking during an interview on Channels Television, the Governor said: “With all due respect to the former Minister, Okonjo-Iweala, she knows how to play around with statistics. I have made the point; she keeps opening part of the pages and not the entire book. The logic of transparency is that every minister must publish in full what is accruing to the federation account month-to-month and what is distributed to them. What she has been publishing is that this is what went to the Federal Government, this is what went to the state government and this is what goes to the local government.

    “What she never published simultaneously is what accrued during the period out of which this was distributed. So we can now know what was collected to what was distributed so we can know what is left in the excess crude account. You can see her changing the goal post. On the authority to spend, Okonjo-Iweala was a member of the National Economic Council, I was a member and I am on record of asking her, ‘don’t give us verbal reports on matters of federation account, give us written report’ and the power to spend is not vested on Commissioners.

    “Look at the constitution and tell me which section gives the Commissioner for Finance the power, all of them, they are unknown to ballot, they are not elected but the membership of NEC is clear  –  governors chaired by the Vice President representing the President, the CBN and other relevant ministries. How will she avoid this level of accountability?

    “The decision to take money from the Excess Crude Account, that power is vested in the National Economic Council. The NEC is an institution created in the constitution. What she is referring to is her own administrative arrangement. The $2 billion is her last sum because in her last report, she said we had $4.1 billion, she said so orally, but it was captured in the minutes, only for her to come around again at the last minute to say “X” figure is left. We asked her, what did you pay for?”

    On states which owe workers’ salary arrears, Oshiomhole said: “Every employer of labour has an obligation, a contractual obligation to pay those who work. The Bible says a labourer is entitled to his wages. Once you have laboured, it has to be paid for and you don’t pay wages because you are rich and you are able to afford it, you pay wages because the people have worked for it. It is not a gift from a kind-hearted employer; it is an obligation, it is a consequence for work.

    “I think what has happened is that at the peak of the oil boom, prices were high, people made projections about their expected expenditure and budget on the basis of those numbers. Along the line, there was a sharp drop and this sharp drop that people talk about is not just about a drop in terms of price of crude oil because prices have dropped below this level before.

    “What is new is the level of so-called crude oil theft. A situation in which certain persons, powerful in the system, pretend not to know what was going on and simply excuse the huge lapses in terms of crude oil theft. So you have a double squeeze of drop in price and escalation in the volume of alleged theft of crude. The combined effect of these is that the total inflow into the federation account dropped sharply.

    “This is also compounded by the fact that the Ministry of Finance and the Ministry of Petroleum Resources, the two of them working together, simply refused to transfer to the federation account a lot of the money that ought to have accrued. For example, over the past four to five years, the NLNG had every year made huge payment between $1.5 to $2 billion which ought to go to the federation account. This money was never transferred to the federation account, it was unilaterally expended by the Federal Government.

    “We were not even informed of the fact that these money was paid and each time we asked the then Hon. Minister of Finance and Coordinating Minister for the Economy what was happening with the proceeds from the NLNG, no explanation was ever offered whether in black and white or in oral and there are several other federal agencies that made huge sums of money, which were illegally and unilaterally spent by the Federal Government, without being allowed to flow into the federation account.

    “So when you draw up a budget on the basis of anticipated revenue and there is such a sharp drop in revenue arising from diversion and there is also drop in price; obviously, something will have to give.

    “The federal finances are even worst-hit. Over the past nine months under the past government, Federal Government could not and have not been able to pay salaries from her legitimate income. What she has been doing, which states could not do, was to borrow, use the CBN through various instruments termed security, etc and basically draw down the pension funds because they are the ones who have liquidity to patronise the bond market.

    “So if we were to be able to stop the Federal Government from borrowing to pay salaries, Federal Government would have defaulted in payment of salaries much earlier than states and the number of months the federal government would have been owing would be worse than the worst state in the federation.

    “Just look at the budget of the Federal Government over the past four years and you will see the level of deficit finances that was built into the budget. So, in trying to understand the financial crisis, you shouldn’t limit yourself to those who can pay. Even those who purport to pay, look at their source of funding the payment. If you do, you will find out that whereas the Federal Government frees itself to borrow quite recklessly, reckless in the sense that no serious manager goes month after month to borrow for the payment of salaries.

    “I speak on my honor that the Federal Government is just as broke and that they are borrowing, using CBN instruments in trillions of naira to pay salaries.

    “Now part of the problem is talking about taxes and this can be proved in black and white. The Federal Government illegally granted waivers to various organisations, running into hundreds of billions of naira that ought to flow to the federation account.

    “Now those are taxes. When the Minister grants waivers for you to bring cement into the country; grants waiver for you to bring vegetable oil into the country; grants waiver for you to bring vehicles into the country and when you look at the total sum, sometimes, even VAT, are illegally waived. So how do you get taxes?

    “There are two kinds of taxes: direct and Indirect tax. Personal Income Tax, which is deducted from your pay before your net gets to you, and indirect tax which is VAT, royalties, import tax where you spend quality of time looking at your tariff policies designed to protect your local industries and discourage importation. All of these are sources of funding of government.

    “We must understand that in other climes, government does not live on rents from oil money. Governments worldwide are run on taxes. Now this last government is the worst in terms of granting unexplained huge source of money in the name of waivers. Can you believe that even oil companies were granted so-called pioneer status? They will set up a small vehicle in the oil sector, give them certain transactions, give them so-called pioneer status so that they are excused from paying taxes.”

    On the strike embarked on by members of the Judiciary Staff Union of Nigeria (JUSUN) in the state, the Governor said: “This is what I call power struggle. I had a meeting with JUSUN executives along with the members of the NBA and they said that we were up-to-date with the payment of salaries and allowances and that they are on strike because the national body asked them to go on strike that the Judiciary should enjoy what they call ’First-Line Charge’.

    “If you ask the Chief Judge of Edo State, he will tell you that Edo State has never defaulted and we will not default and today, as we speak, if they work, they will get their pay.

    “What I have refused to do is to pay them for the number of months that they have been on strike. For what? You stay at home, talking politics, you didn’t work and you want me to pay you. Because they are judicial workers, they are bound by law. They must be seen to respect the various trade dispute laws which say if you don’t work, you don’t get paid. They say they have a court judgment, which says money should be transferred to the head of court. Is it the business of trade unions to fight for their employers?

    ‘No unauthorised expenditure was made’

    Former Finance Minister Dr. Ngozi Okonjo-Iweala has responded to the allegation that she spent $2 billion from the ECA without authorisation.

    She said on Tuesday: “No unauthorised expenditure from the ECA was made under Okonjo-Iweala’s watch in the Finance Ministry. Decisions on such expenditure were discussed at meetings of the Federation Accounts Allocation Committee (FAAC) attended by Finance commissioners from the 36 states.”

    The ex-minister, in a May 25 the advertorial: “The figures show that they (states) received N966.6 billion in 2011, N816.3 billion in 2012, N859.4 billion in 2013 and N282.8 in 2014. The low figure for 2014 reflects the steep decline in revenues due to the impact of the crash in global oil prices which began in the middle of the year.

    “The summary of the inflows and outflows from the Account shows that the opening balance was $4.56billion in 2011 and reached a peak the following year at $8.7 billion before declining to $2.3billion in 2013. The balance as at May 2015 is $2.07 billion.

    “Subsidy and SURE-P payments are also made from the Excess Crude Account.

    “FG’s share from the ECA during the period was N3.29 trillion.”

  • Okonjo-Iweala defends $2.0b ECA spending

    Okonjo-Iweala defends $2.0b ECA spending

    Former Finance Minister Dr. Ngozi Okonjo-Iweala has denied  spending $2.1 billion Excess Crude Account cash “without authorisation” and has offered to face any enquiry over the allegation.

    The National Economic Council (NEC) made the allegation on Monday after its meeting in Abuja.  Paul Nwabuikwu, Media Adviser to Dr. Okonjo-Iweala, said ”the allegation by some governors is false, malicious and totally without foundation.”

    Nwabuikwu, in a statement yesterday, said there was “no unauthorised expenditure from the ECA made under Okonjo-Iweala’s watch in the Finance Ministry. Decisions on such expenditure were discussed at meetings of the Federation Accounts Allocation Committee (FAAC) attended by Finance commissioners from the 36 states.”

    Against this background, Mrs. Okonjo-Iweala maintained that the idea that she “spent $2.1 billion ‘without authorisation’ is simply not credible given that details of government receipts and expenditure are public knowledge”.

    The former minister asked how “some governors who fought Federal Government’s  efforts to leave robust savings in the ECA and even took the Federal Government to court over the matter turned around to make such unfounded allegations?”

    The statement said: “It is curious that in their desperation to use the esteemed National Economic Council for political and personal vendetta, the persons behind these allegations acted as if the constitutionally- recognised FAAC, a potent expression of Nigeria’s fiscal federalism, does not exist. Nigerians know that collective revenues, allocations and expenditures of the three tiers of government are the concern of the monthly FAAC meetings.”

    Mrs. Okonjo-Iweala said she acknowledged “the efforts of governors who are working hard to overcome the current revenue challenges facing their states without resorting to character assassination and blame games”.

    However, the former minister said she “is ready and willing to respond to legitimate enquiries about issues under her purview as Finance Minister. But it is clear that this is the latest chapter of a political witch-hunt by elements who are attempting to use the respected National Economic Council for ignoble purposes having failed abysmally in their previous attempts to the Okonjo-Iweala name.”

    Mrs. Okonjo-Iweala and her team lamented that “one of such attempts took place in May when some of these governors, hiding under the auspices of the Nigerian Governors Forum asked Okonjo-Iweala to explain $20 billion alleged to be missing from the same ECA”.

    The Finance ministry, she said, subsequently issued a news release and published an advertorial in national newspapers on May 25, 2015, giving details of what the Federal Government and states received from the ECA in the last four years. It also provided details of the use of the funds for payment of petrol subsidies for the Nigerian public and SURE-P allocations to the three tiers for development purposes.

    Mrs. Okonjo-Iweala said she “pioneered the practice of publishing monthly updates of all allocations to different tiers of government in order to empower Nigerians with information and knowledge of government revenues and expenditure. This enabled the Nigerian public to ask questions about the utilisation of these resources. Of course, many elected and appointed public officials were not happy with this development.”

    She said she continued this practice when she returned in 2011 and even added periodic updates on the Excess Crude Account, subsidy payments for verified claims by oil marketers for fuel imports as well as SURE-P payments to the three tiers of government.

    In the advertorial published in some newspapers on May 25, Dr. Okonjo Iweala explained that between 2011 and 2014, the Federal Government collected N3.29 trillion from the ECA while the states shared N2.92 trillion.

    She said subsidy and SURE-P payments were also made from the ECA.

    The ex-minister said in the advertorial:

    “The figures show that they received N966.6 billion in 2011, N816.3 billion in 2012, N859.4 billion in 2013 and N282.8 in 2014. The low figure for 2014 reflects the steep decline in revenues due to the impact of the crash in global oil prices which began in the middle of the year.

    “The summary of the inflows and outflows from the Account shows that the opening balance was $4.56billion in 2011 and reached a peak the following year at $8.7 billion before declining to $2.3billion in 2013. The balance as at May 2015 is $2.07 billion.

    “Subsidy and SURE-P payments are also made from the Excess Crude Account.

    “FG’s share from the ECA during the period was N3.29 trillion.”

  • Okonjo-Iweala warns successor of ‘tough year’

    Okonjo-Iweala warns successor of ‘tough year’

    Former Minister of Finance, Dr. Ngozi Okonjo-Iweala, has said her successor will face a “difficult” year because of plunging oil revenues, stressing that the economy needs expert management to weather the storm.

    “We have a serious situation with a cash crunch,” she told Bloomberg in an interview in Cape Town at the World Economic Forum on Africa. “But fundamentally, the economy is strong. If we can get through the cash crunch, manage the way through, build on some of the assets we have, by next year, things will be better.”

    Nigeria is struggling in the face of a 40 per cent slump in crude prices in the second half of last year, which forced authorities to scale back budgeted spending and devalue the naira as foreign-currency reserves fell. The government relies on oil for about 70 per cent of its income.

    The next finance minister needs to focus on “a strong policy, the fiscal consolidation path that we have and looking toward diversification of revenue resources,” Okonjo-Iweala said.

    President Muhammadu Buhari, who was sworn into office last week, has yet to appoint his cabinet.

    Okonjo-Iweala, a former managing director of the World Bank, was finance minister under Goodluck Jonathan from 2011.

    “We are all waiting” for the new finance minister to be named, she said. “Nigeria is full of talented people so they will find someone.”

    The economy is forecast by the International Monetary Fund to expand 4.8 per cent this year, down from 6.3 percent in 2014.

    The naira has weakened by 7.7 percent against the dollar this year and was trading at 198.73 on the interbank market as of 7:26am in Lagos, the commercial capital.

    Okonjo-Iweala, 60, said she plans to take a break until August and will then consider her career options.