The Nation Newspaper

Tag: Reps

  • Reps to NNPC: Open your records to AGF now

    Reps to NNPC: Open your records to AGF now

     • Corporation fails to remit, saysit is operating at a loss

    The Nigerian National Petroleum Corporation (NNPC) would be legally compelled to remit to the Consolidated Revenue Fund (CRF), four years of unremited independent revenue accruing to the Federal Government, the House Committee on Finance has declared.

    Consequently, the lawmakers have directed the oil corporation to give express access to the Auditor General of the Federation (AGF) to scrutinise its records on Internally Generated Revenue (IGR) from 2009 to 2012.

    The corporation generated N6.3 trillion in four years and remitted nothing to the CRF. The Corporation said it is operating at a loss.

    The breakdown showed that NNPC made N2 trillion in 2009 as its IGR, while it realised N2.1 trillion in 2010. It generated N1.9 trillion in N2011, and as at July 2012, it has realised N259billion.

    However, against the provisions of the Fiscal Responsibility Act (FRA), 2007 and a 2011 Ministry of Finance directive, reevnue-generating agencies were directed to remit 25 per cent of their gross collection to the Treasury. the Corporation remitted nothing to the CRF.

    According to the Corporation’s Group Managing Director, Andrew Yakubu who appeared before the House’s Committee on Finance yesterday, the reason for the non-remittance was because the organisation has been operating at a loss.

    Yakubu in his submission, said the corporation was operating on its own account, adding that it was forced by circumstances to operate in a challenging business environment.

    “For instance, we have to buy crude at commercial rates, but have to sell at regulated prices, as such, it was difficult to generate profit, and that is why we have difficulties in remitting to the CRF.

    “Also, the cost of generating that IGR is more than the IGR because we spend more to produce the products from where we generate the profits, as we incur additional cost to produce those products

    “We lost nothing less than N600million per week to vandalism, and that is also beyond our control,” he said.

    Yakubu regretted that the issue of subsidy contributed to the inability of the corporation to meet up with its CRF obligations. “With this, there is no business that can generate profit in such a hostile environment,” he added.

    Yakubu explained that as the supplier of last resort, the position of the corporation became more dicey, as it was left as the only supplier of petrol while the fuel subsidy crisis lasted last year.

    The lawmakers however said it was unacceptable for NNPC to claim that it has been operating at a loss despite being protected by the government.

    According to the Committee, the NNPC erred when it flouted the FRA, 2007and failed to remit government’s part of the IGR to the CRF.

    “Operating at a loss is not an issue, you generated some money and the law is clear on what belongs to you and to the other but you chose to ignore it and refused to remit of the Federal government its dues”.

     

     

  • Reps, Okonjo-Iweala clash over SURE-P

    Reps, Okonjo-Iweala clash over SURE-P

    Members of the House of Representatives and the Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala, yesterday traded words over the operations and application of funds of the Subsidy Re-investment Programme (SURE-P).

    The minister, annoyed by the accusations made by the Special Joint Committee on the Subsidy Re-investment Programme (SURE-P), replied in an angry tone.

    Speaking during the public hearing by the Dakuku Peterside-headed Special Joint Committee on SURE-P at the National Assembly, Mrs. Okonjo-Iweala told the lawmakers that they were disrespectful to the office of President Goodluck Jonathan by their allegations, insinuations and outright distrust of the information provided on SURE-P.

    She said the lawmakers were narrow-minded and that they needed to have a change of attitude and become objective in their approach to the SURE-P issue.

    Among other things, the lawmakers accused the executive of using the SURE-P programme as a re-election machinery for President Jonathan, saying some people have been going around the states telling people it’s a PDP programme. They also accused the Presidency of lack of information on the programme, duplication of projects and profligacy on the part of the SURE-P committee members for spending N500 million on themselves within a year. According to the lawmakers, “all sorts of things are going on under the SURE-P programme.”

    A member asked: “Is this true that the programme is designed as a mechanism for young men and women to work for the re-election of President Jonathan in 2015? And that the SURE- P state coordinators are members of Jonathan’s team for 2015?”

    But the Minister of Finance replied: “I think you have to give respect and dignity to the Federal Government. We need to look at this objectively. The programme is not a programme of any individual, it is the programme of the Federal government led by Mr. President, who is very clear and want to show Nigerians the dividends of the SURE-P programme.

  • Reps move to curb airlines’ excesses

    Reps move to curb airlines’ excesses

    The House of Reprentatives is taking steps, through the amendment of the Civil Aviation Act, 2006, to empower air travellers. The bill scaled second reading, yesterday

    The sponsor of the bill, Femi Gbajabiamila (ACN, Lagos) argued that history has shown that airlines have little regards for passengers, which has made it imperative to compel them to adopt best practices as prescribed by international protocols.

    The bill is seeking to prescribe penalties for delay and cancellation of flights by airlines in the country.

    “We are all witnesses to emotional trauma our passengers are going through in our airports. What is more disturbing is the fact that most of these delays are not just for one hour or two, but sometimes it takes up to six to seven hours, without any genuine reasons”, he said.

    Though he noted that delays and cancellation of flights was not peculiar to Nigeria, he however frowned at the nonchalant attitude of airlines and the regulatory authorities

    He said: “What can be deduced from this, is a total lack of respect for the flying passengers, which most times result to lost of important appointments. These things happen in Europe, the US and other places around the world, but penalties are applied in line with international best practices,” he argued.

    The amendment seeks to compel the erring airlines to pay 30 per cent of the cost of the airfare to the passengers for up to three hours of delay, 50 per cent for four hours, or seven days suspension, as the case may be.

    He however explained that the proposed penalties do not preclude aggrieved passengers from seeking damages for specific complaints.

    In her contribution, Aisha Ahmed (PDP, Adamawa), said though the penalties prescribed in the bill were in the Aviation policy, the need to back them with legislation has become imperative.

    “All airlines in this country are guilty of this, with long history of inappropriate penalties. Even foreign airlines are not excluded.”

    She posited that rather than protect aggrieved passengers, authorities responsible for enforcing the rules back the airlines to the detriment of the passengers.

    Patrick Ikhariale (PDP, Edo), supported the bill, saying: “Not that flights can not be delayed or canceled, but they should not be on reasons other than technical.”

    Nnenna Okeje ( PDP, Abia), however explained that since the penalties were contained in the Aviation policy, it might not be necessary to legislate on it.

    When the Speaker, Aminu Tambuwal put it to voice vote, it was unanimously supported for second reading. It was referred to the Committee on Aviation for further legislative input.

     

  • Reps probe N275b Customs contract

    Reps probe N275b Customs contract

    • Malfunctioning PA system forces adjournment

    The House of Representatives has expressed concern over the management of the N275billion Destination Inspection Scheme (DIS) between the Nigerian Customs Service (NCS) and the Ministry of Finance.

    The lawmakers have subsequently mandated the Committee on Customs and Excise to investigate the whereabout of the said money.

    The DIS contracts were awarded to four foreign firms- Cotecna Destination Inspection ltd; SGS Scanning Nigeria Limited; Global Scan Systems Limited and Webb Fountain (Nigeria) Limited to provide scanning services, risk management techniques and electronic platform at the various ports in the country.

    The firms that have been handling Information and Communications Technology (ICT) services for the NCS in the last 7 years, were supposed to build, equip, train and eventually transfer the technology and expertise to the Customs.

    Bimbo Daramola (ACN, Ekiti) who raised the motion under matter of urgent public importance, stressed that it has become expedient for the country to block drains of its revenues, especially through the ports.

    Daramola explained that in December last year, the Minister of Finance, Customs and the service providers announced an extension of the contract for a period of six months.

    He said: “This curious extension was without due process and against the overall interest of the country. As a result of the extension, N21billion would be paid to the service providers irrespective of the quality of work and without handing over to the NCS, or making Nigerians the dominant players after so many years.

    “Our concern and worry is that the revenue potentials of the country are not being realised as adequate taxes are not being paid by the Destination Inspection service providers.

    “Needless to say that the collection of government revenue is also not being maximised as over $1billion of government revenue may have been lost.”

    The motion was referred to the House Committee on Commerce after it was put to voice vote by the Deputy Speaker, Emeka Ihedioha, who presided. The committee was given four weeks to report back to the House.

    Meanwhile, plenary was abruptly adjourned till next Tuesday when it became apparent that plenary could not continue as a result of malfunctioning of the public address system in the chamber.

  • Reps seek closer ties with European parliament

    Reps seek closer ties with European parliament

    Speaker of the House of Representatives, Aminu Waziri Tambuwal, has said that closer working relationship between Nigerian parliamentarians and their counterparts in the European Union would help in deepening the nation’s democracy.

    Tambuwal , who spoke on Wednesday while receiving members of the Association of European Parliamentarians with Africa (AWEPA) said Nigerian lawmakers needed assistance in the areas of budget tracking, training for members of national and state assemblies, and other areas to deepen democratic ethos.

    While he noted that the House of Representatives and the European parliament can share experiences and challenges, the Speaker said by developing closer contact, the two parliaments can enhance democratic ideals in Africa and Europe.

    He assured that the House of Representatives will play active role in the promotion of the aims and objectives of AWEPA.

    Earlier in his remarks, the leader of the delegation, Prof. Tadeusz Iwiriski, said the visit was to explore ways of enhancing cooperation between AWEPO and the National Assembly.

     

     

     

     

  • Reps pass 2013 budget

    Reps pass 2013 budget

    The House of Representatives on Thursday passed the 2013 budget of N4.987 trillion as against the N4.924 trillion presented by President Goodluck Jonathan.

    This represents a difference of N63 billion.

    It is comprised of N387.9 billion for statutory transfers, N591.7 billion for debt services.

    The News Agency of Nigeria reports that the budget is also made up of N2.3 trillion as recurrent non-debt expenditure, N1.6 trillion for contribution to the development fund for capital expenditure for the year ending December 31, 2013.

    All unutilized capital expenditure in the 2012 budget had been rolled over to form part of the 2013 Appropriation Act.

    The Deputy Speaker, Mr. Emeka Ihedioha, who presided enjoined all standing committees of the House to carry out their oversight function in order to ensure full implementation of capital projects.

    The spending plans assumed a 79 dollars per barrel benchmark oil price as against the 75 dollars submitted to the National Assembly by the president.

     

  • Reps cut external loan by $1.9b

    •Okay $200m loan for Lagos

    THE House of Representatives has slashed the proposed borrowing profile of the Federal Government for 2013 by $1.9 billion.

    The lawmakers okayed the inclusion of Lagos State’s next tranche of $200million from a World Bank loan of $600 million in next year’s budget.

    President Goodluck Jonathan had sent a proposal of $7.9 billion, which was later reviewed upwards to $9.2 billion, but the House Committee on Loans, Aids and Debt Management, in its report on the external borrowing plan under the Medium Term Expenditure Framework (MTEF) 2012-2014, pegged it at $7.3 billion for 2013.

    Chairman of the Committee Adeyinka Ajayi (ACN Osun) said there was no justification for not capturing the next tranche of the facility by the Federal Government in the MTEF and Fiscal Strategy Paper (FSP) 2013-2015 presented to the National Assembly by the Executive.

    Lagos State had accessed the first tranche of $200 million in 2010 while expecting the next tranche to be captured in 2011 budget but was not successful.

    However, at the consideration of the report of the Committee, the Federal Government was advised to capture the loan as it passed due process.

    Ajayi said the decision of the Committee was informed by the submission of the state and the World Bank.

    “Even the Ministry of Finance confirmed that Lagos can access the loan having complied with all the procedures and conditions. “It is the opinion of the Committee that Lagos is worthy of the loan and the facility be accommodated in the borrowing plan for 2013,” he said.

    The report also berated the Federal Capital Territory (FCT) for ignoring the invitation of the Committee to defend its borrowing plan while Yobe State also failed to make available the cost benefit analysis for a $120 million Islamic Development Bank loan facility.

    The lawmakers during the clause-by-clause consideration of the report, however, agreed to consult more on the recommendation concerning the status of the Bank of Industry and the NEXIM Bank.

    Four recommendations were, however deleted from the report before it was adopted.

     

     

  • Reps want September 30 deadline for budget proposal

    Reps want September 30 deadline for budget proposal

     

    Members of the House of Representatives Committee on Legislative Budget and Research have called for an amendment of section 81 of the 1999 constitution to make it mandatory for the president to submit budget proposals by September 30, to ensure early passage by the National Assembly.

    At the end of a strategic session on Monday in Calabar, Cross River State, the Chairman of the Committee, Mr. Opeyemi Bamidele, said it was imperative to give a deadline of September 30 so as to allow for early passage.

    The amendment, among others will be contained in the proposed National Assembly Budget and Research Office (NABRO) Bill which is facilitated by the Policy and Legal Centre in collaboration with the House committee and supported by the British Department for International Development.

    However, Bamidele said, “We have our Constitution in section 81 that says that Mr. President in not later than the last day of the current year must present to the National Assembly the budget proposal for the next fiscal year. So, in other words if Mr. President does not present the budget until December 31, he has not committed any offence.

    “If you send the proposal by December, you have a situation where the National Assembly would not be able to pass it until March or April and what kind of budget are you going to start implementing from May? This partly explains why we do not have adequate budget performance in the country.”

    He said the amendment, among others, would help address the issue of inadequate budget performance as currently experienced in the country.

    “The Bill seeks to put in place a framework where from the very beginning when budget is passed to the end, there will be proper monitoring and greater probity and accountability on the part of all those who are implementing this budget and their beneficiaries of such budget. Part of such responsibilities would ensure a quarterly report on budget performance,” Bamidele said.

    In the communiqué issued at the end of the session, participants, including members of the civil society organisations, observed that the NABRO Bill has become imperative in order for the legislative branch of government to effectively discharge its budgetary responsibility.

    Executive Secretary of PLAC, Mr. Clement Nwankwo, said the benefits of NABRO would eliminate executive information monopoly, simplify budget complexities as well as promote transparency and enhance credibility of the budget process.

    They resolved to ensure the passage of the NABRO bill within the current legislative year.

     

  • Reps insist on completion of 2012 budget

    Reps insist on completion of 2012 budget

    •President requests extra N161.6b for fuel subsidy

    The House of Representatives has resolved not to pass the 2013 budget until contending issues in this year’s budget are resolved.

    At plenary yesterday, the House directed its committees on Finance and Appropriation to compile and present a report on outstanding revenues and expenditures in this year’s budget and propose a plan for the full implementation of the budget within one week.

    President Goodluck Jonathan has sent a letter to the lawmakers, requesting N161, 617, 364, 911 supplementary budget to subsidise petroleum products until the end of this fiscal year.

    In the letter, which was read to the House by Speaker Aminu Tambuwal, Jonathan said forensic audit showed that the N881.1 billion provision for fuel subsidy in this year’s budget was underestimated.

    He said as at now, N880,264,243,683.61 has been paid out, leaving a balance of N7,735,756,316.39 for subsidy payment.

    The President said: “In order to accommodate the outstanding arrears resulting from the forensic audit and the remaining period of this year, an additional sum of N161,617,364,911 is required.

    “Given the need to maintain a steady flow of petroleum products, especially in the run-up to the festive season, it is my hope that the honourable members will kindly accord this request their traditional expeditious consideration and approval.”

    The lawmakers frowned at the request, which came barely 20 days to the end of the year.

    They unanimously agreed to ensure the conclusive implementation of this year’s budget.

    Under Matters of Urgent Public Importance, Mr. Abdulrahman Terab (ANPP, Borno) said with infrastructural deficit of over N4 trillion and a very high unemployment rate of over 70 per cent, the country must be accountable and transparent in all its revenue matters.

    Terab said the budget was significant in meeting the social and economic needs of the people through the provision of public goods and services.

    He said: “We are concerned that the revenue receipts so far for 2012 have been confirmed to be higher than what was projected for in the 2012 budget.

    “Consequently, the fourth quarter capital releases made to Ministries Departments and Agencies (MDAs) this month, despite being inadequate on the percentage of budget implementation, were found to be inconsistent. Hence, only about 30 per cent of the allocated value were actually remitted to the MDAs.

    “At this moment in December, we cannot fully claim capital releases to average 60 per cent across the board to MDAs”

    Terab also questioned the whereabouts of recovered funds, non-oil excess revenue, the 2012 unspent revenue, pension reform and fake subsidy claims.

    He said the funds were not captured in the 2013 Appropriation Bill and were not provided as opening balances in the 2013 Expenditure Account.

    The lawmaker expressed concern that most of the capital projects captured in this year’s budget may be abandoned.

    This, he said, would lead to waste of all the resources that were committed to the projects and increase the nation’s infrastructural deficit.

    Terab said: “The implication of all this is that the nation’s 2012 growth projections will be completely eroded and difficult to justify.

    “If the House did not come to the rescue of the 2012 budget, the dream of Nigeria becoming one of the 20 great economies by 2020 can no longer be achievable.

    “Consistent missing of target plans translates to failure.”

    Chairman of the Committee on Appropriation, John Enoh (PDP, Cross River) questioned the impact of this year’s budget on the economy.

    Chairman, Committee on Finance, Abdulmumin Jibrin (PDP, Kano) wondered if the Bureau of Public Procurement (BPP) had not become a barrier to infrastructural growth with its burdensome procedures.

     

     

     

     

  • Reps order MDAs to remit N13b to Fed Govt coffers

    Some revenue generating agencies are to remit N13 billion into the Consolidated revenue account, the House Committee on Finance ordered yesterday.

    The Abdulmumin Jibrin-led committee also expressed dissatisfaction over the ‘apathetic behaviour’ of most ministies, departments and agencies towards transparency and accountability.

    It was during the reconciliation of the MDAs’ revenue profiles.

    The lawmakers specifically chided the management of Federal Mortgage Bank of Nigeria (FMBN) for its inability to avail the committee of its 2009/2010 financial reports. They queried the N36 billion deficit presented by the bank.

    The Reps demanded the bank’s transactions to show its deficit status.

    The financial statements of the Federal Inland Revenue Service (FIRS) showed that N41,825,098,000 was realised as against the N50,828 billion projected in 2009; N50.038 billion against N52.166 billion in 2010 and N56.286 billion was realised against last year’s N85.403 billion.

    The committee said the Federal Housing Authority should cut down its operating cost. Its management was berated for non-compliance, despite its Managing Director, Mr A.O Ogunmoroti’s defence that the agency got no subvention from the government and had been operating on deficit.

    NIGCOMSAT blaimed faulty satellite for its lean purse. It said it was the reason for the N1.334 billion being projected for next year.

    The Federal Road Safety Corps (FRSC) raked in N72,177,202,837 between 2009 and October this year, but remitted N4,966,912,525.42 from N30,714,596,715 projected.

    Iyabo Solanke, Finance Director, who held brief for Nigeria Communication Commission (NCC) said the commission generated N34 billion in 2009, N36.6 billion in 2010, N39 billion last year and realised N7.9 billion in October.

    Of the N39 billion generated last year, she said N10.2billion was remitted to the coffers of the government. No remittance was made to date.

    Universal Basic Education Commission (UBEC) said it generated N39 billion in 2009 and N46 billion in 2010. But the audited account for last year was not ready because of an ongoing EFCC investigation. But the committee refused to accept the excuse. It directed the commission to reconcile the account and report back.

    The committee ordered the National Automotive Council to pay N250 million to the government following a discovery of under-declaration. The Council said it realised N17 billion from two per cent automobile import levy into the country and the funds were domiciled with the Bank of Industry BOI).

    The committee directed NAFDAC to return N105 million for 2009, N15 million for 2010, N15 million for 2011 and N253.6 million in 2012.

    The committee flayed NAFDAC for inconsistency in its profile. It showed that N4.5 billion was genereated in 2009, N5.1 billion in 2010, N5.7 billion in 2011 and N5 billion realised as of October.

    The Committee was also not happy with the inconsistency in the financial report and revenue profile of the National Teachers Institute (NTI). Its Bursar, Abdulkareem Acho, told the lawmakers that N1.4 billion was realised against, the projected N2.039 billion for 2009, N1.4 billion in 2010 and that no income was generated last year while N518 million was made this year.

    The lawmakers asked Nigerian Agricultural Insurance Corporation (NAIC) to pay 25 per cent of all outstanding payments to government coffers since 2009 to date.