The Nation Newspaper

Tag: Reps

  • Reps probe Budget Office chief over N8b remittance

    Reps probe Budget Office chief over N8b remittance

    The Director-General, Budget Office of the Federation, Mr Ben Akabueze, is to be investigated by the House of Representatives over his directive to the Managing-Director of Federal Roads Maintenance Agency (FERMA) to remit N8 billion to the treasury.

    The House yesterday set up  an Ad-hoc committee to investigate this trend and report back within one week.

    The motion which came under matters of urgent national importance with the title: “Urgent need to curb a developing trend where the Director-General, Budget Office of the Federation now directs Chief Executives of agencies of government to remit the treasury capital funds already released to them,”  was sponsored to investigate by a member, Hon. Agbedi Frederick.

    Frederick noted that the N8billion the Budget DG wanted FERMA to remit to the treasury was from the N10.3 billion already released to the agency for the execution of capital projects, leaving it with only N2.3 billion.

    He said due to the compelling need for FERMA to repair and maintain dilapidated roads across the country, the National Assembly approved N21,816,546,653 out of which only N10,399,549,201 was released in October to the agency for execution of some critical capital projects which included so many failed and bad roads across the country.

    He said: “FERMA has already prioritised its capital projects while it has advertised (them) in line with the procurement Act 2007 and that contractors desirous to work for the agency have spent hard earned monies to buy tender documents, which they are now bound to lose by the directive from Director-General, Budget Office of the Federation.

    “The funds already released to FERMA were part of the funds already appropriated for FERMA in the Appropriation Act of 2016, passed by parliament, which is already a law, and that any amendment to this law can only be carried out by the National Assembly.

    “The directive from the Director-General Budget Office of the Federation cannot be said to be virement as virement can only be appropriately approved by the National Assembly, which has not done so in this case.

  • Reps prepare for showdown with Customs boss

    Reps prepare for showdown with Customs boss

    •Panel alleges: Alli ignores invitation on ‘multi-billion insurance fraud’

    The House of Representatives is set for a showdown with the Nigerian Customs Service (NCS) Comptroller General (CG) Col.  Hameed Ali  (rtd) for daring to ignore its invitation to a  panel investigating a multi-billion insurance fraud in Ministries, Departments and Agencies (MDAs).

    It expressed disappointment over the failure of many MDAs to also honour the invitation of its ad hoc committee investigating insurance transactions between 2013 and 2015.

    The lawmakers were particularly irked over the weekend when Ali refused to officially inform the Adekunle Akinlade-led ad hoc Committee on Insurance about his absence at the hearing.

    Ali failed to present the panel with requested full information on NCS’s insurance transactions within the period under review.

    He, however, sent a Deputy Comptroller General (DCG), Human Resources, Warikoru Austin, who came unprepared and  empty-handed without the necessary information requested for by the panel.

    Warikoru, who affirmed rather than swear to an oath with a scripture, further compounded matters when he claimed that, even as head of human resources, he was not aware, neither was it brought to his notice by his subordinates an advertorial by the panel in a national daily containing list of invited  organisations and information required of them.

    Stating that such act of irresponsibility by government officials was regrettable, Akinlade added that letters and physical representation with proofs were made to the headquarters of NCS, yet the Service found it unnecessary to honour the committee’s requests.

    The committee, in response to the DCG, found such claim absurd and made it clear that lying under oath, if found culpable, carries two years imprisonment.

    The committee chairman said legislative committees do not entertain verbal messages in respect of invitations.

    He said: “To entertain verbal messages that the CG has other matters on his desk to attend to is sending wrong signals to Nigerians.

    “We have the mandate of the House to carry out this assignment and we wrote to NCS to that effect. It was advertised in a national newspaper and we sent someone physically.

    “This is unacceptable. The CG must come and make himself available by November 14, else we will use other constitutional means available.

    “We need him to come and clarify issues, for instance, it was discovered that Fortis Insurance brokers underwrote part of cover for NCS, amounting to N105 million. But Fortis management denied it.

    “Meanwhile, we have documents where the money was paid. So, it is important that the head of Customs appears before the committee.”

    Before he was dismissed, Warikoru said though he was aware of the panel’s letter but not the advertorial.

    He said his organisation was still in the process of collating the information requested by the ad hoc committee.

    The committee that also expressed disappointment about the inability of the Federal Housing Authority (FHA) to submit a well-documented presentation on its insurance transactions, noted that it would not wait indefinitely for recalcitrant MDAs to make their submissions.

    The two organisations were asked to appear by November 14 or face further legislative action.

  • Reps probe BPE over statutory violations

    Reps probe BPE over statutory violations

    The House of Representatives yesterday mandated its Committee on Privatisation and Commercialisation to ascertain the veracity or otherwise of the accusation of multiple Statutory Violations by the Fiscal Responsibility Commission against the Bureau of Public Enterprises (BPE).

    The committee is to report back to the House within four weeks for further legislative action.

    The resolution of the House was sequel to the passage of a motion by a member, Abbas Tajudeen titled: “ Call to foster Fiscal Responsibility through the investigation of multiple statutory violations by the Bureau of Public Enterprises (BPE).

    While moving the motion, he said at a forum organised by the Fiscal Responsibility Commission, the BPE was accused of operating in contravention of several provisions of the Fiscal Responsibility Act, 2007, which include the failure to provide audited accounts for the financial years 2012 to 2015 and non- remittance of its operating surplus of N81.8million in 2007.

    He said: “ The action of the BPE violated Section 22(1) and (2) of the Public Enterprises (Privatisation and Commercialisation ) Act, 1999, which compels the Bureau to keep proper accounts and cause them to be audited by auditors appointed from the list of and in accordance with the guidelines supplied by the Auditor- General of the Federation.

    “The conduct of the BPE lacked probity, transparency and accountability and is a violation of Section 48 (1) of the Fiscal Responsibility Act, 2007 which imposes obligation on the Federal Government to ensure full and timely disclosure  and wide publication of all transactions and decisions involving involving public revenue and expenditures and their implication for the finance of the federation..”

  • Reps: AMCON’s $25b liabilities heighten economic woes

    Reps: AMCON’s $25b liabilities heighten economic woes

    • Investigate non- recovery of  N2.4 trn  debts

    The House of Representatives has expressed concern over the undue accumulation of N5 trillion (about $25 billion) debts bought over by the Asset Management Corporation of Nigeria (AMCON) and its inability to recover same.

    An Ad hoc Committee on Undue Accumulation of Debts and Alleged Fraudulent Sales of Banks, headed by Hon. Albert Adeogun, revealed the current debt portfolio of the Corporation is N800 billion above the ceiling stipulated by the Central Bank of Nigeria (CBN).

    The report indicated  that the  Corporation’s balance sheet has a shortfall of N3.8 trillion (about $19 billion), pointing out that the geometric accumulation of debts by AMCON will no doubt endanger the dwindling national reserves put at $30 billion at that time, particularly as the Federal Government stood as guarantor for AMCON’s bonds as enshrined in Section 27 of  AMCON Act, 2010.

    On its investigation into the sale of some domestic banks, Bureau of Public Procurement (BPP) denied participation in the acquisition and sale of assets of banks, as the Corporation failed to obtain the Certificate of ‘No Objection’ prior to March 2014 when AMCON carried out its procurement activities “as they were under the notion that the scope of application of the Public Procurement Act (PPA) 2007 did not apply to them.

    “The House is worried about the allegation of over N2 trillion losses in the non-transparent process adopted by AMCON in the sale of some banks, including Oceanic Bank, Intercontinental Bank, Enterprise Bank and Mainstreet Bank,” the report said.

    The Corporation’s financial statement for the year ended 31st December 2014, showed accumulated losses of N4.269 trillion.

    “In addition, the outstanding bad loans owed to AMCON by different companies and individuals (acquired from banks) as at 31st December, 2014 stood at N3.403 trillion which also has the potential of becoming outright losses.

  • Reps to probe judges’ fate

    Reps to probe judges’ fate

    The House of Representatives yesterday raised a panel to investigate the arrest of judges by the Department of State Security (DSS).

    The ad hoc committee is to submit its report within six weeks.

    The resolution was taken after a motion moved under Matters of Urgent National Importance by Kingsley Chinda (PDP, Rivers State).

    Chinda said though corrupt people should not be shielded and bribe taking and misconduct should not be condoned, all actions taken to prevent financial crime most be carried out with reference to the rule of Law.

    “We can’t talk about democracy and civil rule without observing the Rule of Law,” he said, adding that the provisions of Sections 153 (1) I and Part 1 of the Third Scheduled the 1999 Constitution established the National Judicial Council (NJC) with the authority to regulate and discipline judicial officers.

    Chinda cited Sections 2, 3 and 6 of the National Agencies Act 1986, saying it precludes the DSS from handling cases of corruption and abuse of office.

    He criticised what he described as a growing trend by which the DSS went beyond its constitutionally dictated role by conducting raids in the Akwa-Ibom State Government House, the Ekiti State and Zamfara State Houses of Assembly.

    He urged the House to question the constitutional provision from which the DSS drew powers to go into allegations of corruption and misconduct levelled against the judges.

    The motion did not go down well with a member, Mojeed Alabi (APC Osun) who raised a point of order under matters of privilege. According to Alabi, Sections 4, 5, 6 of the constitution guarantees separation of powers and the matter should not have been brought before the House.

    But supporters of the motion shouted him down. Alabi’s request for Speaker Yakubu Dogara’s protection was turned down.

    Dogara said: “Hon. Mojeed, I cannot protect you. If you disagree with it, you have to come by way of a substantive motion.”

    Alabi insisted that his privilege as a member had been infringed on by the consideration of a motion on a matter which he said was beyond the powers of the House.

    The motion was passed when put up for a voice vote by Speaker Dogara, with the proviso that it would be referred to an Ad hoc Committee which is to also investigate all cases of invasion of property and arrest of persons for reasons outside the general duties of the DSS as prescribed by the National Securities Act. The committee is to report back within six weeks.

     

  • Reps move to recover $458m looted funds in U.S

    Reps move to recover $458m looted funds in U.S

    The House of Representatives on Thursday moved to recover $458 million looted in Nigeria and forfeited to the United States government.

    The House has therefore resolved to interface with the Attorney General of the Federation and the Minister of Justice, Abubakar Malami, to meet the U.S Congress members who initiated the move for repatriation of the fund back to Nigeria.

    The House pledged its readiness to assist in repatriating the country’s looted funds back home.

    The resolution was sequel to the passage of a motion of urgent national importance sponsored by Hon. Johnson Agbonaye Inma on the floor of the House.

    The lawmaker while moving the motion said in 2013, as part of its Kleptocracy Asset Recovery Initiative, the United State Department of Justice commenced forfeiture proceeding to confiscate $550 million that had been corruptly obtained.

    “A portion of the loot valued at $458 million that belongs to Nigeria had now been forfeited to U.S by a judgement of the district court for the District of Columbia,” Agbonaye Inma said.

    According to him, in August 2014, following assets traced by U.S Department of Justice in conjunction with counterparts in the United Kingdom and France, properties were discovered to be proceeds of corruption originated from Nigeria.

    The U.S Department of Justice, the lawmaker said, had confiscated and returned over $168 million to victim nations.

  • Reps decry naira free fall

    The House of Representatives on Wednesday expressed concern over continuous fall of the naira against major currencies and resolved to investigate the foreign exchange transaction process.

    This was sequel to a motion titled: “Call for Investigation of the Central Bank of Nigeria’s Forex Policies,” sponsored by Hon. Ali Isa, the News Agency of Nigeria (NAN) reports.

    Moving the motion, Isa said despite the weekly release of foreign exchange by CBN to the Bureau de Change (BDC) operators and banks, the value of naira had continued to depreciate.

    Contributing to the debate, Hon. Mojeed Alabi expressed dismay that the CBN governor had continued to turn down invitations for him to appear before the House to explain some of the fiscal policies to the lawmakers.

    According to him, for failing to honour the House summons  over the falling value of the naira, the CBN governor and his team should be sacked.

    Another member of the House, Olawale Raji, decried the poor state of the naira and inconsistent fiscal policies, saying Nigeria was the only country where “black market” figures were quoted as official.

     

  • Reps seek establishment of Financial Services Commission

    The House of Representatives has called for the establishment of Financial Services Commission (FSC) that will comprise  monetary and fiscal authorities.

    The Chairman, House Committee on Banking and Currency, Sir Jones Onyereri, who spoke yesterday in Lagos, also called for a review of interest rate.

    The lawmaker who fielded questions from reporters at the end of their oversight visit to the Lagos office of the Central Bank of Nigeria (CBN), said the committee is worried about the rising bad loans in the industry. He urged the apex bank to rise to its regulatory role in addressing the issue.

    According to him, insider abuse remained one of the major causes of rising cases of bad loans. He urged the CBN to improve on its supervision roles, and sanction culprits as a deterrent to others.

    Onyereri explained that the formation of FSC would cut high interest rate on government securities and slash domestic borrowing.

    He urged the CBN to work with the Ministry of Finance to find a way of reducing the level of domestic borrowing, which he believes would improve the state of the economy.

    Other committee members also expressed worries over the impact of the hike in the Monetary Policy Rate (MPR), which is the benchmark interest rate, on Small and Medium Enterprises (SMEs).

    He said: “We were a little bit worried because of the increase in the MPR, and believe as a committee, that was not the best decision. But having heard from the CBN, we still want to tinker on what led them to come out with that decision because, for us, we were looking at the bigger picture of still trying to grow the SMEs and the only way to grow the SMEs is to make credit accessible to them.

    “But making credit accessible to them will not work out with very high interest rate. We believe along the line, we will be able to create a perfect balance.”

    On the exchange rate policies, he said the introduction of flexible exchange rate was a smart way to get out of the issue of devaluation given that government does not believe in devaluation, and there has been a back and forth argument whether we should devalue.

  • Ajaokuta: Reps question govt’s 500m euro bill in NIOMCO’s agreement

    • To meet with Minister, others today

    The House of Representatives Committee on Privatisation and Commercialisation sub-committee on Steel  is to meet with the Minister for  Solid Mineral Development, Dr. Kayode Fayemi today over the modified agreement with GSHL and NIOMCO.

    The sub-committee is specifically questioning a 500m Euro Federal Government bill in NIOMCO modified agreement and another N 8.7 billion for settlement of workers entitlements.”

    The meeting according to the Chairman of the Subcommittee, Hon. Babatunde Gabriel Kolawole is to discuss the signed modified agreement with GSHL and NIOMCO on behalf of Nigerians.

    “It is important because Nigerians want to know what it means, the benefits. Implications and all other details of the agreement including how the observations raised on same agreement by the former Hon. Minister of Steel and Solid Minerals Development  which led to his refusal to sign it was resolved.”

    The sub-committee is also interested in knowing why the ministry has signed the modified NIOMCO agreement with was rejected by the former Minister.

    The former Minister refused to sign because Nigeria was required under Section 4 A1(b, d, h) to commit 120. 4 million euros for the rehabilitation of all plants, equipment and other facilities include ping remediation of all loss of materials, theft, deterioration etc.

    And another “372, 539,307.90 euros for the completion of super concentrate, weathered ore treatment plant, and to other associated facilities and N 8.7 billion for settlement of workers settlement entitlements.”

    The agreement to Iron Ore Mining Company to Global Steel was reached in London in June to enable it complete its concession. The inability to sign the agreement since it was terminated in 2008 has cost the country $3. 3 billion in terms of imports of steel products, The Nation learnt.

     

  • Reps seek support for indigenous oil firms

    The House of Representatives’Committee on Local Content has called on the international oil companies (IOCs) to support indigenous oil service firms.

    The committee made the call during inspection of the shipyard and fabrication complex operated by West African Ventures (WAV) at Onne in Rivers State.

    Its Chairman,  Emmanuel Ekon, said patronage of WAV and other indigenous firms would help reduce capital flight and promote local content.

    Experts say about $8 billion is lost yearly to capital flight as a result of  jobs done by foreign firms. Based on this, the committee said it would push for a law to cancel contracts awarded by IOCs to foreign firms, which their indigenous counterparts can execute in-country.

    Ekon said the poor patronage of WAV shipyard, fabrication complex and marine facilities, as well as those of the other indigenous companies, has worsened capital flight in the oil and gas industry.

    He said the committee decided to  visit to assess its facilities  to avoid supporting indigenous contractors who are mere agents of foreign firms.

    “We believe that companies, such as WAV with huge investment in the country, and employer of over 5,000 Nigerians, should be encouraged so that the investors can do more. That way, we will reduce capital flight. WAV ought to be patronised first by the IOCs when they need marine services,” he noted.

    Ekon said indigenous firms if supported could boost revenue and enhance economic growth.

    He said: “What we have seen here is 100 per cent Nigerian company and by the Content law, WAV is supposed to be patronised first by the IOCs, where they need marine services. That’s what the law says and the law is not ambiguous but explicit, especially where there is Nigerian competence and in-country capacity. The law states that the IOCs or whoever is giving out contract, should give a Nigerian company the right of refusal.

    “The best the IOCs can do for Nigeria is to patronise indigenous companies such as WAV so they can in turn engage Nigerians teeming unemployed youths.”

    The committee chairman also admitted that issues relating to inadequate patronage were fallout of the global crisis in the oil and gas industry, but urged the IOCs to promote local content.

    “I think the primary thing is to make sure that the government wades in to restore peace particularly in the Niger Delta area where the oil and gas business is carried out. For now, we still have one major source of revenue in this country, which is the oil and gas business.

    ‘’Hence, the House of Representatives will oppose and cancel contracts awarded to foreign companies where there is in-country capacity, and where huge investments have been made local firms.

    “Basically, I think if there is peace and militant activities brought down to the barest minimum, opportunities will come in for WAV and other local firms. WAV has demonstrated capacity and needs to be patronised.

    A member of the Committee, Kehinde Agboola, said: “Drop in patronage is a global crisis; it’s not restricted to the oil and gas sector or WAV. The IOCs in Nigeria should patronise WAV because it is a good example of indigenous company with capacity. That is the whole essence of local content.”

    The committee members admitted that the Niger Delta issues contribute to the challenges of the indigenous companies, and stressed the need for the government ensures there is peace in the region as the oil and gas business remains the mainstay of the economy.