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Tag: Sanusi

  • Group faults Jonathan’s suspension of Sanusi

    Group faults Jonathan’s suspension of Sanusi

    The Broom Initiative, a think tank group of professionals, has condemned the suspension of the Central Bank of Nigeria (CBN) Governor, Mallam Sanusi Lamido Sanusi. It described the suspension as a misuse of executive power.

    In a statement in Abuja, the group leaders, Michael Ighoma and Ibrahim Mohammed, faulted President Goodluck Jonathan’s handling of Sanusi’s allegations that $20 billion oil revenue was unremitted to the Federation Account.

    The group said rather than address alleged corruption at the Nigerian National Petroleum Corporation (NNPC), the government resorted to portraying the accuser as the accused.

    “We have watched with keen interest the various missteps and outright assaults targeted at our collective intelligence as a people, especially the handling of the Police Commissioner Joseph Mbu saga in Rivers State, the unremitted $20 billion oil revenue, owing to government’s ineptitude,” the statement said.

    The group described Sanusi’s suspension as an act of recklessness.

    It said: “Never mind the fact that this action is unconstitutional, never mind that it calls into question the so-called fight against corruption, never mind that it reeks of the most petty of machinations, the removal of a patriotic officer for bringing to the nation’s attention, a matter of such significance as missing oil money, is just plain immoral.

    “Again, we ask: how sincere is a government that allocates N2 billion to the existential fight against the Boko Haram insurgency, whereas N70 billion was allocated to the Niger Delta Amnesty Programme. Jonathan’s financial commitment to security challenges in the Northeast pales into insignificance considering what is being spent on the Niger Delta militants.

    “But the Jonathan administration has once again demonstrated to us where its priorities lie, pouring N70 billion down the amnesty drainpipe, while ignoring the immediacy of the problem in the Northeast by sending ill-equipped undermoti-vated service men to their death and abandoning helpless civilians to a life of uncertainty and fear.”

    The group described Nigerians as proud and defiant, saying: “As Nigerians, we must never make the mistake of attributing to malice that which can be easily explained by incompetence. We must remain resolutely vigilant in the face of impunity and underhand tactics.”

     

  • Sanusi not a whistle blower – Maku

    Sanusi not a whistle blower – Maku

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

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

    He said that if Sanusi had moved from being CBN Governor to a whistle blower, it becomes a problem for the country.

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

    He said, “Sanusi is not a whistle blower by governor of Central Bank of Nigeria. That perception is fed by negative reports from the media.

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

    ”But the reality of what has happened is that there are issues with the account of CBN of 2012 as the President explained.

    “The Financial Reporting Council has said that there are issues that should be addressed so the President returned it back to the council and the council again returned it with some of the items with questions.

    ”CBN is the nerve centre of the nation’s financial system, if there are problems with it, it means that it can generate a lot of problems in the banking system and the economy and so the President has been trying to sort this out and between him and the CBN governor there have been communications since April 2013. So it has nothing to do with what my brother Sanusi had said relating to the NNPC. There had been ongoing conversation between them.

    ”Unfortunately the CBN governor is also the chairman of the board and he can’t sit in a matter he is being investigated for.

    “So what the President has done by appointing officer of the CBN was to ask the governor to step aside pending the outcome of the investigation.

    ”Are we saying that the queries that were raised relating to the CBN account were false?

    “In the end if he is found not guilty he still has his tenure to run.”

     

  • Can Jonathan suspend cbn Governor Sanusi?

    Can Jonathan suspend cbn Governor Sanusi?

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

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

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

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

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

    Allegations against Sanusi

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

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

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

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

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

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

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

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

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

    Issues for determination

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

    What does the law say?

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

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

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

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

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

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

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

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

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

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

    Lawyers react

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The way out

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

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

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

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

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

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

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

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

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

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

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

  • Tambuwal visits Obasanjo, faults Sanusi’s suspension

    Tambuwal visits Obasanjo, faults Sanusi’s suspension

    Speaker of the House of Representatives, Aminu Waziri Tambuwal, visited former President, Chief Olusegun Obasanjo, Sunday morning in consultation with him on vital “national issues.”

    Tambuwal who arrived Obasanjo mansion at Olusegun Osoba Hill – Top, Abeokuta, the Ogun State capital, by 10: 35am in a convoy of four vehicles – all marked NASS, quickly went into a close door meeting.

    In his entourage are honourables: Deputy Minority Leader; Kawu Sumaila(Kano), Ajibola Muraina(Osun) and Aminu Shagari (Sokoto)

    About 37 minutes earlier, the Ohinoyi of Ebiraland, Ado Ibrahim, Kogi State, had also arrived the former President’s residence by 9:58am in convoy of of three Sports Utility Vehicles (SUVs) and left, before Speaker Tambuwal’s convoys entered.

    When the Speaker emerged by 11:45am after an hour – long meeting , he fielded questions from reporters waiting for him within the Obasanjo’s expanse compound on the suspension of the Central Bank Governor, Sanusi Lamido Sanusi and other issues.

    He said the suspension of the CBN Governor by President Goodluck Jonathan portends grave danger to the economy as it could erode investors’ “confidence” in the nation’s financial institution.

    Tambuwal said: “well whether it is lawful, legal or illegal, the personality involved has told everybody that he is going to court and I believe that he is already in court on that suspension.

    ” On the implications on the economy, I’m not an economist but I personally feel that will definitely send wrong signals to investors because, you need to have confidence in financial institution, particularly the independence of the financial institution of a country, before investors will consider such a country worthy of their investments. So, I have my concern about that.”

  • Sanusi challenges Presidency on intervention projects

    Sanusi challenges Presidency on intervention projects

    A defiant Mallam Lamido Sanusi says the execution of intervention projects in parts of the country by his administration in the Central Bank of Nigeria (CBN) was in order, contrary to Presidency’s position on his action.

    His suspension on Thursday by President Goodluck Jonathan was partly hinged on such projects said to have cost the CBN N168 billion.

    “Is there any problem in investing in education? Building structures in universities? Building structures in secondary schools?” Sanusi wondered on Channels Television in response to the findings of the “Financial Reporting Council of Nigeria (FRCN)cited by the Presidency for removing him from office.

    He added: “Is there evidence that these contracts were inflated or we awarded the contracts to ourselves? What exactly is reckless about contributing to education?”

    The council in its June 7, 2013 recommendations to President Goodluck Jonathat had accused Sanusi of “a clear display of incompetence, nonchalance, fraud, wastefulness, and abuse of due process and deliberate efforts to misrepresent facts.”

    It asked the President to exercise the powers conferred on him by Section 11(2)(f) of the CBN Act 2007 or invoke Section 11(2)(c) of the said Act “and cause the governor and the deputy governors to cease from holding office in the CBN.”

    But defending his actions while in office, Sanusi said that contrary to the position of the FRCN, he never acted beyond his powers.

    The particulars of the alleged infractions against Sanusi include “persistent refusal and/or negligence to comply with the Public Procurement Act in the procurement practices of the Central Bank of Nigeria” and “Unlawful expenditure by the Central Bank of Nigeria on ‘Intervention Projects’ across the country.”

    His leadership, for instance, was said to have “refused and/or neglected to comply with the provisions of the Public Procurement Act (PPA); engaged in procurement of goods, works and services worth billions of naira each year without complying with the express provisions of the PPA; and financial recklessness typified by the execution of ‘Intervention Projects’ across the country. From available information, the bank has either executed or is currently executing about 63 such projects across the country and has committed over N163 billion on them.”

    Sanusi dismissed the FRSC report as being out of order

    He said the council did not only fail to follow due process, the standard used in arriving at its conclusions on him were questionable.

    He said: “Just a little over a week ago, the Petroleum Minister and the GMD of NNPC sat in front of the Senate on national television and actually said they had paid billions of dollars on subsidy of kerosene without appropriation” without regard for a presidential directive to stop the payment since 2009.

    He wondered why “no one has called this financial recklessness.”

    He added: ”The NNPC itself has not been audited since 2005…They are now rushing to get all those back audits.”

    He insisted that the CBN is an independent institution whose governor cannont be removed by the President without the consent of two thirds of the Senate.

    “You cannot go round that section. It undermines the entire principle,” he stressed.

    The FRSC recommendations followed a review of Sanusi’s May 20, 2013 response to the query issued to him by the President over the apex bank’s financial statement of 2012.

    The council’s other observations arising from the review are: “it has become obvious that the CBN is not able to prepare its financial statements using applicable International financial reporting standards (IFFS) whereas deposit money banks that the CBN is supervising have complied with this national requirement since 2012.

    “Undoubtedly, this laxity on the part of our apex bank, apart from calling to question its capacity for proper corporate governance, is capable of sending wrong signals to both domestic and international investors on the state of the Nigerian economy.

    “(B) the provisions of the Memorandum of Understanding (MOU) signed by the CBN and other Deposit Money Banks on Banking Resolution Sinking Fund have been breached in a material manner. For example, a Board of Trustees (BOT) to manage the Fund has not been constituted since 2010 when it was established. The CBN has however continued to utilise the Fund for certain operations without approval of the said BOT.

    “(C) contrary to section 34 (b) of the CBN Act 2007 which provides that the CBN shall not, except as provided in Section 31 of the

  • My suspension cannot be justified – Sanusi

    My suspension cannot be justified – Sanusi

    The suspended Governor of Central Bank, Mallam Lamiso Sanusi, has said his suspension by President Goodluck Jonathan cannot be justified on any grounds, including the findings of the Financial Reporting Council of Nigeria (FRCN) cited by the Presidency for his removal from office.

    The council, in its June 7, 2013 recommendations to President Jonathan had accused Sanusi of “a clear display of incompetence, nonchalance, fraud, wastefulness, and abuse of due process and deliberate efforts to misrepresent facts.”

    It asked the President to exercise the powers conferred on him by Section 11(2) (f) of the CBN Act 2007 or invoke Section 11(2) (c) of the said Act “and cause the governor and the deputy governors to cease from holding office in the apex bank.”

    But defending his actions while in office, Sanusi said that contrary to the position of the Council, he never acted beyond his powers.

    The alleged infractions listed against Sanusi include “persistent refusal and/or negligence to comply with the Public Procurement Act in the procurement practices of the Central Bank of Nigeria” and “Unlawful expenditure by the Central Bank of Nigeria on ‘Intervention Projects’ across the country.”

    His leadership, for instance ,was said to have “refused and/or neglected to comply with the provisions of the Public Procurement Act (PPA);” “engaged in procurement of goods, works and services worth billions of naira each year without complying with the express provisions of the PPA;” and financial recklessness “ typified by the execution of ‘Intervention Projects’ across the country.

    From available information, the bank has either executed or is currently executing about 63 such projects across the country and has committed over N163billion on them.”

    Sanusi, while speaking on Channels Television, dismissed the Council report as being out of order.

    He said that not only did the council fail to follow due process, the standard used in arriving at its conclusions on him are questionable.

    He said, “just a little over a week ago, the Petroleum Minister and the GMD of NNPC, sat in front of the Senate on national television and actually said they have paid billions of dollars on subsidy of kerosene without appropriation” without regard for a Presidential directive to stop the payment since 2009.

    He wondered why “no one has called this financial recklessness.”

    He added,“ The NNPC itself has not been audited since 2005…They are now rushing to get all those back audits.”

    On the allegation that he got involved in intervention projects, he said: “is there is any problem in investing in education; building structures in universities; building structures in secondary schools? Is there evidence that these contracts were inflated or we awarded the contract to ourselves? What exactly is reckless about contributing to education?”

    He insisted that the CBN is an independent institution whose governor cannot be removed by the President without the consent of two thirds of the Senate.

    “You cannot go round that section. It undermines the entire principle,” he stressed.

     

  • Sanusi’s suspension pre-emptive – Justice Akanbi

    Sanusi’s suspension pre-emptive – Justice Akanbi

    Retired President of the Court of Appeal Court, Justice Mustapha Akanbi, has described President Goodluck Jonathan’s suspension of the Central Bank of Nigeria’s Governor, Sanusi Lamido Sanusi , as pre-emptive and ill-advised.

    The pioneer chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) told The Nation that, “All I know is that the point has been made that CBN’s governor cannot be removed from office without taking the matter to the Senate for two- third of the Senators’ vote. And there is no provision in the Constitution which I know of that allows the President to suspend him.

    “If the President wants him out of office he should follow due process and we cannot resist the temptation that apparently because Sanusi was complaining about what has happened at the Nigerian National Petroleum Corporation (NNPC) he is now made to face this situation.

    “I think it is not in the interest of the President or the country to go through the whole process we went through in the case of Justice Ayo Issa Salami. Because there seems to be some parallel between this and Justice Salami’s in terms of suspension.

    “I would have thought that the President who people say wants a second term should be careful in listening to advice or acting in a manner that could heat up the polity; or creating an impression that he is beyond criticism. Robust criticisms of government can help.

    “I have read what Ladi Williams said, that Sanusi’s action is tantamount to insubordination. He is certainly not talking law. I have read what the like of Aturu have said; people who rarely concern themselves with the rights of the people in government.

    I think any lawyer would want the rule of law to be followed. In my opinion, that rule has not been followed and the President or his advisers should do a rethink over the issue. After all Sanusi is going in June this year.”

     

  • Sanusi’s alleged infractions

    Sanusi’s alleged infractions

    The infractions against Sanusi as contained in a document given to reporters in Abuja on Thursday by Dr. Reuben Abati.

    “Persistent refusal and/or negligence to comply with the Public Procurement Act in the procurement practices of the Central Bank of Nigeria.

    “(A) By virtue of Section 15 (1)(a) of the Public Procurement Act, the provisions of the Act are expected to comply to ‘all procurement of goods, works and services carried out by the Federal Government of Nigeria and all procurement entities.’ This definition clearly includes the Central Bank of Nigeria.

    “(B) It is however regrettable that the Central Bank of Nigeria, under your leadership, has refused and/or neglected to comply with the provisions of the Public Procurement Act (PPA). You will recall that one of the primary reasons for the enactment of the PPA was the need to promote transparency, competitiveness, cost of effectiveness and professionalism in the public sector procurement system.

    “(C) Available information indicates that the Central Bank has over the years engaged in procurement of goods, works and services worth billions of Naira each year without complying with the express provisions of the PPA.

    “(D) By deliberately refusing to be bound by the provisions of the Act, the CBN has not only decided to act in an unlawful manner, but has also persisted in promoting a governance regime characterised by financial recklessness, waste and impunity, as demonstrated by the contents of its 2012 Financial Statements.

    “Unlawful expenditure by the Central Bank of Nigeria on ‘Intervention Projects’ across the country

    “(A) The unacceptable level of financial recklessness displayed by the leadership of the Central Bank of Nigeria is typified by the execution of ‘Intervention Projects’ across the country. From available information, the bank has either executed or is currently executing about 63 such projects across the country and has committed over N163billion on them.

    “(B) It is inexcusable and patently unlawful for any agency of government to deploy huge sums of money as the CBN has done in this case, without appropriation and outside CBN’s statutory mandate. It is trite that the expenditure of public funds by any organ of government must be based on clear legal mandates, prudent costing and overriding national interest.

    “Financial infractions and acts of financial recklessness committed by the Central Bank as reflected in its audited financial statements of 2012

    “(A) Pursuant to Section 50 of the CBN Act 2007, a copy of the audited financial statements of the CBN for the year ended 31st December 2012 was sent to Mr. President. Based on the issues raised in the financial statement, a reinsertion was requested from you to enable a proper appreciation of the nation’s economic outlook.

    “(B) The response to this query was further referred to the Financial Reporting Council of Nigeria.

    “The review by the council, rather than allay the fears of government, further confirmed concern bout the untidy manner in which you have generally conducted the operations of the CBN.

     

    “Some of the salient observations arising from the review are;

     

    “(A) in a most ironical manner, it has become obvious that the CBN is not able to prepare its financial statements using applicable International Financial Reporting Standards (IFFS) whereas Deposit Money Banks that the CBN is supervising have complied with this national requirement since 2012.

    “Undoubtedly, this laxity on the part of our apex bank, apart from calling to question its capacity for proper corporate governance, is capable of sending wrong signals to both domestic and international investors on the state of the Nigerian economy.

    “(B) The provisions of the Memorandum of Understanding (MOU) signed by the CBN and other Deposit Money Banks on Banking Resolution Sinking Fund have been breached in a material manner. For example, a Board of Trustees (BOT) to manage the Fund has not been constituted since 2010 when it was established. The CBN has however continued to utilise the Fund for certain operations without approval of the said BOT.

    “(C) Contrary to section 34 (b) of the CBN Act 2007 which provides that the CBN shall not, except as provided in Section 31 of the Act, inter alia, purchase the shares of any corporation of company, unless an entity set up by the approval or authority of the Federal Government,m CBN in 2010, acquired 7% shares of International Islamic Management Corporation of Malaysia to the tune of N0.743 billion. This transaction was neither brought to Mr. President’s attention nor was a board approval obtained before it was entered into.

    “(D) The CBN has failed or refused to implement the provisions of the Personal Income Tax (Amendment) Act 2007. Accordingly the Pay-As-You-Earn (PAYE) deductions of its staff are still being computed in accordance with the defunct Personal Income Tax Act 2004, thus effectively assisting its staff to evade tax despite the generous wage package in the CBN, relative to other sectors of the economy.

    “(E) The CBN had an additional brought forward to General Reserve Fund of N16.031 billion in 2012 but proceeded on a boy age of indefensible expenses in 2012 characterised by inexplicable increases in some heads of expenditure during the year. Examples include:

     

    “1. The bank spent N3.086 billion on “promotional activities” in 2012 (up from N1.084 billion in 2011). The bank spent this sum even when it is not in competition with any other institution in Nigeria;

    “2. The CBN claimed to have expended N20.202 billion on ‘Legal and Professional Fees’ in 2011 beyond all reasonable standards of prudence and accountability;

    “3. Between expenses on ‘Private Guards’ and ‘Lunch for Policemen’, the CBN claimed to have spent N1.257 billion in 2012;

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

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

    “6. It is significant to note that the external audit revealed balances of sundry foreign currencies without physical stock of foreign currencies in the CBN Head Office.

     

    “Questionable write-off of N40 billion loans of a bank

     

    “The above issues are only a few of the infractions highlighted by the review and which point to the gross incompetence and recklessness which characterised the operations of the CBN in the period under review.”

    “The CBN also claimed that it paid Air Charter, such as paid to Emirate Airline (N0.511 billion), Wing Airline (N0.425 billion) and Associated Airline (N1.025 billion) to distribute currency by air nationwide. Emirate Airline does not fly local charter in Nigeria, Wing Airline is not registered with Nigeria Civil Aviation Authority and Associated Airline does not have a billion turnover for 2011 because upon enquiry, the management claimed that they have no financial statements and have not had any significant operations for the past two years that will warrant preparation of financial statements.

    “There are also breakdown such as “Currency Issue Expenses” of N1.158 billion and Sundry Currency charges of N1.678 billion under “Currency Issue Expenses.” As they are in 2011 so are similar expenses in 2012. These are difficult to understand.

     

    “Other areas of fraudulent activities include

    1. Facility Management N7.034 billion in 2012 (N5.751 billion in 2011.

    2. Foreign Bank accounts that have been closed offshore were still operational in the General Ledger for over six months after they have been confirmed as closed accounts by the offshore banks.

    3. The “Know Your Customer” policy is not properly followed by the CBN to the extent that the CBN has unknown customer with account balance of N1.423 billion since 2008. The CBN claim that they are taking steps to obtain the required details regarding the address of the customer.

     

    “Wastefulness

    Training and travel expenses N9.24 billion in 2012 up from N7.65 billion in 2011.

    Expenses on “ATM offsite policy change” came to N1.045 billion.

    Expenses on “Non Interest Banking” N1.359 billion in 2012 up from N0.977billion in 2011.

    The CBN is still very heavy on expenses on “Project Eagles” spending N0.606 billion in 2012 up from N63million in 2011.

    Expense on newspapers, books and periodicals (excluding CBN’s publications) is N1.678 billion in 2012 up from N1.670 billion in 2011,”

     

  • Sanusi rejects allegation of financial recklessness

    Sanusi rejects allegation of financial recklessness

    Suspended Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi rejected last night allegations of financial recklessness levelled against him by the government.

    He told CNBC Africa: “Well, I don’t know what they are talking about. … When I come back, I’ll see what those allegations are”.

    According to him, the Financial Reporting Council looked through the banks’ audited accounts some time ago and asked a few questions which were sent to the President. However, he said there was no feedback.

    “I don’t think there’s any issue that’s been raised that has not been raised before, but you know we all know what this is about. This is about the consequences for the changes that I have made and this is something that is long overdue. I’m surprised it took them so long,” he explained.

    Sanusi was appointed as the governor of the central bank in 2009 and has since led some significant changes in Nigeria’s financial sector. In August 2009, he led the CBN to save eight banks found to have failed the ‘stress test’

    “Basically, my biggest concern is for the system and I hope that the Nigerian economy will not be hurt by this. I also hope the integrity of the central bank will be protected … I’ve been fortunate to have had an opportunity to do some good work on the bank on stability. I would not want to see all of that unravelled and no individual is worth it,” he said.

    Late last year, he wrote to President Goodluck Jonathan alleging the state owned Nigerian National Petroleum Corporation (NNPC) had retained almost $50 billion in revenue that was due to the government. On February 4, he told the senate finance committee that about 20 billion dollars was still outstanding.

    “You can suspend an individual but you can’t suspend the truth. If this is all about the concerns around oil revenues in the oil sector, if this is going to bring back the $20 billion then, that is fine,” he added.

    Sanusi believes that his legacy of low inflation, stable exchange rate, a reformed and well governed banking system, of robust reserves, financial inclusion and of an independent central bank will be remembered and that it will be recorded in history.

    “Like I said, I have no regrets, I have no ill-feelings, with no sadness, I’m happy. I’m proud of what I have done,” he added.

    Also speaking on Channels Television last night, Sanusi alleged that the Nigeria National Petroleum Corporation (NNPC) accounts have not been audited since 2005.

    He said the CBN account has been audited till 2013. He dismissed allegations of financial recklessness leveled against him, wondering whether building structures in schools and universities, amounted to financial recklessness.

  • How the plot to suspend Sanusi was hatched

    How the plot to suspend Sanusi was hatched

    The plot to suspend Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi, was to be carried out last week through the Senate, it was learnt yesterday.

    The Presidency opted to suspend Sanusi before the expiration of his tenure to pay him back for the alleged leakage of a letter to the President on the ‘missing’ $20billion oil cash, The Nation was told.

    There were indications last night that Sanusi, who flew into Lagos from Niamey, Niger Republic, had interaction with security agents before moving into a private home in Ikoyi.

    Investigation by our correspondent revealed that based on a report of the Financial Reporting Council (FRC), the Presidency lobbied some of its loyalists to raise the matter on the floor of the Senate on alleged spending of N250billion without appropriation by the CBN under Sanusi.

    It was gathered that a motion to that effect was already set for presentation by the Chairman of the Senate Committee on Rules and Business, Senator Ita Enang.

    But, sensing the mood of the Senate and the likely resistance by Northern senators, the anti-Sanusi plotters shelved it.

    A source, who spoke in confidence, said: “The Order Paper initially prepared for the Senate was to prevail on senators to look into how the CBN under Sanusi spent N250billion without appropriation.

    “They alleged that the report cited the donation of over N100billion to charity on behalf of the CBN without any legal basis.

    “Some extracts of the report of the Financial Reporting Council (FRC) were already included in the Order Paper for Senators’ consideration but it was obvious that the agenda against Sanusi could not fly. The anti-Sanusi plotters had to shelve it.

    “Their plan was to use the Senate as a springboard to deal with Sanusi. If the Senate’s enlistment had scaled through, the President would have opted for removal of the CBN Governor than suspension.”

    It was gathered that the roadblock in the Senate led to a series of consultations of relevant statutes, especially the CBN Act, on whether the President could suspend Sanusi or not.

    Another source said: “After seeking legal advice, a decision was arrived at to suspend Sanusi – in line with Section 11(c) of the CBN Act, which gives room for latitude on the part of the President.

    “The section says: ‘A person shall not remain a Governor or Deputy Governor or Director of the Bank if … he is guilty of a serious misconduct in relation to his duties under this Act.’

    “They knew that the said section is elastic or subject to interpretations. They also realised that Sanusi might go to court to seek redress; the ultimate goal is to get him out of the system first.

    “They decided to use the report of the Financial Reporting Council (FRC) to level allegations of misconduct against Sanusi.

    “What the plotters designed was what they called a ‘Justice Isa Ayo Salami’s treatment’. The plot is that once Sanusi is temporarily eased out of office, he will be in a weaker position to fight the government.

    “The plotters also took notice of the slow pace of the wheel of justice in the country which may not let Sanusi get justice till June when his tenure would have expired. Even if the court hears Sanusi’s application, it would have been overtaken by event.”

    Investigation also confirmed that following interventions of some well-meaning Nigerians, including business mogul Aliko Dangote and traditional rulers from the North, President Jonathan had initially accepted to tolerate Sanusi till the completion of his tenure.

    But it was learnt that some forces in government made the President to realise that if Sanusi goes away with his “larger-than-life image”, it might set a bad precedent that a public officer could be bigger than the President.

    Another source added: “There was so much pressure from forces in government and a few strategists and associates of the President that Sanusi should not go normally.

    “The forces alleged that Sanusi did not keep to the terms of a gentleman agreement he reached with the President to keep a low profile till he leaves office.

    “A major twist was the olive branch given to Sanusi to either resign or proceed on pre-retirement leave, which he rejected.

    “So, the pro-Jonathan forces saw Sanusi as confronting the Presidency and decided that enough was enough.”

    The sources spoke also of “security reports which they claimed persistently indicated that Sanusi had a hidden motive against the government even when the CBN governor said he acted in national interest.

    “Sanusi, the government was said to have been told, was in league with the opposition because his thoughts on the state of the economy were in sync with the opposition’s”.

    Responding to a question, the source added: “At a stage, the Presidency plotted a crisis within the CBN Board but it failed because of Sanusi’s full control of the situation.”

    It was revealed that the President made up his mind on Sanusi’s suspension at a session with his kitchen cabinet on Tuesday night.

    The source said: “When the President made up his mind with members of the kitchen cabinet on Tuesday, the FRC report, legal advice, and consultations with some prominent people were considered.

    “The President reportedly did not warm up to Sanusi when he visited Kano last Saturday. Besides, there were insinuations last night that Jonathan might have consulted the Emir of Kano, Alhaji Ado Bayero, on his plan to suspend Sanusi whom he claimed was taking the government for granted.

    “The next stage was the monitoring of the movement of Sanusi. When it was confirmed that he was off to Niger Republic, the Presidency decided to play a ‘fast one’ on him, with all security agencies put on the alert that he should not be allowed back to his office.”

    It was learnt that upon hearing of his suspension in the thick of a meeting of CBN Governors in West Africa, Sanusi, who was unruffled, decided to return to Nigeria.

    “I think following intelligence report, he offered to fly to Lagos instead of Abuja for strategic reasons.”

    It was gathered that Sanusi’s passport was seized, but this could not be confirmed last night.