Tag: treasury

  • Are most of us treasury looters?

    Though out of character, but let me start with a confession. I have literally had to drag myself to my office on a sunny Sunday afternoon to do what I consider an important duty to Nigeria. The matters are so weighty that a lot more people should devote a little more time to what touches us all. The unfortunate fact is most of us keep silent and so it continues to be business as usual. When future generations accuse our generation of complicity by not doing anything when Nigeria veered off tangent and descended to unfathomable levels of depravity and corruption, how shall we like to be judged?

    Maina is the symptom, the disease is cancerous corruption. The revelations he has made are mind-boggling as they are revolting. These taken in conjunction with the other EFCC, ICPC recoveries will convince any sceptics that the devil is indeed at work but a superior God has prevented the total collapse of Nigeria.

    A Nigerian proverb says that anyone selling eggs must not start a fight in the market place. A fight has been started in the Nigerian market place and the destruction has to be volcanic and catastrophic. This nation continues to be raped daily as I had earlier highlighted in an earlier contribution.

    Anyone who bothers to flick unto any of our local TV channels or indeed radio stations will see all manner of self-righteous apostles pouring invectives on those they describe as treasury looters. Treasury looting has become a phrase of infamy in the Nigerian lexicon. Whenever I see these ministrations and holier- than- thou abuses, I always pull back a little and ask myself who are these people with boldness to cast the first stone?

    As a person who has devoted the greater part of my life to the pursuit of truth through scientific research in some of the best institutions in the world working with some of the best people in my field of biochemistry, silence in the midst of disorder is not an option. I wish a lot more people will speak up in defence of truth. However, I am very cautious and circumspect before condemning anyone.

    The war on corruption was derailed and truncated long ago when it became selective in its execution. It is common knowledge that the antidote to a visit by EFCC or DSS is an APC party card. A number of those named to have benefitted from Colonel Dasuki’s largesse conveniently and quickly bought this pill. How sad. Pursuit of truth tells us that corruption is neither APC nor PDP therefore the executioners must wear a blind fold. We are not addressing small petty thieves.

    For us to seriously reduce corruption because no nation has yet eliminated it, we must all return to the path of rectitude on an individual level. It has to be a MORAL REBIRTH and it has to be committed and total. What do I mean?

    For us to be serious about corruption and return to the path of rectitude it is important that all of us who have served in any of following make individual and personal due diligence analysis of the various stages of our lives. The areas that need participation are POLITICS, MILITARY, POLICE, CIVIL SERVICE, JUDICIARY, ALL SECTORS OF PUBLIC SERVICE including CUSTOMS, IMMIGRATION, CIVIL DEFENCE, CLERGY, ACADEMIA, PRESS. Nigerians must with a fine comb go through the various stages of their lives and at the end return those ‘’ UNEXPLAINED WEALTH’’ to the COMMON TILL. Those who fail to do this will be subjected to further investigation by the anti-graft agencies.

    Fellow Nigerians, it is not beyond belief that people who retired on grade level 16 or even permanent secretaries have housing estates and hotels worth billions of naira. Governors and legislators flaunt and wallow in obscene wealth in a country where the daily wage is less than one U.S. dollar. This is because Nigerians are docile up to the point of stupor. It is public knowledge that some former governors own hotels whose value can only be calculated in billions of U.S dollars.

    How many of us will plead not guilty to sexually harassing or even assaulting women employed in our departments? For those of us who are privileged to be university lecturers, can we all beat our chest truthfully and say we never traded grades for casual sleazy comforts? The list goes on and on and it is only after we have truthfully undertaken this purge of purification and done adequate MEA-CULPA that anyone dare call the other TREASURY LOOTER for most of us are guilty.

    Name calling alone will not move this nation forward.

    Mr. President, this nation voted you because the majority believed that you as a person are incorruptible. I say the same for the Vice President, Professor Yemi Osinbajo. To pretend to be ignorant of the stench enveloping your administration is amnesia. You still have time with TRUTH as your compass to steer the course and emblazon your name in immortality.

     

    • Dr. Mbadiwe is a former member, House of Representatives.
  • Shareholders vow to resist SEC’s treasury for unclaimed dividends

    Major retail shareholders’ groups yesterday rose against the plan by the Securities and Exchange Commission (SEC) to establish a Nigerian Capital Market Development Fund (NCMDF) to take custody of unclaimed dividends of 12 years and above.

    SEC in a circular sent to capital market stakeholders on Tuesday, had called for a consideration of a new rule that will set up the NCMDF which will take custody of all unclaimed dividends of 12 years and above.

    Under the extant laws, unclaimed dividends will remain available for collection by beneficiaries up till 12 years when they become statute-barred and subsequently return to the companies that paid the dividends.

    Shareholders’ leaders across the groups said they would resist the transfer of statute-barred unclaimed dividends to any NCMDF, describing the plan as a wrong move and a volte face from the recent campaign by SEC for the removal of the 12-year limit to enable shareholders and their beneficiaries be able to collect their dividends at any time.

    National coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said his group would mobilise shareholders to resist what he described as “very offensive” attempt to take their private monies.

    “I think it’s wrong, we will not agree and we will not allow that to happen,” Nwosu told The Nation.

    He said SEC and other regulators have sufficient funds and avenues to mobilise resources to perform their statutory roles of market development, noting that dividends belong to shareholders and the paying companies.

    Shareholders’ activist and one of the co-founders of Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo, said the plan would lead to corruption and discourage investors from the domestic market.

    According to him, SEC and other stakeholders should focus more on solving issues surrounding unclaimed dividend rather than looking for ways to start once again on how to acquire what does not belong to them under the guise of regulations.

    “Unclaimed dividends belong to shareholders who are the owners of companies and its going back to the companies after 12 years is legitimate. We respectfully call on the Federal Government to urgently call the regulatory agencies to order, before they add more damage to our already sick economy,” Olatokunbo said.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, however described the plan by SEC as a healthy development noting that the trust fund would discourage sharp practices around the unclaimed dividends.

    “The truth of the matter is that bulk of the unclaimed dividend that is more than 12 years belongs to people who are dead, multiple applicants who do not have bank account in their names, or small amounts of money that is not worth claiming. Someone that has not claimed his or her dividend in 12 years is unlikely to do so now. So, the Trust Fund should be established as this will discourage people from benefitting from the unclaimed dividend,” Umar said.

    According to him, with the anti-corruption stance of President Muhammadu Buhari’s government, and with the kind of integrity and transparency being exhibited by the current Director General of SEC, Mr Mounir Gwarzo, retails shareholders would support the establishment of the Fund this time around.

    In his remarks, coordinator, Constance Shareholders Association of Nigeria, Mallam Shehu Mikhail, said the existing rule on return of statute –barred dividends to companies should be retained.

    He criticized the plan by SEC for lack of details on benefits of such initiative to shareholders and the quoted companies.

  • NCC pays N70b into treasury

    NCC pays N70b into treasury

    The Nigerian Communications Commission (NCC), has remitted N70 billon into the Federation Account in the last one year.

    “This is in addition to the N30 billion paid by MTN Nigeria as a part payment of the N330billion fine slammed on it by the commission.

    Mr Yakubu Musa, Special Assistant on Media to the chief executive of the commission, stated this in a statement in Abuja yesterday.

    It also said the NCC won the European Award for Best Practices 2016.

    “ The ceremony, which held in Brussels, Belgium, was hosted by the European Society for Quality Research (ESQR), an affiliate of the European Union (EU).

    The statement added that no fewer than 63 countries participated in the award out of which the NCC won the European Award for Best Practices 2016.

    It said that the award, which was in the Gold category, was in recognition of its outstanding commitment, support and results in quality management strategies.

    It said Prof. Umar Danbatta, the Executive Vice-Chairman of the commission, will address a Retreat on Revenue Generation scheduled to hold from July 13 to 15 in Kano State.

    Danbatta, a Professor of Telecommunications Engineering, is also expected to share NCC’s experience with the participants.

  • How to curb delay in trial of treasury ‘looters’, by experts

    •Continued from last week

    The Chairman of the Presidential Advisory Committee Against Corruption (PACAC), Prof Itse Sagay, (SAN), said some professionals, particularly lawyers and judges, have been frustrating the efforts to curb acts of corruption.

    Deploring the delay tactics by some professionals, Sagay said the Federal Government was looking at how to bring those who aid fraudulent and corrupt acts to justice. He said the workshop on the role of professionals in the anti-corruption fight, was to seek the support of professional bodies and awaken them to their responsibilities in the crusade.

     

    How to ensure success

    Experts say there are ways to curb the delay being experienced in the trial of the rich and mighty in the society, especially, those who have allegedly plundered the commonwealth.

    They have suggested that one of the sure ways of reducing delay in the conduct of criminal proceedings is to engage competent judges and lawyers, who understand the law and are guided solely by the need to ensure justice.

    According to them, where a judge is competent and understands the law and rules of procedure, such a judge will not fall for the tactics of lawyers, who seek to delay proceedings. A judge with firm control of the court knows when to call a lawyer to order.

    Dr. Ahmed Abubakar of the Centre for Public Accountability (CPA) urged the court to always be guided by the fundamental constitutional requirement provided for in Section 36 (1) of the 1999 Constitution that every litigant shall be entitled to a fair hearing within a reasonable time by a court or other tribunal established by law.

    Abubakar said: “The importance of prompt dispensation of justice cannot be over emphasised. A judge must therefore ensure that everything is done to give effect to this all important provision of the Constitution. It is axiomatic that justice delayed is justice denied.

    “This saying is of utmost relevance in Nigeria, having regard to the general social, political and economic trends which could have far- reaching effect on the outcome of litigation. A judge should therefore accord priority attention to prompt dispensation of justice,” he said.

    He argued that judges should be guided by the realisation that by stealing the funds set aside for job creation, corrupt politically-exposed persons are responsible for the majority of armed robbery and kidnapping being committed by unemployed youths.

    His words: “By stealing the fund earmarked for building hospitals and roads, the looters are responsible for many avoidable deaths and the spread of dangerous diseases. By cornering the funds provided for building schools, the looters are responsible for promoting illiteracy and ignorance in the society.

    “The public officers who diverted ecological funds of billions of naira to buy choice properties in foreign countries are responsible for the flood that has caused tragic death of people, displacement of others and the destruction of the properties of the victims.

    “In societies where the rule of law operates, criminal suspects who are liable for such crimes against humanity cannot hide under human rights to avoid prosecution.”

    There is also the argument that lawyers, who, deliberately subvert the course of justice by frustrating the prosecution of his client, or aid his client to escape justice, should be penalized. By so doing, lawyers will know that much as they have a right to earn their fees, they are not entitled to clogging the criminal justice system and denying victims and the society the justice they deserve.

    Rights activist Femi Falana (SAN) suggested many ways of dealing with delays in the on-going trials of alleged looters of public treasury.

    He suggested among others, the establishment of special court for corruption, to be manned by men and women of proven integrity; trial of military looters by military courts (to decongest the regular courts and enhance speed), denial of automatic bail to people charged with corruption, among others.

    In a paper titled: “Why Nigeria urgently needs a special anti-corruption Court,” Falana argued that the little success recorded by the EFCC between 2003 and 2007 in the prosecution of some politicians and public office holders was because the defendants were denied bail by the court, acting under the provision of Section 40 of the EFCC Act.

    He argued that the judicial policy of denying bail to politically-exposed persons had contributed to the speedy hearing of corruption cases in the past until it was jettisoned by the court in the case of former Delta State Governor James Ibori.

    Falana contended that there is no legal justification for asking the EFCC to handle cases of military officers, who have committed war-related crimes and treasonable offences.

    He added that since the indicted military officers are subject to service law, they should be referred to the military police for urgent investigation and prosecution before convening special or general courts-martial by the relevant military authorities in line with the provisions of the Armed Forces Act, Cap 20, Laws of the Federation of Nigeria.

    Falana said: “It is my submission that the military officers who diverted billions of dollars and naira earmarked for the procurement of arms and armament are liable to be charged with the serious offences of aiding the enemy, mutiny by impeding or sabotaging the counter insurgency operations, and stealing in contravention of Sections 45, 52 and 66 of the Armed Forces Act.

    “Thus, by diverting the funds, the indicted military officers aided the terrorists in the brutal killing of unarmed civilians and poorly equipped soldiers. Although retired military officers cannot be subjected to trial after three months of retirement, the limitation does not apply to mutiny by virtue of Section 169 (2) of the AFA.

    “The proposed trial before military courts will meet the justice of the case and the expectations of the public. More so, that the rules of procedure applicable in courts-martial have no room for frivolous adjournments, motions for bail, interlocutory appeals, stay of proceedings and interim or perpetual injunctions.”

    Also speaking at a workshop organised by the Nigerian Bar Association (NBA) on “The state of the nation,” Adeniyi Akintola, (SAN), toed Falana’s line of argument.

    He contended that it was out of laziness and lack of coordination that the military authorities and the AGF have decided to saddle the EFCC with the responsibility of prosecuting military personnel, both serving and retired, implicated in the Dasuki-gate in the regular courts.

    According to him, the trial of indicted military personnel by military courts will not only be cheaper, but it will be faster and legitimate.

  • Mixed reactions trail decision to avoid plea-bargain with treasury looters

    Mixed reactions trail decision to avoid plea-bargain with treasury looters

    Lawyers yesterday expressed mixed feelings  at the Federal Government’s decision not to consider plea-bargain being contemplated by treasury looters and their cronies.

    Attorney General of the Federation Mallam Abubakar Malami had declared that the Federal Government was more interested in recovering  public funds stolen by top politicians and their cronies under the guise of arms purchase.

    The government said such plea-bargain only allowed looters to go away with stolen public assets.

    Speaking with NAN in Abuja, a lawyer, Mr Silas Onu, said government’s stand was in order because plea-bargain was unconstitutional.

    “Plea-bargain is not in Nigerian laws and so the refusal of the government to subscribe to it is not misplaced; government is strictly following the laws.

    “If you remember, the former Chief Justice of the Federation, Justice Dahiru Musdapher, spoke about the illegality of plea-bargain.

    “EFCC just invented a legal proceeding that is not known to our laws; and the way we even apply it in Nigeria is not as it should be.

    “Plea-bargain has been used in Nigeria as pardon for criminality; but plea-bargain shouldn’t be like that.

    “It should be as is operated in America, where it  earns you a reduction in punishment; it shouldn’t set you free,’’ Onu said.

    But Mrs Uche Asiobi, a lawyer, stated that plea-bargain should be considered if it would be to the benefit of the public.

    “I think sometimes you have to lose something to win something.

    “I agree that it is hard, particularly when you are thinking of the economy and what has happened.

    “You will think that these people should pay the full penalty, but if you take that angle, you might not get the full justice you require.

    “So, if you realise that you will gain more through plea-bargain, it is better to apply it and recover more funds.

    “Remember that even with plea-bargain the reputation of these people is already tarnished.

    “So, plea-bargain should be used if the public will benefit from it instead of just one individual pocketing the loot,’’ Asiobi said.

    Another lawyer, Ms Grace Ehusani, thinks that although the Federal Government would prefer to uphold justice, applying plea-bargain would encourage more treasury looters to confess.

    “When you provide an opportunity for people to confess and admit to their crimes knowing that because they confessed, the punishment will be lighter, they will be more willing to come to an agreement with the government,’’ she said.

  • ‘Plateau treasury looters ‘ll not escape justice’

    ‘Plateau treasury looters ‘ll not escape justice’

    Governor Simon Lalong of Plateau State has reiterated the determination of his administration to recover the resources looted by officials of the immediate past government.

    Lalong said he will use all legal means and due process in recovering the funds.

    The governor spoke in Jos at his investiture as the “Change Pathfinder Governor of the Year 2015” by the Plateau State Social Media community held at the Hill Station Hotel conference hall.

    Lalong, who was represented by the Commissioner of Special Duties , Hon Hitler Dadi, said: “The APC administration in the state is on rescue mission and we shall ensure we rescue state resources in the hands of individuals and return same to government for the benefit of all.”

    The governor promised to partner with the conventional media and social media in sensitizing citizens to the policy thrust of his administration.

    Lalong said: “On resumption of office, I en joined both the traditional and social mass media to join hands with us to expand the frontiers of development in our dear state and pledged that government would continue to cooperate with you at all times and this I would continue to do

    “Government is not unaware of the fact that the social media platform which, according to the Nigerian communications Commission, NCC today commands an impressive figure of one hundred and forty million users , is without doubt , a very veritable and viable platform for multi faceted forms of online media interaction among the citizenry, especially the youths, which cannot be taken for granted.

  • ‘I’ll not spare treasury looters’

    ‘I’ll not spare treasury looters’

    Benue State Governor Samuel Ortom spoke with reporters in Markudi, the state capital, on his achievement, the state’s amnesty programme, the bailout controversy and other issues. Correspondent Uja Emmanuel reports.

    What are the achievements of your administration in the last six months?

    I give glory to the Almighty God for where we are today. When I came in as governor of Benue State, I knew that we had a lot of challenges. The first thing I noticed was that the state was under siege and it was very disturbing. The state was insecure; people were being killed indiscriminately, people were being robbed, people were being kidnapped and I saw it as a very disturbing development. I decided, right from the day of my swearing-in, from 29th of May,  that the first thing that I had to do was to secure the state. I thought it wise, after due consultation with the Federal Government, I granted amnesty to all those youths who were having arms illegally. As a politician, I knew what transpired during elections. Our youths were armed to prosecute the election. Fortunately, because of the overwhelming support which I had from the Benue people, they were not able to execute their plans through violence, moreso that I refused to be part of any violent acts against the people of the state. The amnesty program yielded positive results. We succeeded in receiving over 400 different types of sophisticated weapons from these youths, more than 700 than of these youths came together  and surrendered to the amnesty. We just held a retreat for them and we are going to encourage them to go back to school while some will go back to vocation training schemes to acquire skills. Some will be incorporated into government security strategy as part of intelligence gathering so that we can secure the state further. We are excited that this has yielded positive result. They gave me their word that they will not go back to their old ways. That was one major achievement. The intention of government to ensure that the state is industrialised, to ensure the introduction of schemes that will promote micro, small, and medium enterprises, in ensuring that we attract investment into the state and to ensure that we encourage trading and commercial activities in the state cannot be realised without adequate security. Having confronted the challenge headlong, today we have been making contacts all over the world and several investors are flowing into the state with the intention of investing.

    What are other challenges?

    The other challenge was that I met a deficit treasury and it was worrisome because of debts. Well, government is a continuous process. So, we had to take up from there. After due consultations with stakeholders and the House of Assembly, we chose to borrow N10 billion to pay salaries and take on very critical responsibilities that needed urgent attention, that we did. We were able to dialogue with unions at the Benue State University (BSU), that was on strike and they accepted our commitment to them and they resumed and today our students are back to school and several of them have graduated.

    The other problem we had, which affected the entire state was the medical students from BSU. Since the inception of the College of Health Science about 12 years ago, they could not graduate due to non- accreditation of the school. This was one issue that we gave attention and brought in the management who put all the challenges together and we took it up and paid all the requirements that were needed to get the accreditation. We invited the Medical and Dental Council of Nigeria to come to Benue and the accreditation was done. Today, Benue State University has successfully graduated the first set of medical doctors in Benue, 27 of them. They are already doing their housemanship in BSU Teaching Hospital. There too, we needed to upgrade some facilities which we did and our students are doing their housemanship there in the Teaching Hospital.

    We had issues of pension arrears, salary arrears and all that. What we decided to, out of the N10 billion, we started paying arrears form May because we resumed on May 29 and so when we secured this N10 billion we started paying the arrears. Since then, for pensions we have not reneged, we have been paying pensions because most of the pensioners live on drugs. Pension at the state level alone is N394 million. At the local government level, it is N117 million every month. We have been paying because these are our mothers and fathers, we are not toying with them.

    The other issue was the school of Nursing and Midwifery in Makurdi. That is one institution whose graduates are working all over the world in Europe, America, Asia,etc. It is the only school that on graduation, appointment letters are waiting for you. We discovered that for the past three years, no administration was done because the accreditation had been withdrawn. When we came in we said we cannot allow this to continue in Benue State and so we swung into action and today if you go there, there is massive construction and renovation going on and we have set aside funds to ensure that we provide the equipment that are needed and as soon as the renovation is finished, we are going to invite the Council to come and re-accreditate the school and then our children will take off again.

    A lot of fraudulent activities were perpetrated by certain political leaders and civil servants. The payment is being coordinated because we have introduced a new system of payment, it’s e-payment. This will eliminate the issue of ghost workers and stop some of the indiscriminate recruitments that were making the salary wage bill to be very high. At the local government level today, teachers and other staff have a salary bill of N3.5 billion. At the state level when you put pensions, when you put overheads, when you put together salaries, salary is about N3 billion today, pension N394 million with overhead put together is over N4 billion. Last month which is October, the total money that we got at the local government level was N2 billion  with a deficit of over N1.5 billion. At the state level, total monies that we got was also N2 billion and so we had a deficit of N2 billion.

    But these are issues that we are discussing, we are transparent, nothing is hidden about us. I have said that the issue of bailout at the local government level is still having some outstanding and so it requires some clarification. We have set up a committee headed by the deputy governor and they are receiving complaints and dealing with them as they come. One thing is that I have seen several insinuations and blackmail from the opposition who are still dreaming that we are not transparent and that money have been moved here and there. No single kobo has been diverted. We promised the people that we will have zero tolerance for corruption and as far as we are concerned, all the resources meant for bailout are available and people can cross-check their facts. I have said that if you see that I am doing anything to short-change the state or any person working under me, blow the wistle. It is not their right to accuse people that they have diverted N3 billion, that they have diverted so many millions and so on. Bring those facts, we are ready to deal with anybody under this government including myself. If you have facts and figures, bring them out so that we can appreciate what you are saying.

    The issue of fighting corruption should not be limited to government circles alone. It should be total, the whole society should be involved. When you notice anything, it is your duty to bring it out, but bring facts and figures. If not people can go to court against you for telling lies. So we are very transparent and accountable. We still believe that anyone who is sincere to adding value to the development of the state should be frank and should work hard to support this government.

    We have also constituted the Benue State Internal Revenue Service board because this is one area that we need to look inwards. Today the oil prices have fallen, before we came in oil was sold for about $140, today it’s sold for $38, so it means we must look inwards and looking inwards is internally generated revenue. I have constituted the board. Very soon, we will come out with revenue blueprint that will help them.

    My government has zero tolerance for corruption. We are fighting hard and one other thing that I must mention is the setting up of the two panels. One, a judicial panel to verify the income and  expenditure from 2007 to 2015. This is a fact finding panel, it is meant to give us a picture of what transpired. As at today, we are still verifying certain debts that the state is owing.

    When we came in initially, we were given figures by the Ministry of Finance that we had a debt burden including salary arrears, pensions and gratuities and contractual obligations and so on to the tune of N90 billion. We set up a transition committee that was supposed to collaborate with the past government but the government later withdrew and so when we came in we told them to go ahead and verify some of these facts. They came up with a figure of over a N130 billion of commitments. Then arrears of gratuities and pensions put together amounted to N169 billion. Up to today, we are still verifying because people are still bringing up some government commitments and so on. This panel is meant to bring out facts because as Christians, we do not intend to witchhunt or blacklist anyone. So the panel is meant for people to go there and exonerate themselves but when you have issues you have to go there and respond to them and if possible apologise to the people of the state and make restitution. We are willing to forgive like we granted amnesty. Where you took government money wrongly, you must bring it back, there is no doubt about that. For people who say we have skeletons in our cupboard, don’t just say that, bring facts and figures. We are ready to face the people of Benue State who gave us their mandate popularly. We did not get it through the barrel of the gun or through intimidation and we are not intimidating anyone. Issues that concern me as a person I’ve forgiven all who worked against me; those who wanted to stop me, those who did all sorts of things against me I’ve forgiven them. But when it comes to the commonwealth of the people, I’m not willing to compromise.

    I want our people to know this because at the end of the day, once I get facts from these panels because it’s giving opportunity to those mentioned to come and clarify issues. Once I get this report, it is then that I can go to EFCC, ICPC or I can initiate independent prosecution against those who have taken government money.

    The second panel is about verification of government assets. There are several government assets in Abuja, Lagos, Kaduna and even in Benue Sate and  there are no records. We felt that government should have records of its own assets and that is why we constituted that panel and they are working. The former governor took us to court to stop these from operation but the court said we were right by setting up those panels and so their work is going on and I’m satisfied with what they’re doing. As soon as the reports are ready, I’ll show Benue people that this is where we are. We can decide on what to do next. I want to appreciate God for these six months, I know that the challenges are there.

    Are you saying the Benue State government has no hand in the recent arraignment of the former governor by the EFCC ?

    We have no hand in it. It’s very clear, he is being prosecuted for the N3.1 or N3.2 billion that was paid into a private account of a private Bureau De Change businessman who converted it to $15 million and gave him. We have not taken on any person, whatsoever, in the past government until we have the report of the judicial panel that we have set to verify these facts, because we do not want to witchhunt anyone or blackmail anyone for whatsoever reason, so we want facts. That is why I’m insisting that those whose names  have been mentioned should try and clarify this matter at the judicial panel because whatsoever they give us at the end of the day, those facts will be there and if we ask you to make refunds and you do not, we can now prosecute you.

    There are rumours that the bailout funds have pension money inside. Can you clarify that?

    This was a clear way of the opposition trying to distract government because the records are there. In the presentation that we gave to the Federal Government, initially it was the entire debt profile outside contractual agreements and projects. We presented a total request of N69 billion which comprised pensions, gratuities and also salary arrears for both state and local governments but the Federal government now said they had some limitations, so they granted N12.5 billion for the state to pay salary arrears and they granted N15.5 billion for local governments. When I say local government I’m talking of the teachers and other local government staff. That is what we have. There were no pension arrears that was on this but initially the detractors of this government went to say that we have collected the pension money. The pensioners also came and I took time to explain to them and they were satisfied. They prayed that God should bless me but that I should take their message to the President which I did and the President promised that he will look at it because he is a pensioner like them. He said he will look at their plight, he appreciated them and this is what we are working on and I’m sure if there is a way we will work that out.

  • Fears about Treasury Single Account

    SIR: The implementation of the Treasury Single Account (SA) by the current administration has generated a lot of worries and anxiety. The spectre of job losses and freeze of the credit markets are some of the worries anticipated by this implementation.

    The fact that it is a constitutional requirement observed in the breach says a lot about us as a nation. We failed to do the right thing for 16 years.

    We have been regaled with tales of diversion of funds meant for various purposes running into millions, billions and occasionally, trillions. Many have become desensitized to such figures and now see stealing in millions as no big deal.

    The TSA tries to solve that by being a one stop point for payment of government revenue accruing to various agencies such as NNPC, Customs, NPA, FAAN etc. This would usher in a new dispensation of transparency as government agencies would not have the discretion to spend based on the whims of the officials. It would reduce incidence of diversion, looting and other forms of corruption, with the added advantage of higher revenue generated. There is the added benefit of reduced interest rate payments as the Federal Government can use the surpluses of one agency to fund the deficit of another, without recourse to the credit markets.

    The downside of the TSA is its effects on the financial sector. Former CBN Governor, now Emir of Kano Muhammadu Sanusi II once complained bitterly of a situation in which banks receive government funds at zero percent and lend same to government at 14%, an obvious moral hazard which leads to higher liquidity, higher inflation and interest rate, with negative effects for the economy. The TSA solves the first part of that complaint

    The worry about liquidity freeze by banks is overblown and might be withdrawal symptoms of free money. Total bank assets are estimated at N14 trillion with government funds at 10-15 % of that and a credit reserve ratio of 31 percent. The banks thus have N9.6 trillion to lend. If an estimated N2 trillion is transferred to TSA , usable assets not total N7.6 trillion, the gap is an obvious cause of liquidity crunch and difficulties, yet if the CBN reduces the Reserve ratio to 10% from 31 percent, an extra N2 trillion is made available for lending, negating the effects of the TSA. Thus worries of job losses, profit evaporation are overblown and can be solved at the next Monetary Policy Committee (MPC) meeting.

    But if such anxiety emanates from the absence of free money, then we need to return our banks to real banking, not the feeding bottle rent system currently being operated. Such profiteering is dangerous to our growth. Nigerian banks claim to be the best on the continent, have received numerous awards and some rank among the Top 1000 banks globally. Yet our bankers are worried by the absence of free government funds, which makes them looks suspect and overhyped.

    This brings us to the second part of Emir Sanusi’s complaint – lending at exorbitant rates. Nigerian banks average rates from CBN Data are 24% at best. With inflation at 9.3 percent, real interest rate average 15% for the private sector and six percent for the public sector, one of the highest in the world. This bonanza is the cause of the evils associated with “deposit mobilization”. The pro-slavery targets given to marketers are encouraged by a system of wealth without work nursed and mothered by successive CBN management through its treasury bills sales. That young people especially women are forced to do unsavory things is to satisfy the greed of a few can be traced to the policies emanating from CBN towers Abuja.

    Thus, if a marketer can source 100 million naira from a director of NIMASA, Deputy Comptroller of Customs, NNPC manager, the bank buys Treasury bills at 15% rates. The bank earns 15 million naira without work! This encourages use of unethical means such as kickbacks, corporate prostitution which leads to corruption and weaken the moral fabric of society.

    If the banks are complaining of liquidity crunch and a high probability of job losses, is there any need to continue selling treasury bills, which are said to be for excess liquidity management, unless of course the CBN is susceptible to the banks and benefits from the corruption and evils such policies create?

    It’s time to for a different way of doing things and a new beginning. It is time for change.

     

    • Nwachukwu Ugo,

    Lagos

     

  • Treasury looters and religious leaders

    SIR: Any country needs peace to develop.  Political upheavals and social disorders are precursors to underdevelopment and poverty.  But peace must be accompanied with justice. That is the reason most Nigerians welcomed the Peace Committee now named National Peace Council.  But some of the members are not patriots but just Nigerians in religious garb.

    Many of these religious leaders have been compromised by our erstwhile rulers. Unlike formidable clerics like Cardinal Olubunmi Okojie, Primate Abiodun Adetiloye, Bishop Gbonigi, formerly of Akure Anglican Diocese, most of our current faith leaders are just a pale different from the politicians who ran the country aground.

    Whatever the inducement and handshakes they had enjoyed in the past, it beats one’s imagination to observe that some members of the Peace Council, mostly religious leaders, give the impression that the current efforts to locate and repatriate Nigeria’s looted wealth is witch-hunting or selective efforts made in bad faith. They may be acting from a sense of guilt or loyalty to their erstwhile friends.  In point of fact, discerning Nigerians were amused at the number of times these religious figures found their way to Aso Rock in the last few years.

    With the open defence by these religious people of the past government, we now know why some of our problems in Nigeria are so fundamental.  One could see the anguish on the face of the chairman of that body, Gen. Abdulsalami, when Bishop Kukah and other sectarian members of the council were talking, that they were not on the same page.

    For example, Bishop Matthew Kukah both in speech and body language pleaded with Nigerians and the new government not to witch-hunt past leaders.  On the other hand, the Sultan was solid and unequivocal in his condemnation of the past stealing as he recommended seizure and recovery of loot and also prosecution of the shameless looters. The conclusion, therefore, is that in the last decade or so, this country has been plundered beyond reason.  To make a new start, we should look back a bit.

    The issue now is that this country must move forward.  And we can’t achieve that feat except we discontinue with the administration and financial manipulations that have been described as odious, although what has been unearthed is a tip of iceberg.  What do these religious people say of a public servant who owns 12 landed properties in Abuja? What do they say of fleeing Ministers, Directors, Chairmen and members of statutory bodies who have fled the country ahead of any investigation into their finances? Of course some of them are nominal pastors and priests and they have paid their dues to churches and their leaders.  But does that reflect the best interest of our country?

    Youth unemployment in Nigeria is perhaps the highest in Africa. The double tragedy here is that most of these unemployed youth are educated, which makes the situation potentially combustible and dangerous.  If the looming catastrophe can be avoided now, why don’t we do so?

    Most of the industries in urban areas are ghost institutions.  Those of them that still exist are operating at best at 25% capacity.   The looters of our treasury have multiple passports and many buildings and structures in choice capitals of the Middle East, Western Europe and the Americas.  The policy is he who knows how to steal must know how to escape.

    I think the least these religious people can do is to tell Nigerians that they are sorry for being chummy with the looters of Nigeria and proceed to appeal to today’s men to pinch less, if at all, than their predecessors.

     

    • Deji Fasuan, MON, JP,

    Ado-Ekiti, Ekiti State

     

     

  • Treasury Single Account

    Treasury Single Account

    •Buhari’s master-stroke against pervasive public sector sleaze?

    Although it came without the typical fuss or drama as would ordinarily be expected, it is nonetheless a potentially lethal dart at one of the major sources of corruption in the public sector. We refer to President Muhammadu Buhari’s directive to federal ministries, departments and agencies (MDAs) to open and operate a unified Treasury Single Account (TSA) for all government revenues, incomes and other receipts with the Central Bank of Nigeria (CBN).

    No government agency is left out of the loop: fully funded organs of government like ministries, departments and agencies (MDAs) and foreign missions are in; so also are the apex bank, Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Nigerian Ports Authority (NPA),  Nigerian Communications Commission (NCC), Federal Airport Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Deposit Insurance Corporation (NDIC) and the National Shippers Council (NSC).

    Also affected are the Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigerian Customs Service (NCS), and the Department of Petroleum Resources (DPR). Not left out are partially funded establishments like teaching hospitals, medical centres and federal tertiary institutions.  The rule applies to the extent that they maintain in the CBN, sub-accounts linked to TSA, which the accounting system would be configured to allow them access to funds, subject to their approved budgets.

    According to the president, the measure was aimed at promoting transparency; and ensuring compliance with sections 80 and 162 of the 1999 Constitution. We may well admit that the current exigencies under which revenues have plummeted across the board have made it imperative.

    It goes without saying that the extant fragmented system is fraught with too many abuses to lend to remedy. Under the extant regime, funds belonging to government are diverted to purposes other than for what they are meant; even the ordinary business of placing government funds in banks have become huge avenues for patronage and corruption across the board.  Add these to the huge expenditure outlays of some agencies and parastatals – many of which are known to dwarf those of many states in the federation – what we have is multiplicity of fiscal fiefdoms – all removed from the strictures of formal parliamentary control.

    We couldn’t therefore agree more with the president that the issues involved touch as much on the principles of transparent and accountable governance, as it is on the law of the republic. The law requires that all revenues be captured apriori; the same law grants the power to authorise all public expenditures to the parliament – through relevant appropriation laws. Nowhere does it admit of the practice under which agencies and parastatals could determine and spend what they pleased for whatever reasons, before remitting the balance.

    At this time, we do not deny that the effects of the TSA on the agencies would differ across the board – all depending on the nature of their operations.  Notable examples often cited are the NNPC and the FIRS.  On NNPC, the argument is that numerous activities and cash obligations of the corporation are such that the TSA would ill-serve them.  On FIRS, the argument dwells on the existing incentive structures, put in place to ensure optimal performance of the service.

    Still, we find none of these requirements incompatible with the operation of TSA.  Another way to look at the matter is to inquire whether these operational issues cannot be captured within the framework of the larger national budget; after all, the essence is to bring transparency into the conduct of government business.

    ‘The challenge really is to bring efficiency, sophistication and speed to the operation of the national budget. So, with the current state of technology, that should not be difficult to achieve’

    The challenge really is to bring efficiency, sophistication and speed to the operation of the national budget. So, with the current state of technology, that should not be difficult to achieve.