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Tag: whistle blowers

  • External auditors to serve as indirect whistle blowers

    EXTERNAL auditors can report offences to the authorities, even without communicating such to the audit committee, directors or any organ of a company, according to the Nigerian Code of Corporate Governance (NCCG) 2018.

    The NCCG, co-ordinated by the Financial Reporting Council of Nigeria (FRCN), and launched last week by Vice President Yemi Osinbajo, applies to companies, irrespective of sizes, industries and operations.

    The implementation of the Code will be monitored by regulators, registered exchanges as well as the FRCN.

    According to the NCCG, external auditors can make use of information obtained during the audit for whistle-blowing on any infraction by the company, staff members and management or directors.

    “Where external auditors discover or acquire information during an audit that leads them to believe that the company or anyone associated with it has committed an indictable offence under any law, they should report this to the regulator, whether or not such matter is or will be included in the Management Letter issued to the committee responsible for audit and or the Board,” the NCCG said.

    The provision moderates the client confidentiality contract between the external auditors and the client company and extends the possible scope of review of versatile auditors to laws.

    APT Securities & Funds Limited Managing Director, Mallam Kasimu Kurfi, said the new NCCG would enhance corporate governance and help to promote best practices in the economy, given its general applicability beyond highly regulated sectors such as financial sectors.

    Independent Shareholders Association of Nigeria (ISAN) Publicity Secretary, Mr. Moses Igbrude, said allowing external auditors to report other offences would expand the scope of review and change the previous narrative that restricts auditors to financial statements.

    According to him, while the applicability of such provision of the code may be affected by the loyalty of the external auditors to the board and management that appointed them, the provision consciously changes the narrative that allows auditors to be apathetic to other grave issues discovered in the course of audit.

    “It is good for the external auditors to do whistle blowing, if it is done in good conscience and the overall interest of the company and its shareholders,” Igbrude said.

    He, however, cautioned that regulatory authorities must treat such information with discretion in order to prevent unintended negative consequences on a company and fortunes of its shareholders.

    Under the code, external audit firms may be retained for no longer than 10 years. External audit firms disengaged after 10 years continuous service may not be considered for reappointment until seven years after their disengagement. Where an external auditor’s aggregate or cumulative tenure has already exceeded 10 years at the date of commencement of the Code, such auditor should cease to hold office as an auditor of the company at the Annual General Meeting to be held immediately after the code comes into effect.

    According to the code, in order to preserve independence, there should be a rotation of the audit engagement partner of the external audit firm every five years. Also, there should be an appropriate cooling off period, spanning at least, three years between the retirement of a partner from an audit firm and his appointment to the board of an audit client. There should be a cooling off period before a company can engage any member of the audit team as a staff member in the financial reporting function.

    The code stipulated that in order to ensure quality audit outcomes, the engagement partner and audit team should possess the knowledge, relevant skills and experience.

    “Additionally, they should demonstrate a good understanding of the company’s business, be independent of the company and approach their work with a high level of objectivity and professionalism, including applying internationally accepted audit standards in their work,” the code stated.

    The new code also empowers the board and the sectoral regulators to act as checks on the external auditors. According to the code, where the board is satisfied that the external auditor has abused its office, acted in a fraudulent manner, colluded in any fraud or engaged in any unethical practice, the NCCG empowers the board to recommend the removal of such external auditor in accordance with the provisions of extant laws.

    “Where a regulator is satisfied that the external auditor of a company has abused its office as auditor, it may request the company to remove such external auditor in line with the provisions of extant laws,” the NCCG stated.

    Osinbajo had hailed the NCCG as a big stride in Nigeria’s efforts to be a preferred investment destination, noting that the principle-based approach and the constructs in the code are consistent with government’s focus on making it easier to do business in Nigeria.

    “The implementation of the Nigerian Code of Corporate Governance 2018 is important and will promote corporate success and economic growth, lower cost of capital and perhaps, help to minimise wastage and corruption,” Osinbajo said.

    President, Association of Stockbroking Houses of Nigeria (ASHON), Chief Patrick Ezeagu, said while companies’ management may not necessarily be comfortable with such new provision, it will serve the overall interest of good corporate governance and resultant flow of investments into Nigeria.

     

     

    According to him, while implementation of provisions of the code

  • Ikoyi cash haul and controversial whistle-blowers

    Ikoyi cash haul and controversial whistle-blowers

    It testifies to the federal government’s slothfulness in the anti-corruption war, and particularly the whistle-blower policy, that the identity of the principal character that facilitated the unearthing of the cash hidden by the National Intelligence Agency (NIA) at an apartment in Ikoyi is now well known. He is Stephen Sunday, and he is angry, fumes at being maligned, and feels cheated and misused. It is, however, not only the government that is mistreating him, according to his angry complaint last week, even two lawyers are fighting over him in an unseemly, controversial way. The two lawyers are Yakubu Galadima and No Limit Legal Partners. As if the situation could not be much worse than it already is, the identity of Mr Sunday’s two other whistle-blowing collaborators have also been publicised. They are Bala Usman and Abdulmumin Musa.

    While Mr Galadima acknowledges the existence of three whistle-blowers, but was chary of disclosing the identity of the third, No Limits Legal Partners happily divulged the identities of all the three whistle-blowers. Both lawyers were pushed to going public because they suspected the government was trying to renege on its policy of paying five percent of the value of any stolen public funds to any whistle-blower who gives actionable intelligence to the authorities. As the lawyers go for broke, the whistle-blowers themselves have abandoned all sense of decorum and caution, unmindful of the consequences to their personal safety of being unmasked. Mr Sunday gives interviews and, according to some reports, even openly fought one of the whistle-blowers who advocated a different approach to getting the stashed NIA money.

    There is no evidence to show that the government is as organised and farsighted as it claims. If they were, they would not allow the situation to degenerate to the sordid level that has become evident, with the possibility of endangering a policy that is widely acclaimed as sensible, timely and rewarding. They would have taken advantage of the open brawl between two of the whistle-blowers to find out whether there is any truth in the allegation that one of them schemed for a burglary or armed robbery to criminally gain access to the cash. Instead, the government has cynically suggested that many more people were coming forward to lay claim to the five percent compensation. From all indications, the compensation may be delayed further.

    To demonstrate the government’s inability to implement the whistle-blowing policy faithfully, its range of reactions to the policy has been desultory and peevish. The Economic and Financial Crimes Commission (EFCC) openly celebrated the multi-millionaire status of the whistle-blower, asserting, apparently without substantiation, that Mr Sunday, whose name it did not disclose at the time, was already rich. This was the trigger that provoked all the brouhaha that later enveloped the payment imbroglio. In reaction, the lawyers to the whistle-blower insisted that his client(s) had not been paid, challenging the EFCC to give proof. To arrest the controversy, the Finance minister, Kemi Adeosun, explained that the payment was being processed, and listed a number of steps that had to be taken to ensure that the right amount and persons were paid.

    While that controversy was still raging, reports suggested that the sanity of the whistle-blower was also being questioned. And after crazily shuffling him between the EFCC and the Department of State Service (DSS), Mr Sunday was eventually dumped in a psychiatric hospital with no evidence of anything more than the hysteria he displayed when he noticed the refusal of the government to fulfil its obligations towards him. He is out of hospital now, and is still hysterical, insisting that he would not relent until he is paid. As expected, he no longer cares about his safety. Meanwhile, he and his lawyers acknowledge that there are two other claimants to the prize with whom he is willing to share the fortune.

    But to add fuel to the fire, head of the Presidential Advisory Committee Against Corruption (PACAC), Itse Sagay, justified the delay in paying the whistle-blowers with a logic the Finance ministry would find befuddling. Estimating the commission on the stashed cash to be some N850m, Prof Sagay suggested that Mr Sunday, whom he said had probably never seen one million naira in his life, could run mad should that huge sum be given to him. He supports and advocates payment in tranches, regardless of what the original whistle-blower policy might be. It may make economic sense to pay the whistle-blower in tranches, but if that is not contained in the policy, it would be wrong of the government to change the rules halfway into implementation. The government may wish to be sympathetic, and there is much to be said for that, and act with motherly care; but whether the beneficiary runs mad or not is really not the business of the government. They should pay him or them first, and only care later. Rules are rules, and the law is the law.

    The reluctance, if not outright refusal, of the government to promptly abide by its own rules has led to a lot of complications over the N13bn Ikoyi cash haul. Now there are at least three proven claimants to the huge commission and two legal outfits pursuing the same objective of forcing the government to redeem its pledge. Some even estimate that there could be many more claimants, with the list being elongated as time goes on. By allowing itself to be distracted, the government inadvertently opened itself to allegations of acting mala fide and even endangering the entire policy. It is a crying shame. While no one disputes the government’s right to ensure that the right procedure is followed in paying out the commission, it is sadly also clear that the suspicion is well founded that the government is reluctant to pay because the N850m commission is huge.

    But there is a redemptive side to the sad story the controversy over the delayed payment has become. Had the government been careful and altruistic, it would have secretly ordered investigations into how the three claimants got wind of the cash stash. Was there any internal NIA collaboration? How did the three men, one of whom allegedly advocated burglary to gain access to the money, discover the cash? Could they, or one of them, in fact be fronts for operatives of the NIA? And if it is true that one of them advocated for forceful entry into the NIA safe house to seize the money, could he have criminal background? There are a lot of questions that need to be answered. Instead, the government threw the psychiatry red herring before the public, and then in panic promised to pay the claimant(s) in tranches.

    It is unlikely there will ever again be  the discovery of such a huge cash stash. But regardless of this, it may be time for the government to look for ways of refining what is otherwise a very good policy designed to discourage and minimise corruption. It has irresponsibly failed to put in place policies and security measures to protect whistle-blowers. Now is the time to establish that framework. It has also not demonstrated finesse and efficiency in paying commissions to those who facilitate the discoveries, whether huge or small. It must now summon the discipline to do so. It must also, finally, put in place watertight plans to discretely investigate the backgrounds of whistle-blowers themselves. The process is as important as the outcome.

    Meanwhile, the federal government must urgently remedy the nonsense it has made of the Ikoyi cash haul. It does no credit to its image as a serious government fighting corruption that it gave out contradictory signals and even made cynical statements about the cash haul. If they are not to discourage future whistle-blowers and kill the policy piecemeal, they must find the discipline and good sense to urgently repair the damage done to this extraordinary policy.

  • ‘Whistle-blowers need better protection’

    ‘Whistle-blowers need better protection’

    Mr. Muhammed Tanko Zakari was chairman of the Nigerian Bar Association (NBA) Suleja Branch. A law graduate of the Bayero University, Kano (BUK), he is the Deputy National Treasurer of the All Progressives Congress (APC). In this interview with Legal Editor John Austin Unachukwu, he shares his views on the anti-corruption fight, whistle-blowing, law and the economy and Anambra State politics.

    What is your appraisal of the anti-corruption war of the Federal Government?

    To be honest, the government s’ drive towards anti-corruption campaign so far is wonderful and successful. It is not an easy task coming up with an anti-corruption war in a country like Nigeria where the entire system is faulty and appears to be celebrating corruption in all its ramifications. The government needs the support of all of us to succeed looking at the challenges and the dangers corruption poses to our economy, our growth as a nation and national life.

    There was public outcry recently, when the Economic and Financial Crimes Commission (EFCC) lost some high profile cases. How do you think we can strengthen the war to ensure victory over corruption?

    It is not surprising seeing our anti-corruption institutions like the Economic and Financial Crimes Commission (EFCC) losing high profile corruption cases. This will tell you the dangers of corruption and how deep corruption gained ground in the entire system and fabrics of our country.

    Can you explain this?

    Much as the president is fighting corruption, corruption itself and all those benefitting from it are equally fighting back. It all goes to show that we need to strengthen our anti-corruption agencies including the police and educate all stakeholders on how to carry out proper investigation, how to  put their facts and evidence in order before arraigning suspects in court. It also signifies the need for the NBA, the Judiciary and other agencies to assist the government’s efforts in achieving its anti-corruption crusade by doing away with unnecessary technicalities during trials and the like. The perception of Nigerians is also an issue in the anti-corruption struggle

    What do you mean by Nigerians’ perception?

    There is the urgent need for all Nigerians to see the fight against corruption as a collective responsibility, as an attempt to better their lives, their future and that of their  generations yet  unborn. We all must view corruption as evil against our collective heritage as against sectionalising it or taking sides in corruption cases simply because the beneficiary is a close associate.  The most unfortunate thing presently is the fact that in the last 16 years of the reign of the Peoples Democratic Party (PDP), they succeeded in dividing us along ethnic, tribal and religious divides which tends to blind us whenever our own persons are involved in issues of corruption. The society itself must learn to stop celebrating corruption and corrupt individuals; they must rise against crowning corrupt officials or individuals with all kinds of traditional titles.

    There have been calls for state Attorneys- General and other prosecutorial agencies of states to take over prosecution of corrupt politicians while the EFCC will focus on the prosecution of those who commit financial crimes as envisaged by the EFCC Act, what is your reaction to this?

    Like I said earlier, it is not who carries out the prosecution that matters, but the competence of those who carried out the investigation first and off course, those that prosecute the offenders. In all respect, we need to have enough man power and the government must be interested in the training and retraining of its personnel. It is good to have an independent investigator and an independent prosecutor. This will enable each of the departments to carry out its functions very well without compromising along the way. The EFCC should be vested basically with investigation while a different agency such as the Office of the Attorney-General (A-G) of either state or the federal as the case may be prosecutes those found to have committed the offence.

    What is your appraisal of the whistle blowing policy of the government and do we strengthen the whistle-blowing policy to make it more efficient and effective?

    It is my humble submission that the whistle-blowing policy is a good one as it gives people the opportunity of exposing those who hide illegal wealth. However, the government must come up with an adequate means of protection for the whistle-blower. The issue of corruption is a very serious one. In some cases even the security agencies leak the identity of the whistle-blower to the looter in return for favours which is also another form of corruption. There should be a systematic approach on how to access and use any information coming from whistle-blowers

    Law cannot be separated from politics, how do you think the two can go together to deepen democratic ideal and values in the country?

    The whole idea about politics is the ability and desire to provide for qualitative leadership aimed at improving the living standard of people. Law, in itself is aimed at achieving a more peaceful and cordial and organisational behavior of the citizens. Thus, both and law and politics are aimed at enhancing the socio economic well-being of the people. There is therefore, the need to play politics in accordance with the rules.

    Why?

    Because this is the only way the society can benefit from the tenets of politics and to gain the so-called dividend of democracy. They both complement each other and there is the need to look at our laws so closely with a view to strengthening those pieces of legislation that will add values to our political ideologies.

    As the Deputy National Treasurer of the All Progressives Congress (APC), what is your appraisal of the APC led Federal Government?

    I can attest to the fact that the APC-led government has done creditably and still doing more to improve the socio- economic life of the average Nigerian. There has never been such a time when the average Nigerian feels the impact of government as in the present dispensation. Federal Government policies are all geared towards a better Nigeria. Things like the youth empowerment, the various agricultural support programmes, the schools free feeding programmes are all pointers to what the government is doing. We are determined to do more. I am not sure Nigerians will want to go back to such an era where you spend days in filling stations waiting to buy fuel with your hard-earned money. Our foreign policies have grossly restored the reputation of the average Nigerians doing legitimate business with other world countries.  The issue of security is something we are all proud of. The government is doing more and I am optimistic we shall succeed.

    It is widely believed that your party has not adequately managed your electoral victory at the centre. What is your reaction to this?

    Intra-party squabbles are not a new thing in politics and cannot be different with our party. Ours is a peculiar case, especially in view of the financial prudence introduced within the system. Unlike before, there is not enough money to throw away and people no longer cut corners like before. It will actually take time and patience for us to get it right but having said that, the leadership of the party is doing its best to bring all its members back on board. We are going to do all things humanly possible to strengthen our party.

    We appreciate the fact that Nigerians are happy with what Mr. President is doing and we are not going to fail them. They have shown concern and are all prayerful to ensure that the party is strengthened and brought back on track. Finally, we must also appreciate the fact that the squabbles are not far from the successes so far recorded by the party. Every second more people are trooping to the party and others becoming interested in the party’s activities.

    What is your appraisal of the position of your party the All Progressives Congress (APC) chances in Anambra State in the forthcoming gubernatorial election in the state?

    With respect to the forthcoming election in Anambra State, it is my belief that power belongs to God and he gives it to whosoever he likes. There is likelihood that the APC will win that election. Global leadership trend now appears to favour the youth. World leaders of today are youths and I want to appeal to the youths in Anambra to cash in on that advantage. Dr. Tony Nwoye is a young man with lots of energy, strength and wisdom to captain the ship that will transform and lead all Ndigbo, not just Anambra State, to their Promised Land. The All Progressives Grand Alliance (APGA) candidate has failed to deliver the dividend of democracy to the people of the state.

    Why do you say so?

    I say so because they have failed to live in accordance with the aspiration of Chief Chukwuemeka Odumegwu Ojukwu by every standard. The present financial crisis rocking the party between Obiano and Obi is still fresh in the mind of the electorates. As for the PDP in the state, they have failed and disappointed the Ndigbo for a long time. All the promises of building the second Niger Bridge fell on deaf ears. In the last 16 years of PDP governance, there was not a single government presence in Anambra and the entire eastern states of the federation. The only party that has the eastern part of the country at heart is the APC. The APC government has done a lot to better the life of Ndigbo. The second Niger Bridge is already going through construction with several road networks across the east. The federal government free food programme started from Anambra State. The N-power project is all over the place. The APC candidate is a grassroots person who has fetched a good credit for himself. He has been a student union leader, so, I have no reason to doubt his ability to drive forward the transformation agenda of Mr. President. Finally, you should realise that the election will basically be between these three major political parties: APC, PDP and APGA.

  • 20 whistle-blowers get N375.8m cash

    20 whistle-blowers get N375.8m cash

    THE Federal Government has paid N375.8 million to 20 providers of useful information under the whistle-blower’s policy.

    The Director of Information, Federal Ministry of Finance, Mr. SalisuDambatta, said yesterday in Abuja that the money was paid with regard to the recovery of N11.6 billion.

    Dambatta said the payment was only on recovered assets that had been declared free from litigation by the Attorney-General of the Federation.

    “This payment, which is the first under the whistle-blower policy, underscores the commitment of the Muhammadu Buhari-led administration to meeting obligations to information providers under the policy.

    “The policy is an essential tool in the fight against corruption.

    “The ministry, therefore, encourages Nigerians with information on misconduct, violation or improper activity which can impact negatively on Nigeria, to report it to the appropriate authorities,’’ he said.

    Dambatta said the policy had been amended to include the introduction of a formal legal agreement between the information provider and the Federal Government.

    He added that the agreement had already been executed by the attorney-general.

    Dambatta said the amendment was introduced to protect the identity of information providers.

    The Federal Government introduced the whistle-blower policy in December with the purpose of supporting the fight against corruption and promoting accountability and transparency in public finances management.

    The Whistle-blower Unit is resident in Federal Ministry of Finance, Abuja.

    It is staffed with personnel seconded from the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission and Department of State Service.

    Police and Presidential Initiative on Continuous Audit also form part of the unit, which has received 2,150 communications and 337 tips through its dedicated channels.

    The information has led to recovery of substantial assets illegally acquired by individuals.

  • Court remands two whistle-blowers in prison

    Court remands two whistle-blowers in prison

    Federal High Court in Maiduguri has remanded two whistle-blowers, Buhari Fannami and Ba-Kura Abdullahi, in prison pending their trial for allegedly giving wrong information.

    The two suspects were arraigned on a one-count charge before Justice M.T. Salihu by the Economic and Financial Crimes Commission (EFCC) for alleged abuse of the whistle-blowing policy.

    A statement by the EFCC’s Head of Media and Publicity, Mr. Wilson Uwujaren, said Fannami misled the EFCC with the information about illegally acquired money purportedly buried at the residence of Ba’a Lawan.

    The statement said Fannami’s information turned out to be false after the execution of a search warrant.

    The charge  reads: “That you, Buhari Fannami on or about of May 8, 2017 at Maiduguri, Borno State, within the jurisdiction of this honourable court, did make statement to officers of the EFCC under the Whistle Blowing policy to the effect that large sums of money being the proceeds of crime were buried in the residence of Ba’a Lawan at Pompomari Layout along Pompomari Bypass, Maiduguri, which information/statement you knew to be false and thereby committed an offence contrary to and punishable under Sections 39 (2) (a) and 39 (2) (b) of the EFCC (Establishment) Act 2004 respectively”.

    The accused pleaded not guilty to the charge.

    Counsel to the prosecution Alkassim Ja’afar asked for a trial date and prayed the court to remand the accused in prison custody pending trial.

    Justice Salihu adjourned the matter till June 7 and 8, for hearing and ordered the accused remanded in prison custody.

    Ba-Kura Abdullahi also gave false information that a large amount of money in naira and foreign currencies were buried in the residence of Ba’a Lawan.

    Justice Salihu adjourned his case to June 7 and 8, for trial and ordered the accused remanded in prison custody.

    Minister of Finance Mrs. Kemi Adeosun, on Tuesday, said about 2,500 whistle-blowers had given information to the Federal Government.

  • EFCC, whistle-blowers and vagrant, orphaned loot

    EFCC, whistle-blowers and vagrant, orphaned loot

    IT may amount to jumping the gun to describe the horrendous amounts of money being recovered by the Economic and Financial Crimes Commission (EFCC) from unorthodox places in recent times as proceeds of crime. But with the exception of a few persons who admit ownership of monies traced to them, nearly all the others have furtively avoided being linked with the recovered loot. Yet each of the recovered loot is so indescribably and mind-bogglingly huge that it is difficult to believe it is owned by one person. In one week alone, and in two separate places, the EFCC discovered N.45bn and N.25bn at two locations. Then shortly before the week came to a close, about N15bn in foreign currencies was also found virtually abandoned. No one has been brave enough to claim ownership of the three stashes. In fact those whose names were mentioned with the apartments where the stashes were found have violently rejected any linkage. All together, in about a week, some N16bn has been found, and not one brave soul has owned up.

    The EFCC gives assurance that the owners of the abandoned monies will be found, for there was not one find that was made without the assistance of a whistle-blower. If no information has been volunteered to the public by the anti-graft agency regarding the ownership of the monies, it does not appear the problem is knowledge of the monies’ circumstances. The reticence may be tactical. The shops where the monies were found have identifiable owners, and the ones meant to be converted into foreign currencies were brought by identifiable owners. There is indeed no mystery about the monies, only bewilderment about the value, and perhaps shock that each recovery seemed to be owned by one person.

    Though neither public commentators nor the anti-graft agency itself can be hasty about ascribing purposes or motives to the stashing of the monies, especially determining whether they are the proceeds of crime, the value of the sums and the contemptuous manner they were disclaimed by their alleged owners suggest they were illicit monies procured and stashed away from the prying eyes of the  authorities. Nor is it clear that somewhere along the line, someone would still not come forward to claim association, especially after the initial shock must have worn off and the alleged owners invented a reasonable explanation to justify the ownership of the humongous sums. A few weeks back, a former Group Managing Director of the NNPC, Andrew Yakubu, had, after initial hesitation, claimed ownership of a little less than $10m found stashed fairly unobtrusively in a nondescript apartment in Kaduna. He attributed it to gifts from unnamed well-wishers, an explanation his neighbours and traducers sneered at. Justifying ownership of more than $43m would be nearly impossible.

    More of such illicit cash will likely be discovered in the coming weeks, often in very unlikely, embarrassing and demeaning places. With the whistle-blower policy firmly in place and immeasurably enticing, owners of illicit money will no longer trust anyone. To them the streets and neighbourhoods are brimming with betrayers. But to the nation, those unlikely ‘loot havens’ are brimming with patriots. Guaranteeing the safety and security of the whistle-blowers, some of them poised to earn in excess of hundreds of millions, will be the government’s next headache, if not nightmare. For no one can tell whether some of the stashed loot are not owned by more than one person, a few of them relentless and vicious.

    The government and its EFCC will henceforth work with a few basic assumptions. If the stashed monies are in naira, they will be difficult to hide, and even more difficult to keep next to the owner. Their owners will need to prepare ready alibis to disown the monies. But if the owners elect to change the monies into foreign currencies, in order perhaps to miniaturise the loot and make it a little easier to launder, how can they tell which forex dealers would keep secrets secret in the face of tempting whistle-blower commission huge enough for any struggling dealer to retire on? These are doubtless difficult times for owners of illicit money. Their monies in the banks are been traced, and sooner or later the trace will point in their direction. And to keep money outside the banking system, whether in septic tanks or abandoned houses and shops, some of them in wealthy areas and others in poor areas, is the greatest dilemmas they face.

    It is not certain that the media has identified whose brilliant idea it was to adopt and adapt the whistle-blowing policy. Whoever were behind the idea have done Nigeria a whole lot of good, far beyond what words can describe. If the policy is not abused, if the authorities can sustain it faithfully, and the whistle-blowers are not double-crossed or short-changed, more illicit cash will be recovered until, in frustration, public officials find it a great disincentive to fiddle with public funds, at least on the scale that now beggars belief. The measure may be insufficient to stamp out corruption, but it will contribute, among a welter of other policies and controls, to reducing it so drastically that funds for infrastructural development should be more readily and reasonably available.

    Even then, the nation still has a lot to do to find an explanation for why, particularly under the last administration, public officials found it so easy to embezzle public funds and for a long time get away with that crime. More, it is important to do a study of the lax controls, bureaucratic and economic structures, and conniving policies that made the looting bazaar flourish so recklessly and so brazenly. Finally, it is also important to document  for posterity the hundreds, and possibly more, of the public officials who promoted and energised the criminal bazaar in the past few years and turned it into such a destructive force. Now the image of the country is worth very little in the estimation of the world. The law, even if it is severely enforced, requites the crime somewhat adequately, but it is doubtful whether, given the insouciance those engaged in that unprecedented and mind-numbing stealing have demonstrated, enough deterrence has been put in place to discourage the crime. But one thing at a time

  • Whistle-blowers’ pie

    Nice strategy to recover looted funds. But it poses some ethical concern

    The percentage-cut reward policy for whistle-blowers that help to reclaim looted funds is nice strategy, and that is stating the obvious.

    But if you still doubt, just see its remarkable efficacy, these few days past, from this reportage, from a newspaper.

    “The Federal Government is to pay between N1.5billion and N3billion to three whistle-blowers for their roles in the recovery of looted funds totalling over N60 billion,” went the report by the New Telegraph. “The amount represents 2.5 or five per cent of the $151 million (about N52.8 billion) and N8 billion recovered from three sources, following information from the whistle-blowers.”

    According to Alhaji Lai Mohammed, Minister of Information and Culture, the government, by the new deal, would cede between 2.5 per cent and five per cent to each whistle-blower, from the amount (s)he helped to retrieve.

    Even then, the retrieved amounts reported are different from the US $9.8 million and £74,000 sterling reportedly recovered from Andrew Yakubu, former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), for which a court has ordered temporary forfeiture.

    If at this rate more looted funds are recovered, and whoever helped are made happy by their promised cut, what can be a more potent strategy?

    Still, Alhaji Mohammed himself announced a piece of news which, though good, has brought to the fore the moral dissonance with the deal.

    He told the audience at the inauguration of Human Rights Radio, an Abuja local radio, that a whistle-blower just turned down his promised cut from the N1billion he had helped to retrieve, saying that he facilitated the recovery as a duty to his country. Though the minister neither named the person nor the bank the alleged loot was recovered from, he reiterated the Federal Government’s commitment to the whistle-blowers policy.

    The unnamed whistle-blower’s action would resonate with not a few, from the moral imperative of his noble stand.

    Again, there is nothing wrong with a policy to reward whistle-blowers with an agreed percentage of the former loot. To start with, it is trite that an agreement, especially entered into by a government, ought to be sacrosanct. That is the only path of honour.

    Besides, with the rotten morals of contemporary Nigeria, where just a few illicitly lock up the patrimony of the majority, causing mass but avoidable misery, any method to retrieve these funds must be welcome. Better for dutiful citizens to enjoy a fraction of stolen money, than for the state to lose everything to heartless rogues!

    By the way, the Nigerian judiciary would appear to be still in slow motion, as far as swiftly but fairly convicting those accused of sleaze is concerned — no thanks to rogue lawyers and complicit judges, in unholy conspiracy to subvert justice. So, any parallel but civil and faster means to regain these funds, and plough them to licit and productive uses, is welcome.

    But that hardly banishes the moral rumble. If funds are stolen to cause mass misery, and a citizen’s help succeeds in sucking back the money to the great relief of the teeming majority, should that not be enough motivation for a good citizen? Could the whistle blower also be an insider who was left out of the deal? That is the ultimate revenge of cynical quality.

    Is a cut from the loot — even if legally and legitimately agreed — not some evidence of reverse greed, though resulting from a good deed? Besides, grossing N50 million (five per cent) or even N25 million (2.5 per cent) from blowing the whistle to recover N1 billion — isn’t that itself a reflection of the greed that feeds the malady of stealing billions of public money, by public officials?

    These are severe moral queries, from minds with high strictures. As far as morality goes, such thinking is fine. It can only lead nearer to the ideal of a nobler, more selfless and more decent society.

    Still, there is always a gulf between the ideal and the reality. That itself would appear to logically explain the whistle-blower policy: applying special tactics to a special situation. That is fine and it should not be criminalised; or condemned to the lowest rungs on the moral ladder.

    Nevertheless, there is something extra-noble in the citizen who could have legitimately grossed at least N25 million, maybe even N50 million, for helping to save N1billion; yet turned it down for love of country.

    That is the stuff of which model citizens are made and (s)he should be commended to all. By moral suasion and institutionalising good examples, many other citizens may well be persuaded to reach that dizzying height of model citizenship.

  • Our Girls; Whistle-blowers pls; Hyper-pensioned politicians

    Our Girls are still missing since April 15th 2014. Pray and work for them.
    Remember how I told you to tell your children and grandchildren to practice, practice and practice mathematics? Did you? How far? No Nigerian child should fail maths or English or any subject just because you did not tell and teach them how to practice, practice, and practice. Nigeria’s poorly developed politics does not immediately matter to the millions of Nigeria’s children ’rotting’ in school who should be led correctly. Happily Oyo State has approved non-political local role model and business BOARDS OF GOVERNORS FOR ALL ITS SCHOOLS. Next step is to initiate OLD STUDENTS ASSOCIATIONS AT PRIMARY SCHOOL level and offer competitive awards for quick action to help revamp the schools just as is being done by you for your secondary school. Nigerians, without you your secondary school would probably be as rubbishy as our primary schools are. But remember that most secondary schools are substandard in spite of Old Students Associations.
    Why do we forget the history of our absent development in our paradoxically boastful ‘rich cultural history’ but dark country? As Nigerians, we endure our suffering in the most costly electricity darkness in the world. Shamefully, every state under every political party had more than enough funds and each LGA had almost N1billion/year for several years which was largely squandered or stolen as the leadership refused to develop citizens by refusing to carry out structured brick on brick, road on road, equipment on equipment upgrade.
    All hail whistle-blowers. They should form an association to ensure they get their 5%, no magomago. The N8b and $151m recovered and the EFCC seizing $9,800,000 only confirms the ‘HUGE NIGERIAN LEADERSHIP CAPACITY FOR CORRUPTION’ and that reality is much worse than the rumours and suspicions. Surely the man involved is doing follow-follow dancing the dance and walking the walk of predecessors and many hundreds of others ‘still at large’ who have polluted the oil and every MAD and industry with their ability to receive ‘solicited- Bribe Me’  or ‘unsolicited- gifts’ just for being Group Managing Director and assigning legal documents. Were his predecessors less accumulating in their avarice or like him?
    Do National Assembly (NASS) and Presidential and judiciary officers also not get such ‘gifts’? Does NAFDAC and, dare we ask, EFCC also get gifts or are they Standards Organisation of Nigeria ‘SON-CERTIFIED 2017’ CORRUPTION FREE?  Obviously there is much more than $9,800,000 to be searched for. Who else ‘Received Stolen Goods’ in his office; who got more than he did? After all he was an employee of government, not minister! Where did the money originate? Is it genuinely ‘Thankful Contractors’ the type of Grateful Contractors who fill the wedding ceremonies of children of governors, presidents, ministers and commissioners. It reminds me of the permanent stench of Nigerian Ports Authority, as yet un-investigated.
    A word about the QUANTUM OF CORRUPTION in Nigeria-a disease! This money, $9,800,000  or averaging N4,000,000,000 i.e. N4 billion, can only have come from multiple episodes of SHORT-CHANGING NIGERIA IN OIL DEALS and would  have saved lives and improved the quality of live for millions. Development needs abound like filling millions of potholes nationwide, giving N100,000 worth of books, laboratory or sports equipment to 40,000 school libraries or N10-50,000 education grants/scholarships to 80,000 to 400,000 students/university undergraduates or allowed  $25,000 one year scholarships to 400 Year abroad students or bought 50-100 cancer treatment units at $100- 200,000 or N40-80,000,000. O, yes for any wealthy thieves out there, $9,800,000 is only 300+ jeeps at $30,000 each, nearly one for each NASS member or 200 buses for a mass transit scheme.
    University social scientists should multiply these losses by the real but as yet uncalculated unknown billions of dollars corruptly removed from the public purse directly or through bribery or undeclared ‘gifts’. Then we will all see why we, as a country, remain a laughing stock of the world ranking third from last in WHO Health Provision and all Life Indices ranking and we remain nowhere compared to our available funds, past and present.  Except of course for the Corruption Index where we are still ‘proudly’ in the top five and climbing.
    The truth is that many Nigerian leaders at all levels of authority behaved little better than foreign invaders or serial sadists, killing, not building on every development idea and leaving underdeveloped component parts of an Nigeria. All policies, no matter how good on paper or in principle, are dissected into corrupt segments. Everyone wants and expects a handout just for occupying the position, doorman to director, gateman to General Manager, at checkpoints.  All this because the majority of Nigerians in positions of government and political leadership are not monitored on the job by EFCC and do not love Nigeria enough to want to get the development that is the right of all Nigerians. NIGERIANS DEMAND DEVELOPMENT after years of THEFT.
    We must all force development as the way forward for the country in public and private sectors. Cattle and crops can grow around the country, not just in certain places.
    And then we turn on the news and find the National Council of State pontificating on our national failures, allocating new cars to themselves, and the buffoonery of HYPER-PENSIONED ex-governors in NASS if you have electric power. NB: Identify and expose to the public ‘I LOVE NIGERIA’ KNOWLEDGEABLE CANDIDATES for the next election.

  • Whistle blowers: FG recovers $151m, N8bn looted fund

    The Federal Government said it recovered another 151 million dollars and N8 billion looted funds from three sources through whistle-blowers.

    The Minister of Information and Culture, Alhaji Lai Mohammed disclosed this in a statement issued on Sunday in Lagos.

    Mohammed sad actionable information given by whistle-blowers to the office of the Minister of Justice and Attorney-General of the Federation led to the recovery of the looted fund.

    He said the looted funds do not include the 9.2 million dollars in cash allegedly owned
    by a former Group Managing Director of the NNPC, also a dividend of the whistle-blower policy.

    “The biggest amount of 136.7 million dollars was recovered from an account in
    a commercial bank, where the money was kept under an apparently fake
    account name.

    “This was followed by N7 billion and 15 million dollars from another person and N1 billion from yet another,” he said.

    The minister reiterated the position of government that there was a primitive and mindless looting of the national treasury under the last administration.

    He said the whistle-blower policy has started yielding fruit, few months after its adoption by the government.

    “The whistle-blower policy is barely two months old and Nigerians have started feeling its impact, how a few people squirrelled away public funds.

    It is doubtful if any economy in the world will not feel the impact of such mind-boggling looting of the treasury as was experienced in Nigeria.

    ”Yet whatever has been recovered so far, including the 9.2 million dollars by the EFCC, is just a tip of the iceberg,” he said.

    The minister appealed to Nigerians with useful information on looted funds to continue to provide the authorities with such information, saying confidentiality will be maintained with regards to the source of the
    information.

    He also reminded Nigerians of the financial reward aspect of the policy.

    ”If there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided, the whistle blower may be entitled to anywhere between 2.5 per cent (Minimum) and 5.0 per cent (Maximum) of the total amount recovered,” he said. (NAN)

  • Senate and Whistle Blowers Bill

    Senate and Whistle Blowers Bill

    THE Whistle Blowers Bill pending in the Senate promises to be landmark legislation in the country. The consensus appears to be that Whistle Blowers Protection Law has become imperative for the survival of the country.

    The bill failed to fly in the sixth and seventh Senate. Senators of the two sessions blocked the bill on the resolution that it could be used as a tool for witch-hunt. It was also the understanding of some of the lawmakers in the sixth and seventh Senate that the country was not ripe for unrestrained whistle blowing.

    On Wednesday however, the Senate voted overwhelmingly in favour of the bill to allow it scale the crucial second reading. The mood of Nigerians about the fight against corruption might have impacted heavily on the senators to back the bill.

    Two bills, “A Bill for an Act to protect persons making disclosures for public interest and others from reappraisal” sponsored by Senator Abiodun Olujimi (Ekiti South) and another entitled “A Bill for an Act to provide for the establishment and operation of a programme to enable certain persons to receive protection in relation to certain inquiries, investigations or prosecutions and for matters connected therewith, 2016” proposed by Senator Isiaka Adeleke (Osun West) were consolidated.

    Senate Leader, Mohammed Ali Ndume, moved that the two bills should be consolidated since they are similar.

    The ensuing debate was exciting as the promoters of the bills took turns to convince their colleagues to put sentiment aside and embrace the bills, especially in the light of the renewed onslaught on graft in the country.

    Essentially, the bills seek to give fillip to the anti-graft campaign as well as to embolden Nigerians to report acts of commission or omission considered injurious to the socio-economic growth of the Nigerian.

    Olujimi in her lead debate said the bill if passed, seeks to protect persons making disclosure for the public interest and others from reprisals.

    She noted that the bill provides for the matters disclosed to be properly investigated and dealt with and for other purposes related therewith.

    Olujimi said that in 2010, the importance of whistleblower protection was reaffirmed at the global level when the G20 Anti corruption Working Group recommended G20 leaders to support the guiding principles for Whistleblowers protection legislation.

    She is worried that although the anti-corruption agencies have internal mechanisms and made provisions for the protection of whistleblowers, the protection appears insufficient, given the country’s poor performance in the fight against corruption.

    The enactment of a comprehensive and dedicated law as the basis for providing Whistleblower protections, she said, is generally considered the most effective legislative means of providing such protection.

    A comprehensive and stand alone legislation also gives the law heightened visibility, thereby making its promotion easier for governments and employers, she added.

    The Ekiti State lawmaker prayed her colleagues to support and pass the bill in order to give the anti-graft campaign the needed bite.

    Senator Adeleke, a former Osun State Governor, in his own lead debate, recalled that the bill was first read on the 9th of December, 2015.

    Adeleke explained that the bill, witness protection programme Bill, when enacted, seeks to promote law enforcement by facilitating the protection of persons who are involved directly or indirectly in providing assistance in law enforcement matters.

    He explained that “The lack of a witness protection programme has meant that terrorism related cases have been inconsistent and produced mixed results.

    He mentioned some high profile Boko Haram cases that had remained inconclusive in the courts.

    The bills were not without opposition. Some senators opposed to the bills could not however muster the courage to speak against the proposed legislation on the floor of the upper chamber.

    The fear they raised was about the application of the law if eventually passed and assented to by the president.

    They argued that the bills did not make provision for malicious and false whistle blowing.

    One of them asked rhetorically, “what happens to a whistleblower whose allegation is found to be entirely false; what happens to a whistleblower who conducts his business out of malice and hatred; what happens to a whistleblower who thrives in damaging people’s reputation.”

    A possible abuse of the law by security agencies was also raised. The fear of manipulating the law to achieve a certain purpose by interested security agencies, they said, should be guarded against.

    No doubt, protecting and strengthening the capacity of Whistle Blowers will go a long way to assist the country in the fight against corruption. What should also be protected is a situation where unguarded whistle blowing is used for pecuniary interest. A situation where Whistle Blowers are deployed to run down others should equally be avoided.

    As they say, the law is an ass; efforts should therefore be made to block all lacuna in the legislation to ensure that the bill does not serve unintended purposes.

    Senate President, Abubakar Bukola Saraki, who commended the sponsors for a job well done, referred the bills to the Committee on Judiciary, Human Rights and Legal Matters for further legislative action. The committee was given four weeks to report back to Senate in plenary.