Wednesday, 12 March 2014

Missing oil money: Sanusi’s claims, cheap blackmail – FG

Vanguard News - Latest updates from Nigeria, including business, politics, entertainment, fashion, health, technology, naija lifestyle

BY Emma Ujah, Abuja Bureau Chief & Ben Agande

ABUJA — The Presi-dency, yesterday, asked suspended Governor of the Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, to provide a clear response to allegations of financial recklessness levelled against him and stop misleading Nigerians and the international community that his suspension was because he alleged that monies were unremitted to national coffers by the Nigerian National Petroleum Corporation, NNPC.
Addressing State House correspondents, yesterday, Special Adviser to the President on Media & Publicity, Dr Reuben Abati, reiterated that Sanusi’s suspension had nothing to do with his disclosure of alleged shortfalls in remittances by NNPC.
Abati said as a demonstration of government’s transparency, it has ordered a forensic audit of the NNPC to unravel the truth about its remittances.
sanusi-cartoon
While condemning Sanusi’s “resort to playing politics with serious national issues,” Abati said Sanusi’s suggestion that the “phantom missing funds may have been diverted to fund campaigns for next year’s general elections is mischievous, irresponsible and designed to incite other political parties and members of the public against the Federal Government.”
However, the absence of Justice Gabriel Kolawole stalled further hearing in the suit filed by the embattled CBN governor against the Federal Government challenging his suspension from office by President Goodluck Jonathan.
At the resumed hearing of the case yesterday, Justice Kolawole was not in court, while parties to the suit were asked to come back to court, March 19, as the judge was attending a seminar.
The statement:
Abati’s statement said: “We have noted with disappointment, the unrelenting attempt by the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi to falsely portray his recent suspension from office as an attempt by the Presidency to bury his allegation that huge sums of money due to the Federation Account are unaccounted for by the Nigerian National Petroleum Corporation, NNPC.
“The Presidency wishes to reaffirm that Mallam Sanusi’s suspension has absolutely nothing to do with his unproven and inconsistent claims that $49.8 billion, $12 billion or $20 billion is missing from the national treasury.
“As was clearly stated in the letter suspending him from office and confirmed by President Goodluck Jonathan in his last Presidential Media Chat, Malam Sanusi’s suspension was wholly based on the need for him to step aside while the weighty charges of financial recklessness, gross misconduct and persistent disregard for laid-down rules and regulations in the management of the Central Bank made against him by the Financial Reporting Council of Nigeria and others are properly investigated.
“It is most unfortunate that instead of trying to provide some reasonable response to the clear and unambiguous query of his official conduct as Governor of the Central Bank, Mallam Sanusi  has cynically chosen to whip up public sympathy for himself and anger against the Federal Government by deliberately misleading unwary Nigerians and the international community into believing the falsehood that he is being punished for exposing corruption.
“In recent days, the suspended CBN Governor has, following in the footsteps of others who have an axe to grind with the government, taken to spreading his false claims and allegations through gullible foreign media correspondents, telling them, among other things, that his threat to force commercial banks to open up their books to unravel the whereabouts of the ‘missing’ funds whether $49.8 billion, $12 billion or $20 billion, ultimately led to his suspension.
“He also continues to make the mischievous claim that the government is somehow involved in a scam to divert huge sums of money from the Federation Account through the misappropriation of kerosene subsidy funds.
“Mallam Sanusi’s allegations are patently untrue. But Government is making no effort to bury them as he falsely claims. Relevant committees of the National Assembly are still investigating the claims and the suspended CBN Governor remains free to give evidence before them in support of his allegations.
FG orders forensic audit of NNPC accounts
“Furthermore, in keeping with its avowed commitment to full transparency, openness and accountability in governmental affairs, the Federal Government has authorised the engagement of reputable international firms for the recommended forensic audit of NNPC accounts.
“The Presidency condemns Mallam Sanusi’s resort to playing politics with serious national issues. His suggestion that the phantom missing funds may have been diverted to fund campaigns for next year’s general elections is mischievous, irresponsible and designed to incite other political parties and members of the public against the Federal Government.
Cheap blackmail
 “The claim which amounts to cheap blackmail against the government and was clearly made in furtherance of a selfish personal agenda is most unbecoming of someone who still holds the high office of Governor of the Central Bank of Nigeria.
“The Presidency would not ordinarily have wished to join issues with Mallam Sanusi who, as CBN Governor, remains an appointee of the President, but the very unacceptable manner in which Sanusi has been misinforming the public made it imperative that this statement be issued.”
Malam Sanusi only last Monday alleged that kerosine subsidy was a big scam being operated by a cabal in government and that the money was being used to finance election.
In an interview with the New York Times, Mallam Sanusi claimed that he was sacked because he threatened to conduct special examination on the banks to ascertain their involvement in the missing $20 billion fuel money. He explained that many of the bankers panicked at his threat to open their books and two of them reported to the government, saying that at that moment he knew his days at the CBN were numbered.
Absence of judge stalls hearing in Sanusi’s suit
The absence of Justice Gabriel Kolawole of the Federal High Court, Abuja, yesterday stalled hearing in the suit filed by suspended CBN Governor, Lamido Sanusi.
Malam Sanusi had, through his counsel, Mr Kola Awodein (SAN), challenged his suspension by President Goodluck Jonathan and prayed for an order to re-instate him as CBN Governor.
At the resumed hearing yesterday, Justice Kolawole was not in court and an official informed the parties and counsel that the judge was attending a seminar.
All parties and counsel were asked to come back to court on March 19.
Justice Kolawole had earlier declined to grant an order reversing the president’s decision.
“I feel hesitant and constrained to grant the plaintiff’s application because it would be unfair to grant such an application without affording the respondents a hearing,’’ he said.
Malam Sanusi Lamido Sanusi had, February 24, approached the court with a motion ex-parte seeking to restrain the defendants from “obstructing, disturbing, stopping or preventing him in any manner whatsoever, from performing the functions as Governor of the Central Bank,’.
Malam Sanusi Lamido Sanusi had also sought to be allowed to fully enjoy the statutory powers and privileges attached to the office, arguing that any delay might cause him irreparable and serious damages.
N24bn Police pension money not missing, says  Okonjo‑Iweala
Meanwhile, Co-ordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo‑Iweala, has said the N24 billion allegedly unaccounted for from the Police Pension Fund was not missing.
She also said the issue of 45,000 names on the payroll of the government that were discovered to be ghost workers had been referred to the Independent Corrupt Practices and other Related Offences Commission, ICPC, for further investigation.
She clarified in Abuja, yesterday, that the alleged missing Police pension money was returned to the Federal Government treasury on her orders.
Director‑General of Pension Transitional Arrangement Department, PTAD, Mrs Nellie Mayshak, had shocked the House of Representatives Committee on Public Accounts at a hearing, Tuesday, that the money could not be traced.
According to her, there was no evidence to show how the N24 billion released from Service Wide Vote in 2010 for Police Pension Fund was expended.
“We have no evidence, we have no record. It just looks bad on our part,” the D‑G told the committee, claiming that she was new in office and that the internal auditor whom she asked to brief her had no documents to show how the money was spent.
Internal Auditor of the Pension office, Mr Adeyemo Julius Adebolu, who was around when the N24 billion was received by the Pension office, told the committee that it was true that N24 billion was received from the Service Wide Vote for payment of pensioners in 2010.
I was kept in the dark —Internal Auditor
Mr Adebolu told the committee that when the money was released, he advised the office to lodge the money in a FirstBank account, stressing that after the lodgement of the money in the account, he was kept in the dark on further disbursements of the money to pensioners.
He also told the committee that a consulting firm was contracted to disburse the pension fund, instead of the staff of the Police Pension Office, noting that he had to come in when some of the pensioners after receiving their money complained of being short‑changed by the consulting firm. Adebolu added that, he was not also involved in the auditing process of the account.
I ordered freezing of the account—Okonjo-Iweala
But in a statement issued by her Special Adviser, Mr. Paul Nwabuikwu, the Minister of Finance said the money in question was not missing and that she had already briefed the Joint Senate Committee about the matter in March 2012.
She added that when it was discovered that the N24 billion was an over estimate of Police pension arrears, she ordered that the account be frozen and the money returned to the treasury.
According to her, “contrary to media reports, the sum of N24 billion is not missing from the Police Pension Fund. As told the Senate Joint Committee on Pensions Administration at a public hearing in March 2012, she ordered the account frozen to prevent fraud based on reports of suspicious transactions.
“Of the amount in the account, N24 billion was discovered to be an over‑estimation of pensions arrears. The money was subsequently returned to government coffers as is the standard practice.”
Ghost workers issue referred to ICPC
Meanwhile, the minister has referred the issue of ghost workers to the Independent Corrupt Practices and other offences Commission , ICPC, for further investigation .
Okonjo‑Iweala said: “As a result of the implementation of Integrated Personal Payroll System, IPPIS, about 45,000 names of ghost workers have been taken off the payroll and about N118 billion saved.
“The Federal Ministry of Finance has taken the additional step of referring the issue to the Independent Corrupt Practices and other Related Offences Commission, ICPC, for further investigation so that any identified culprits can face the full wrath of the law.”
The minister added that in obedience to the recent court judgment, the ministry, through the Budget Office, “is collating the details of appropriations and statutory transfers to the National Assembly, the Independent National Electoral Commission, National Judicial Council, the Niger Delta Development Commission, Universal Basic Education and National Human Rights Commission for publication.
“These agencies are all on first‑line charge to the Federation Account and, therefore, the ministry must work with them to obtain the necessary information.”

Is Nigeria serious about tackling corruption?

BBC


President Goodluck Jonathan of NigeriaPresident Jonathan has positioned himself as being tough on corruption, but Nigerians are not convinced
Nigerian President Goodluck Jonathan wants the world to believe he and his government are serious about ending corruption. But two recent events have sent out the opposite message.
As President Jonathan handed out awards to celebrate Nigeria's centenary, there was a collective leap of eyebrows when people learnt that former President Sani Abacha was on the list. Many wondered why a military dictator who had plundered the nation was being celebrated?
As if people needed reminding, during that same week the United States announced that it was freezing $458m (£275m) that had been stashed away in foreign bank accounts - part of at least $3bn that Abacha is believed to have looted during the 1990s.

“Start Quote

It would be very easy for me to sit at the World Bank and earn a nice salary and criticise”
Ngozi Okonjo-IwealaFinance Minister
A presidential spokesman tried to calm things down by stating that the centenary award was "not a test of sainthood" but was for Abacha's "contribution to keeping the country together".
The renowned Nigerian writer Wole Soyinka was so incensed he rejected his own award, describing the former president as "a murderer and thief of no redeeming quality" and "a man who placed this nation under siege during an unrelenting reign of terror".
Corruption on another level
Nigeria's Finance Minister Ngozi Okonjo-Iweala talks to Will Ross about the controversy surrounding missing oil revenues
The second event came after outspoken Central Bank governor Lamido Sanusi had accused the state oil company, Nigerian National Petroleum Company (NNPC), of failing to account for $20bn in oil revenues.
Some critics accused Mr Sanusi of playing politics but when he was then accused himself of financial recklessness and was suspended, it was widely seen as a move to silence a whistleblower who was causing the government embarrassment.
As one Nigerian told me: "Excuse the crudeness but Mr Sanusi had become a mosquito on the president's testicles" - the dilemma being whether to ignore or to smash.
Lamido Sanusi, the former head of Nigeria's Central BankLamido Sanusi accused Nigeria's national oil company of failing to explain missing funds
It was by no means the first time that corruption in the NNPC was being highlighted. But this is on another level. The allegation is that more than $1bn was disappearing every month over a 19-month period.
Mr Sanusi said he was speaking out because of the potential impact on the entire economy.
"Oil prices are over $110 [per barrel] and we have a relatively healthy current account surplus yet we are facing exchange rate pressures, which is the last thing we should face at this point in time," Mr Sanusi told the BBC on one of his last days in his Central Bank office.
He said he hoped a parliamentary investigation would also find out why the country's Excess Crude Account had fallen from $11.5bn to under $2.5bn in a year - arguing that Nigeria's savings are a vital buffer against any drop in the global oil price and without this "rainy day" account, the economy is vulnerable and exposed.
The kerosene scandal
Part of the Central Bank report focuses on kerosene - the fuel Nigeria's low earners use to cook.
A poster in Lagos attacking the government over the kerosene scandalA poster in Lagos attacking the government over the kerosene scandal
You only have to ask one question to discover that millions of people are being ripped off: "How much do you pay for your kerosene?"
"Sometimes 140 naira a litre or 160 naira ($0.85 to $0.97)," Alimatu tells me as she tops up her small stove in a cramped alleyway that serves as her kitchen in the lively Lagos suburb of Obalende.
Preparing a fiery fish pepper soup, Alimatu adds that it is a major part of her expenditure.
"If all the children are at home, I finish this five-litre can in just three days."
She is unaware that due to a government subsidy on kerosene it is supposed to be available for around 40 naira a litre.
The state oil company has been billing the treasury to recoup the money it spends subsidising the price of kerosene. But why are Nigerians not getting it at the cheaper price?
The Central Bank report suggests that, by not passing on the benefit to the consumers, a consortium has been collecting $100m a month in a scam.
At the parliamentary hearing, Oil Minister Diezani Alison Madueke and state oil company officials denied allegations of malpractice and said all the "missing" money would be accounted for.
But when Finance Minister Ngozi Okonjo-Iweala stated that the kerosene subsidy was not provided for in the country's budget, the alarm bells went up a few decibels.
In a BBC interview I asked Mrs Okonjo-Iweala how it could be that as much $100m a month in the kerosene subsidy had not been budgeted for.
Nigeria's finance minister, Ngozi Okonjo-IwealaFinance Minister Ngozi Okonjo-Iweala says "nobody but us Nigerians" can stop the corruption
"It wasn't budgeted for and that's all I have to tell you. The subsidy was deducted at source by the NNPC. We didn't budget for it," she said, stating that a forensic audit was needed.
"Let us look at the amounts and the reasons being advanced for how much is missing. Audit that process. Audit what the NNPC is saying it used the money for and establish legitimately what is the shortfall."
'I know why I'm here'
Nigeria's finance minister has a formidable international reputation, having worked as a managing director at the World Bank. But analysts say she is now in a dilemma.
"The finance minister is a reformer at heart but she is in direct conflict with very deep vested interests," says financial analyst Bismarck Rewane.
"She has to confront those vested interests or else her credibility as a reformer goes."

“Start Quote

I wouldn't like to be the party that promises oil sector reforms and doesn't deliver”
Akintunde OyebodeNigerian banker
But Mrs Okonjo-Iweala said there is no dilemma.
"I don't think my reputation is under threat and to imply otherwise is distinctly wrong. I know what I'm doing. I know why I'm here," she told me.
"It would be very easy for me to sit at the World Bank and earn a nice salary and criticise. I gave up a comfortable career to come here and do my bit because I recognise that nobody but us Nigerians can clean it up."
"We need to be here fighting it ourselves, so that is what we are doing and we have a track record," the finance minister said.
She added that the pension system had been reformed following fraud there and a biometric system was being put in place to clean up the civil service and eliminate fraud via ghost workers.
This latest oil corruption scandal has led to some Nigerians saying enough is enough. Social media has been abuzz with cries of: "Where is our 20 billion?" A few dozen men and women have been arranging to meet to strategise on how they can help push for answers and accountability.
"OK, so I'm buying kerosene for 130 naira and [in reality] there is no subsidy - it's cool with me," says social commentator Babatunde Rosanwo.
"But the fact that you get to find out that someone is actually taking money on your behalf for what you are not benefitting from - it is just like somebody collecting social benefits in the name of the citizens.
"It's a foolery that somebody sits somewhere and is taking a chunk of the treasury in our names. That is the message the citizens need to get this time around."
A glimmer of hope?
Past reports of gross plunder in the oil sector have been buried with little action taken, leaving many Nigerians with the belief that those implicated are too powerful to touch. So why would it be different this time around?
Lagos-based banker Akintunde Oyebode notes that the governing People's Democratic Party no longer dominates Nigeria politics and faces a credible challenger in next year's elections, while voters are becoming "more sophisticated".
"I wouldn't like to be the party that promises oil sector reforms and doesn't deliver because in four years that party will be out of government."
It is a glimmer of hope that the thieves' days may be numbered.

The Britons who swap the UK for the poorest part of the EU

BBC

Kate and Terry Humphries show Matthew Price around their new home and neighbourhood in Bulgaria

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What's it like to live in the poorest part of the poorest country in the European Union?
While concerns persist over how many Bulgarians and Romanians might move to the UK in search of work, some Brits have upped sticks and made the opposite journey.
Amid increased restrictions in the UK on benefit payments for EU migrants, the BBC has caught up with one British couple who left their home in a quiet village in Rutland in favour of the snow-capped terrain of north-west Bulgaria.
"The undertakers all seem to wear tracksuit trousers," says Kate Humphries, as she prepares a pot of coffee in her new Bulgarian home, nestled in the snowy hills of the poorest part of the poorest country in the EU.
"In fact the ambulance crews also wear tracksuit trousers. Perhaps they're the same people," she adds, to a throaty laugh from her husband Terry.
The couple moved to the village of Komoshtitsa late last year. It took them four days to drive across Europe, with their two dogs, to the house they bought in the remote, rural north-west corner of Bulgaria, close to the border with Romania.
Potholes and rubbish
They've always liked village life, but this is rather different from what they've left behind.
"The village that we came from in England was very twee. On the edge of Rutland Water. A very pretty Rutland village. Stone houses. All hedges cut beautifully - mostly by Terry."
Komoshtitsa is not beautiful to look at. Potholes litter those roads that are tarmacked. Other lanes are either gravel or mud tracks. The buildings haven't seen a fresh coat of paint in years. Plaster crumbles off many facades. Rubbish lies along the roads.
And there is real poverty here. Many are unemployed. Some of the villagers collect their water from a spring.
So why move 1,625 miles (2,616km) to this?
"We could do what we want to do. We could afford to do what we want to do. Bulgaria was the place," says Kate.
Britons Kate and Terry Humphries, formerly of Rutland, EnglandSome 18,000 British people live in Bulgaria, including Kate and Terry Humphries, who moved there last year
Kate and Terry Humphries, formerly of Rutland, EnglandThe couple said that, despite not speaking the language, they did not feel isolated living in Bulgaria because people were more friendly than back in UK
The Bulgarian village of KomoshtitsaThe village of Komoshtitsa is located in north-west Bulgaria and has a population of about 1,000 people
What they could afford is a lot: the main house with several bedrooms; a barn, recently re-roofed; more buildings that, in time, can be converted; land for a horse, which one day Kate wants to buy; room for an orchard and more besides. All, as Kate says, "for around the price of a new family car in the UK".
Their idea is to be self-sufficient in terms of food.
'Lower cost of living'
"We will have to buy milk - I don't think we will stretch to a cow. Maybe a goat, or two, some chickens. We've got a vegetable plot over there."
The yard next to the barn is full of chopped wood that's been keeping them warm through the winter months. All their heating is provided by a wood burner in the living room.
"Less than £300 to heat everywhere" for the year, says Terry proudly. "That's good mathematics."
Terry's used to chopping wood. He worked for the Forestry Commission. Kate was a housekeeper for a rich landowner for years, until she lost her job recently.
They've never been in debt and have worked hard but they realised that, with both of them in their 50s, something had to change if they were to be able to afford their own home and live comfortably in the coming years.
It is estimated that some 18,000 British people have moved to Bulgaria - many to take advantage of the lower cost of living. About half live here for part of the year, the rest permanently.
The latest figures provided by the British government - and gathered by the Institute for Public Policy Research (IPPR) - are an estimate. They're the best guide we have as to where Brits who have moved abroad are living in the EU.
Interestingly, they suggest that the number of Brits living outside the UK but in another EU country is 2.2 million - about the same as the number of EU citizens who are now living in the UK (2.34 million).
"British people, for the most part, leave for work," says Dr Carlos Vargas-Silva, an economist and senior researcher at Oxford University.
Freedom of movement
This migration, back and forth, is made easier by the European Union's policy on Freedom of Movement, part of the Single Market rules which allow any EU citizen to travel to another EU country to live, study, or look for work.
The UK government's plans to restrict EU migrants' access to benefit payments are being examined by the European Commission to see whether they break the Single Market rules.
Meanwhile the ski slopes above the Bulgarian capital, Sofia, are swarming with children in yellow high-visibility jackets. It's unseasonably warm. The snow is melting, turning to sludge, making the going tough. A little boy slips over on the edge of the piste.
"There you go, up you get," says another Brit turned semi-Bulgarian, offering a helping hand. Matt Pigden has made the resort, Borovets, his home for almost a decade now. He runs a successful snowboarding company here during the winter, and in the summer he heads down the mountain to a nearby lake where he hosts wakeboarding training sessions.
Briton Matt Pigden on his snowboard in BulgariaBriton Matt Pigden has lived in Bulgaria for almost a decade
The ski slopes in the resort of BorovetsMr Pigden runs a snowboarding company in Bulgaria during the winter
"When I first came here, before 2007, before Bulgaria was in the EU, we had to register with our local police station, you could only stay here for a certain amount of time."
Since joining the European Union it has become a lot less bureaucratic.
"Now I've got a Bulgarian citizen card. I'm registered in Bulgaria. I have a European ID card on top of my UK passport. It's easy," says Matt.
"The single labour market is not the key factor that decides the destination," argues Dr Vargas-Silva. People "are looking at wider factors than that".
So many Brits have moved to Bulgaria - a country of only 7.3 million people - that it has inspired a comedy TV series.
Leslie Grantham's first scene in English Neighbour
The English Neighbour was originally a popular book written a few years ago. In the TV version, the Englishman who moves in is played by the former EastEnders actor Leslie Grantham, aka Dirty Den.
For the real "English neighbours" of Komoshtitsa, the move is a chance to reset their lives.
"I didn't even know where Bulgaria was at first. I certainly didn't know it was in the EU," says Kate Humphries.
They are still grappling with the language and no-one in the village speaks particularly good English but, they say, they do not feel isolated.
"Just the opposite," says Terry. "You walk up the street and everybody speaks. In England you walk up the street and sometimes people wouldn't speak."
Kate says things had changed so much back in Rutland that they needed a new place to call home.
"There were seven farmers in that village when we moved there 30 years ago. There are no farmers there now. This is a farming community... with a slight drinking problem," she adds, to that infectious laugh from her husband.

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Sunday, 9 March 2014

Nigeria - Court Orders Okonjo-Iweala to Disclose Budget Details of National Assembly, Others

Premium Times (Abuja)

BY BASSEY UDO

The Federal High Court in Abuja has ordered the Minister of Finance, Ngozi Okonjo-Iweala, to immediately make public details of all appropriations and statutory transfers in the 2014 budget, in the public interest.
The order was issued by Justice Abubakar Abdu-Kafarati in his judgment on February 25, 2014, in the legal application No. FHC/ABJ/CS/301/3013 filed by the Centre for Social Justice against the minister.
Mr. Kafarati asked the minister to release to the group and the general public, details of releases in the budget to some key government agencies, specifically, the National Assembly, the Independent National Electoral Commission, INEC; National Judicial Council, NJC; Niger Delta Development Commission, NDDC; Universal Basic Education, UBE and National Human Rights Commission, NHRC.
Under the amended Nigerian constitution, the listed offices are considered statutory bodies, whose funding are drawn directly from government treasury, to foster their independence. Their budget details have also not been made public since 2011.
The Executive Director of Centre for Social Justice, Eze Onyekwere, said the group approached the court to compel the minister to respect the law and release the information pursuant under the Freedom of Information and the Fiscal Responsibility Act.
Mr. Onyekwere said that following observed acts of impunity and fiscal lawlessness by government, namely the expenditure of several billions of Naira in the budget without appropriation, fraud and illegal allocation of revenues under various questionable sub-heads, it became necessary that details of such allocations be revealed to the people, who are the owners of the budget under democracy.
But, he said in spite several requests since 2013, the Minister of Finance has continuously refused to comply, accusing her of shielding from sanctions officials in charge of ministries, departments and agencies, MDAs where ghost workers have shown up on their payrolls.
"Government has always claimed it has served billions of Naira from its efforts to rid ghost workers from the system. But, we have always asked, without any response, for details from each MDA prior to and post-verification, including the numbers and names of the accounting officers, in terms of Permanent Secretary, Head of Personnel and Accounts/Payroll officers," Mr. Onyekwere said.
He said the Personnel Officers are those responsible for certifying that the payroll was consist of genuine workers, while the Accounts officers prepare the vouchers for the Permanent Secretary to signs off, before the authority to incur expenditure, AIE is raised for the final payment.
Citing the case of the Budget Office of the Federation, BOF, where it was found recently that prior to the verification, it had more than 1,000 staff on its payroll every month, only for the figure to crash to only 251 afterwards, he said the problem would be resolved if the Minister agreed to expose the perpetrators.
"All we have is a Minister of Finance who has refused to bring out the details of these scandalous findings. Yet, we talk about the commitment to fight corruption. Nigerians are entitled to know. We cannot continue to run a system where some people simply come to loot the treasury and they want everyone to clap for them to go on," Mr. Onyekwere said.
He condemned the continued appropriation of funds in the budget under Service-wide votes, noting that any allocation for any MDA that cannot be included in its approved budget was subject to misappropriation or diversion.
Mr. Onyekwere said the provision of about N118 billion as personnel cost under service-wide vote in the budget was suspicious and questionable, as this no agency or department of government called "service-wide votes" that has workers that should be catered for separately.
Other questionable appropriations under the service-wide vote include about N21 billion to INEC for "elections logistics and support", apart from about N45 billion already provided for it in the budget, as well as an additional N1.8 billion for pilgrimages.
Apart from the N150 billion appropriation for the National Assembly, he said the provision for another N100 billion under service-wide vote for constituency projects was fraudulent, as most of the projects neither follow set national vision nor government development agenda.
He frowned at the penchant for government officials to capitalize on the current insecurity in the country to manipulate the system to their selfish ends.
He drew attention to the inclusion of about N475 million and N600 million in the National Orientation Agency, NOA and the Office of the Minister of Finance, respectively, for security equipment.
Another N882.237 million is provided in the Finance Ministry's budget for rehabilitation/repairs of residential buildings.
"In God's name what has the NOA and Minister of Finance got to do with security? Does NOA need security equipment to enlighten the people on government programmes? Or does the Minister of Finance need security to prepare the budget or get it approved?
"With government monetization policy, where the perks of office of these high ranking officials should be converted to cash, whose residential buildings does the Ministry of Finance want to repair? Mr. Onyekwere said.
But, the spokesperson to the Minister, Paul Nwabuikwu, said he totally and completely disagrees with the mindset by government critics that it only engages in wastes and corruption.
Mr. Nwabuikwu did not comment on the court order on his boss. But he criticized critics of the budget for always seeing only the flaws, saying this might be as a result of ignorance or politics.
"Government is a human construct, as such can never be perfect. It can only improve. And since a budget is put together by human beings, it cannot be perfect. Let's stop this culture of negativity and look at the big picture of the budget," he said.
He said criticisms that do not include the achievements of the administration in the areas of railway rehabilitation, roads construction, privatization in the power sector, and job creations were totally incomplete.

Thursday, 6 March 2014

How Nigeria’s govt frustrates anti-corruption war, by U.S.

Guardian Logo

  • Written by Abosede Musari, Abuja


EFCC






A DAMNING disclosure on how the President Goodluck Jonathan administration allegedly frustrates the efforts of the Economic and Financial Crimes Commission (EFCC) in bringing to book perpetrators of misdeeds has come from the U.S. 2013 Country Report on Nigeria.
  Meanwhile, the EFCC yesterday re-arraigned Garba Abdullahi Tahir and Charbo Bureau De Change Limited before Justice Gabriel Kolawole of the Federal High Court, Abuja, on a 23-count charge bordering on fraud amounting to N514.9 million allegedly obtained from the Pensions Account, Office of the Head of Service of the Federation (HoSF) of Nigeria. 
  The report, which was made available to The Guardian, in Section 4 of the Report titled - ‘Corruption and lack of Transparency in Government’ among others, stated that “the EFCC faced several frustrating setbacks in 2013.”
  The report gave several accounts of how the current administration has allegedly frustrated justice against even convicted persons in corruption cases. “In January, the EFCC won the conviction of John Yakubu Yusuf for embezzling N2 billion ($12.6 million) from the Police Pensions Fund, which carried with it a two-year prison sentence. The judge fined Yusuf N250,000 ($1,570) in lieu of prison time. The day following this judgment, the EFCC re-arrested Yusuf on the charge of failing to declare a N250 million ($1.57 million) bank account on his mandatory Declaration of Assets Form; Yusuf remained in custody pending trial at the end of the year”, the report reads.
  The pardon of convicted former Governor of Bayelsa State, Diepreye Alamieyeseigha, “who was convicted in 2008 for embezzling more than $10 million in state funds”, was classified as the most offending action of the Nigerian government. While Alamieyeseigha served two years in prison and forfeited the property he held in the country, he was still wanted in the United Kingdom (UK) on money laundering charges, and another foreign government seized his assets. “By granting him a pardon, President Jonathan has paved the way for Alamieyeseigha to run for another elected office or to hold other appointed offices.”
  The U.S. State Department also stated that there had been allegations that the EFCC is being used to hunt target persons “who had fallen out of favour with the government, while those who were in favour continued their activities with impunity.”
  On the activities of the EFCC, the report states: “In February 2012, the EFCC brought criminal charges against former Governor of Bayelsa State, Timipre Sylva, for laundering almost N5 billion ($31.4 million) of funds belonging to Bayelsa State. In October 2012, the EFCC seized 48 property worth approximately N1 billion ($6.3 million) allegedly belonging to Sylva in Abuja”. Sylva was granted bail in January. “The EFCC discovered still more evidence of Sylva’s money laundering activities, and after he refused to co-operate with the investigation, the EFCC arrested him again in May to bring new charges, raising the amount of money he was suspected of laundering to N6.46 billion ($40.6 million).
  The court held Sylva in custody for one month before granting him bail of N100 million ($628,000); the court refused his planned trip to London with his wife”, the report added.
  The report however, noted that EFCC Chairman, Ibrahim Lamorde, who took over office in 2011, continued previous cases or brought new cases against 12 prominent public officials, while the commission faced several frustrating setbacks during the year.
  The Farouk Lawan and Femi Otedola saga was also mentioned. The report noted that “the trial of Representative Farouk Lawan for soliciting a bribe from Otedola, president and chief executive officer of Zenon Petroleum and Gas Limited, started on October 23.
  The acquittal of former Minister of Works, Hassan Lawal, was also included. On July 4, the Federal High Court in Abuja acquitted Lawal. In May 2011, the EFCC arrested Lawal on 24 counts of fraudulently awarding contracts, money laundering and embezzlement of N75 billion ($471 million). On May 28, the Federal High Court in Abuja started the trial of former Speaker of the House of Representatives, Dimeji Bankole, for making fraudulent contracts worth N894 million ($5.6 million).”
  Police corruption which remains “rampant”, lack of legislative protection for whistle-blowers, non-disclosure of the President’s assets and lackluster in implementing the “Public Access to Information” by the Federal Government also featured prominently in the report.
  “Although the law provides criminal penalties for corruption by officials, the government did not implement the law effectively, and officials frequently engaged in corrupt practices with impunity. Massive, widespread, and pervasive corruption affected all levels of government and the security forces. The constitution provides immunity from civil and criminal prosecution for the president, vice president, governors, and deputy governors while in office.”
  “The anti-corruption efforts of the Independent Corrupt Practices and other related offences Commission (ICPC) and EFCC remained largely ineffectual. The ICPC holds broad authorities to prosecute all forms of corruption, whereas the EFCC is tasked with handling only financial crimes. Despite this wider mandate, the ICPC had achieved only 68 convictions since its inauguration in 2000”, the report stated.
  One of the counts against Tahir reads: “That you Garba Abdullahi Tahir on or about July 13,  2009 within the jurisdiction of this honourable court obtained for yourself by false pretences and with intent to defraud, through your Ecobank Plc account, various sums of money amounting in the aggregate to N3,820,800 from the Federal Government of Nigeria through the Pensions Account held by the Office of the Head of Service of the Federation of Nigeria, and thereby committed an offence contrary to Section 1(1) (a) of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006 and punishable under Section 1(3) of the same Act, 2006.”
  The accused pleaded not guilty to the charge.
  The prosecution counsel, Godwin Obla (SAN), told the court that he was ready for trial but asked for a short adjournment to enable him regularise processes as a result of the amendment and the new practice directive.
  The defence counsel, Nicholas Eku, on the other hand asked the court for 21 days to enable him study the new proof of evidence and the amended charge. He, however, prayed the court to allow the accused to continue to enjoy the bail earlier granted to him by the court.
  Justice Kolawole adjourned the case to April 9, May 7 and 8, 2014 for commencement of trial while the accused is to enjoy the terms of the bail earlier granted him by the court.