News
FG Misapplied N1.04trn Special Fund –Senate
The Senate Committee on Public Accounts alleged yesterday that the Federal Government misapplied N1.04 trillion from the Special Funds Accounts (SFA) to unrelated purposes.
The committee’s finding is contained in a report on the status inquiry into the SFA, which was presented on the floor of the Senate in Abuja.
Presenting the report, Chairman, Senate Public Accounts Committee, Senator Ahmed Lawan (ANPP-Yobe), said the infractions were made between 2002 and June 2012.
Lawan said that several approvals of funds from the SFA during the period did not conform with the purposes for which the funds were established.
The SFA was established in 2002 as an interventionist fund for the development of the solid minerals sector, ecology and other critical areas of the economy.
The SFA, managed by the Federal Government, comprises the three per cent Development of Natural Resources Account, 1.46 per cent Derivation and Ecology Account, and 0.72 per cent Stabilisation Account.
Those deductions came from the federation account, said the report.
According to the report, N1.51 trillion accrued to the SFA as at June 30, 2012, from figures obtained from the Office of the Accountant-General of the Federation (OAGF).
Out of the amount, N1.23 trillion was recorded as total payments to beneficiaries from the account, the report said.
However, the report noted that the operation of the natural resources, ecology and stabilisation accounts were grossly abused.
It said several releases under this account were not related to the intendment of the account.
On natural resources account, the report detailed 16 abuses under this account, which amounted to N701.4 billon in 10 years, representing 100 per cent of the total amount released under the period.
Some of the infractions included a N2 billion loan granted for payment to Gitto Costruzioni General Nigeria Limited on September 19, 2005.
Also, the Federal Ministry of Foreign Affairs was granted a loan of N3.7 billion in 2004 to purchase a chancery in Tokyo.
Ostensibly, the loan to the ministry came from the account that was meant to assist states develop alternative mineral resources to oil and gas.
On other infractions to the natural resources account, the report noted that N5.7 billion loan was granted to the Ministry of Power and Steel in 2005 for the payment of severance package to disengaged steel workers.
Similarly, in October 2007, the Ministry of Finance also withdrew N10 billion for the payment of arrears of monetisation benefits owed Federal Government’s parastatals.
On the ecology account, the report said that out of N329.8 billion released during the period under review, N149.8 billion was abused, representing 45 per cent.
The report revealed that N750 million was released for the development of the Abuja Downtown Mall in 2007 from the fund meant to assist states ravaged by ecological problems.
Also misappropriated from the ecological funds was a N1 billion loan to Edo State Government, released in November 2002 and March 2003, respectively.
The Presidential Research and Communication Unit also received N200 million loan from the ecological fund in November 2002.
On the stabilisation account, created to provide for unforeseen contingencies and economic downturn, the report noted that N191.7 billion from the account was misapplied.
A total of N255 billion was released to the account between 2002 and 2012, and the report put its “level of abuse’’ at 75 per cent.
From the account, a loan of N309.2 million was granted to the Inspector-General of Police for purchase of vehicles for the United Nation (UN) peacekeeping operations in Haiti in 2006.
Also, N2.8 billion loan was granted to pay Federal Government of Nigeria 50 per cent contribution to the Phase 1 of the pioneer car finance scheme for public servants in paramilitary agencies in 2007.
The report by the committee also observed that out of N580 billion loans granted from the three accounts, N347.9 billion had yet to be recovered from various beneficiaries several years after.
It also noted that there was no regular reconciliation between the OAGF and the Central Bank of Nigeria.
Our correspondent reports that the committee’s recommendation for the Federal Government to recover all outstanding loans within six months did not pass through at the Senate.
Also, a recommendation for a legislation to be passed by the National Assembly to establish and regulate the SFA was also not passed.
In his explanation, Senate President David Mark said some of the recommendations by the committee had already been captured in a bill before the Senate to regulate the operations of the SFA.
Mark, however, said the report was a “wake-up call’’ to the legislators to be active in their oversight functions.
The Senate, therefore, directed its Public Accounts Committee to investigate further the disbursement and repayment of loans from the SFA.
Earlier, several Senators, who spoke after the presentation of the report, commended the committee for a painstaking work.
The senators were unanimous in their outrage over the revelations from the report and they conceded blame over their lax oversight functions of government agencies.
In his contribution, Senator Victor Ndoma Egba (PDP-Cross River) said the report had shown that “nothing has changed between when this Senate did the investigation into the PTDF and now’’.
Also speaking, Senator Ayogu Eze (PDP-Enugu) said a major lesson from the report was for the Senate to insist that the executive must present a revenue profile before subsequent debates on the budget
“Much as everybody is indicted, the legislature should rise up to its responsibility of overseeing the management of public funds,’’ he said.
On his part, Senator Bukar Ibrahim (ANPP-Yobe) noted that “these abuses have been going on for as long as we have been having governments in Nigeria’’.
Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.
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