Rivers State Government has uncovered a plot allegedly hatched by Supervising Minister of Education,Barrister Nyesom Wike to obtain a court judgement in order to halt the implementation of the recently passed 2014 budget in the state.
Commissioner for Information and Communications, Mrs Ibim Semenitari gave the indication yesterday in a press briefing in Port Harcourt.
She told reporters that the plan was to obtain a court judgement that would enable them to stop federal allocations accruing to the state. She therefore called on Rivers people to rise up to the challenge, as the action of a tiny set of people was aimed at plunging the state and country into a fresh crisis.
Mrs. Semenitari wondered why Mr. Wike and the Peoples Democratic Party(PDP) will allegedly plan to strangulate the state after the budget was passed few days ago,” we do not believe that Rivers people deserve this kind of treatment. We do not believe that Rivers people deserve this kind of treatment for voting massively for the president in 2011’’.
While expressing the commitment of the State Government to remain law abiding, she assured that the Amaechi led administration will always do what is right and therefore will not condescend to fighting dirty.
Commenting on the manner in which the bill was quickly passed, Semenitari said contrary to claims in some quarters, the bill was done in accordance with the law, “ necessary things were done before the chambers was used. And besides the Speaker can designate where the House can use.’’
She added, “ there was nothing illegal about the whole process as mush as I know. What is being questioned is morality but legality overides morality in this situation.’’
The Commissioner further argued that the plot to starve the state of funds by the opposition will not augur well, recalling that an Abuja High Court had ruled that the House should be re-opened, and which the police has failed to comply.
Meanwhile, the All Progressives Congress (APC) in Rivers State has commended the state lawmakers for passing the 2014 budget.
The party also praised the state Governor, Rt Hon Chibuike Amaechi for coming up with a realistic budget for the year and for its successful presentation before the state House of Assembly last Tuesday in Port Harcourt.
Interim Chairman of the Rivers State Chapter of the APC, Dr. Davies Ibiamu Ikanya, who made the commendation in a statement issued in Port Harcourt, the Rivers State capital on Wednesday, described the budget estimate of N485.5billion as realistic, and urged the Federal Government and other state governors to emulate the Amaechi example by not deceiving the public with grossly unrealistic promises.
The statement, signed by the Media Assistant to the Chairman, Chief Eze Chukwuemeka Eze, said the 2014 budget is 0.98 per cent lower than the 2013 budget of N490.32 billion, which shows a lot of wisdom in view of the reality of steadily declining revenue to the state due to the ceding of some oil wells of Rivers State to neighbouring states of Baylesa, Abia and Akwa Ibom.
Dr Ikanya also commended the decision by the Amaechi administration to focus on completing ongoing projects rather than embarking on new ones that may never be completed due to unavailability of resources.
The party chieftain praised the administration’s decision to give priority attention to health, education, roads, transport, power, water, agriculture and other critical infrastructure, noting that these are key areas of importance to the people of the state.
He extended the party’s appreciation to the Speaker of the state House of Assembly, Rt. Hon. Otelemaba Dan-Amachree, and other members of the House for their decision to temporarily relocate the sitting of the Assembly to the old Auditorium of Government House in view of the current renovation work and the barricading of the Assembly Complex by the police on orders from Abuja.
“This is another demonstration of the doctrine of necessity for which the lawmakers should be commended. While we look forward to the re-opening of the Assembly Complex presently under siege, it would be wrong to bring governance to a halt because, in the final analysis, it is the masses who will suffer for it and not Governor Amaechi as an individual,” Ikanya stated.
He commended the lawmakers for speedily debating and passing the budget into law as this will enable the wheel of government run without undue encumbrances.
Dr Ikanya condemned the criticism by the Felix Obuah-led PDP in Rivers State over the budget presentation and the threat to frustrate government’s plans to implement the budget to the letter.
He expressed sadness over comments by Obuah, who condemned the passage of the budget, and said he was not familiar with lawmaking process and also ignorant that without budget, the government can’t finance most of its projects or pay salaries.
“The fact remains that PDP needs not tell us that their main mission in Rivers State is to run down the state as we are already in the know, and this is why Rivers State and her people decided to reject them, and they will surely demonstrate this in 2015 polls”, he said.
He, however, said the House acted within the confines and contours of the law and the powers vested in them.
RSG, Not FIRS, Entitled To Collect VAT, Related Taxes In Rivers -Court
The Federal High Court sitting in Port Harcourt has declared that it is the Rivers State Government, not the Federal Inland Revenue Services (FIRS), should collect Valued Added Tax (VAT) and Personal Income Tax (PIT) in the state.
The court, presided over by Justice Stephen Dalyop Pam, also issued an order of perpetual injunction restraining the Federal Inland Revenue Service and the Attorney General of the Federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS, PIT and VAT.
Pam made the assertion while delivering judgement in Suit No. FHC/PH/CS/149/2020, filed by the Attorney General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant).
The court, which granted all the 11 reliefs sought by the Rivers State Government, stated that there was no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax (WHT), Education Tax and Technology Levy in Rivers State or any other state of the federation, being that the constitutional powers and competence of the Federal Government was limited to taxation of incomes, profits and capital gains, which do not include VAT or any other species of sales, or levy other than those specifically mentioned in Items 58 and 59 of the Exclusive Legislative List of the Constitution.
The judge dismissed the preliminary objections filed by the defendants that the court lacks jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.
Pam, who also dismissed objection raised by the defendants that the National Assembly ought to have been made a party in the suit, declared that the issues of taxes raised by the state government were issues of law that the court was constitutionally empowered to entertain.
He declared that after a diligent review of the issues raised by bothplaintiff and the defendants, the plaintiff had proven beyond doubt that it was entitled to all the 11 reliefs sought in the suit.
The court agreed with the Rivers State Government that it was the state and not FIRS that was constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by Items 58 and 59 of Part 1 of the Second Schedule of the 1999 Constitution as amended.
Also, the court declared that the defendants were not constitutionally entitled to charge or impose levies, charges or rates (under any guise or by whatever name called) on the residents of Rivers State, and indeed, any state of the federation.
Among the reliefs sought by the Rivers State Government, was a declaration that the constitutional power of the Federal Government to impose taxes and duties was only limited to the items listed in Items 58 and 59 of Part 1 of the Second Schedule of the 1999 Constitution as amended.
The Rivers State Government had also urged the court to declare that, by virtue of the provisions of Items 7 and 8 of the Part II (Concurrent Legislative List) of the Second Schedule of the Constitution, the power of the Federal Government to delegate the collection of taxes can only be exercised by the state government or other authority of the state, and no other person.
The state government had further asked the court to declare that all statutory provisions made or purportedly made in the exercise of the legislative powers of the Federal Government, which contains provisions which are inconsistent with or in excess of the powers to impose tax and duties, as prescribed by Items 58 and 59 of the Part I of the Second Schedule of the 1999 Constitution, or inconsistent with the power to delegate the duty of collection of taxes, as contained in Items 7 and 8 of Part II of the Second Schedule of the Constitution, were unconstitutional, null and void.
Lead counsel for the Rivers State Government, Donald Chika Denwigwe (SAN), who spoke to journalists after the court session, explained that the case was all about the interpretation of the Constitution as regards the authority of the government at the state and federal levels to collect certain revenues, particularly, VAT.
“So, during the determination of the matter, some issues of law were thrown up like, whether or not the case should be referred to the Court of Appeal for the determination of some issues.
“The court noted that the application is like asking the Federal High Court to transfer the entire case to the Court of Appeal. In which case, if the court so decides, there will be nothing left to refer back to the Federal High Court as required by the Constitution.”
According to Denwigwe, the court refused that prayer, and decided that the case was in its proper place before the Federal High Court, and was, therefore, competent to determine it.
Speaking on the implications of the judgement, Denwigwe said it was now, unlawful for such taxes as VAT in Rivers State to be collected by any agency of the Federal Government.
“In a summary, it is a determination that it is wrong for the Federal Government to be collecting taxes which are constitutionally reserved for the state governments to collect. The implication of the judgement is that the government (federal and state) as an authority under the constitution,should be advised by the judgement that it is the duty of all government authorities to comply with and obey the law so long as the court has interpreted it and said what that law is.
“So, in other words, the issue of Value Added Tax (VAT) in the territory of Rivers State and Personal Income Tax should be reserved for the government of Rivers State.”
Counsel to FIRS, O.C. Eyibo said he will study the judgment and advise his client.
90% Of Money Laundered Via Real Estate, EFCC Reveals
The Economic and Financial Crimes Commission (EFCC) says about 90 per cent of money laundering is done through the real estate sector.
The commission’s Chairman, Abdulrasheed Bawa, stated this while featuring on Channels TV’s Sunrise Daily, yesterday,
According to him, although the sector is monitored via the special control unit, more needed to be done.
According to Bawa, “One of the problems we have now is the real estate. 90 to 100 per cent of the resources are being laundered through the real estate.”
He said there are so many issues involved, but that they were working with the National Assembly to stop what he called “the gate keepers” as there would be reduction in looting if there is no one to launder the money.
Bawa, the EFCC boss, gave an example of a minister who expressed interest in a $37.5million property a bank manager put up for sale.
He said, “The bank sent a vehicle to her house and in the first instance $20million was evacuated from her house.
“They paid a developer and a lawyer set up a special purpose vehicle, where the title documents were transferred into.
“And he (the lawyer) is posing as the owner of the property. You see the problem. This is just one of many; it is happening daily.”
The EFCC chairman also revealed that he receives death threats often.
Asked to respond to President Muhammadu Buhari’s frequent “Corruption is fighting back” expression, Bawa said he was in New York, USA, last week, when someone called to threaten him.
“Last week, I was in New York when a senior citizen received a phone call from somebody that is not even under investigation.
“The young man said, ‘I am going to kill him (Bawa), I am going to kill him’.
“I get death threats. So, it is real. Corruption can fight back,” he said.
On corruption in the civil service, he said there were a lot of gaps, especially in contracts processing, naming “emergency contracts” as one.
Bawa said, “A particular agency is notorious for that. They have turned all their contracts to emergency contracts.”
However, he said, EFCC has strategies in place to check corruptions, one of which is “corruption risk assessments of MDAs”.
According to him, “I have written to the minister and would soon commence the process of corruption risk assessments of all the parastatals and agencies under the Ministry of Petroleum Resources to look at their vulnerability to fraud and advise them accordingly.”
Asked if the scope of corruption in the country overwhelms him, Bawa, the EFCC boss said, “Yes, and no.”
We’ve Spent N9bn To Upgrade RSUTH, Wike Confirms
The Rivers State Governor, Chief Nyesom Wike, says his administration has spent N9billion in upgrading structures and installation of new equipment at the Rivers State University Teaching Hospital (RSUTH).
He said the fact that 40 per cent of the 2021 budget of the state is dedicated to provision of quality healthcare delivery was a further demonstration of the priority placed on the sector.
Wike made the explanation at the foundation laying ceremony for the construction of a Renal Centre at RSUTH, last Friday.
The governor said he made promise to Rivers people that the best would be provided to them in all sectors of the society within his capability because of the mandate they gave to him.
“As we came on here, I just looked around and I see the changes in this teaching hospital. I can say that we have put not less than N9billion in this teaching hospital.
“If you look at the budget, the health sector alone, what it’s taking from the Rivers State Government is not less than 40 percent of the 2021 budget.”
Speaking further, Wike said the state government cannot afford to implement free medical service programme in the present economic circumstance.
While dismissing the request for a subvention for RSUTH, Wike, however, commended the chief medical director and his team for their commitment to turnaround the fortunes of RSUTH.
“I have never seen anywhere that health services can be totally free. They’re telling me that people who come here can’t pay. I have never declared that this state is going to take over the health fees of anybody.”
Also speaking, the former Minister of Transport, Dr. Abiye Sekibo, who performed the flag-off, noted that Wike’s achievements in the health sector in particular, surpass what former governors of the state had done.
Sekibo said that the governor has given equal attention to every section of the health sector by providing complete health infrastructure that was positioning the state as a medical tourism destination in Nigeria.
Earlier, the Rivers State Commissioner for Health, Prof Princewill Chike, lauded Governor Nyesom Wike for his interest in the health of Rivers people.
He noted that the renal centre, when completed, would become another landmark development project in the health sector that would handle and manage all kidney-related ailments.
In his remarks, the Chief Medical Director of the Rivers State University Teaching Hospital, Dr. Friday Aaron, commended Wike for approving the renal centre.
Aaron explained that chronic kidney disease was a major burden globally with estimated 14 million cases in Nigeria.
According to him, over 240,000 of these cases require renal replacement therapy in the form of dialysis and renal transplant.
The CMD said the building that would house the centre was expected to be completed in six months and consists of two floors.
The ground floor, according to him, would house the haemodialysis unit with eight haemodialysis machines.
He further explained that the first floor of the centre would house the surgical component where most of the sophisticated equipment for kidney transplant would be installed.
Aaron said Wike has released the funds required to build, equip the centre as well as for the training of personnel locally and internationally.
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