The Nigerian Senate, yesterday, began an investigation into the $3.5billion spent under the ‘Subsidy Recovery Fund’ of the Nigerian National Petroleum Corporation (NNPC).
A point of order raised by the Senate’s Minority Leader, Senator Biodun Olujimi, cited a ThisDay article on the $3.5billion earmarked as subsidy recovery funds by the NNPC.
“I bring before this chamber this very important issue of national importance. It has to do with an article published in today’s ThisDay newspaper and it deals with the $3.5billion earmarked as subsidy recovery fund by the NNPC.
“Mr. President, since 1999, there has always been a budget for subsidy, however, this has been jettisoned by the current government, which leaves this administration in a very dire strait.
“What is happening now is that there is a fund named the ‘Subsidy Recovery Fund’ and it is being managed by only two individuals in the NNPC: the Managing Director and the Executive Director of Finance.
“This fund is too huge for two people to manage, and right now, the $3.5billion is too huge to be managed without appropriation without recourse to any known law of the land.
“You remember Mr. President that following the passage of the budget, you mentioned in your remarks, that there should be a budget for the subsidy and it should be brought before the National Assembly — that has not been done.
“What has happened is that by the report of ThisDay newspaper, it is almost certain that $3.5billion is a slush fund which is just being managed by just two individuals — and that is not correct.
“I want to urge the Senate to cause the Committee on Downstream, Chaired by Senator Marafa, to compel the NNPC to come before the Senate Committee and explain why this is so. Nigerians need to know what has happened to the funds that have been used so far — and the new terminology that is being used under subsidy recovery,” Olujimi said.
Responding, the President of the Senate, Dr. Bukola Saraki, reminded the Senate that he had called for the executive to submit its petroleum subsidy budget to the National Assembly, when the 2018 budget was passed in May.
“Distinguished Colleagues, when we passed the budget, I said that there was a need for the executive to bring forward the budget for the subsidy.
“In light of the enormity of the issues before us — where we are talking about a subsidy of almost $3.5billion — I would like to direct that the Senate Leader and the Chairman of the Committee of the Downstream, should urgently summon those in NNPC who are responsible for this. We must look into this matter and report back to the Senate plenary by next week, where the Committee will have a report that we can debate.
“On this issue, I do not want us to be speculative. Let us go by the facts, so that our contributions are not seen to be partisan. This matter is too serious for us to be partisan about it.
“A lot of us have been around long enough to know how this matter should have been treated. Now, it has gotten to a level where it involves over $3billion — which is not a small amount of money.
“With the leave of my colleagues, if we all accept, we direct the leader and the chairman of the Downstream Committee, to look into this matter and report to the Senate by next week,” he said.
Also, the upper chamber of the National Assembly yesterday beamed its light into the activities of the Nigerian National Petroleum Corporation (NNPC) and resolved to probe the corporation over unaccounted $3.8 billion dollars allegedly shrouded in secrecy.
To this end, the Senate has set up an ad-hoc committee headed by Senate Leader Ahmed Lawan to carry out the investigation and submit its report within a week for further legislative action.
The resolution by the Senate to probe the NNPC followed an order raised by Senator Biodun Olujimi, representing Ekiti South Senatorial District.
Olujimi, in her presentation, noted that the alleged fund is being manage quietly without appropriation.
She said, “Right now, the fund is being managed quietly without appropriation of any known law. Nobody is talking about us – Nigeria, paying subsidy. But we know that subsidy is being paid in one form or another but being covered in recovery rather than subsidy.”
The lawmaker further noted that the fund has long been in the custody of the NNPC management without being couched well before the public.
Olujimi said, “The NNPC management should come to explain what the money has been used for and whether or not it has been used in paying subsidy.
“What happened is that rather than the Executive talking about subsidy, they talk about subsidy recovery. That meant that they were going to end subsidy and pay people to stop subsidy. But the Fund is not appropriated. It’s just a lump sum within the management of NNPC and we believe that it is not good for it to be shrouded in this kind of secrecy.”
“And this is being done behind the scenes. It shouldn’t be so. This is because it is money belonging to Nigerians and, it must be appropriated.”
Meanwhile, the Federal High Court in Abuja has granted leave permitting a civil society group, Kingdom Rights Foundation International, to commence a suit which centres on allegations of money laundering, operation of a foreign bank account, corruption and assets declaration irregularities against the Minister of State for Petroleum Resources, Dr Ibe Kachikwu.
An enrolled order of the court bearing the stamp of the Federal High Court and the signature of the registrar with October 15, 2018 date, showed that Justice Folashade Ogunbanjo made the order on October 10.
The plaintiff, KHRFI, through its ex parte application filed on August 23, 2018, had sought the court’s leave to commence a suit seeking Kachikwu’s probe for the various allegations.
Kachikwu was sued alongside the Ministry of Petroleum Resources, the Code of Conduct Bureau, the Economic and Financial Crimes Commission, President Muhammadu Buhari, and the Attorney General of the Federation, Mr Abubakar Malami (SAN).
The plaintiff asked the court, in the substantive suit, to conduct a judicial review of the administrative action/inaction of the defendants to perform their constitutional and statutory mandates and obligations in connection with the investigation and prosecution of Kachikwu.
The plaintiff’s lawyer, Okere Nnamdi, moved the ex parte application seeking leave to commence the suit on October 10.
Granting the request in her ruling, Justice Ogunbanjo held, “Leave is granted to the plaintiff/applicant to commence action for judicial review of administrative action/inaction to perform their constitutional and statutory mandate and obligation under section 174(1), (2), and (3) of the 1999 Constitution, sections 3 and 24 (2) of the Code of Conduct Bureau and Tribunal Act, CAP C15, Laws of the Federation 2004, and in section 5(1) of the EFCC Act, to investigate and prosecute Dr Ibe Emmanuel Kachikwu, on allegations of money laundering, operation of foreign bank account while occupying a public office, corruption, false declaration of assets, perjury and abuse of office, contrary to the Code of Conduct for Public Officers provided under paragraphs 1, 2 and 11(1) and (2) of the Fifth Schedule, Part I of the 1999 Constitution of the Federal Republic of Nigeria (as amended).”
The judge also made an order deeming the plaintiff’s originating summons (the main suit) filed alongside the ex parte as “properly filed under Order 34 Rule 5(1) of the rules of the court.”
But the judge declined to grant the applicant’s request that Kachikwu should be served with the court papers through “the most senior staff member in the registry of any staff member of the ministry.”
Rather, the court ruled that “the first defendant (Kachikwu) is to be served personally.”
The judge then fixed October 24 for a report of service.
In the substantive matter, the plaintiff asked the court to compel “the 3rd, 4th and 6th defendants to immediately investigate and prefer a criminal charge against Dr Kachikwu Ibe Emmanuel (the Hon. Minister of State for Petroleum) for breach the Code of Conduct for public officers provided for in the Constitution.”
Alleging that Kachikwu had put himself in a situation “where his personal interest conflicts with his official duty” the plaintiff urged the court to compel, “the President of the Federal Republic of Nigeria (5th defendant in this suit) to immediately suspend Dr Kachikwu Ibe Emmanuel as the Hon. Minister of State for Petroleum” on the various allegations.
Some of the assets which the plaintiff accused Kachikwu of declaring anticipatorily included N1.35billion in Nigerian banks as well as $1.2million and £100,000 in foreign banks.
It also accused him of “non-declaration of assets of several companies registered in Nigeria where Kachikwu had interests and controlling shareholding, serving as a Director and Management Board member of Beverly Cops & Securities Ltd., Intel & Data limited, Flame Petroleum & Gas Ltd., True Tales Productions Ltd., and True Tales Event Management Ltd.”
“Criminal anticipatory declaration of assets and properties, which do not belong to him and many others not identifiable at the land registry of the various jurisdictions where he declared them to purportedly exist.”
However, both chambers of the National Assembly yesterday approved President Muhammadu Buhari ‘ s request for N242 billion as budget for the conduct of the 2019 general elections by the Independent National Electoral Commission (INEC) and allied security agencies.
The federal lawmakers in their final approval of the entire budget for the elections however tinkered with budgetary proposals made for the Nigeria Police Force (NPF), the Department of State Service (DSS) and office of the National Security Adviser (NSA).
The lawmakers approved. N27.341bn for the Police Force; having reduced about N3bn from President Muhammadu Buhari orinal proposal of N30bn for the Police through a virement seeking letter in July just as they also reduced the N12,213,282,455.00bn proposed for DSS by the executive to N10.213bn.
The cuts from the budget of yhe Police snd DSS which yielded N5bn were however added to N4,281,500,000.00bn earlier proposed for the office of the National Security Adviser raising it to N9.481bn.
The other aspects of the budget remained as proposed by Mr. President as the the N189bn budgetary proposals for INEC, N2.628bn for National Immigration Service (NIS) and N3.573bn for the Nigeria Security and Civil Defence Corps, were retained.
The approvals of the N242.245bn elections budget for 2019 by both chambers were sequel to recommendations of the Appropriation committees of both the Senate and House of Representatives.
The Senate Committee in its report presented in the Senate by its Chairman, Danjuma Goje, differed with President Buhari on source of virement for the N242bn.
While the President in his July letter, urged the federal lawmakers to vire the money from the N578bn special votes for 1,403 constituency projects allegedly inserted into the N9.12trillion 2018 budget by the lawmakers, both the Senate and the House of Representatives in their approval of the N242bn elections budget, ordered for its virement from Special Intervention Programme (both recurrent and capital).
Specifically, as recommended and approved by both chambers, N194.7 bn out of the N242bn would be vired from N350bn recurrent component of the Special Intervention Programme, while the balance of N47.498bn would be vired from N150bn capital component of the Special Intervention Programme.
In his remarks after the approval of the N242bn elections budget, the Senate President, Bukola Saraki, said: “the much expected elections budget has been passed and approved here in the Senate , the same way I believe is done in the House of Representatives.
“It is the hope of the National Assembly and Nigerians generally that with this approval, INEC and other relevant agencies will ensure credible, free, fair and safe elections come 2019”.