Politics
Reps Move To Block $30bn Annual Revenue Leakages
The House of Representatives has resolved to investigate various malpractices in foreign exchange allocation to companies by the Central Bank of Nigeria (CBN) and other sources running over 30 billion dollars annually.
This was sequel to a unanimous adoption of a motion by Rep. James Faleke (APC-Lagos) at the plenary, yesterday.
Moving the motion earlier, Faleke said that it was public knowledge that the performance of the economy in the country was low at this critical time
Faleke said that in the past years, Nigeria had not been able to fund capital aspect of its Appropriation Act year in year for lack of funds due to low remittances of revenue by revenue generating agencies.
He identified low payment of taxes by private companies and diversion of expected revenue by corporate organisations as other factors responsible for the inability of government to fund the budget.
“The crude oil price bench mark in 2020 Appropriation Act was put at $57 dollar per barrel but the price of crude oil in the international market has dropped to 47 dollars per barrel.
“This clearly indicates that the major source of revenue towards funding the 2020 Appropriation Act is already in the negative.
“There is an urgent need to rescue the country from over $30 billion dollars annual revenue leakages arising from tax evasion, malpractices, mis-use and diversion of foreign exchange allocations by companies and other entities,” he said.
Faleke said that invoices overstatement by importers with the intention of obtaining large forex allocation above the international cost, insurance and freight value of goods were increasing the domestic inflation rate.
He alleged that the ficticious transfer of forex allocation for the payments of dividends to foreign shareholders of Nigerian companies above the dividend approved by the company’s board of directors and audited accounts was leading to evasion of statutory 30 per cent company Income.
Faleke said that allocation of foreign exchange to companies for the repayment of principal foreign loan and interest were in some cases found to be non-existing.
He said that millions of dollars in forex allocation to companies for the purpose of payment of foreign vendors for services rendered in Nigeria were in most cases found to have evaded the then statutory five per cent VAT and seven per cent withholding Tax.
Faleke said that the value of imported physical goods, materials, equipment on account of forex allocation by most companies were always understated to Nigeria Customs Service (NCS) at the port of arrival in order to reduce import duty payable.
In a statement on Saturday, the former Senate Leader stated that the allocation of nominees across states and geopolitical zones falls short of the constitutional requirement for fair representation in the composition of the Federal Government.
The ex-Senate Whip warned that allowing the list to pass could deepen ethnic suspicion at a time when the administration should be consolidating national unity.
He highlighted disparities in the spread of nominees, noting that while some states have three or four slots, others have none. He also cited the inclusion of Senator Adamu Garba Talba from Yobe, who reportedly died in July.
“The entire North-East states have seven nominees in the list. Further checks revealed that the South-West geo-political zone has 15 nominees, while North-West and South-East have 13 and 9, respectively.
“North-Central region has 10 nominees in the list of career and non-career ambassadorial nominee while South-South parades 12 nominees,” Senator Ndume said.
According to him, such imbalances could heighten tensions and undermine Section 14(3) of the Constitution.
“My sincere appeal to President Tinubu is to withdraw this list. At this critical juncture in his administration, he should avoid missteps that could undermine national unity and foster ethnic distrust.
“I know him to be a cosmopolitan leader who is at home with every segment and stakeholder in the country. He should withdraw that list and present a fresh set of nominees that will align with the spirit of the Constitution on the Federal Character Principle,” Senator Ndume added.
He accused the legislators of undermining the sanctity of the legislature and acting as instruments of destabilization.
“The members of the Rivers State House of Assembly have, by their actions since they assumed office, shown that they are political puppets and a clog in the wheels of democratic progress,” Comrade Ememobong stated, adding that “They will go down in history as enemies of democracy and those who made mockery of the legislature.”
“So the easiest way to describe their action is a defection from APC to APC,” he said.
Comrade Ememobong announced that the party would deploy constitutional provisions to reclaim its mandate from those who have “ignobly and surreptitiously” abandoned the platform on which they were elected.
“Consequently, the PDP will take legal steps to activate the provision of the Constitution of the Federal Republic of Nigeria (1999 as amended) to recover the mandate gained under the banner of our party which these people have now switched to another platform,” he said.
He urged party members in Rivers State to remain calm and steadfast.
“We urge all party members in Rivers State to remain faithful and resolute, as efforts are underway to rebuild the party along the path of inclusiveness, fairness and equity,” Comrade Ememobong assured.
As the news of the defection of 17 members of Rivers State House of Assembly from the Peoples Democratic Party (PDP )to the All Progressives Congress (APC) continue to make the rounds, a cross section of Rivers people who spoke to The Tide have expressed varying views regarding the development.
At Etche, a senior lecturer with the Rivers State University, who did not want his name in print, said even though defection was the right of politicians, peace and stability remained more fundamental than any action that could further challenge the fragile political situation in the state at the moment.
He also warned that the situation should not be used to witch-hunt any one, adding that the state had suffered enough and needed to be at peace.
In his reaction, Engr Polycarp Geoffrey said even though citizens and residents of the state had cause to be concerned about the decision of the lawmakers, there was nothing to worry about if it was done in good faith.
“I don’t think there is any big deal about it – defection is defection. But people are worried because of past events in the state. So, for me, I don’t see anything about it”, he said.
Engr Geoffrey also urged the Governor Siminalayi Fubara to also openly declare political affiliation in a bid to douse the political tension in the state and to provide clarity regarding his future political direction.
Another respondent, Mr Ebere Alex, alleged ulterior motive behind the law makers’ defection but urged both the law makers and the governor to work for the peace and development of the state.
However, speaking on the development, a chieftain of the PDP in the state, Hon Nname Ewor, told The Tide that said his party would reach out to the remaining lawmakers who have not defected.
He also denied an alleged internal squabble within the PDP, adding that there was no crisis in the party.
It would be recalled that 17 members of the Rivers State House of Assembly led by the Speaker, Rt Hon. Martin Amaewhule, during plenary last Friday, announced their migration from the PDP to the APC, citing internal party crisis.
Other members who also defected were the Deputy Speaker, Rt Hon. Dumle Maol, representing Gokana Constituency; House Leader, Hon. Major Jack, representing Akulga Constituency 1 and Deputy Leader, Hon. Linda Somiari-Stewart, representing Okrika Constituency; Hon. Solomon Wami, Port Harcourt Constituency 1 and Hon Granville Tekena Wellington representing Asari Toru Constituency 1; Hon. Ofiks Kagbang, representing Andoni Constituency; Hon. Peter Abbey representing Degema Constituency; Hon. Arnold Dennis representing Ogu/Bolo Constituency; Hon. Chimezie Nwankwor representing Etche Constituency 2 and Hon. Franklin Nwabochi representing Onelga Constituency 1.
The rest were, Hon. Azeru Opara, representing Port Harcourt Constituency 3; Hon. Smart Adoki representing Port Harcourt Constituency 2; Hon. Igwe Afforji ,Eleme Constituency and Hon. Lolo Opuende representing Akuku Toru Constituency 2.
By: John Bibor
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