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Okonjo-Iweala Tasks Accountant General On Waste In Public Finance

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Okonjo-Iweala Tasks Accountant General On Waste In Public Finance

The minister of Finance, Ngozi Okonjo-Iweala has challenged the accountant-general
of the federation to seek effective inter agency interaction to bring all government revenue and expenditure under its safety net and cut wastages.

The minister stressed that the office of the accountant-general plays a central and strategic role in reforming the public financial management which is currently plagued with problems such as corruption, high cost of governance, inadequate legislation, non-compliance with due process mechanism, poor motivation and emerging public performance reporting system.

Okonjo-Iweala, who was represented by her permanent secretary, Nwobia Daniel, gave the charge in Kaduna at the opening of a two-day retreat organised for directors of finance and accounts and heads of internal audit in federal ministries, departments and agencies, MDAs.

The minister said the retreat was to remind them on the importance of their roles in the government’s transformation agenda, as well as tackle the challenges of leakages in government revenue and wastages in expenditure patterns in MDAs.

According to her, the participants are also expected to come up with strategies to ensure prudence in management of limited financial resources available for government’s use.

“At the end of the retreat, deliberate policies aimed at minimising corruption and strengthening the economy through efficient treasury management should be suggested to fine-tune the transformation agenda,” she urged.

Okonjo-Iweala explained that the reforms expected in public financial management will cover the Government Integrated Financial Management Information System, GIFMIS, Treasury Single Account, TSA, Integrated Payroll and Personal Information System, IPPIS.

It will also include development of national Chart of Accounts, COA, modernisation of the Internal Audit Functions, upgrading of Federal Treasury Academy and adoption of International Public Sector Accounting Standards, IPSAS.

She said these reforms if pulled through are meant to ensure efficient public expenditure management, curb corruption, improve government revenue, enhance transparency and accountability.

“An independent revenue collection averaging 50-55 per cent of budgeted figures is no longer acceptable,” the minister stressed.

On his part, the accountant-general of the federation, Jonah Otunla, said 36 MDAs out of the 394 had been trained on GIFMIS, and that the remaining 358 would be trained in batches.

On the IPSAS, Otunla said that sensitisation and training were ongoing in the MDAs on the new format of reporting financial transactions of government.

He said the IPSAS cash basis would commence from 2014 financial year, while the accrual basis would come into operation by 2016.

He charged the participants to make recommendations on issues bodering on treasury management such as improving revenue base of government and addressing gap among treasury accountants.

Otunla also challenged them to suggest institutional restructuring of the nation’s treasury for improved performance, ways to address challenges of cash planning and expenditure discipline and forum for efficient public financial management.

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Gunmen Abduct EFCC Suspect in Court

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Gunmen Abduct EFCC Suspect in Court

Four men armed with guns on Thursday, abducted an alleged serial fraudster and suspect in two cases being handled by the Economic and Financial Crimes Commission, EFCC.

The suspect, Princewill Arinze Nwobodo (alias Aboki J. Brown), was abducted by the gunmen within the precincts of the Lagos High Court, Igbosere where he was to be arraigned before Justice Aishat Opesanwo on a Four-count charge bordering on obtaining $ 92,000 under false pretence.

Nwobodo had previously been arraigned in two separate courts in Lagos on fraud related charges.

On October 25, 2013, he was arraigned before Justice Saliu Seidu of the Federal High Court, Lagos on a 15- count charge bordering on forgery and obtaining under false pretence.

He pleaded not guilty to the charges and was granted bail but his inability to meet the bail conditions consigned him to prison custody till Thursday, February 20.

In the second court, he was arraigned on November 20, 2013 before Justice Aishat Opesanwo alongside Katchy Okoye and Matthew Usong on a 12-count charge that borders on conspiracy and obtaining money under false pretence. They were granted bail but could also not meet the bail terms.

Nwobodo was brought to court on Thursday from Ikoyi Prison, Lagos where was snatched from the Prison warders by the unknown gunmen.

The arraignment was consequently deferred to March 27, 2014 as the court did not sit.

Reps Investigate Budget Office Over N4.7 Trillion Unapproved Funds

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Reps Investigate Budget Office Over N4.7 Trillion Unapproved Funds

The bursar of the National Teachers’ Institute, Abdulkarim Affo, on Wednesday told the House of Representatives committee on Public Accounts that the Budget Office of the Federation had on December 31, 2012, transferred N791million unsolicited funds to its bank account.

The committee is investigating the withdrawal of N4.7tn from the Service Wide Vote, SWV, from 2004 to 2014.

Affo said the generosity came as a huge surprise to the management of the institute which immediately returned the money to the government treasury since it could not defend the windfall.

He said the money was lodged in the NTI account through a transfer from the controversial Service Wide Vote.

“On December 31, 2012, we just received an alert that a sum of N791m was credited to the institute’s bank account from the budget office without any prior request for financial assistance from the federal government. We tried to make enquiries and we wrote to the Office of the Accountant-General of the Federation to find out what was the purpose of the whopping amount, but all efforts yielded no result,” Affo explained.

He added: “At the end of the day, what the institute did was to pay back the money to the treasury at the Central Bank of Nigeria as required by the law of the federation. We have the evidence of payment; we never made a request for any money.”

Chairman of the committee, Solomon Olamilekan, said the disclosure of the NTI bursar followed a pattern of “fraudulent acts” by the budget office, which was being investigated and directed Affo to produce the treasury receipt and other evidence to prove that the money was, indeed, returned.

“Only last week, NAFDAC officials appeared before the committee over the whopping sum of N5bn claimed to have been released to the agency by the budget office. But the agency claimed it received only N365m from the amount,” the chairman noted.

Continuing, he said, “Also, just a while ago, the National Boundary Commission, NBC, appeared before the committee over the N2bn the budget office claimed it released to it, which the commission also denied ever receiving a kobo from the budget office.”

The chairman said it was disheartening that the National Assembly ha approved about N2.1tn for the Service Wide Vote Account in the period under review, but that the office has gone ahead to expend over N4.7tn, more than double the amount, amidst a lot of controversies.

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House of Reps, Others Condemn Suspension of CBN Governor, Sanusi

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House of Reps, Others Condemn Suspension of CBN Governor, Sanusi

The House of Representatives witnessed a rowdy session on Thusday over the suspension of the governor of the Central Bank of Nigeria, CBN, Sanusi Lamido Sanusi, by President Goodluck Jonathan and the nomination of his replacement.

At the end of the rowdy session, however, the House passed a motion condemning Sanusi’s suspension, just as several groups, including the All Peoples Congress and the Centre for Social Justice declared the president’s action legal.

Thursday’s rowdy session followed a motion of urgent national importance moved by the minority whip of the House, Samson Osagie, who contended that the president had powers only to remove the CBN governor but could not suspend him.

Usage frowned at the suspension of the CBN governor at a time when he had opened a can of worms about missing funds in the Nigerian National Petroleum Corporation, NNPC.

“There are funds that are alleged to have been missing and we have not found those funds; the man who is making the allegations, whether he is corrupt or not, is being removed from office,” he observed.

Osagie maintained that under the CBN Act, “the CBN Governor cannot be suspended, he can only be removed.”

He said further: “The truth must be told that under the circumstance, the issue of the missing funds ought to have been resolved…and if Sanusi is found to have blown an alarm that is misplaced, then you can sack him”.

Osagie’s motion, however, sailed throughout in spite of the rowdy session, with the House mandating a joint committee to compile A list of all resolutions which had indicted public officials for the president to take action.

Also reacting to the CBN governor’s suspension, the All Progressives Congress, APC, said the move by the President is illegal , poorly thought-out and in bad taste, noting too that it is the clearest indication that President Jonathan, whose body language does not abhor corruption, is willing to silence any whistle-blower, no matter his or her status.

Speaking on behalf of the party, interim national publicity secretary, Lai Mohammed, said while Section 11 (f) of the CBN Act 2007 empowers the President to remove the CBN Governor, the section is clear that he can only do so if he has the support of two-thirds majority of the Senate.

The CBN Act in section 11 specifically provides that:

11. – (1) A person shall not remain a Governor, Deputy Governor or Director of the Bank if he is –

(a) a member of any Federal or State legislative house; or

(b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Act.

(2) The Governor, Deputy Governor or Director shall cease to hold office in the Bank if         he –

(a) becomes of unsound mind or, owing to ill health, is incapable of carrying out his duties;

(b) is convicted of any criminal offence by a court of competent jurisdiction except for traffic offences or contempt proceedings arising in connection with the execution or intended execution of any power or duty conferred under this Act or the Banks and Other Financial Institutions Act;

(c) is guilty of a serious misconduct in relation to his duties under this Act;

(d) is disqualified or suspended from practicing his profession in Nigeria by order of a competent authority made in respect of him personally;

(e) becomes bankrupt;

(f) is removed by the President:
Provided that the removal of the Governor shall be supported by two-thirds majority of the Senate praying that he be so removed.(underlining supplied).

According to the APC, the reasons given by the presidency for Sanusi’s suspension are as puerile as they are unprecedented, and amount to calling the dog a bad name just to hang it.

“Why has it taken almost five years of Sanusi’s tenure for the President to realize the irregularities of CBN under Sanusi? Why is the President acting on questionable allegations against Sanusi at a time the CBN Governor has opened the can of worms in the NNPC (Nigerian National Petroleum Corporation)? Why has a President, who has always treated glaring corruption allegations against his political appointees with so much levity, now so quick to move against a CBN Governor who has never been accused, let alone indicted of corruption?” the party queried.

The APC also expressed serious concerns at the implication of Sanusi’s suspension for the nation’s economy, especially on the value of the Naira; local and international investments; the stock market; inflation and the overall health of the economy.

“Coming at a time when the economy was already under pressure due to internal and external factors and is in need of significant investments in several sectors, such as power and manufacturing to maintain its economic growth rates, the uncertainty caused by the suspension will leave both local and international investors questioning the economic direction of the country and therefore their investment approach to Nigeria,” it stressed.

In the same vein, the Centre for Social Justice, CSJ, has said that there is no legal basis of the President’s action considering that the suspension cannot be justified under any of the subsections in Section 11 of the CBN Act.

“To the best of our knowledge, the Senate has not delivered any prayer to the President for Sanusi’s removal. The law only recognizes removal as the term “suspension” is unknown to the CBN Act. If the “far reaching irregularities and breaches of enabling laws, due process and mandate” have not been investigated as indicated in the presidential statement, then the removal was based on mere conjecture without even a prima facie evidence of the allegations,” the CSJ said.

The group also notes that suspending the CBN Governor at a time he raised serious allegations of corruption against the NNPC and its opaque procedures is an apparent endorsement of corruption, a validation of fiscal impunity and assault of incalculable proportions on the rule of law.

The CSJ therefore advised the President to reverse the suspension, recall the suspended bank Governor and tread the path of legality.

Even as the uproar attending Sanusi’s suspension continued, the President swiftly nominated the managing director of Zenith Bank Plc, Godwin Emefiele as his replacement.

In a letter to the Senate President, David Mark, for approval of the nomination, the president said the request was in view of the fact that the tenure of the incumbent would end on June 1.

The letter was read by the deputy senate President, Ike Ekweremadu, who presided over the plenary.

The letter read in part: “Pursuant to the provisions of section 8(1) and (2) of the CBN Act of 2007, I hereby forward the name of Mr Godwin Emefiele for your kind consideration and confirmation.”

The president had earlier appointed the most senior deputy governor in the bank, Sarah Alade, as acting Governor, pending the confirmation of Emefiele’s nomination.

In a separate letter, the president asked the Senate to confirm Mr Adelabu Adekola as a deputy governor with CBN.

The president expressed the hope that the letters would be handled in the usual expeditious tradition of the Senate.

Meanwhile, Sanusi has vowed to challenge his suspension in court, saying that the move impinges on the independence of the CBN.

Speaking to the cable news network, CNBC Africa, in Niamey, the Nigerien capital, where he was attending a conference of the West African currency zone with other governors of the Central Banks in West African as at the time the news of his suspension broke, Sanusi said he would want the court to establish once and for all if the President has the powers to do what he has done.

“It has never been my desire to hold on to a job. However, I believe if the CBN governor cannot be removed from office, then he cannot be suspended. He can be queried, but the exercise of the arbitrary decision to remove him must be challenged,” the suspended bank chief said.

Police Confirms 47 Killed In Bama

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Police Confirms 47 Killed In Bama

At least 47 persons have been confirmed dead after an attack early Wednesday in Bama, Borno State, the Police has said.

The Borno State Commissioner of Police, Lawan Tanko, who gave the figure said “every land mark building in the local government secretariat, the state lowcost housing estate, schools and several other buildings, as well as part of the Shehu’s palace were destroyed.”

The casualty figure is also expected to rise as search is still on for missing persons and with many other lying critically injured in hospitals.

“As at the last time I spoke to my DPO in Bama, we have had 47 dead casualty recorded, while several number of persons were confined injured, some already in hospitals there. I have instructed my men to liaise with the hospital if we can have a figure on the dead casualties,” Tanko said.

It was also gathered that the gunmen in a brazen move on Tuesday, attacked the home of the Joint Task Force, JTF, commander in the Niger-Delta, Tukur Buratai, a major general, engaging the soldiers on guard in a gun battle and killing an officer in the process.

These attacks clearly mars the victory statement by the Presidency that the army is winning the war against terrorists in Nigeria’s North-east and concerned individuals and groups are calling for stern measures that will reverse the trend and guarantee safety of lives and properties.

While this is yet to be done, people of the region continue to flee to other places, including neighbouring countries for refuge and those who cannot flee live in constant fear of imminent attacks.

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Why Jonathan Suspended Sanusi Lamido As CBN Governor

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Why Jonathan Suspended Sanusi Lamido As CBN Governor

President Goodluck Jonathan may have finally ordered the suspension of the governor of the Central Bank of Nigeria, CBN, Lamido Sanusi for misconduct following the conclusion of investigations against him of financial recklessness, fraud and mismanagement which commenced last year.

Sanusi’s suspension was announced Thursday morning and he was swiftly replaced by his most senior deputy Sarah Alade, who will now serve in acting capacity.

The suspension of Sanusi, we can authoritatively report, has been long in coming and has come after an investigation into his activities since May, 2013 when President Jonathan first queried him.

The President in May, 2013 had queried Sanusi over a series of infractions. In an exclusive report on the presidential action published www.icirnigeria.org  in August last year, we disclosed that the query concerned some 22 issues bothering on “massive fraud” at the apex bank.

Not satisfied with the CBN governor’s reply to the query, Jonathan ordered a full scale investigation. The outcome of the investigation and an earlier report submitted by the Financial Reporting Council might have informed Sanusi’s suspension.

One of the president’s grouse with the CBN governor was that he invested a huge amount of public funds in an Islamic bank in Malaysia without any guarantee of retuns on investment.

Sanusi was also queried for the controversial donations he made as CBN governor to some tertiary institutions in the country with some allegations that some of the alleged sums given to the institutions were actually misappropriated.

The president was also miffed that the CBN governor donated N1 billion to a political party and unilaterally wrote of a N3.5 billion housing loan debt owed by the apex bank’s workers.

It was alleged that CBN books indicated that it had donated N4 billion to the Bayero University, Kano, BUK, whereas the institution said it got only N1 billion.

The www.icirnigeria.org story had also indicated that suspicions were raised when the Sanusi refused to submits the audited account of the CBN to the Financial Reporting Council, the agency with the responsibility of ensuring compliance with accounting standards

Announcing Sanusi’s suspension in a pressed statement, the special adviser to the President on media and publicity, Reuben Abati, said the move is to allow for investigation into “breaches of enabling laws, due process and mandate of the CBN.”

The statement read that: “Having taken special notice of reports of the Financial Reporting Council of Nigeria and other investigating bodies, which indicate clearly that Mallam Sanusi Lamido Sanusi’s tenure has been characterised by various acts of financial recklessness and misconduct, which are inconsistent with the administration’s vision of a Central Bank propelled by the core values of focused economic management, prudence, transparency and financial discipline;

“Being also deeply concerned about far-reaching irregularities  under Mallam Sanusi’s watch which have distracted the Central Bank away from the pursuit and achievement of its statutory mandate; and being determined to urgently re-position the Central Bank of Nigeria for greater efficiency, respect for due process and accountability, President Goodluck Ebele Jonathan has ordered the immediate suspension of Mallam Sanusi Lamido Sanusi from the Office of Governor of the Central Bank of Nigeria.

“President Jonathan has further ordered that Mallam Sanusi should hand over to the most senior deputy governor of the CBN, Dr.Sarah Alade, who will serve as acting governor until the conclusion of on-going investigations into breaches of enabling laws, due process and mandate of the CBN.”

Sanusi, 52, who was due to leave his post in June, having declined to remain for a second five-year term, has been at loggerheads with his employers for some time.

Sanusi had appeared before a senate committee recently to defend his claims that $20 billion out of the money that should have accrued to the federal government from the sales of petroleum was missing.

The CBN governor had stoically maintained his stand despite the explanation offered by the Nigerian National Petroleum Corporation, NNPC.

The acting governor of the apex bank has been asked to focus on the core mandate of the bank and conduct its affairs with greater professionalism, prudence and propriety to restore domestic and international confidence in it.

APC Calls Northern Terrorists Cowards

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APC Calls Northern Terrorists Cowards

The All Progressives Congress, APC, has described terrorists in the North eastern part of the country as cowards scoring cheap goals by killing unarmed civilians, especially children and women.

The interim national publicity secretary of the party, Lai Mohammed, reminded the terrorists that they could not win the ill-advised war they had levied against their fatherland.

“Nothing in the world can justify the senseless slaying of innocent civilians by the insurgents,” the party said.

The APC commended Governor Kashim Shettima for the efforts of his administration to help victims of the terrorist attacks in the state and his unflinching support to the military in its ongoing battle against Boko Haram.

The party also praised the security agents for the success recorded so far in the battle against terrorism but advised the security agents to increase their intelligence gathering capability with the aim to nip in the bud attacks on civilians and military units.

“The military has recorded some successes in its battle against the terrorists, it is time to rev up its strategy for preventing mass killings by the insurgents,” the party said.

Gov Oshiomhole Solicits FG Assistance To Tackle Erosion

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Gov Oshiomhole Solicits FG Assistance To Tackle Erosion

The Edo State government is soliciting for funds from the federal government and the World Bank to enable it tackle the problem of erosion in some parts of the state.

Governor Adams Oshiomhole made the appeal on Wednesday when the House of Representatives committee on Emergency and Disaster paid him a visit at the Government House, Benin  over the ravaging flood in Oredo federal constituency.

He told the committee that the state government has made some efforts in finding ways to manage the effect of the challenge but that the projects are highly capital intensive, a burden that the state cannot shoulder alone.

Oshiomhole said rather than deal with the consequences of the erosion, the state is investing in flood control measures and has carried out a comprehensive study of Benin City from which it came up with a  Water Storm Master Plan.

However, the first phase which has started and has reached 60% completion is gulping a whooping N30 billion, but owing to the sharp drop in revenue the state is appealing for funds to ease the pressure on its capacity.

“We have not received federal help but we have made application to the World Bank to see how we can get support. The Federal Government should look at the country with same eye and give support to all those who need it regardless of political sentiments,” he said.

The governor also urged the legislators to lend their voices to the call for financial assistance from the federal government.

Speaking earlier, the chairman of the committee,  Ifedayo  Abegunde, said they were in state as a result of the motion moved by Rasaq Bello Osagie on the floor of the House informing it  of the ravaging flood in Oredo.

“We are in the state to access the level of damage caused by the flood as well as take the statistics of the affected victims with the view to seeking adequate redress for them from the National Emergency Management Agency,”Abegunde said.

Senate Resumes Investigation Into $1.1 billion Malabu Oil Deal

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Senate Resumes Investigation Into $1.1 billion Malabu Oil Deal

Senate President, David Mark, on Wednesday directed the Senate committee on Petroleum (Upstream) to urgently conclude investigations into the $1.1 billion dollars proceeds allegedly paid to Malabu Oil Company from the sale of the oil block OPL 245 on March 25, 2011.

This followed a point of order raised by Olubunmi Adetunmbi (APC) who observed that investigations into the Malabu oil scam were still inconclusive after it was committed to a committee for necessary action since July, 2013.

He said that investigations by some European countries to unravel the role of their citizens in the alleged matter were nearing completion while Nigeria’s parliament was yet to act on it, adding that it would not augur well for the image of the Senate if it did not conclude an investigation it resolved to conduct for the purpose of accountability.

“It would interest this senate that an international extractive industry advocacy group did a letter on July 5th, 2013 to the Italian and Netherlands government requesting for public investigation. The public investigation is to ascertain the role of companies from those countries in the Malabu matter as part of public accountability.

“I fear the situation where, the European Parliaments are reporting issues that affect our own economy and our own apex parliament is not doing what supposed to be done. As I speak to you, the Italian and Netherlands governments and parliaments are about completing their public investigation and that would be made public very soon. As senators, it is a privilege that we should know what is going so that the reputation of this parliament as an institution is not called to question,” Adetunmbi stated.

The senator also urged the legislative house to act urgently in addressing the delay in the passage of the Petroleum Industry Bill, PIB, arguing that the delay in the consideration of the law was responsible for the large scale abuses and illegalities being witnessed in the nation’s oil sector.

He said that Nigerians were worried that the oil sector could not be properly regulated for the benefit of the country without putting in place an effective legislation.

“The PIB after debate in this chamber was committed to the appropriate committee on Thursday, March 7, 2013. It would be one year next month and up till now, there seems to be nothing going on. Nigerians are worried that the non passage of that bill is responsible for many of the terrible things that are happening in the oil sector,” he said.

The Senate President sustained the point of order and ruled that the relevant committees should take quick action on the issues raised.

The Senate also resolved to debate motion on the need to probe the illegal subsidy on kerosene being paid the NNPC on Thursday.

PDP Condemns APC For Hiring Services Of Foreign PR Firm Ahead of 2015 Elections

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PDP Condemns APC For Hiring Services Of Foreign PR Firm Ahead of 2015 Elections

The Peoples Democratic Party, PDP, has decried the engagement of  a foreign firm – AKPD Message and Media – by the All Progressive Congress, APC, to boost its electoral chances in the 2015, saying it was not in the best interest of Nigerians.

National publicity secretary of the PDP, Olisa Metuh, said in a statement on Wednesday that the action by the opposition party was an affront to nationalism and a weird embrace of neo-colonialism at a time when national pride and assertiveness had assumed a rule of engagement in global politics.

The PDP also expressed fear that the APC could use a foreign firm to reverse the pro-national socio-economic foundation laid by Nigeria’s founding fathers and urged Nigerians to resist the attempt which could throw the nation back to imperialism, 54 years after independence.

“In engaging the services of a foreign firm, the APC has shown that it does not have faith in our people, our indigenous consultancy firms and the world acclaimed Nigerian professionals,” Metuh said.

The APC had on Monday announced that it had engaged the services of the U.S. public relations firm to work for it towards the 2015 general elections.

According to a statement issued by the party’s interim national publicity secretary, Lai Mohammed, the firm has also worked with key Democratic party candidates throughout the U.S. and has a strong reputation for supporting leading populist movements across the globe.

“The APC is proud and excited to work with one of the foremost exponents of change in the world, especially with their track record of success in political climates akin to ours, notably in Kenya, Tanzania and Ghana. With this strategic partnership, the process of change in Nigeria has already begun and it can’t be stopped,” Mohammed said

The U.S.-based firm is best known for its lead role in President Barack Obama’s presidential campaigns in 2008 and 2012.

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