The spate of disregard to the fiscal laws of the country by Ministries,
Departments and Agencies (MDAs) has led to the denial of billions of naira
to the coffers of government.
A report by the Fiscal Responsibility Commission (FRC) lists the Bureau of
Public Enterprises (BPE), Nigeria Ports Authority (NPA), Nigerian Tourism
Development Corporation (NTDC), Nigerian Maritime Administration and
Safety Agency (NIMASA), the Nigeria Customs Service (NCS), the Nigeria
Communications Commission (NCC), the Federal Airports Authority of Nigeria
(FAAN), the Nigeria Electricity Commission (NERC) and the Nigeria Social
Insurance Trust Fund (NSITF) as among the greatest culprits in the breach
of the law.
The FRC however stated in the report that some 22 agencies remitted a
total of N687,825,767,000 as operating surpluses to the consolidated
revenue fund of government between 2007 and 2015. This performance
indicates that the government could have raised trillions of naira as
operating surpluses from its agencies had there been full compliance to
the fiscal law.
The report tagged ‘2015 Annual Report and Audited Accounts of the Fiscal
Responsibility Commission’ released recently specifically listed the BPE,
NCS, NERC, NSTIF as agencies that have never remitted any operating
surplus to government purse as required by law between 2007 when the
Fiscal Responsibility Act (FRA) came into effect and 2015 when the
Commission capped the period of the study.
The Nigerian National Petroleum Corporation (NNPC) and the National
Environmental Standards Regulatory Agency (NESRA) were also listed as
agencies that have never made any remittance to government between 2007
and 2015, although the state petroleum company claims in correspondences
to the FRC that it had always operated a negative balance sheet during the
period under review.
As for the NCS, OrderPaper.ng gathered that the service failed to comply
with the law because of its neglect of standard accounting principles in
running its affairs as the “Customs until recently did not maintain a
standard accounting/auditing template with respect to its internal
operations,” according to a source who craved anonymity because he was not
authorized to speak on the matter.
Section 22 (1 and 2) of the FRA states: “Notwithstanding the provisions of
any written law governing the corporation, each corporation shall
establish a general reserve fund and shall allocate thereto at the end of
each financial year, one-fifth of its operating surplus for the year. The
balance of the operating surplus shall be paid to the Consolidated Revenue
Fund of the Federal Government, not later than one month following the
statutory deadline for publishing each corporation’s accounts.”
The FRC is by the Act setting it up required to publish an annual report
on the state of compliance of scheduled corporations and agencies with the
relevant aspect of the FRA and is empowered by Section 2(1a) “to cause an
investigation into whether any person has violated any provisions of this
Act.”
Thus in its 2015 report, the FRC said “even though many other agencies are
involved in varying degrees of non-compliance with Part IV of the Act, the
more serious instances which have lingered for a while involve NIMASA,
NCC, FAAN, BPE, and NTDC.”
According to the report, “the BPE is perhaps the most recalcitrant and
refractory amongst all the agencies/corporations mentioned herein being
that it has continued, with impunity, to refuse/fail to pay/remit the sum
of N81,814,000 into the Consolidated Revenue Fund, being 80% of its
Operating Surplus for 2007 as disclosed in its approved audited financial
statements despite series of meetings and briefings over the years. It has
also been non-compliant in other issues relating to submission of its
approved budgets, scheduled estimates of its revenue and expenditure for
the next three financial years (similar to MTEF) and audited accounts for
2012 to 2015 financial years.”
Frustrated by the BPE’s serial flouting of the law, the Commission said
“as consequence of the BPE’s deliberate, flagrant and disdainful disregard
of its compliance obligations under the FRA 2007 notwithstanding the
prolonged indulgence of the Commission which clearly amount to a brazen
violation of the extant provision of the Act, the Commission is now left
with little option other than to act in accordance with the provision of
Section 2(2) of the FRA 2007.”
With respect to the NTDC the report acknowledges that a 2012 investigation
into the activities of the corporation is ongoing but laments that “it is
proving intractable due to the investigators inability to reach/contact
some former directors/senior officers of the agency including its formal
external auditors to invite them to come and clarify some serious
discrepancies discovered in some financial statements of NTDC made
available to the Commission.”
The report continues: “There is also the unresolved issue of the agency’s
failure to remit the balance of its operating surplus from 2007-2011 in
the sum of N160,000,665.04 as indicated in its records. The agency’s
audited financial records, approved budgets, scheduled estimates of its
revenue and expenditure for the next three financial years for 2012 to
2014 are part of the issues in contention.”
On NIMASA, the report said: “The Commission’s investigations into the
NIMASA’s non-compliance with its statutory responsibilities under Part IV
of the Act which began in 2012 is still ongoing. There have been several
meetings and inspection/investigation visits undertaken since then but the
issues are yet to be fully resolved.” The Commission however acknowledges
that “one contributory factor is the constant changes in the management of
the agency.”
In the case of the NCC, the report said a sum of N99,385,067.61
established as operating surplus for the period between 2007 to 2010 is
yet to be paid “in spite of constant reminders by the Commission,” adding
that “there are outstanding issues relating to determining the actual
operating surpluses due for 2011, 2012, 2013, and 2014 vis-a-vis the
status of remittances actually made to the treasury by the NCC for the
said period.”
As for FAAN, the report said although the agency made a belated payment of
N680,000,000 in tranches into the treasury as outstanding operating
surplus for 2009-2013, “not much else have been resolved.”
EFCC Chair: How Farida Waziri’s Report, Others Nailed Magu
Exactly three months after they declined to confirm Ibrahim Magu as the
substantive Chairman of the Economic and Financial Crimes Commission
(EFCC), The Senate yesterday affirmed their December 15, last year’s
position on the EFCC’s acting chairman. The Red Chamber relied on
three-paragraph memo from the Department of State Services (DSS) dated
March 14, affirming the Services’ earlier report on Magu. Below is the
Report:
In August 2008, following a search at his residence during the tenure of
Farida Waziri (AIG/rtd) as the commission’s chairman, some sensitive EFCC
documents which were not supposed to be at his disposal were discovered.
He was subsequently redeployed to the police after days of detention and
later suspended from the Force.
In December 2010, the Police Service Commission (PSC) found Magu guilty of
“Action prejudicial to state security, withholding of EFCC files,
sabotage, unauthorised removal of EFCC files and acts unbecoming of a
police officer,” and awarded him severe reprimand as punishment.
Notwithstanding, sequel to the appointment of Ibrahim Lamorde as Chairman
of the EFCC in 2011, he made the return of Magu to the EFCC a top
priority. Both men had worked together at the commission when Lamorde
served as Head of Operations of the agency. Magu remained a top official
of the commission until he was appointed to succeed Lamorde.
Magu is currently occupying a residence rented for N40 million, at N20
million per annum. This accommodation was not paid for from the
commission’s finances but by one Umar Mohammed (Air Commodore/rtd), a
questionable businessman and ally of subject who has subsequently been
arrested by this service. For the furnishing of the residence, Mohammed
enlisted the Federal Capital Development Authority (FCDA) to award a
contract to Africa Energy, a company owned by the same Mohammed to
lavishly furnish the residence at the cost of N43 million.
Investigations show that the Acting EFCC chairman regularly embarks on
official and private trips through a private carrier, Easyjet, owned by
Mohammed. In one of such trips, Magu flew to Maiduguri, alongside Mohammed
and a third generation bank chief, who was being investigated by the
commission over complicity in funds allegedly stolen by the immediate past
Petroleum Minister, Mrs. Diezani Alison- Madueke.
Furthermore, the EFCC boss has so far maintained a high profile lifestyle.
This is exemplified by his preference for First Class air travels. On 24th
June, 2016, he flew Emirate Airlines’ First Class to Saudi Arabia to
perform the Lesser Hajj at the cost of N2, 990,196. This is in spite of
Mr. President’s directive to all public servants to fly Economy Class.
Investigation also revealed that Magu parades a twin personality. At one
level, he is the czar who has no friends, no favourites and is ready to
fight corruption to a standstill. However, with a key friend in the person
of Umar Mohammed (Air Commodore/rtd), a controversial businessman, he has
betrayed the confidence reposed in him by the present administration.
Whereas Magu portrays himself as very secretive, he has fostered a
mutually beneficial relationship with Mohammed who, by his confession,
approaches ‘clients’ for possible exploitation, favours and associated
returns. This was facilitated with official secrets divulged by Magu and
from which dealings he is believed to have been drawing considerable
benefits.
This was evidenced by the number of official and classified documents he
made available to his associates, especially Mohammed. After a search of
Mohammed’s premises, a forged letter of the Office of the Vice President,
dated 20th May, 2016, was recovered. The letter was a fictitious
investigation report from Vice President to Mr. President, requesting for
approval to commence further probe into a matter allegedly involving Hon.
Minister of State for Petroleum. Attached to the letter were two EFCC
letters dated 13th April, 2016, and another 24th March, 2016, addressed to
the vice president being investigation reports on the activities of
Emmanuel Kachikwu and his brother Dumebi Kachikwu. Similarly recovered
during the search were information on assets and personal details of
Kachikwu.
Also, following the arrest of three former Airforce chiefs by EFCC,
namely, Alex Badeh, Umar and Adesola Amosu from whom huge sums of money
and property were recovered, Umar and Badeh were arraigned in court. It
was only after the arrest of Mohammed by this service that the EFCC
hurriedly arraigned Amosu. Mohammed later confessed that he never wanted
Amosu tried, describing him as his former boss and he saw in Magu, a
willing accomplice.
Furthermore, findings revealed that in a bid to settle some personal
scores, subject placed one Stanley Inye Lawson on a Security Watch Action,
while in actual fact, Lawson was working in the interest of the Federal
Government. However, the action was later expunged following the discovery
that Lawson was falsely accused by Magu for personal reasons.
The circumstances surrounding Magu’s return to EFCC at the instance of the
former chairman, Lamorde, and their close working relationship ever since
is a clear indication of his culpability in the allegations of corrupt
tendencies of the Lamorde-led EFCC.
To cover his tracks, Magu uses only his police cronies to execute
operations. This, coupled with discoveries that such police cronies have
acquired a lot of landed property, lends credence to the questions about
his integrity.
In the light of the foregoing, Magu has failed the integrity test and will
eventually constitute a liability to the anti-corruption drive of the
present administration.