Watchers and followers of American history would readily admit that one of
the most enduring scandals of the Ronald Reagan Administration was the
clandestine sale of arms to Iran, at the time a sworn enemy of the US,
with some of the proceeds sent to a South American Rebel group in cash.
This scandal, generally referred to as the Iran-Contra Affair, led to an
unreserved apology to the American people by President Reagan on 13th
August 1987.
In a slightly related circumstance, about 3 months to the end of the
Barack Obama administration, news broke that the US administration had
ferried over $1.7 billion equivalent in foreign cash to the Iranian
government. The monies drawn from the Federal Reserve Bank, the equivalent
of our Central Bank of Nigeria (CBN), were paid in “Swiss Francs, euros
and other currencies”, the department of Treasury later confirmed.
The covert payment to Iran was also used as leverage to guarantee the
release of four American prisoners.
One can also recall the scandal that broke in February 2000 when it was
alleged that about US$20 million was paid in cash from Germany’s
intelligence agency, known as the BND, to the favored political parties
from 1974 to 1982 while Helmut Schmidt, a Social Democrat, was chancellor.
It is open knowledge that elite intelligence agencies like the CIA,
MOSSAD, MI5 and others, mostly prefer to fund their operations in cash for
ease and also so as not to leave money trails. It doesn’t matter what the
operation is – whether it is to topple a foreign government, protect the
homeland or counter-terrorism, etc., the mode of transaction is preferably
cash. This is why their budgets are called black budgets – there dealings
are opaque – no records – no receipts – It is that simple.
I have never read or heard in the news where the central banks of these
governments are being vilified and hounded for funding these duly approved
cash requests except of course lately in Nigeria. Why is this so? Your
guess is as good as mine – the politics of power.
The Central Bank of Nigeria is the banker of the federal government and
its corresponding agencies. The relationship we have with our banks is
same one that these government agencies maintain with the CBN. For
example, if I write you a cheque and you take it to the bank for payment,
the teller will simply pay you, if my account is funded and the
signature(s) match. In fact, sometimes you are asked, “How do you want
your money – N1000 or N500 notes”. The teller is not going to ask you what
you intend to do with the money nor will they ask the account owner why
he/she is giving money to the person withdrawing.
I am using this simple analogy to highlight the disgraceful and dangerous
plot being executed by some powerful but disgruntled persons to continue
to taint and discredit an institution as sensitive as the CBN because it
made duly authorized payments to security agencies for clandestine
operations. Even though the cash payment being investigated now occurred
during the administration of Goodluck Jonathan, reliable sources within
the intelligence and financial industry confirm that this practice of
paying cash to intelligence agencies such as the NIA, NSA, SSS, and
Defence Ministry, is so routine that it has undoubtedly continued under
the administration of President Muhammadu Buhari. If indeed this
administration found it so horrible that the CBN pays cash to these
agencies, why did it continue this practice? Your guess is as good as
mine—politics? Giving a dog a bad name so as to kill it?
The disgraceful infighting amongst our so-called elite security agencies
which has led to washing of their dirty linens in public is a huge
embarrassment to not only the federal government but to Nigerians in
general. (Let me leave this for future discuss but suffice it to note that
the Osinbajo Panel and President Buhari should heed the warnings of Prof.
Bolaji Akinyemi on this matter).
For those who have not read the Sunday piece by the respected foreign
affairs professor and former Foreign Minister, let me quote some
paragraphs:
“External intelligence officers, otherwise called spies, do not operate
under the same operational penalties as domestic intelligence officers.
“Under no circumstances should the report of the panel in as far as it
relates to the activities of the NIA be made public and no more leaks from
the panel… Normally, foreign intelligence activities are shrouded in
secrecy, and not in the glare of publicity.”
“… Countries go to incredible lengths to hide the identities of their
agents both domestic and foreign and their operations. No receipts get
issued. Budgets are called black budgets because they are never publicly
acknowledged.”
The CBN since its founding in 1958 has been paying out cash to government
and its agencies to fund various operations whether they are covert or
otherwise. This practice has been standard under all Presidents including
this one. The CBN since the past leadership of Roy Pentelow Fenton through
Clement Isong, Adamu Ciroma, Paul Ogwuma, Lamido Sanusi and now Godwin
Emefiele at various times have paid out millions of dollars in cash to the
federal government and security agencies to fund one operation or another.
In fact, I gathered that Nigeria’s last intervention in The Gambia that
led to the eventual peaceful ousting of strongman Yahyah Jammeh from power
in January was funded by tens of millions of dollars in cash provided by
the CBN to the Defence/NSA.
My point is, we must stop this silly culture of destroying the integrity
of our revered institutions because of selfish interests and agendas. If
any person or group wants to take up issues with how Nigeria’s funds are
being spent then it must channel that effort to the right office and not
the CBN. The CBN is just a bank – it has a civic and constitutional duty
to pay when a mandate is presented with all approving signatories verified
and of course with the account holders’ account funded accordingly.
*** Austyn Ogannah is the Publisher of THEWILL Newspaper
(www.thewillnigeria.com) and an advocate of governance.