The spate of disregard to the fiscal laws of the country by Ministries,
\nDepartments and Agencies (MDAs) has led to the denial of billions of naira
\nto the coffers of government.<\/p>\n
A report by the Fiscal Responsibility Commission (FRC) lists the Bureau of
\nPublic Enterprises (BPE), Nigeria Ports Authority (NPA), Nigerian Tourism
\nDevelopment Corporation (NTDC), Nigerian Maritime Administration and
\nSafety Agency (NIMASA), the Nigeria Customs Service (NCS), the Nigeria
\nCommunications Commission (NCC), the Federal Airports Authority of Nigeria
\n(FAAN), the Nigeria Electricity Commission (NERC) and the Nigeria Social
\nInsurance Trust Fund (NSITF) as among the greatest culprits in the breach
\nof the law.<\/p>\n
The FRC however stated in the report that some 22 agencies remitted a
\ntotal of N687,825,767,000 as operating surpluses to the consolidated
\nrevenue fund of government between 2007 and 2015. This performance
\nindicates that the government could have raised trillions of naira as
\noperating surpluses from its agencies had there been full compliance to
\nthe fiscal law.<\/p>\n
The report tagged \u20182015 Annual Report and Audited Accounts of the Fiscal
\nResponsibility Commission\u2019 released recently specifically listed the BPE,
\nNCS, NERC, NSTIF as agencies that have never remitted any operating
\nsurplus to government purse as required by law between 2007 when the
\nFiscal Responsibility Act (FRA) came into effect and 2015 when the<\/p>\n
Commission capped the period of the study.
\nThe Nigerian National Petroleum Corporation (NNPC) and the National
\nEnvironmental Standards Regulatory Agency (NESRA) were also listed as
\nagencies that have never made any remittance to government between 2007
\nand 2015, although the state petroleum company claims in correspondences
\nto the FRC that it had always operated a negative balance sheet during the
\nperiod under review.<\/p>\n
As for the NCS, OrderPaper.ng gathered that the service failed to comply
\nwith the law because of its neglect of standard accounting principles in
\nrunning its affairs as the \u201cCustoms until recently did not maintain a
\nstandard accounting\/auditing template with respect to its internal
\noperations,\u201d according to a source who craved anonymity because he was not
\nauthorized to speak on the matter.<\/p>\n
Section 22 (1 and 2) of the FRA states: \u201cNotwithstanding the provisions of
\nany written law governing the corporation, each corporation shall
\nestablish a general reserve fund and shall allocate thereto at the end of
\neach financial year, one-fifth of its operating surplus for the year. The
\nbalance of the operating surplus shall be paid to the Consolidated Revenue
\nFund of the Federal Government, not later than one month following the
\nstatutory deadline for publishing each corporation\u2019s accounts.\u201d<\/p>\n
The FRC is by the Act setting it up required to publish an annual report
\non the state of compliance of scheduled corporations and agencies with the
\nrelevant aspect of the FRA and is empowered by Section 2(1a) \u201cto cause an
\ninvestigation into whether any person has violated any provisions of this
\nAct.\u201d<\/p>\n
Thus in its 2015 report, the FRC said \u201ceven though many other agencies are
\ninvolved in varying degrees of non-compliance with Part IV of the Act, the
\nmore serious instances which have lingered for a while involve NIMASA,
\nNCC, FAAN, BPE, and NTDC.\u201d<\/p>\n
According to the report, \u201cthe BPE is perhaps the most recalcitrant and
\nrefractory amongst all the agencies\/corporations mentioned herein being
\nthat it has continued, with impunity, to refuse\/fail to pay\/remit the sum
\nof N81,814,000 into the Consolidated Revenue Fund, being 80% of its
\nOperating Surplus for 2007 as disclosed in its approved audited financial
\nstatements despite series of meetings and briefings over the years. It has
\nalso been non-compliant in other issues relating to submission of its
\napproved budgets, scheduled estimates of its revenue and expenditure for
\nthe next three financial years (similar to MTEF) and audited accounts for
\n2012 to 2015 financial years.\u201d<\/p>\n
Frustrated by the BPE\u2019s serial flouting of the law, the Commission said
\n\u201cas consequence of the BPE\u2019s deliberate, flagrant and disdainful disregard
\nof its compliance obligations under the FRA 2007 notwithstanding the
\nprolonged indulgence of the Commission which clearly amount to a brazen
\nviolation of the extant provision of the Act, the Commission is now left
\nwith little option other than to act in accordance with the provision of
\nSection 2(2) of the FRA 2007.\u201d<\/p>\n
With respect to the NTDC the report acknowledges that a 2012 investigation
\ninto the activities of the corporation is ongoing but laments that \u201cit is
\nproving intractable due to the investigators inability to reach\/contact
\nsome former directors\/senior officers of the agency including its formal
\nexternal auditors to invite them to come and clarify some serious
\ndiscrepancies discovered in some financial statements of NTDC made
\navailable to the Commission.\u201d<\/p>\n
The report continues: \u201cThere is also the unresolved issue of the agency\u2019s
\nfailure to remit the balance of its operating surplus from 2007-2011 in
\nthe sum of N160,000,665.04 as indicated in its records. The agency\u2019s
\naudited financial records, approved budgets, scheduled estimates of its
\nrevenue and expenditure for the next three financial years for 2012 to
\n2014 are part of the issues in contention.\u201d<\/p>\n
On NIMASA, the report said: \u201cThe Commission\u2019s investigations into the
\nNIMASA\u2019s non-compliance with its statutory responsibilities under Part IV
\nof the Act which began in 2012 is still ongoing. There have been several
\nmeetings and inspection\/investigation visits undertaken since then but the
\nissues are yet to be fully resolved.\u201d The Commission however acknowledges
\nthat \u201cone contributory factor is the constant changes in the management of
\nthe agency.\u201d<\/p>\n
In the case of the NCC, the report said a sum of N99,385,067.61
\nestablished as operating surplus for the period between 2007 to 2010 is
\nyet to be paid \u201cin spite of constant reminders by the Commission,\u201d adding
\nthat \u201cthere are outstanding issues relating to determining the actual
\noperating surpluses due for 2011, 2012, 2013, and 2014 vis-a-vis the
\nstatus of remittances actually made to the treasury by the NCC for the
\nsaid period.\u201d<\/p>\n
As for FAAN, the report said although the agency made a belated payment of
\nN680,000,000 in tranches into the treasury as outstanding operating
\nsurplus for 2009-2013, \u201cnot much else have been resolved.\u201d<\/p>\n
EFCC Chair: How Farida Waziri’s Report, Others Nailed Magu<\/p>\n
Exactly three months after they declined to confirm Ibrahim Magu as the
\nsubstantive Chairman of the Economic and Financial Crimes Commission
\n(EFCC), The Senate yesterday affirmed their December 15, last year\u2019s
\nposition on the EFCC\u2019s acting chairman. The Red Chamber relied on
\nthree-paragraph memo from the Department of State Services (DSS) dated
\nMarch 14, affirming the Services\u2019 earlier report on Magu. Below is the
\nReport:<\/p>\n
In August 2008, following a search at his residence during the tenure of
\nFarida Waziri (AIG\/rtd) as the commission\u2019s chairman, some sensitive EFCC
\ndocuments which were not supposed to be at his disposal were discovered.
\nHe was subsequently redeployed to the police after days of detention and
\nlater suspended from the Force.<\/p>\n
In December 2010, the Police Service Commission (PSC) found Magu guilty of
\n\u201cAction prejudicial to state security, withholding of EFCC files,
\nsabotage, unauthorised removal of EFCC files and acts unbecoming of a
\npolice officer,\u201d and awarded him severe reprimand as punishment.<\/p>\n
Notwithstanding, sequel to the appointment of Ibrahim Lamorde as Chairman
\nof the EFCC in 2011, he made the return of Magu to the EFCC a top
\npriority. Both men had worked together at the commission when Lamorde
\nserved as Head of Operations of the agency. Magu remained a top official
\nof the commission until he was appointed to succeed Lamorde.<\/p>\n
Magu is currently occupying a residence rented for N40 million, at N20
\nmillion per annum. This accommodation was not paid for from the
\ncommission\u2019s finances but by one Umar Mohammed (Air Commodore\/rtd), a
\nquestionable businessman and ally of subject who has subsequently been
\narrested by this service. For the furnishing of the residence, Mohammed
\nenlisted the Federal Capital Development Authority (FCDA) to award a
\ncontract to Africa Energy, a company owned by the same Mohammed to
\nlavishly furnish the residence at the cost of N43 million.<\/p>\n
Investigations show that the Acting EFCC chairman regularly embarks on
\nofficial and private trips through a private carrier, Easyjet, owned by
\nMohammed. In one of such trips, Magu flew to Maiduguri, alongside Mohammed
\nand a third generation bank chief, who was being investigated by the
\ncommission over complicity in funds allegedly stolen by the immediate past
\nPetroleum Minister, Mrs. Diezani Alison- Madueke.<\/p>\n
Furthermore, the EFCC boss has so far maintained a high profile lifestyle.
\nThis is exemplified by his preference for First Class air travels. On 24th
\nJune, 2016, he flew Emirate Airlines\u2019 First Class to Saudi Arabia to
\nperform the Lesser Hajj at the cost of N2, 990,196. This is in spite of
\nMr. President\u2019s directive to all public servants to fly Economy Class.<\/p>\n
Investigation also revealed that Magu parades a twin personality. At one
\nlevel, he is the czar who has no friends, no favourites and is ready to
\nfight corruption to a standstill. However, with a key friend in the person
\nof Umar Mohammed (Air Commodore\/rtd), a controversial businessman, he has
\nbetrayed the confidence reposed in him by the present administration.<\/p>\n
Whereas Magu portrays himself as very secretive, he has fostered a
\nmutually beneficial relationship with Mohammed who, by his confession,
\napproaches \u2018clients\u2019 for possible exploitation, favours and associated
\nreturns. This was facilitated with official secrets divulged by Magu and
\nfrom which dealings he is believed to have been drawing considerable
\nbenefits.<\/p>\n
This was evidenced by the number of official and classified documents he
\nmade available to his associates, especially Mohammed. After a search of
\nMohammed\u2019s premises, a forged letter of the Office of the Vice President,
\ndated 20th May, 2016, was recovered. The letter was a fictitious
\ninvestigation report from Vice President to Mr. President, requesting for
\napproval to commence further probe into a matter allegedly involving Hon.
\nMinister of State for Petroleum. Attached to the letter were two EFCC
\nletters dated 13th April, 2016, and another 24th March, 2016, addressed to
\nthe vice president being investigation reports on the activities of
\nEmmanuel Kachikwu and his brother Dumebi Kachikwu. Similarly recovered
\nduring the search were information on assets and personal details of
\nKachikwu.<\/p>\n
Also, following the arrest of three former Airforce chiefs by EFCC,
\nnamely, Alex Badeh, Umar and Adesola Amosu from whom huge sums of money
\nand property were recovered, Umar and Badeh were arraigned in court. It
\nwas only after the arrest of Mohammed by this service that the EFCC
\nhurriedly arraigned Amosu. Mohammed later confessed that he never wanted
\nAmosu tried, describing him as his former boss and he saw in Magu, a
\nwilling accomplice.<\/p>\n
Furthermore, findings revealed that in a bid to settle some personal
\nscores, subject placed one Stanley Inye Lawson on a Security Watch Action,
\nwhile in actual fact, Lawson was working in the interest of the Federal
\nGovernment. However, the action was later expunged following the discovery
\nthat Lawson was falsely accused by Magu for personal reasons.<\/p>\n
The circumstances surrounding Magu\u2019s return to EFCC at the instance of the
\nformer chairman, Lamorde, and their close working relationship ever since
\nis a clear indication of his culpability in the allegations of corrupt
\ntendencies of the Lamorde-led EFCC.<\/p>\n
To cover his tracks, Magu uses only his police cronies to execute
\noperations. This, coupled with discoveries that such police cronies have
\nacquired a lot of landed property, lends credence to the questions about
\nhis integrity.<\/p>\n
In the light of the foregoing, Magu has failed the integrity test and will
\neventually constitute a liability to the anti-corruption drive of the
\npresent administration.<\/p>\n","protected":false},"excerpt":{"rendered":"
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