Socio-Economic Rights and Accountability Project (SERAP) has sent an
\nopen letter to President Muhammadu Buhari urging him to use his
\nleadership position “to promptly drop the plan by the Federal Government
\nto borrow about N895bn of unclaimed dividends and funds in dormant
\naccounts using the patently unconstitutional and illegal Finance Act,
\n2020, and to ensure full respect for Nigerians’ right to property.”<\/p>\n
The Finance Act, signed into law by Buhari last December, would allow
\nthe government to borrow unclaimed dividends and dormant account
\nbalances owned by Nigerians in any bank in the country.<\/p>\n
But SERAP in a letter dated 9 January 2021 and signed by its deputy
\ndirector Kolawole Oluwadare said: “The right to property is a sacred and
\nfundamental right. Borrowing unclaimed dividends and funds in dormant
\naccounts amounts to an illegal expropriation, and would hurt poor and
\nvulnerable Nigerians who continue to suffer under reduced public
\nservices, and ultimately lead to unsustainable levels of public debt.”<\/p>\n
SERAP said: “The right to property extends to all forms of property,
\nincluding unclaimed dividends and funds in dormant accounts. Borrowing
\nthese dividends and funds without due process of law, and the explicit
\nconsent of the owners is arbitrary, and as such, legally and morally
\nunjustifiable.”<\/p>\n
According to SERAP: “The borrowing is neither proportionate nor
\nnecessary, especially given the unwillingness or inability of the
\ngovernment to stop systemic corruption in ministries, departments and
\nagencies [MDAs], cut waste, and stop all leakages in public
\nexpenditures. The borrowing is also clearly not in pursuit of a public
\nor social interest.”<\/p>\n
The letter, read in part: “The security of property, next to personal
\nsecurity against the exertions of government, is of the essence of
\nliberty. It is next in degree to the protection of personal liberty and
\nfreedom from undue interference or molestation. Our constitutional
\njurisprudence rests largely upon its sanctity.”<\/p>\n
“Rather than pushing to borrow unclaimed dividends and funds in dormant
\naccounts, your government ought to move swiftly to cut the cost of
\ngovernance, ensure review of jumbo salaries and allowances of all
\nhigh-ranking political office holders, and address the systemic
\ncorruption in MDAs, as well as improve transparency and accountability
\nin public spending.”<\/p>\n
“The borrowing also seems to be discriminatory, as it excludes
\ngovernment’s owned official bank accounts, and may exclude the bank
\naccounts of high-ranking government officials and politicians, thereby
\nviolating constitutional and international prohibition of discrimination
\nagainst vulnerable groups, to allow everyone to fully enjoy their right
\nto property and associated rights on equal terms.”<\/p>\n
“SERAP is concerned that the government has also repeatedly failed
\nand\/or refused to ensure transparency and accountability in the spending
\nof recovered stolen assets, and the loans so far obtained, which
\naccording to the Debt Management Office, currently stands at $31.98
\nbillion.”<\/p>\n
“SERAP notes growing allegations of corruption and mismanagement in the
\nspending of these loans and recovered stolen assets.”<\/p>\n
“We would be grateful if your government would drop the decision to
\nborrow unclaimed dividends and funds in dormant accounts, and to
\nindicate the measures being taken to send back the Finance Act to the
\nNational Assembly to repeal the legislation and remove its
\nunconstitutional and unlawful provisions, including Sections 60 and 77,
\nwithin 14 days of the receipt and\/or publication of this letter.”<\/p>\n
“If we have not heard from you by then as to the steps being taken in
\nthis direction, the Registered Trustees of SERAP shall take all
\nappropriate legal actions to compel your government to implement these
\nrecommendations in the public interest, and to promote transparency and
\naccountability in public spending.”<\/p>\n
“The government cannot lawfully enforce the provisions on Crisis
\nIntervention Fund and Unclaimed Funds Trust Fund under the guise of a
\ntrust arrangement, as Section 44(2)[h] of the Nigerian Constitution 1999
\n[as amended] is inapplicable, and cannot justify the establishment of
\nthese funds.”<\/p>\n
“SERAP notes that while targeting the accounts of ordinary Nigerians,
\nthe Finance Act exempts official bank accounts owned by the federal
\ngovernment, state government or local governments or any of their
\nministries, departments or agencies.”<\/p>\n
“Our requests are brought in the public interest, and in keeping with
\nthe requirements of the Nigerian Constitution, the country’s
\ninternational human rights obligations including under the African
\nCharter on Human and Peoples’ Rights to which Nigeria is a state party,
\nand which has been domesticated as part of the country’s domestic
\nlegislation.”<\/p>\n
“According to our information, your government has reportedly completed
\nplans to borrow an estimated N895bn of unclaimed dividends and funds in
\ndormant accounts using the Finance Act 2020 you recently signed into
\nlaw.”<\/p>\n
“Under the law, the government will be able to access and take without
\nconsent unclaimed dividends and funds in dormant accounts in any bank,
\non the basis of the vague and undefined ‘Crisis Intervention Fund,’ and
\npatently unlawful ‘Unclaimed Funds Trust Fund’.”<\/p>\n
“The government is justifying the borrowing on the ground that it would
\nimprove access of the Federal Government to much needed funds, and
\nremove the burdens of foreign exchange and punitive loan conditions
\nimposed by multilateral lenders.”<\/p>\n
“According to the Finance Act, the operation of the trust fund is to be
\nsupervised by the Debt Management Office (DMO) and governed by a
\ngoverning council chaired by the finance minister and a co-chairperson
\nfrom the private sector appointed by you.<\/p>\n
“The Nigerian Constitution in Section 44(1) provides that, ‘no moveable
\nproperty or any interest in an immovable property shall be taken
\npossession of compulsorily and no right over or interest in any such
\nproperty shall be acquired compulsorily in any part of Nigeria except in
\nthe manner and for the purposes prescribed by a law.'”<\/p>\n
“Similarly, Article 14 of the African Charter on Human and Peoples’
\nRights, and Article 17 of the Universal Declaration of Human Rights
\nguarantee the right to property, and prohibit the arbitrary deprivation
\nof the right. Thus, everyone is entitled to own property alone as well
\nas in association with others.”<\/p>\n
“Respect for the right to property is important to improve the enjoyment
\nof other basic human rights, and to lift Nigerians out of poverty. The
\nNigerian Constitution and international human rights law limit the
\nability of any government to interfere with private property without any
\nlegal justifications.”<\/p>\n
The letter is copied to Mr Abubakar Malami, SAN, Attorney General of the
\nFederation and Minister of Justice, and Mrs Zainab Ahmed, Minister of
\nFinance, Budget and National Planning.<\/p>\n
Socio-Economic Rights and Accountability Project (SERAP) has sent an open letter to President Muhammadu Buhari urging him to use his leadership position “to promptly drop the plan by the Federal…<\/p>\n","protected":false},"author":1,"featured_media":56720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-77662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other-news"],"yoast_head":"\n