Sanusi’s case places President Jonathan in a very awkward situation

Sanusi’s case places President Jonathan in a very awkward situation

By Emeka Ugwuonye on 20/02/2014

  

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It is not unheard of for a leader to have a key associate that could blackmail him. The Central Bank Governor is a key figure in every administration, especially an administration that has kept talking about sound economic principles, transparency and good governance.

To have an open quarrel between the President and the Central Bank Governor is as profound as having an open quarrel between the President and the Attorney General of the country. (It is noted, though, that in Nigeria, Attorneys General have always been puppets, rather than the agents of law and order that the constitution envisioned them to be).

“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 characterized 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 . . .”

In those words, Dr. Goodluck Ebele Jonathan, the President of Nigeria, tried to regain the initiative on a crisis that threatens his administration like none else. The question now is whether he has done it right or not, and whether the monster he feared is finally off his doorstep.

My prediction is ambivalent. The President has to do a lot more. Otherwise, his headache is just beginning. He cannot expect to lay to rest the profoundly damaging allegations from Central Bank Governor Sanusi Lamido Sanusi simply by suspending him. That will be a terrible miscalculation.

Yes, from several indicators, it is reasonable to believe that Sanusi is a radical and somewhat of a zealot who has not cared so much about due process as he would want others to believe. But also, Sanusi merely alleged something many of us have been suspecting about this administration – that it has some slush funds outside the budget with which it plans to raise a war chest for 2015 do-or-die elections. Sanusi merely pointed at the likely source of such slush fund – the unaccounted black hole in the Nigerian mucky public finance known as the NNPC.

By the way, President Jonathan has to accept responsibility for whatever happened in NNPC. He is the President. NNPC is the cash cow for the county. And any missing of 20 billion dollars will simply be too big for the President not to know about it. Regardless of the legal nuances and technicality, this is a monster Jonathan has to deal with, either now or later, but better now.

I read the press statement written by Mr. Femi Falana, in which he weaved some fine legal points that underplayed the gravity of the situation. But anyone would know that this is one case too serious for it to be brushed aside by a few legal citations. One thing was clear though – Sanusi could no longer fit as a member of this administration. It is surprising that he refused to resign. Removing him might have been necessary. But the President must now prepare to explain to Nigerians and the world what happened to the 20 billion dollars alleged to be missing.

•Emeka Ugwuonye, Esquire, lawyer and activist, whose photo appears alongside this piece, writes from Maryland, USA.

Source News Express

Posted 20/02/2014 12:11 PM

Budget office of federation transferred #791m to NTI without any Request

Solomon Olamilekan

The House of Representatives Committee on Public Accounts heard on Wednesday how the Budget Office of the Federation allegedly transferred N791m to the bank account of the National Teachers’ Institute without any request for funds by the institute.

The Bursar of the institute, Mallam Abdulkarim Affo, informed the committee that the management of the institute was surprised at the development.

Affo said the money was lodged in the NTI account on December 31, 2012 through a transfer from the controversial Service Wide Vote.

The committee, which is chaired by Mr. Solomon Olamilekan, is investigating the withdrawal of N4.7tn from the SWV from 2004 to 2014.

Affo stated that what the institute did was to return the money immediately to the government treasury since it could not defend the transaction.

He said, “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.

“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.”

However, Olamilekan directed the bursar to produce the treasury receipt and other evidence to prove that the money was, indeed, returned.

He observed that the disclosure of the NTI bursar followed a pattern of “fraudulent acts” by the budget office, which were being investigated by the committee.

The lawmaker added, “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.

“Also, just a while ago, the National Boundary Commission 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.

“It is disheartening that the National Assembly approved about N2.1tn for the Service Wide Vote Account in the period under review, but at the last count, over N4.7tn had been expended by the executive.”

Meanwhile, the House has expressed concern over the nine per cent lending rate the Central Bank of Nigeria fixed for microfinance banks.

In a resolution, the House said the rate “seems rather high, considering the group of people the fund is meant for.”

“They are mainly artisans, small farmers engaged in subsistence farming and small scale business owners,” it added.

The lawmakers noted that microfinance banks were already charging between 30 and 40 per cent interest on funds.

They said giving the banks additional powers to fix higher rates could lead to an abuse in the sector the banks were to finance.

Following a motion by Mr. Patrick Ikhariale, the House directed its Committee on Banking/Currency to liaise with the CBN and ensure that the N220bn available to the banks was not misused.

In another resolution, the House noted that the 100 per cent import duty imposed on rice importation had led to increased smuggling of the commodity into the country.

Members observed that the good intention of the Federal Government to stimulate local production with the policy was not yielding the desired results.

A member from Kano State, Mr. Nasiru Baballe, advised the government to implement the agreement it reached with stakeholders on the duty implementation.

The lawmaker added, “The good intention of the Federal Government has been sabotaged by unquantifiable smuggling at a rate never witnessed in the past.

“Over three million tonnes of parboiled rice were smuggled into Nigeria in 2013 through Benin Republic. This culminated in that country gaining over N200bn in dutiable levy.

“To further worsen the situation for Nigeria, Benin Republic deliberately removed 18 per cent VAT on all parboiled rice imports destined for Nigeria, while the duty of 12.5 per cent is to be charged on the benchmark price of only $200 per metric tonne, thereby bringing down the effective duty to only $25 per metric tonne against the $570 per metric tonne dutiable rate being charged at Nigerian ports.

“The Nigeria Customs Service, which is the second largest revenue generating agency of the government, lost over N300bn to the sharp practice of smuggling. It is pertinent to note that import duty on rice is the major source of revenue to the Service.”

26 aspirants for Ekiti PDP primary

The list of the 26 aspirants for the March 15 governorship primary of the Peoples Democratic Party (PDP) in Ekiti State has been released.

The candidates are former Police Affairs Minister Navy Captain Caleb Olubolade (rtd.); former Governor Ayodele Fayose; Senator Gbenga Aluko; Mr. Biodun Aluko; Mr. Femi Bamisile; Mr. Tunji Odeyemi; Prince Adedayo Adeyeye; Chief Bode Olowoporoku; Mr. Bimbo Owolabi; Chief Ropo Ogunbolude and Mr. Bisi Omoyeni.

The rest are Mr. Peter Obafemi; Mrs. Bola Oloyede; Amb. Dare Bejide; Mr. Femi Olaosebikan; Mr. Reuben Famuyibo; Mr. Bodunde Adeyanju; Dr. Kunle Afolayan; Mr. Ayeni Biodun; Mr. Wale Aribisala; Mr. Tunde Ajayi; Mr. Mayowa Aluko; Otunba Segun Olarenwaju; Mrs. Cecilia Dada Bamisaye; Mr. Deji Ajayi and Mr. Ogunleye Israel.

PDP State Publicity Secretary Pastor Kola Oluwawole said the sale of nomination forms begins on Monday.

Oluwawole said: “The National Executive Committee (NEC) has not decided what the cost of the forms will be, although people have been saying it will be between N10 million and N11 million.”

On calls for a consensus candidate, he said: “I do not think anyone should take advocates of a consensus candidate serious. The NEC has clarified its position many times that the only constitutional thing that will ensure transparency and fairness is to conduct a primary.

“Even the national chairman has said he would do everything to ensure the sanctity of the constitution and that a well coordinated primary shall be conducted for aspirants. Aspirants should be on the field now canvassing for peoples’ votes.”

SANUSI LAMIDO SANUSI OUT.

Central Bank of Nigeria (CBN) Governor, Sanusi Lamido  Sanusi, has been suspended by President Goodluck Jonathan. A statement just issued in Abuja by Special Adviser to the President (Media & Publicity), Reuben Abati, said:

“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 characterized 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.

“The President expects that as Acting Governor of the Central Bank, Dr. Alade will 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 the country’s apex bank.

“The Federal Government of Nigeria reassures all stakeholders in Nigeria’s financial and monetary system that this decision has been taken in absolute good faith, in the overall interest of the Nigerian economy and in accordance with our laws and due process.” 

CBN vs NNPC (The untold story of Crude oil fund)

I believed something is wrong somewhere, that is why at our end 'Team Ekiti' need to share our view and make difference if any between missing funds and and unremitted funds. Please share if this make any sense to you. The point of CBN is very clear, what do you think?

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