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He
is not a major player… or a participant in the mind-boggling billions of Naira
and dollars expended on the controversial electricity power projects during
Obasanjo’s administration. Nevertheless, he was actively involved as an umpire
on fiscal allocation. His organization apart from monitoring the accruals and
disbursement of revenue, determines what each tier of government received from
the Federation Account and also fixes the salaries of political office holders
including that of members of executive and legislative arms. Yet instead of
playing along for selfish reasons on the use of funds, in typical fashion of
some public officers, he speaks the truth and gives stringent warnings on the
application of the nation’s revenue as regards due process and
constitutionality. He is a loner in the campaign against misapplication of
resources and illegal deductions of funds for unbudgeted expenditures including
the latest on the power project. He is Engr. Hamman Tukur, the Chairman of
Revenue Mobilisation Allocation and Fiscal commission.
It seems Nigerians are
forgetful. The recent disclosure at the Public Hearing of House Committee on
Power Sector probing the alleged misappropriation of about $16 billion earmarked
for the power sector by the Obasanjo government is reenactment of a similar
public hearing held in June 2006 by a Joint Senate Committee of Appropriation
and Finance investigating withdrawals of funds from the Federation Account. The
recent edition of the monthly Economic Confidential journal provides a
detailed table of payments, dates and the project titles on the controversial
power projects that had gulped about N1.04bn in 2006 in the name of the then
Niger Delta Power Holding Company Plants (NDPHCP) and NNPC Joint Venture
Operation Gas for NNDC Plants, before it became National Integrated Power
Project (NIPP). The projects so far guzzle $3.7bn from the Excess Crude Account
alone.
At the Senate Public Hearing,
precisely on June 15, 2006 Engr. Tukur disclosed that “deductions have
continued unabated from the Federation Account in the name of developing power
in the Niger-Delta which should have been from the Federal Government of
Nigeria’s budget. If these withdrawals are advance payments, it is hoped that
each is supported by a due process bank bond guarantee. There is no time limit
for the deductions considering the speed at which some of the deductions were
made. The terms and conditions of the loans have also remained unclear. The
disbursements were said to be loans but the Federation Account Allocation
Committee, did not received any formal document indicating that the
stakeholders have agreed to give out loans from the Excess Revenue Accounts.”
Engr. Tukur went further to ask: “Why is it that there is change of name from
Niger-Delta Power Holding Company to National Integrated Power Project? It may
be necessary to find out who is actually being paid these huge deductions from the
Federation Account.”
It may also be recalled that
the Office of the Accountant General of The Federation had confirmed the
withdrawal of funds from the Excess Crude Oil Proceeds Account in 2005 for the
funding of the Project which comprises 11 new power plants. The amount
withdrawn then was for installations of 22,000 transformers, building of 7,000
kilometres of transmission lines nationwide with expectation no fewer than
1,000 rural communities would benefit from the project when a total of 4,500 megawatts
of power would be generated by December 2006, with full completion scheduled of
all the projects by December 2007.
The above
scenario point out the weakness of our legislative chambers when many they hold
public hearing, undertake oversight visits, receive memoranda, debate issues
and the media make some noises, but after a while the controversial issues
remain as contentious as ever as nobody bothers to take appropriate action. The
fear presently is that after Godwin Elumelu-led Committee on Power sector has
finished its sitting, and if it has the gut to submit its report, nothing may
happen till after another administration come to office. Yet the public through
the media screamers are aware of the figures, personalities and firms involved
in those deals of immense magnitude.
Just like past military
administrations where different accounts were created to save excess earning
with different fancy names such as Dedicated Account, Oil Windfall Account,
Special Debt Account, Stabilization Account, the last administration created
Excess Crude Account. Most of these special accounts were set up to save
revenues that were above Government’s budgeted benchmark from crude oil sales,
Petroleum Profit Tax and Royalties. The Off-Budget Accounts provided funds for
extra-budgetary expenditures which mostly did not meet standard requirement.
They were used sometimes to finance worthy joint venture programmes, Priority
Projects and servicing of external obligations.
Some of the decisions and
deductions on those accounts had best of intention for overall national
interest, especially withdrawals of $12.4bn to settle the indebtedness to Paris
Club and the $17milllions for funding two additional days of the 2006 National
Population Census. On the power project, for instance, the then Minister of
Finance Dr. Ngozi Okonjo-Iweala, had on May 11, 2006 said that the Federal
Government would commit $2.3bn from the excess crude proceeds account to the
NIPP, which included the seven Niger Delta Power Plants to address the
epileptic performance of power sector. She was indeed quoted to have said “This
is the reason the country has embarked on the largest power project in the
world today with the objective of raising the nation’s power generation
capacity to 10,000 megawatts by the end of next year (2007). Improving the
nation’s electricity capacity is an urgent objective that deserves urgent
action.”
Despite good intentions of
the supposed projects, the relevant agencies for monitoring have failed to
adequately track and guide the process through laid down regulations. There are
several institutions empowered by enabling laws to carry out oversight
functions. The National Planning Commission is mandated to inspect and review
the effectiveness of capital projects; National Economic Intelligence
Commission to work out details of enforcing the implementation of budgets;
Office of the Auditor General of the Federation to enquire into and report on
public expenditures and the National Assembly is to approve and monitor the
budget.
In fairness to Obasanjo, most
of failed actions of his administration for which he is being crucified today
were based on recommendations of some members of his cabinet and aides who were
either interested in enriching themselves or lack the courage to give sincere
advice. As a charismatic leader, no doubt, the former president had
occasionally listened and accepted some constructive advice as he gave official
directives for reversal of some actions but which were not executed by respective
agencies. For instance, in a letter No. PRES/194 of 12th August, 2005, Obasanjo
specifically directed agencies to “uphold the provisions of all the relevant
sections of the Constitution at all times in dealing with funds of all the
tiers of government”. The letter further stated that “beginning from this
financial year(2005) and henceforth, the annual funding requirement of the FIRS
and NCS, which will be deemed to be cost of collecting revenue for any
financial year, will be approved by the National Assembly.” Nobody can say
precisely if such directives were honoured.
There was an instance in 2002
when Engr. Hamman Tukur confronted him of some withdrawal by an agency, not
only did he summon the chief executive of that agency but also the supervising
minister on the spot. On the discovery of the discrepancies he directed the
immediate refund of the fund while the boss of the agency was later sanctioned.
Those are factual realities.
The only difference of latest sensational probing with those in the past is
that Elumelu-led Power Sector Committee permits live broadcast transmission of
its public sitting. It may be necessary while encouraging them to dig further
to ask if they are sincere on the exercise considering some past panels which
were mere revenue spinners for members to fill their pockets?
We are living witnesses to
several investigative committees and panels whose reports were never
implemented. We have had panels on the famous $12.7bn missing oil revenue; on Ghana
Must-Go bag of money deposited at National Assembly to remove Ghali
Na’Abba; on the alleged distributions of millions of Naira to legislators by a
presidential aide to actualize Third Term Agenda and on the secret oil wells
operated by multi-national oil firms. We may even ask how the privatization
proceeds and Recovered Abacha loots were utilised. Have we forgotten so soon
the investigation of top members of national assembly on corrupt practices… the
bribe-for- Budget- Scandal in the Senate and Million-Naira-furnishing-Scam in the
Federal House of Representatives?
The major lesson
from this OBJ and the probe saga is that leaders should always welcome
constructive criticisms and implement sincere advice to save them from future
embarrassment. Many aides firmly stood and voiced out their defense of
Obasanjo’s actions while in office, today they are either singing new songs or
remain aloof without showing any concern. This is a lesson indeed to present
office holders that not all those presently claiming to support and agree with
all their actions would truly stand by them when they leave the office.
While we urge public officers
to observe due process in committing public fund on projects as there would
always be a day to account here or hereafter, time will also tell if members of
present panel are truly sincere and honest in their investigation or they are
mere rabble rousers to create media-hype that may die down afterward.
Yushau A. Shuaib
Formerly Head of Press
and Public Relations
Revenue Mobilisation
Allocation and Fiscal Commission, Abuja
yashuaib@yahoo.com
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Authors 
Posted by Robot| 01.04.2008 11:23