Tuesday, 10 November 2015
NOBLE FLEET LINK: Who destroyed Nigeria: Looking back, moving forwar...
NOBLE FLEET LINK: Who destroyed Nigeria: Looking back, moving forwar...: “WE too live with divided eyes; one backward and one forward. Like an anxious figure in a Hitchcock thriller, we drive forward with eyes f...
Buhari needs budgetary provision for N5,000 stipend – Omoworare
The Chairman, Senate Committee on Rules
and Business, Senator Babajide Omoworare, has said that President
Muhammadu Buhari needs budgetary provision to implement the proposed
N5,000 stipend for each youth nationwide.
A statement by the media aide to
Omoworare, Mr. Tunde Dairo, on Monday, quoted the representative of
Osun-East senatorial district, as blaming the PDP senate caucus for
calling for the immediate implementation of the N5,000 palliative for
unemployed youths in the country.
The statement said, “The call by the PDP
for an immediate implementation of the N5,000 unemployment palliative
by the All Progressives Congress-led Federal Government is a call to
impunity.
“It is a call to executive recklessness,
misappropriation of funds and bad governance. The motion calling for
the “immediate implementation” of the N5,000 unemployment benefit was
done in bad faith.
Last week, a PDP senator representing
the Federal Capital Territory, Philip Aduda, had raised a prayer urging
the President Muhammadu Buhari-led Federal Government to fulfill one of
its campaign promises of paying N5,000 to unemployed youths monthly
nationwide.
Aduda said this prayer was raised in order to cushion the effect of economic hardship on the unemployed in the country.
Before Aduda raised the prayer, a PDP
senator from Cross River-East senatorial district, Bassey Akpan, had
sponsored a motion titled, “Urgent need to curb the soaring rate of
unemployment in Nigeria.”
Aduda, who is the senate minority whip
said, “The Federal Government should immediately commence the payment of
the N5,000 monthly stipend it promised during the pre-election
campaign.”
The Senate Minority Leader, Senator Godswill Akpabio, seconded Aduda’s additional prayer.
But Omoworare immediately raised the Senate Standing Order 53(6) to oppose the additional prayer.
Describing the Aduda’s prayer as an
invitation to misappropriation of taxpayers monies, Omoworare said
President Buhari had strenuously been recovering government funds looted
under PDP’s watch.
He said, “The period of economic
misadventure, executive recklessness, impunity and misappropriation is
over. With the change in government, the era of accountability, probity
and transparency has come.”
Corruption and the criminal justice system
Governor
Ayodele Fayose of Ekiti State took advantage of a recent gathering of
eminent judges and lawyers to re-echo the issue of corruption in the
judicial arm of government and the bar. He chose a church service,
organised to mark the beginning of the 2015/2016 legal year in the
state, to make the point that if the war against corruption was to be
won in the larger society, it must first be won in the bar and the
bench. According to Fayose, the corruption in the judiciary is so
endemic that judges lobby to be appointed to serve in election petition
tribunals in order to make money and influence judgment in favour of
their friends in politics.
While corruption is widely known to have permeated every stratum and segment of the Nigerian society, its extension to certain critical areas of national life cannot but be a source of worry. Prominent among these critical areas is the criminal justice system at the apex of which is the judiciary. It is common knowledge that officials in the criminal justice system have been making the innocent to suffer while assisting the culprit to escape justice. Of utmost concern is that those entrusted with the vital aspect of sifting facts from fiction to ensure that the cause of justice is served have been partaking in dirty deals because of filthy lucre.
Distinguished Nigerians have, at different times, expressed serious concern about the damaging effect which the despicable conduct of certain judges has had on the character and honour of the judiciary as an institution. The late highly-respected Justice Kayode Esho and one of Nigeria’s foremost legal practitioners, Chief Afe Babalola, a few years ago lamented the emergence of billionaire judges on Nigeria’s judicial landscape. They were obviously worried that such an unwholesome development would result in the desecration of the temple of justice and the debasement of judicial integrity.
Governor Fayose no doubt chose the most auspicious occasion to send his message to the most appropriate quarters. He pointedly told the congregation largely made up of eminent lawyers and judges that judgments were being written for some compromised judges by lawyers. He said cases were being assigned to judges to do hatchet jobs while some judges were too timid to give judgments against the ruling party. He also did not forget to give the clergy a piece of his mind. He said most pastors had been playing to the gallery with their political sermons and questioned their competence to save souls.
Even in the outpouring of his lampoon, Fayose still acknowledged the fact that the judiciary was not without incorruptible judges who had been giving a good account of themselves in the discharge of their duties. This underscores the fact that the collapse of values has not obliterated the fact that there are in the various fields of human endeavour men of honour whose integrity is being sullied by the misdeeds of others around them. While judges, as mere mortals are not infallible, they should not be unaware that there is an irreducible minimum below which they should not perform. The expectations from them are high because of the enormous powers vested in them.
As being suggested by Governor Fayose, the judiciary should not be spared in the anti-corruption crusade. It has become the standard practice for judges found to have compromised themselves to be simply retired and told to sin no more. Corruption remains a crime regardless of whoever is involved. Seven Ghanaian judges whose cases are being investigated were recently placed on suspension in the process of ensuring that the law takes its full course. The approach should not be different in Nigeria.
Most of the high profile corruption cases have not resulted in conviction because they were wilfully bungled at the level of investigation. As it has often been alleged, those assigned to unearth fraud either ended up as collaborators or got instructions from above to hands off the case. Even in cases charged to court, lawyers are said to have been serving as links between judges and accused persons. This is why the establishment of two anti-corruption agencies in Nigeria has not reduced the penchant to use public office for private gain.
Although the anti-graft agencies have been striving to tell their own success stories, the fact is that most of the celebrated cases in the public domain have ended up as an anti-climax. The success stories they have narrated convey the impression that their capacity to combat corruption is largely limited to low-level political office holders. To effectively wage a war against corruption, the criminal justice system should be comprehensively reworked. The loopholes being exploited to frustrate cases should be plugged while the law should prescribe appropriate punishments for the judge, the lawyer or the investigator found to be invoved in perversion of justice or any unethical behaviour.
While corruption is widely known to have permeated every stratum and segment of the Nigerian society, its extension to certain critical areas of national life cannot but be a source of worry. Prominent among these critical areas is the criminal justice system at the apex of which is the judiciary. It is common knowledge that officials in the criminal justice system have been making the innocent to suffer while assisting the culprit to escape justice. Of utmost concern is that those entrusted with the vital aspect of sifting facts from fiction to ensure that the cause of justice is served have been partaking in dirty deals because of filthy lucre.
Distinguished Nigerians have, at different times, expressed serious concern about the damaging effect which the despicable conduct of certain judges has had on the character and honour of the judiciary as an institution. The late highly-respected Justice Kayode Esho and one of Nigeria’s foremost legal practitioners, Chief Afe Babalola, a few years ago lamented the emergence of billionaire judges on Nigeria’s judicial landscape. They were obviously worried that such an unwholesome development would result in the desecration of the temple of justice and the debasement of judicial integrity.
Governor Fayose no doubt chose the most auspicious occasion to send his message to the most appropriate quarters. He pointedly told the congregation largely made up of eminent lawyers and judges that judgments were being written for some compromised judges by lawyers. He said cases were being assigned to judges to do hatchet jobs while some judges were too timid to give judgments against the ruling party. He also did not forget to give the clergy a piece of his mind. He said most pastors had been playing to the gallery with their political sermons and questioned their competence to save souls.
Even in the outpouring of his lampoon, Fayose still acknowledged the fact that the judiciary was not without incorruptible judges who had been giving a good account of themselves in the discharge of their duties. This underscores the fact that the collapse of values has not obliterated the fact that there are in the various fields of human endeavour men of honour whose integrity is being sullied by the misdeeds of others around them. While judges, as mere mortals are not infallible, they should not be unaware that there is an irreducible minimum below which they should not perform. The expectations from them are high because of the enormous powers vested in them.
As being suggested by Governor Fayose, the judiciary should not be spared in the anti-corruption crusade. It has become the standard practice for judges found to have compromised themselves to be simply retired and told to sin no more. Corruption remains a crime regardless of whoever is involved. Seven Ghanaian judges whose cases are being investigated were recently placed on suspension in the process of ensuring that the law takes its full course. The approach should not be different in Nigeria.
Most of the high profile corruption cases have not resulted in conviction because they were wilfully bungled at the level of investigation. As it has often been alleged, those assigned to unearth fraud either ended up as collaborators or got instructions from above to hands off the case. Even in cases charged to court, lawyers are said to have been serving as links between judges and accused persons. This is why the establishment of two anti-corruption agencies in Nigeria has not reduced the penchant to use public office for private gain.
Although the anti-graft agencies have been striving to tell their own success stories, the fact is that most of the celebrated cases in the public domain have ended up as an anti-climax. The success stories they have narrated convey the impression that their capacity to combat corruption is largely limited to low-level political office holders. To effectively wage a war against corruption, the criminal justice system should be comprehensively reworked. The loopholes being exploited to frustrate cases should be plugged while the law should prescribe appropriate punishments for the judge, the lawyer or the investigator found to be invoved in perversion of justice or any unethical behaviour.
The planned Ekiti/Osun elections probe
THE
report that the Army Command has decided to institute a probe into the
involvement of army personnel in the alleged rigging of the last
gubernatorial elections in Ekiti and Osun states, if true, should help
to unearth the truth concerning the elections and the allegation. There
had been reports about the recording of the discussions among some
notable personalities involved in the elections, particularly in Ekiti
State, by one of the military operatives deployed there for the
election. The recording gave the impression that there were deliberate
acts by some powers at that point to utilise the military for the
purpose of manipulating the elections.
It was also reported during the Osun State election that some people were allegedly given military uniforms in order to pass them off as military operatives for the sole purpose of using the uniforms for nefarious activities to help sway the elections towards a particular political party. And given that the military is one institution that should be above the fray of politics, working only for national interest and not interested in any political party or leaning, the impression of using it for political ends in the two elections is one that should be erased and dealt with if true. There is also the imperative need to ensure that the name of the military is not dragged into politics as this would be very dangerous for the interest and survival of the institution.
In any case, the whole essence of democracy rests on the ability and capacity of the people to decide on and determine those to rule over them through elections. This ability is compromised when elections are not allowed to reflect the true feelings of the people. This way democracy itself is endangered and development in the society is threatened, such that there is no ultimate advantage even to those who engage in acts that manipulate elections. It is therefore in the interest of all to work for the enthronement of genuine and real democracy where the votes of the people would not just count, but would be the only basis for installing and organising government.
This need is particularly important under the present government of President Muhammadu Buhari which has pledged to engineer Nigeria towards positive change in all ramifications. The government would definitely and necessarily not want the democratic progress and consolidation in Nigeria to be troubled under its watch and would thus be interested in ensuring that elections continue to be reflective of the true votes of the people. And one way of doing this is to bring and breed confidence into the electoral process by investigating any reported infraction in order to unearth the truth and deal with it in an open manner. It is to be stated nonetheless that this responsibility also makes it important for the government to be open and transparent in such investigation in order not to attract accusations of a biased probe.
This is why it would be incumbent on the army command to not just talk about an investigation, but to also ensure that the investigation could stand the test of scrutiny without which the investigation itself would bring opprobrium on the military. It is not just a question of conducting investigation for its own stake as the investigation must also be credible in order for it to be the basis of national action to ensure that the military is not dragged in a partisan manner to electoral and political matters. Nigerians would be interested in the outcome of the planned probe and would expect that anybody indicted would be appropriately dealt with, not only to serve as deterrent, but to ensure that all are agreed on the need to put national institutions beyond political bickering to safeguard their functioning in the interest of the unity of the country.
We therefore support and salute the preparedness of the army authorities to conduct this important probe in order to lay the allegations to rest and come out with what actually transpired under those circumstances. It is our hope that this intention to know the truth would work to the benefit of further insulating the military and other national institutions from partisan politics while consolidating democracy in the country.
It was also reported during the Osun State election that some people were allegedly given military uniforms in order to pass them off as military operatives for the sole purpose of using the uniforms for nefarious activities to help sway the elections towards a particular political party. And given that the military is one institution that should be above the fray of politics, working only for national interest and not interested in any political party or leaning, the impression of using it for political ends in the two elections is one that should be erased and dealt with if true. There is also the imperative need to ensure that the name of the military is not dragged into politics as this would be very dangerous for the interest and survival of the institution.
In any case, the whole essence of democracy rests on the ability and capacity of the people to decide on and determine those to rule over them through elections. This ability is compromised when elections are not allowed to reflect the true feelings of the people. This way democracy itself is endangered and development in the society is threatened, such that there is no ultimate advantage even to those who engage in acts that manipulate elections. It is therefore in the interest of all to work for the enthronement of genuine and real democracy where the votes of the people would not just count, but would be the only basis for installing and organising government.
This need is particularly important under the present government of President Muhammadu Buhari which has pledged to engineer Nigeria towards positive change in all ramifications. The government would definitely and necessarily not want the democratic progress and consolidation in Nigeria to be troubled under its watch and would thus be interested in ensuring that elections continue to be reflective of the true votes of the people. And one way of doing this is to bring and breed confidence into the electoral process by investigating any reported infraction in order to unearth the truth and deal with it in an open manner. It is to be stated nonetheless that this responsibility also makes it important for the government to be open and transparent in such investigation in order not to attract accusations of a biased probe.
This is why it would be incumbent on the army command to not just talk about an investigation, but to also ensure that the investigation could stand the test of scrutiny without which the investigation itself would bring opprobrium on the military. It is not just a question of conducting investigation for its own stake as the investigation must also be credible in order for it to be the basis of national action to ensure that the military is not dragged in a partisan manner to electoral and political matters. Nigerians would be interested in the outcome of the planned probe and would expect that anybody indicted would be appropriately dealt with, not only to serve as deterrent, but to ensure that all are agreed on the need to put national institutions beyond political bickering to safeguard their functioning in the interest of the unity of the country.
We therefore support and salute the preparedness of the army authorities to conduct this important probe in order to lay the allegations to rest and come out with what actually transpired under those circumstances. It is our hope that this intention to know the truth would work to the benefit of further insulating the military and other national institutions from partisan politics while consolidating democracy in the country.
Naira and the plan for further devaluation
THE
naira was one of the world’s strongest currencies – far stronger than
the American dollar - until the mid-1980s when its free fall started.
The sharp drop in the value of the naira was occasioned by the Nigerian
Government’s acceptance of the Structural Adjustment Programme (SAP) of
the International Monetary Fund (IMF). In spite of the fact that
notable Nigerian economists vigorously opposed the harmful package of
the IMF, the government embraced it and the value of the naira has since
been a story of progressive decline. What was recommended as an
antidote to third world countries’ ailing economies ended up as a deadly
poisonous prescription. The IMF long after came out to accept that SAP
was an inappropriate answer to the problems of third world economies.
The same IMF, the author of the ruinous economic programme of the 1980s is at it again. It has been calling for an adjustment in the value of the naira. The Emir of Kano, Muhammadu Sanusi and some university dons have also been reported to have joined in the campaign for a further reduction in the value of the currency. The IMF has been particularly critical of the actions taken to limit access to foreign exchange by prohibiting the importation of certain goods. The argument is that the government should allow the naira to find its level.
Our expectation is that Nigerians will question the interest of the IMF in the value of Nigeria’s currency instead of joining in the agitation for a reduction in its value. It should not be difficult to recall that the devaluation of the naira and other harmful recommendations of the IMF had disastrous consequences on the economy and quality of life in Nigeria and many other countries that embraced SAP. There was a sharp increase in the cost of imports, large-scale de-industrialisation and massive job losses. Factories either closed shop or relocated to other countries. Products that were being produced in the country are now being imported.
The current wave of devaluations started in the last quarter of 2014 when the exchange rate of the naira to the dollar was adjusted from 155 to 168. The current rate of 197 naira to the dollar shows that the value of the currency has dropped by 27 per cent in the last one year. With another round of devaluation, there will be another round of inflation. The purchasing power of Nigerians will be reduced because the naira will buy less. The cost of imported materials for industrial production will go up and the cost of products and services will rise. Industries that have been struggling to survive decades of economic downturn will be further disadvantaged. Their higher costs of production will not enable them to sell at competitive prices. They will be unable to take advantage of the large market that Nigeria is. Devaluation will thus have a telling effect not only on the industries but also on the quality of life of the ordinary people.
Nigeria is not an industrialised country producing and exporting finished products. Industrialised countries at times resort to devaluation to undercut their rivals to enable them to get a larger share of the market. Nigeria is an import-dependent country . It is a massive market into which all forms of goods are dumped. Its main source of revenue - the crude oil - is exported in raw form with no value added and it is priced and paid for in American dollars. What then will be the benefits that will accrue from a further reduction in the value of the naira?
President Muhammadu Buhari , Vice President Yemi Osinbajo and Central Bank Governor Godwin Emefiele have spoken in unmistakable terms about the resolve of the government not to further devalue the naira. Our fervent hope is that they will stick to their guns in the defence of whatever remains of the naira. If the massive devaluations of the 1980s and 1990s did not solve the country’s problems, it will not solve it today. The government should explore the options of strengthening and diversifying the economy.
There has always been the contention that the devaluation of the currency will discourage the importation of items of ostentatious consumption. It is a flawed argument in a country in which public office holders have been abusing their access to the treasury to steal even what they do not need. The control on foreign exchange should be stringent enough to stop the importation of what can be locally produced and what can only serve the purpose of showing class.
It should not be lost on the agitators for devaluation that Nigeria is a country that has been stolen blind by its own leaders. Continuous devaluation of the naira will be adding value to stolen funds in foreign vaults. The health of the economy and the interest of the populace should be the primary objective of fiscal and monetary policies.
The same IMF, the author of the ruinous economic programme of the 1980s is at it again. It has been calling for an adjustment in the value of the naira. The Emir of Kano, Muhammadu Sanusi and some university dons have also been reported to have joined in the campaign for a further reduction in the value of the currency. The IMF has been particularly critical of the actions taken to limit access to foreign exchange by prohibiting the importation of certain goods. The argument is that the government should allow the naira to find its level.
Our expectation is that Nigerians will question the interest of the IMF in the value of Nigeria’s currency instead of joining in the agitation for a reduction in its value. It should not be difficult to recall that the devaluation of the naira and other harmful recommendations of the IMF had disastrous consequences on the economy and quality of life in Nigeria and many other countries that embraced SAP. There was a sharp increase in the cost of imports, large-scale de-industrialisation and massive job losses. Factories either closed shop or relocated to other countries. Products that were being produced in the country are now being imported.
The current wave of devaluations started in the last quarter of 2014 when the exchange rate of the naira to the dollar was adjusted from 155 to 168. The current rate of 197 naira to the dollar shows that the value of the currency has dropped by 27 per cent in the last one year. With another round of devaluation, there will be another round of inflation. The purchasing power of Nigerians will be reduced because the naira will buy less. The cost of imported materials for industrial production will go up and the cost of products and services will rise. Industries that have been struggling to survive decades of economic downturn will be further disadvantaged. Their higher costs of production will not enable them to sell at competitive prices. They will be unable to take advantage of the large market that Nigeria is. Devaluation will thus have a telling effect not only on the industries but also on the quality of life of the ordinary people.
Nigeria is not an industrialised country producing and exporting finished products. Industrialised countries at times resort to devaluation to undercut their rivals to enable them to get a larger share of the market. Nigeria is an import-dependent country . It is a massive market into which all forms of goods are dumped. Its main source of revenue - the crude oil - is exported in raw form with no value added and it is priced and paid for in American dollars. What then will be the benefits that will accrue from a further reduction in the value of the naira?
President Muhammadu Buhari , Vice President Yemi Osinbajo and Central Bank Governor Godwin Emefiele have spoken in unmistakable terms about the resolve of the government not to further devalue the naira. Our fervent hope is that they will stick to their guns in the defence of whatever remains of the naira. If the massive devaluations of the 1980s and 1990s did not solve the country’s problems, it will not solve it today. The government should explore the options of strengthening and diversifying the economy.
There has always been the contention that the devaluation of the currency will discourage the importation of items of ostentatious consumption. It is a flawed argument in a country in which public office holders have been abusing their access to the treasury to steal even what they do not need. The control on foreign exchange should be stringent enough to stop the importation of what can be locally produced and what can only serve the purpose of showing class.
It should not be lost on the agitators for devaluation that Nigeria is a country that has been stolen blind by its own leaders. Continuous devaluation of the naira will be adding value to stolen funds in foreign vaults. The health of the economy and the interest of the populace should be the primary objective of fiscal and monetary policies.
Akure must produce next Ondo gov – Deji
The monarch also said that any party that failed to pick an indigene of the town would not be voted for by the entire people of the Akure division which he said comprised Akure-South, Akure-North, Ifedore and Idanre local government areas.
He said other divisions such as Owo, Okitipupa, Akoko and Ondo had produced a governor each, alleging that the Akure division had been marginalised since the creation of the state in 1976.
Expressing his commitment to achieving the goal, the monarch revealed that he had been holding a series of meeting over how an Akure indigene will become the next governor of the state.
The Deji said no Akure indigene would vote for governorship candidates from outside the Akure division in the forthcoming election.
The monarch said, “Next year’s election is our time, and we are ready. Any political party who failed to pick an Akure man does that at its own risk because this time around, we are not going to vote for an outsider. We don’t even want a deputy governorship slot.
“We have five divisions in Ondo State. They include Ondo, Okitipupa, Owo, Akoko and Akure. It is only the Akure division that has not produced a governor since 1976 that this state was created. It’s Akure’s turn now. It’s our turn and we are ready for it,” he maintained.
In order to achieve the dream, the Akure traditional ruler explained that he had been organising meetings with all monarchs and politicians in the Akure division on how to unite and pick a candidate that would win the governorship poll.
The monarch said his people were ready to form a new political party should the two most popular parties in the state fail to pick an Akure indigene as their candidate.
He declared, “If the PDP and APC refused to pick an Akure man, we shall form another political party that will win that election like Mimiko did in 2007. This is an Akure agenda. When I said Akure agenda, I mean all local governments under the Akure division. We have Akure North, Akure South, Idanre and Ifedore local government councils and we contribute a total of 44 per cent of the votes and we are going to win.
“I have been having a series of meeting with all our sons and daughters on how to speak with one voice. You will see that things will change next year. It is our project. If I am still alive by then, we must accomplish it by God’s grace.”
Monitoring the bailout funds
THE present government under President Muhammadu Buhari came into office
at a time when many states in the country were experiencing serious
financial problems to such an extent that many of them could not pay the
salaries of their workers for many months. The workers were becoming
restive and the new government took a decision to offer the states loans
through the Central Bank of Nigeria (CBN), in addition to substantial
sharing of funds accruing from dividends paid to the government.
About 27 states were reported to have benefited from the bailout funds, with the expectation that the funds would be used to offset salary arrears in the respective states. While there were comments as to the propriety or otherwise of using loans with a repayable period of twenty years to pay workers salaries by the states, the overriding concern was the need to ensure that workers were paid until more structural steps would be taken to address the shortfalls being experienced by the states.
Not many people could fault the Federal Government’s concern with prioritising the welfare and living conditions of workers in the different states with the expectation that the bailout funds would help the states to clear the backlog of salaries. It is therefore surprising that many months after the announcement of the offer of the bailout by the Federal Government, many states are still to pay their workers, while the agony of unpaid salaries continues to characterise life in such states. And this is not just with respect to salaries for new months, as workers in some states are still complaining about the non-payment of the backlog of salaries.
Evidently the processes of the utilisation of the bailout funds have to be looked into in order to come to terms with how the states have expended the funds. The President of the Nigerian Labour Congress (NLC), Comrade Ayuba Wabba, has accused many state governors of diverting the bailout funds to other ends. Indeed, there are accusations that some state governments have deliberately kept the bailout funds in interest-bearing accounts in banks in order to generate some further funds instead of using the funds to quickly settle the salary arrears. And in all these, the state governments have been stingy with reactions and explanations, preferring to keep silent, leaving workers to continue to agitate for the payment of their salary arrears.
The only exception perhaps is the Kogi State government which has come out to state that it has not yet received the bailout funds from the CBN. Given that the Federal Government announced the release of the bailout funds to the states more than two months ago, it is surprising that Kogi State has not received its share since then. The CBN has to quickly come out to explain why this is so, especially since no other state has complained of not receiving the funds. We hope there is nothing untoward responsible for this delay.
Furthermore, the CBN should be interested in how the funds already released to the states have been utilised given that it has the structure and wherewithal to monitor such utilisation. It would also be important that security and investigative agencies are involved to bring out the truth about the expenditure of the bailout funds. It would not be enough for the Federal Government to just release the bailout funds to the states and not be concerned about its utilisation. In any case, the reason the Federal Government intervened with the bailout was because of the negative effect of the persistent non-payment of workers’ salaries by the states on the national economy and we would think that the Federal Government would thus want to ensure that the objective of the bailout is met.
Without advocating the Federal Government becoming a supervisor for state governments, it is still important to realise that the bailout is some sort of loan from the Federal Government to the state governments and it is not unusual for lenders to monitor how borrowings are utilised in order to ensure that borrowers keep to the borrowing terms. If the state governments were therefore given the bailout on the understanding that it would be used to offset salary arrears, it should be the concern of the Federal Government that it is utilised as planned. Fortunately this is a government that has promised transparency and accountability in the running of government such that it should also nudge the state governments along that line, especially in this instance where funds from the Federal Government are involved.
It should be made clear to the state governments that in the spirit of the new positive change envisioned for the country, they have to be transparent and above board in their utilisation of the bailout funds and that all Nigerians would hold them accountable for such utilisation even as the investigative agencies would be fully monitoring the disbursement.
About 27 states were reported to have benefited from the bailout funds, with the expectation that the funds would be used to offset salary arrears in the respective states. While there were comments as to the propriety or otherwise of using loans with a repayable period of twenty years to pay workers salaries by the states, the overriding concern was the need to ensure that workers were paid until more structural steps would be taken to address the shortfalls being experienced by the states.
Not many people could fault the Federal Government’s concern with prioritising the welfare and living conditions of workers in the different states with the expectation that the bailout funds would help the states to clear the backlog of salaries. It is therefore surprising that many months after the announcement of the offer of the bailout by the Federal Government, many states are still to pay their workers, while the agony of unpaid salaries continues to characterise life in such states. And this is not just with respect to salaries for new months, as workers in some states are still complaining about the non-payment of the backlog of salaries.
Evidently the processes of the utilisation of the bailout funds have to be looked into in order to come to terms with how the states have expended the funds. The President of the Nigerian Labour Congress (NLC), Comrade Ayuba Wabba, has accused many state governors of diverting the bailout funds to other ends. Indeed, there are accusations that some state governments have deliberately kept the bailout funds in interest-bearing accounts in banks in order to generate some further funds instead of using the funds to quickly settle the salary arrears. And in all these, the state governments have been stingy with reactions and explanations, preferring to keep silent, leaving workers to continue to agitate for the payment of their salary arrears.
The only exception perhaps is the Kogi State government which has come out to state that it has not yet received the bailout funds from the CBN. Given that the Federal Government announced the release of the bailout funds to the states more than two months ago, it is surprising that Kogi State has not received its share since then. The CBN has to quickly come out to explain why this is so, especially since no other state has complained of not receiving the funds. We hope there is nothing untoward responsible for this delay.
Furthermore, the CBN should be interested in how the funds already released to the states have been utilised given that it has the structure and wherewithal to monitor such utilisation. It would also be important that security and investigative agencies are involved to bring out the truth about the expenditure of the bailout funds. It would not be enough for the Federal Government to just release the bailout funds to the states and not be concerned about its utilisation. In any case, the reason the Federal Government intervened with the bailout was because of the negative effect of the persistent non-payment of workers’ salaries by the states on the national economy and we would think that the Federal Government would thus want to ensure that the objective of the bailout is met.
Without advocating the Federal Government becoming a supervisor for state governments, it is still important to realise that the bailout is some sort of loan from the Federal Government to the state governments and it is not unusual for lenders to monitor how borrowings are utilised in order to ensure that borrowers keep to the borrowing terms. If the state governments were therefore given the bailout on the understanding that it would be used to offset salary arrears, it should be the concern of the Federal Government that it is utilised as planned. Fortunately this is a government that has promised transparency and accountability in the running of government such that it should also nudge the state governments along that line, especially in this instance where funds from the Federal Government are involved.
It should be made clear to the state governments that in the spirit of the new positive change envisioned for the country, they have to be transparent and above board in their utilisation of the bailout funds and that all Nigerians would hold them accountable for such utilisation even as the investigative agencies would be fully monitoring the disbursement.
Subscribe to:
Posts (Atom)