Op-Ed

Bailout Probe: Senate Embarks on Dubious Oversight and Accountability, By Inwalomhe Donald

Byjorjapaxson3737

PublishedMay 4, 2017

Nigeria Senate which is notorious for passing 46 bills in ten minutes is embarking on a bail out probe which is outside its jurisdiction. Instead of Nigeria Senate to enact laws that will strengthen anti-graft war, it is embarking on a fruitless probe where it has no jurisdiction. The Senate could also enact laws that could assist the Federal Government in managing seized funds by the Economic and Financial Crimes Commission(EFCC). Nigeria Senate should focus on bills to enable Federal Government to implement the Cassava Bread Initiative instead of embarking on illegal probe of bail out fund which it has no jurisdiction.

The Nigeria Senate guards its independence jealously, but it is unpatriotic to realize that the Nigerian Federation is necessarily only one and cooperation rather than confrontation with the other units will lead to a workable governmental framework. John Locke has noted that ‘’it may be too great a temptation to human frailty, apt to grasp at power, for the same persons who have the power of making laws, to have also in their hands the power to execute them, whereby they can exempt themselves from obedience to the laws they make and suit the law both in its making and execution to their own private advantage.’’

Nigeria Senate’s probe of bail out fund will not develop new legislative proposals or amend existing statues, it will not ensure administrative compliance with legislative intent and it will not prevent executive encroachment on legislative authority and prerogative. Senate’s probe of bail out fund lacks three principal characteristics: participation by the state concerned, transparency because Senate has no records and lacks accountability because the states are not accountable to Senate. Nigeria Senate is probing an issue that amounts to national illegality where it has no jurisdiction because one of the minimum conditions stipulated for the draw down of the bail-out fund was the provision of the approval of the State House of Assembly, not Nigeria Senate authorizing the borrowing. Hence, series of correspondence were exchanged between the House of Assembly, not Nigeria Senate and the Executive arm of Government on the State’s desire for the bail-out loan.

For instance, the controversy surrounding the disbursement of sum of N34.9billion bailout funds released to Osun State by the Federal Government to augment payment of workers’ salaries and pension for retired workers was laid to rest as the State House of Assembly on Tuesday 20th December 2016 gave Ogbeni Rauf Aregbesola led administration a clean bill of health over the spending of the money. The assembly made the declaration while giving its reports on investigation conducted on how the money was expended. At the public presentation of the reports at the floor of the assembly, the state lawmakers maintained that the bailout funds were judiciously expended as stipulated by the Central Bank of Nigeria.
The request for the sum of N88,215,468,757.27 which comprised N64,327,492,947.01 and N23,887,975,810.26 for State and Local Governments respectively was forwarded to the Central Bank of Nigeria in July, 2015.

However, the sum of N34,988,990,000,covering N25,871,920,000 and N9,117,070,000 for State and Local Governments respectively was actually approved and released by the Central Bank of Nigeria to the State Government of Osun in August, 2015. The assembly probe committee sat for four weeks and presented its reports to the whole House. In the report, which was signed by Chairman, Finance and Appropriation Committee, Hon. Kamil Oyedele and Chairman, Public Account Committee, Hon. Olalekan Afolabi, the lawmakers explained how the bailout money was expended. According to the report, “the request for the sum of N88,215,468,757.27 which comprised of N64,327,492,947.01 and N23,887,975,810.26 for state and local governments respectively was forwarded to the Central Bank of Nigeria in July, 2015.

On how the state government utilised the controversial bailout fund, the lawmakers said “the utilisation of the approved fund in respect of the state government are as stated below: Actual amount received=N25, The lawmakers revealed that it findings shows that the size of the bailout approved released for the state government of Osun by the Central Bank of Nigeria was less than the amount requested for and that no specific period was stipulated to cover the utilization of the loan.

They argued that the full salaries (100%) for the months of March to June 2015 were paid to workers in both the state and local government services as well as pensioners from the loan; and that the payment of arrears of December 2014 salary and allowances of staffers of Ladoke Akintola University of Technology (Lautech) Teaching Hospital, Osogbo was also made from the loan.

Speaking after the House committee presented its report, the State House of Assembly Speaker, Nojeem Salaam said the funds, which he referred to as “bailout loan” were judiciously utilized to pay workers’ salaries and pensions.

Nigeria Senate is not even ashame that the PIB was introduced to the National Assembly since 2007. It is disheartening that the PIB which sought to establish a legal, fiscal and regulatory framework for the petroleum industry was not given priority passage by the 7th Assembly.” “To sanitise the oil and gas sector and make it equitable and workable, curbing corruption by giving teeth to existing laws in the petroleum industry, the PIB should no longer be delayed.It is a disappointment that the bill was not passed by the two Chambers before the end of the seventh assembly. Instead of the Senate to give the PIB priority, they passed 46 bills in 10 minutes.

The power of the National Assembly to make laws for the peace, order and good government of the Federation with respect to any matter included in the Exclusive Legislative List shall, save as otherwise provided in 1999 Constitution, be to the exclusion of the Houses of Assembly of States. The legislative powers of a State of the Federation shall be vested in the House of Assembly of the State. The House of Assembly of a State shall have power to make laws for the peace, order and good government of the State or any part thereof with respect to the following matters, that is to say:- any matter not included in the Exclusive Legislative List set out in Part I of the Second Schedule to this Constitution. (b) any matter included in the Concurrent Legislative List set out in the first column of Part II of the Second Schedule to this Constitution to the extent prescribed in the second column opposite thereto; and (c) any other matter with respect to which it is empowered to make laws in accordance with the provisions of this Constitution.

The real issue is that on no ground is the NASS qualified to scrutinize or probe a state government in the federation. The only parliament that a federating unit is responsible to is its own parliament and nothing more. The NASS is the parliament of the federal government, it is not the parliament of the federation. As a matter of fact that is an aberration in a federation. The states in Nigeria are sub-sovereign and autonomous of the federal government on governance.
Senate can not subvert or neutralise the autonomy of the state to manage its affairs under its own laws. Nigeria Senate cannot on the alter of a dubious accountability destroy our federal character. The character and structure of our nation is federal republic. We came to that structure after a gruesome process. For us as a race, a 16 year bloody civil war was fought to enforce it among ourselves.
If the NASS is really serious about accountability and transparency let it test its powers to superintend the states in the court.
For emphasis, our nation is a federation we shall not surrender that heritage cheaply on whatever blackmail,pressure and subterfuge. It is the tradition of our people.

Even with the limited numbers of enacted laws, records show most of the bills came from the Executive. Many were budget bills. While the lawmakers’ turnover has been poor, several critical bills lie abandoned. The most notable is the Petroleum Industry Bill (PIB), which has been at the National Assembly since 2008/2009. Pressed on why the few bills passed by the Senate are mainly executive-sponsored, the Chairman of the Senate Business and Rules Committee, Ita Enang, said the upper chamber gives no preference to bills before it.
Inwalomhe Donald writes from Benin City, Edo State