CSOs’ case against double pay and bailout

By Zainab Suleiman Okino

Last week, the Federal Government bailed out the states again with the release of another tranche of N243.8 billion despite the outcry that trailed the lack of accountability and transparency in the management of the previous bailouts. Notwithstanding the FG’s Father Christmas posture, many civil servants and pensioners across the states have continued to wallow in poverty and penury.

Th e point is clear there from: that the monies were mismanaged by the governors who superintend over the states and whose primary responsibility should be the welfare and security of lives and property which they have since abdicated. Citizens cried foul, nobody listened. Th us, the APC government, it appears has abandoned the majority of people who voted them to power only to serve VIPs, friends and cronies. While still in this state of despondency, the SocioEconomic Rights and Accountability Project (SERAP) came to the rescue. It has demanded details of expenditures pertaining to the Paris club refund from state governors.

SERAP is also demanding the return of over N40 billion collected by ex-governors who are now serving as senators and ministers and are still collecting their entitlements from their states as approved by them and for them while in offi ce. Th ese two cases are going to be daunting and challenging for SERAP, considering the fact that this class of people have deep pockets and heavy war chests. But the cases, however they go, will open a new vista of either hope in our democracy or continued distrust of the political class.

Th ose who appropriated our collective patrimony or are still doing so should have their day with the law, hopefully. Th e Buhari administration fi rst came to the rescue of the states with N338 billion when nearly 26 states were practically bankrupt. Th is was followed by another N575 billion; $2.1 billion from NLNG; N7.85 billion to assist with revenue shortfalls; N3.6 billion from solid minerals savings; N117.3 billion taken from excess revenue generated from Petroleum Profi t Tax, before the latest tranche of the Paris Fund Refund.

Th ese were in spite of the infrastructure fund from which some states got more than N10 billion and reimbursement for federal projects executed by states. Investigation by the ICPC revealed that most states simply squandered/diverted these bailout funds. A state like Zamfara was said to have mismanaged the bailout fund and still owes salaries despite receiving N10 billion, and diverted same to pay contractors and for other purposes. Imo state got 26.8, paid into two commercial banks and transferred same to uses other than salaries and pension arrears. In April this year, BudgiT’s research showed that the Buhari regime has given N1.75 trillion extra-statutory allocations to states.

From the plethora of cases of mismanagement of monies released to states, it appears that the Federal Government does not have the will to enforce the conditions it set out before giving out the bailouts. Th e Federal High court sitting in Ikoyi, Lagos on June 27, 2017 granted SERAP’s permission to “apply for judicial relief and to seek an order of mandamus directing and/or compelling the government to publish details of spending of N388.304 billion London Paris Club Loan refunds allegedly diverted and mismanaged by 35 states”, among other requests granted by the court.

With this judgment, SERAP can now go ahead to advance its case against the FG and state governments. Although, this is just the beginning of what may likely be a long drawn battle, it is important, that for the fi rst time, the judiciary has granted a CSO the leeway to scrutinize our governors’ spending spree. Obviously, the idea behind the bailout out has been defeated and the FG does not have the courage to call the governors to order. If the fi rst bailout was judiciously applied why are there still so many unpaid pensioners and workers in all the states? Th is interrogation became necessary because it was alleged that the governors under the Nigeria Governors’ Forum employed the services of consultants to help (mis) manage the money. One of the consultants is being investigated by the EFCC for diverting N2 billion.

In fact, the chairman of the forum, Gov Abdul Aziz Yari of Zamfara State is alleged to have spent his share of the bailout to acquire a hotel in Lagos after depositing same at a mortgage bank. What are the roles of consultants in sharing monies meant for the states? SERAP has also taken its battle of public scrutiny of fi nancial imprudence to members of the National Assembly, the ex-governors who now occupy the NASS and have almost turned it into a leisure rendezvous. After milking their states dry, they now seat in the NASS to selfi shly stop their prosecution if ever there is any. On July 15, 2017, SERAP again put the AG on notice to institute a legal action for the recovery of over N40 billion dubiously earned in double payment by those who had served as governors and are now serving as senators or ministers of the federation. Th ere are 17 senators and four ministers involved in this double pay palaver.

To be continued.

Leave a Reply