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BusinessDay 22 Oct 2017

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Sunday <strong>22</strong> <strong>Oct</strong>ober <strong>2017</strong><br />

From the Red Chamber<br />

With<br />

OWEDE AGBAJILEKE<br />

Will the Senate<br />

bow to<br />

pressure and<br />

abandon its<br />

investigations<br />

into the alleged corruption in<br />

the award of N9trillion contracts<br />

in the Nigerian National<br />

Petroleum Corporation (NNPC)?<br />

This is a question begging<br />

for answer, as the nation’s apex<br />

legislative chamber embarks<br />

on another probe when multibillion<br />

dollar investigations are<br />

yet to see the light of the day.<br />

There are vested interests<br />

in the Presidency and international<br />

oil companies who are<br />

piling pressure on the Aliyu<br />

Wammako-led ad-hoc committee<br />

to abandon the probe.<br />

This was why the committee’s<br />

meeting meant to adopt<br />

the modalities to conduct the<br />

investigation was called off<br />

two weeks ago, while another<br />

meeting slated for last week was<br />

BD SUNDAY 17<br />

AssemblyWatch<br />

Sweeping N9trn NNPC probe under the carpet?<br />

postponed at the last minute at<br />

the instance of the Deputy Senate<br />

President Ike Ekweremadu.<br />

Senate President Bukola Saraki<br />

who announced the nine-man<br />

committee, was away in Russia<br />

at the time and in a bid to buy<br />

more time, Ekweremadu asked<br />

the panel to postpone the meeting.<br />

It would be recalled that in<br />

a leaked letter dated August<br />

30th, <strong>2017</strong> and addressed to<br />

President Muhammadu Buhari,<br />

Minister of State (Petroleum<br />

Resources) and Chairman of<br />

the NNPC Board, Ibe Kachikwu,<br />

had accused the Group Managing<br />

Director of the Corporation,<br />

Maikanti Baru of insubordination<br />

and illegal practices.<br />

He said he was disturbed that<br />

$25 billion (N9 trillion) contracts<br />

were awarded by Baru without<br />

his input and that of the NNPC<br />

Board.<br />

He also accused the NNPC<br />

GMD of effecting changes in<br />

personnel at the NNPC without<br />

recourse to NNPC Board or the<br />

Ministry.<br />

But following denial by the<br />

Presidency, the Senate leadership<br />

is under pressure from<br />

members of the President’s<br />

kitchen cabinet not to portray<br />

the present administration in<br />

bad light with an ‘embarrassing’<br />

report.<br />

There are concerns that the<br />

probe may end up like the $12billion<br />

capital flight allegedly<br />

moved by a serving minister,<br />

telecommunications giant, MTN<br />

Nigeria and four commercial<br />

banks.<br />

The investigation had been<br />

lingering since September 2016<br />

after the Committee on Banking,<br />

Insurance and other Financial<br />

Institutions was mandated to<br />

unravel the circumstances leading<br />

to the capital flight. But the<br />

committee’s report is yet to see<br />

the light of the day, as lawmakers<br />

rejected its submission in<br />

July this year for absolving the<br />

telecommunications firm while<br />

blaming the Central Bank of<br />

Nigeria (CBN). Since then, nothing<br />

has been heard about the<br />

committee’s report.<br />

Another investigation that<br />

has dragged for so long is the<br />

probe of 33 revenue generating<br />

agencies of the Federal Government<br />

over non-remittance,<br />

under-remittance and misuse<br />

of revenue generated between<br />

2012 and 2016 amounting to<br />

N450 billion.<br />

Like the MTN scenario, the<br />

probe has been hanging for over<br />

a year.<br />

The Solomon Adeola-led adhoc<br />

committee has met on several<br />

occasions with the heads<br />

of the affected agencies but its<br />

report has not been presented<br />

for consideration.<br />

According to Max Weber,<br />

German sociologist and political<br />

economist, every society is a<br />

reflection of the people inhabiting<br />

it. Just the way discourse in<br />

Nigeria takes ethnic and religious<br />

leaning, the probe by the Wammako<br />

Committee has also assumed<br />

the same colouration. For<br />

instance, while Muslim senators<br />

from the Northern region in support<br />

of Baru (a Northerner) are<br />

insisting that the investigation<br />

must be halted, their colleagues<br />

from the South behind Kachikwu<br />

(Southerner) have argued that<br />

the probe must go on.<br />

This is the dilemma Senate<br />

President Bukola Saraki is currently<br />

facing, as he seeks to pacify<br />

angry senators on the matter.<br />

Nigerians are earnestly waiting<br />

to see if the matter will be<br />

swept under the carpet.<br />

In another development, immediate<br />

past Senate President<br />

David Mark spoke on the floor<br />

of the Senate for the first time<br />

since the inauguration of the<br />

Eighth National Assembly on<br />

June 9, 2015.<br />

He spoke when his only sponsored<br />

bill in two years titled: ‘A<br />

Bill for an Act to Establish the<br />

Federal University of Health Science,<br />

Utukpo and other related<br />

matters connected thereto, <strong>2017</strong>’<br />

passed Second Reading.<br />

Since his election in the Eighth<br />

Senate, the lawmaker has continued<br />

to occupy the back seat and<br />

has never spoken on issues during<br />

debates.<br />

Notwithstanding, many lawmakers<br />

who wanted to speak on<br />

the issue were restricted by the<br />

Deputy President of the Senate<br />

Ekweremadu who presided over<br />

the session.<br />

Mark, the most ranking senator<br />

in the country’s history, was<br />

immediately ushered into the<br />

Press Centre of the Senate Press<br />

Corps after plenary and spoke in<br />

less than one minute, expressing<br />

delight at the honour accorded<br />

him. “I am simply humbled by the<br />

respect that the Senate accorded<br />

me; the way they just took the<br />

bill. I can’t express my gratitude<br />

enough. This will be a wrong day<br />

for me to talk to the media. And<br />

whatever I can do for the unity of<br />

this country even at the expense<br />

of my own life, I will do it”.<br />

The lawmaker has, however,<br />

come under intense criticism<br />

from the social media community<br />

for being a benchwarmer.<br />

Some have wondered why a<br />

lawmaker with such institutional<br />

memory would opt to be<br />

a benchwarmer, amid myriad<br />

of challenges facing the country.<br />

The reason is simple: he<br />

contested the 2015 National Assembly<br />

elections with a mindset<br />

of returning as Senate President.<br />

Consequently, when former<br />

President Goodluck Jonathan<br />

and the then ruling party, the<br />

Peoples Democratic Party (PDP),<br />

lost the general election, it became<br />

obvious that he would not<br />

be the nation’s Number Three<br />

Citizen. Consequently, he withdrew<br />

into his shell and became<br />

an ‘observer senator’.<br />

Need for thoroughness in legislative activities<br />

It is evident that the House has<br />

not been thorough in tracking<br />

its activities, especially on some<br />

of the resolutions passed before<br />

now. For instance, the resolution<br />

passed on Thursday, 19th <strong>Oct</strong>ober,<br />

<strong>2017</strong> on the motion which seeks<br />

to set up an Ad-hoc Committee to<br />

investigate the activities of NER-<br />

FUND and its current status with<br />

a view to justifying the planned<br />

closure and also the high profile<br />

debtors to the Fund, the condition<br />

of the projects that benefitted from<br />

the loans and the roles played by<br />

intermediary banks, was unnecessary<br />

and should be reversed.<br />

I’m aware that there’s an Ad-hoc<br />

Committee set up by the Speaker<br />

to investigate the activities of the<br />

Development Financial Institutions<br />

(DFIs) including NERFUND,<br />

SMEDAN, Infrastructure Bank,<br />

among others. The activities of<br />

that committee is still ongoing,<br />

so why the duplication? Aside<br />

the fact that there’s a standing<br />

and relevant committee which<br />

should prosecute such investigation,<br />

assigning such responsibility<br />

to another committee to which<br />

millions of naira will be allocated<br />

to amount to waste of scarce financial<br />

resources that require prudent<br />

management. Rather, such information<br />

as reflected in the body of<br />

the motion should be transferred<br />

to the already constituted Ad-hoc<br />

Committee to enhance its work,<br />

at most. Of course, there’s need<br />

for that same committee to know<br />

that its track are being put under<br />

surveillance by the anti-graft<br />

agencies, to say the least. I recall<br />

that there was a press briefing held<br />

by one of the lawmakers in the<br />

same committee which suggests<br />

unwholesome practice! On this, I<br />

will not overstretched the issue.<br />

The House leadership should also<br />

be wary of setting up fresh Ad-hoc<br />

Committee for obvious reason, of<br />

dousing tension among the standing<br />

committees. I recall that the<br />

House vexed its anger over the<br />

performance of some of the committees<br />

constituted over the past<br />

two years without turning in any<br />

reports on the bills and investigative<br />

public hearings assigned to<br />

them. However, the work done<br />

by the House during Thursday<br />

plenary, on certain motions such<br />

as the proposed investigations into<br />

the ‘loss of over $14 billion due to<br />

non-payment of gas flared penalties<br />

by International Oil Companies<br />

(IOCs)’, N895 billion payment<br />

approved by Federal Executive<br />

Council (FEC) for ‘emergency and<br />

long term power sector recovery<br />

plan and gas supply’ as well as the<br />

need for governments intervention<br />

towards curbing deaths arising<br />

from the scourge of sickle cell<br />

disease are really commendable.<br />

The House also took a giant<br />

steps by passing a resolution on the<br />

need to embark on public enlightenment<br />

against tobacco smoking<br />

and upward review of tax regime<br />

though commendable but beyond<br />

that, something drastic must be<br />

done to reduce the scourge of cancer<br />

in the country. Since its been<br />

established that tobacco smoking<br />

is a major cause of this dreaded<br />

disease called cancer, why looking<br />

for money through same killerbusiness?<br />

Imagine few minutes<br />

after passing the above resolution,<br />

the same House considered<br />

another motion which vividly<br />

show the level of unpreparedness<br />

of Nigeria towards tackling the<br />

menace. According to the motion<br />

co-sponsored by Zubairu<br />

Bungudu and James Faleke, calling<br />

on Federal Government to<br />

provide subsidies for palliative<br />

care drugs, chemotherapy and<br />

radiotherapy machines for cancer<br />

patients estimated at two million.<br />

According to them, countries with<br />

lower population and human and<br />

resource endowed such as South<br />

Africa ​has 92 machines, Algeria​<br />

has 20 machines, Morocco​has<br />

28 machines, Tunisia​has 16 machines,<br />

Egypt​has 76 machines,<br />

while Nigeria with overbearing<br />

rating as the largest economy<br />

and most populated African nation<br />

on planet earth, has about<br />

seven radiotherapy machine out<br />

of which only one is working. This<br />

simply shows the level of failure<br />

of the system and governance.<br />

The only expectation that will<br />

clear the House of compromise is<br />

by including in the 2018 budget,<br />

mandatory procurement of at least<br />

37 Radiotherapy machines for the<br />

year and ensure that the project is<br />

awarded and cash-backed in the<br />

first quarter of the year, installed<br />

and commissioned immediately.<br />

This will not reduce capital flight<br />

on medical tourism but increase<br />

life expectancy, reduce mortality<br />

rate and survival of bread-winners<br />

and put Nigeria among comity of<br />

nations who put value of human<br />

lives.<br />

A friend who saw the level<br />

of my frustration on this subject<br />

matter while putting this report<br />

together simply described the<br />

scenario as “Penny wise, pound<br />

foolish’!<br />

During the legislative week<br />

also, the Ad-hoc Committee investigating<br />

the ‘abuse of pioneer<br />

status’ chaired by Jonathan Gaza<br />

(APC-Nasarawa) continues its<br />

work. The 15 companies enlisted<br />

for interrogation by the committee<br />

are: Rockview conference &<br />

seminar; Pure Flour Mills Ltd; BUA<br />

Sugar Refinery Ltd; CR Service Ltd;<br />

Me Cure Health Services; Paints<br />

& Coating Manufacturing Ltd;<br />

Nutricima Ltd; Maths Metals Recycling<br />

Ltd; Coronation Power & Gas<br />

Ltd; Arm and a International Ltd;<br />

GVE Projects Ltd; VConnect Global<br />

Services Ltd; PZ Tower Ltd; GZ Industries<br />

Ltd and Rainbownet Ltd.<br />

Others include: Radiant Agro<br />

Allied Ventures Ltd; Monarch<br />

Steels Ltd; Universal Malting<br />

Company Ltd; Metec Wes Africa<br />

Ltd; Novo Gas Ltd; Assur Property<br />

Development Ltd; Hingxing Steel<br />

Company Ltd; Rasa Industries Ltd;<br />

Bagad Nigeria Ltd; Hypo Hygiene<br />

Products Ltd; Super Flux International<br />

Ltd; Ibad Oil Palm Estate<br />

From the Green House<br />

With<br />

KEHINDE AKINTOLA<br />

Ltd; Ibom Dockyard Ltd; Bankers<br />

Warehouse Ltd and Bayswater<br />

Industries Ltd.<br />

Penultimate week, similar<br />

exercise was carried out by the<br />

Committee. Without doubts, the<br />

committee is making progress<br />

and is expected to come out with<br />

a damning report of compromise<br />

and connivance with public officials<br />

responsible for the granting<br />

of the pioneer status. According<br />

to the reports coming from the<br />

committee so far, Nigeria has lost<br />

hundreds of billions worth of<br />

revenue to this unguided policy.<br />

To the extent that Federal Inland<br />

Revenue Service (FIRS) and other<br />

regulatory agencies are at loss over<br />

the efficiency of the policy. Comprehensive<br />

report on the outcome<br />

of the investigation will be reeled<br />

out as soon as I get details on the<br />

exercise.

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