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, Moroccohas<br />
28 machines, Tunisiahas 16 machines,<br />
Egypthas 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.