Welcome, Guest: Join Nigeria Student Forum / Login / Trending Now / Recent

Stats: 14,428 members, 49,518 Topics, 11,216 Comments. Date: November 16, 2018, 1:56 am

House Of Reps Accused Osinbajo Of Illegal Approval Of N5.8bn North-east Intervention Fund

Nigeria Student Forum / General Discussion / Political News / House Of Reps Accused Osinbajo Of Illegal Approval Of N5.8bn North-east Intervention Fund (24) Views

(Go Down)
NSF Banner Ads NSF Banner Ads NSF Banner Ads
The Ad hoc Committee on Emergency and Disaster Preparedness has accused National Emergency Management Agency (NEMA) board, chaired by Vice-President Yemi Osinbajo of illegal approval of N5.8 billion north-east intervention fund.
Full report below:
REPORT OF INVESTIGATIVE HEARING ON THE VIOLATION OF PUBLIC TRUST IN THE NATIONAL EMERGENCY MANAGEMENT AGENCY (NEMA) SUBMITTED BY THE HOUSE COMMITTEE ON EMERGENCY AND DISASTER PREPAREDNESS. HR 52/2018
1.0
Vice President Yemi Osinbajo
PREAMBLE
The House of Representatives in Plenary on Thursday, 15th February, 2018, mandated the Committee on Emergency and Disaster Preparedness to investigate the alleged “Violation of Public Trust in National Emergency Management Agency (NEMA)” and report back to it for further legislative consideration.
In furtherance to the above Resolution contained in the Votes and Proceedings of the House, dated 15th February, 2018, the Committee adopted the following terms of reference to determine the propriety or otherwise of the transactions undertaken and expenditures incurred in the following areas of concern by management of NEMA.
(i) The release of N5,865,671,389.26 and N3,153,000,000.00 as emergency intervention of Food Security to support the population affected by insurgency in the North-East in June 2017 and other releases for the North-East intervention;
(ii) The 6,779 metric tons of rice donated by Chinese government to the internally displaced persons in the North-East;
(iii) Payment of about N800 Million Demurrage on the donated Rice by the Chinese government;
(iv) Over 10 Billion Naira being statutory 20% Ecological Funds released between January 2017 to February 2018 to NEMA;
(v) The Federal Government of Nigeria Flood Intervention in the sum of N1,600,000,000.00 to 16 States in July 2017;
(vi) The over N1.6 Billion released to NEMA for Evacuation of Nigerians stranded in Libya in 2017; and
(vii) Other ancillary issues.
2.0
MODUS OPERANDI
The Committee took the following legislative measures in the course of discharging this assignment:-
(i) The Committee held number of meetings to determine its modus operandi;
(ii) Letters were written to critical stakeholders to elicit their views on the issue under investigation;
(iii) Committee placed adverts in both Print and Electronic Media soliciting for memorandum and sensitizing the Public and stakeholders to the Public Hearing to ensure overall success of the investigation;
(iv) All submissions/documents received at the hearing were objectively scrutinized and analysed for informed findings and recommendations to the House for adoption.
3.0
INVESTIGATIVE PUBLIC HEARING
The Committee conducted investigative hearing on the matter. The well-attended hearing was officially declared open on Wednesday, 21st March, 2018, by His Excellency, the Honourable Speaker of the House of Representatives, Rt. Hon. Yakubu Dogara who was represented by the House Leader, Rt. Hon. Femi Gbajabiamila. The Committee conducted the investigation over a period of three months in 11 Public Sitting with various stakeholders.
Invited stakeholders who made presentations at the hearing were from:
(i) The National Emergency Management Agency (NEMA)
(ii) Office of the Accountant General of the Federation
(iii) Federal Ministry of Finance
(iv) Central Bank of Nigeria
(v) Federal Ministry of Budget and National Planning
(vi) Federal Ministry of Agriculture
(vii) Economic and Financial Crimes Commission
(viii) Governing Council of NEMA
(ix) Contractors: –
– Dangote Rice Ltd
– BUA
– WACOT
– Golden Agric Input Ltd.
– Olam Nig. Ltd.
– 3 Brothers Nig. Ltd.
(x) Office of Head of Service of the Federation
(xi) The Nigeria Customs Service
(xii) Nigeria Port Authority
(xiii) MAESK Line Clearing and Forwarding Agents & Transporters
(xiv) APMT & Maresk Line Clearing Agents & Transporter
(xv) SEMA (16 states affected by the flood and 5 out of the 6 states of the North East).
(xvi) CAC
(xvii) PENCOM
(xviii) FIRS
(xix) ITF
(xx) NSITF
4.0
ANALYSIS OF THE SUBMISSIONS
5.0
OBSERVATIONS/FINDINGS
A. DONATION OF 6,779 METRIC TONS OF RICE BY CHINESE GOVERNMENT FOR IDP’S IN THE NORTH EAST.
Committee appraised the submissions made by stakeholders involved in the matter and observed as follows:
– That the Chinese government donated and shipped a total of 6,779 metric tons of rice, that is 271 trucks and approximately 162,696 bags of rice into the country’s seaport in June 2017 meant for distribution to IDPs in the North-East as food assistance.
– That the government Agencies namely – Ministry of Budget and National Planning, Ministry of Agriculture, Ministry of Finance and NEMA were charged with different responsibilities of receiving, clearing, storage, transportation and distribution of the consignments to the IDP’s in the North East.
– That more than one year after the goods were donated, there is no evidence that the 6 States of the North East, who are the beneficiaries have received the items.
– Evaluation of the correspondences by the Chinese government on the free donation of the items and responses by the Federal government Agencies confirmed that there was adequate information on the donation, as an Memorandum of Understanding (MOU) was entered into by all the parties indicating the role to be played by each Agency. But the rice could not be evacuated over long period of time at the seaport despite written letters by Chinese Government to Ministry of Budget and National Planning after an import waiver had been obtained from Ministry of Finance, informing the Nigerian authorities of the consequences of the delay in clearing the items.
– The Federal Government paid about N800 Million as demurrage to APM terminal and Maersk Line for the consignment due to delay arising from inability and negligence on part of NEMA, Ministry of Agriculture, Ministry of Finance and Ministry of Budget and National Planning to secure the items as at when due.
– APM Terminal provided invoices on the demurrage showing payment by Ministry of Agriculture but NEMA testified it made the payment. NEMA could not however, provide before the Committee evidence of payment to APM terminal but the payment reflected in their account book.
– Ministry of Budget and National Planning was to provide the funding for the clearing, transportation of the rice, handling and logistic charges as agreed in the Memorandum of Understanding signed by the Government Agencies.
– Ministry of Agriculture was responsible for providing silos for the storage of the rice.
– The Ministry of Agriculture confirmed to the Committee that no single bag of the consignments was delivered and received from NEMA as at the time of this report.
– Global View Logistics Ltd and Baltic Air and Maritime Services Ltd engaged to clear the rice were not registered contractors with NEMA, the Companies were equally not registered with ITF, NSITF, and PENCOM, as required by existing law, practice and Regulations.
– National Emergency Management Agency (NEMA) was saddled with the responsibility of delivering the consignments to different designated silos and to distribute all the 6779 metric tons of the Chinese rice to the IDPs within the 6 States in the North-East in the following proportion:
S/No States
Percentage and Tons Equivalence in Trucks
1 Borno
35% = 2,372.7 M/Tons 79.09 Trucks
2 Yobe
20% = 1355.8 M/Tons 45.1 Trucks
3 Adamawa
15% = 1016.85 M/Tons 33.89 Trucks
4 Gombe
10% = 677.9 M/Tons 22.5 Trucks
5 Bauchi
5% = 339 M/Tons 11.3 Trucks
6 Taraba
5% = 399 M/Tons 11.3 Trucks
7 Kwali FCT
10% = 677.9 M/Tons 22.5 Trucks
TOTAL
225.5 Trucks
Ministry of Finance provided Certificate for Import tax waiver with tax deduction on the consignments donated to Nigeria by Chinese government
The 5 State governments in the North-East except Borno State who did not appear before Committee, denied receiving any single bag of rice from the consignment purported to have been delivered and distributed to the IDPs by NEMA.
– Due to the testimony of the Director of Finance and Accounts (DFA) and some staff of NEMA on payment of demurrage which the management was not comfortable with, NEMA management hurriedly convened a Governing Council meeting of NEMA for the first time in 3 years where it took a decision to suspend the Director of Finance and 5 other staff of the Agency without due process and in flagrant violation of the principle of fair hearing as guaranteed under Section 36 of the 1999 Constitution as amended.
– The suspension took place on 2nd April, 2018 which was the date of the inauguration of the Council Members by the Vice President. This was done within the period of investigation by the Committee, and intended to jeopardise and obstruct the work of the Committee.
B. RECEIPT AND UTILIZATION OF N1.6 BILLION FOR FLOOD VICTIMS IN 16 STATES
FINDINGS:
– NEMA confirmed receiving the sum of N1.6 Billion released to it by the Federal Government as Intervention Fund to purchase food items and other relief materials for distribution to all the 16 States which was affected by the flood disaster in June 2017. The States are: Lagos, Oyo, Edo, Kwara, Ebonyi, Niger, Ekiti, Kebbi, Akwa Ibom, Plateau, Sokoto, Bayelsa, Enugu, Ondo, Abia State and FCT
– The ratio of distribution of the fund for each State is N100,000,000.00.
– The Committee further confirmed that 11 of the States received relief items worth less than N50,000,000.00 each while 5 States received items worth N70,000,000.00 each from NEMA and only received the items in March 2018 when the investigative hearing commenced.
– The relief materials released was an afterthought and not intended to salvage the situation as the disbursement happened 9 months after the flood disaster. Thereby defeating the emergency purpose for which it was meant.
– NEMA could only account for the disbursement of N900 Million to the Sixteen States. The balance of N700 Million could not be accounted for.
C. FUNDS RELEASED FOR EMERGENCY INTERVENTION OF FOOD SECURITY IN THE NORTH-EAST
FINDINGS:
– On the emergency intervention of food security to the North-East to support the population ravaged by insurgency, a sum of N5,865,671,939.26 was approved and released in June 2017 vide a memo raised from the Office of the Acting President, directing the Hon. Minister of Finance and the Accountant General of the Federation to so act. The details further specified a directive to the Governor of CBN from the Ministry of Finance to pay the sum from the Consolidated Revenue Fund Account which the AGF is to raise a mandate for. This is in contravention of approval of NASS on the issuance of Euro Bond from which the Hon. Minister authorized the payment. The Euro Bond is for specified infrastructural projects and not for discretionary intervention. Furthermore, there is no specific appropriation by the National Assembly.

0 Like

Don't have an account? Use the form below to signup for a Nigeria Student Forum Account and start earning for every posts and comments.


Sponsor: 0
Full Name:
Email:
Username: E.g Seuncoded
Password:
Confirm Password:
Country:


I agree to the terms of service

Viewing this topic:
1 guest viewing this topic
NSF Banner Ads NSF Banner Ads NSF Banner Ads
Download the Ngstudentforum app for Android Devices

Nigeria Student Forum - Copyright © 2016 - 2018. Fadeyi Oluwaseun All rights reserved. - See How To Advertise
Disclaimer: Every Nigeria Student Forum member is solely responsible for anything that he/she posts or uploads on Nigeria Student Forum.