The Nigerian Governors’ Forum (NGF) Monday said N1.264 trillion has been deducted from the federation account since January this year by Federal Government agencies as oil subsidy without authorisation.
Speaking at the end of its meeting last night in Abuja, the Forum said the deductions were unacceptable as they went beyond the N240 billion appropriated for the purpose in this year’s budget.
In a communiqué, the NGF said: “Members noted that the total deductions for last year were N500.6 billion which has been more than doubled to N1.264 trillion in the first nine months of this year suggesting erroneously that consumption has increased.
It also rejected what it called illegal deductions to the tune of N1.079 trillion.
“The Forum unanimously rejected all illegal deductions amounting to N1.079 Trillion for nine months in excess of the budgeted sum of N240 billion for oil subsidy for the year in clear violation of the provisions of the Appropriation Act 2011 and the Nigerian Constitution.
The NGF further said: “The Forum commended the decision of the state commissioners of finance and accountants-general for rejecting the illegal deductions of N231.6 billion at the Oct, 2011 FAAC meeting, noting that the lawful deductions for the year have been met.
“Members directed the commissioners for finance to reject any allocation that is not in accordance with the Appropriation Act 2011.”
Chairman of the Forum told reporters during question and answer session that the Forum would meet with President Goodluck Jonathan when he returns from his trip to Australia to seek ways of addressing the issues regarding the deductions.
Meanwhile, the disagreement between governors of the 36 states of the federation and the Federal Government over the implementation of Sovereign Wealth Fund has deepened as the former yesterday returned to the Supreme Court with an application seeking to restrain the latter from making any withdrawals howsoever from the account styled the “Excess Crude Account” (or any account replacing same by any name howsoever) pending the hearing and determination of a suit they filed in 2008.
The governors also asked the apex court to order that all sums standing to the credit of the account styled the “Excess Crude Account” (or any account replacing same by any name howsoever) be paid into court or be otherwise secured as the court may deem fit pending the hearing and determination of the substantive suit.
The Federal Government had on Tuesday, last week, announced the commencement of the implementation of the SWF with a seed capital of $1 billion from the Excess Crude Account (ECA).
The governors’ counsel, Chief Adegboyega Awomolo, (SAN), said the governors were forced to file the application because the Federal Government and its officers had consistently and in total disregard for the pending suit, withdrawn, utilised, disbursed and allocated funds from the Account and had nearly depleted the sum of N5.51 trillion being the balance on the account as at 2008 when the case was instituted.
He further stated that the Federal Government had announced its intention to withdraw, disburse and utilise another $1billion from the credit balance from the account in disregard to the subsisting suit and in disrespect for the authority of the Supreme Court.
The governors said that unless the order of injunction was granted, the Federal Government would continue to disregard, disrespect and ignore the pending suits in the Supreme Court.
They said: “The conduct of the Government of the Federation and her officials is a violation of the principle of the Rule of Law and breach of the Independence of the Judiciary and constitutes a violation of the principle of Rule of Law handed down by the Supreme Court in the case of Governor of Lagos V Odumegu Ojukwu (1986) pt 1 NSCC 304 and Rotimi Chibuke Amaechi V INEC (2008) 5 NWLR (PT 1080) 277.”
The governors described the action of the Federal Government as executive lawlessness and impunity.
They said the proposed disbursement of $1billion by the Federal Government, her Minister of finance and other officers, would create a state of fait accompli and helplessness, if not stopped immediately.
They said the proposed disbursement of $1billion by the Federal Government, her Minister of finance and other officers, would create a state of fait accompli and helplessness, if not stopped immediately.
It is in the interest of justice, preservation of integrity of the Supreme Court and the rule of law that this application be granted.
In an-18 paragraph attached to the application, deposed to by Mr. Ephraim Ajijola, a lawyer at the Law Office of Awomolo, the governors said: At a press briefing held on 18th October 2011 and reported same day on the “Network News” broadcast by the Nigerian Television Authority, the Government of the Federation, through the Minister of Finance, Dr. Ngozi Okonjo-Iweala, announced its intention to withdraw $1 billion from the “Excess Crude Account” to start off a national Sovereign Wealth Fund.
“That the said sum of US$1 billion sought to be withdrawn by the Government of the Federation from the “Excess Crude Account” to fund the national Sovereign Wealth Fund forms part of the subject matter of the substantive suit.”
The governors reminded the court that one of the main issues in dispute between the parties in the substantive suit was whether the payment of revenue, which accrued to the Government of the Federation from the proceeds of crude oil sales, petroleum profits tax and oil royalties into any account other than the Federation Account by the Government of the Federation was illegal and unconstitutional notwithstanding that the proceeds from the aforesaid sources were in excess of the Government of the Federation’s estimate of the revenue that would accrue from the said sources.
The governors had gone to court to among others seek for an order compelling the Government of the Federation to pay into the Federation Account the sum of N5.51 trillion being the balance of the sum which accrued to the Government of the Federation during the period 2004 and 2007 from the proceeds of crude oil sales, petroleum profits tax and oil royalties which the Government of the Federation classified as “excess crude proceeds” and “excess PPT and Royalties” and paid into an account which was styled “Excess Crude Account”.
They also asked the court to order the Federal Government to transfer to the Federation Account all sums standing to the credit of the “Excess Crude Account”.
It will be recalled that the governors went to court to challenge the action, conduct and activities of the Federal Government of Nigeria with respect to the management and operation of the Federation Account.
The parties in this suit then exploited avenues of out-of-court settlement for over one year and indeed agreed on a settlement but the settlement so reached could not be implemented and was also not entered as the judgment of the court.
Consequently, the case was set down for trial and parties were directed to exchange briefs.
However, the court did not sit on the days scheduled and the case had remained unscheduled.
While urging the court to grant their application, the governors said they had satisfied all the requirements of the law to entitle them to the injunctive relief sought.
According to them, there is a substantial issue of law bordering on the constitutionality of the Federal Government’s power to create separate account as against the spirit and letter of the Constitution in-so-far as it related to the revenue of the nation in the substantive suit.
Click to signup for FREE news updates, latest information and hottest gists everydayAdvertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com