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Constitution Amendment: Outrage As National Assembly Considers Life Pension For Presiding Officers

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• Committee recommends pension for Senate president, Speaker, deputies

A fresh move by the National Assembly to grant life pension for its presiding officers, including the Senate President and the Speaker of the House of Representatives as well as their deputies has sparked outrage among civil society groups and some senior advocates.

If the proposal is passed by the legislature, the current Senate President, Ahmad Lawan; the Speaker, Femi Gbajabiamila; and their deputies will benefit.

This is according to the National Assembly’s Joint Special Ad Hoc Committee on the Review of the 1999 Constitution which laid its report containing 68 recommendations in the respective chambers on Wednesday.

While the Senate had scheduled voting on the amendment bills for Tuesday, members of the House of Representatives were to consider and adopt the recommendations on Wednesday and Thursday.

Recommendation 16 reads, “That the House does receive the report of the Special Ad hoc Committee on the Review of the 1999 Constitution on a Bill for an Act to Alter the Provisions of the Constitution of the Federal Republic of Nigeria, 1999 to Provide Pension for Presiding Officers of the National Assembly; and for Related Matters.”

Already Section 84(5) of the Nigerian constitution guarantees life pension for all former Presidents and Vice-Presidents, a cost which gulps an average of N7.8bn yearly.

The provision in the constitution reads, “Any person who has held office as President or Vice-President shall be entitled to pension for life at a rate equivalent to the annual salary of the incumbent President or Vice-President: Provided that such a person was not removed from office by the process of impeachment or for breach of any provisions of this constitution.”

Ask your lawmakers to reject it, CSO tells Nigerians

In an interview with The PUNCH, however, the Deputy Director, Socio-Economic Rights and Accountability Project, Kola Dare; called on Nigerians to ask their various representatives at the National Assembly to kick against such provisions, adding that it was selfish of them to have considered such a provision in the first place.

The SERAP director stated, “The proposed amendment if that is true, cannot be said to be in the interest of Nigeria. SERAP is in court challenging the payment of life pensions to some governors and deputy governors in their states.

“That of the National Assembly is at best a waste of public resources. They money could be put to better use, the education sector is there, and our health sector is not getting the best of funding. That proposed amendment should not be allowed to stand. Nigerians should reach out to their representatives at the national assembly to vote against the amendment.”

Also, the Civil Society Legislative Advocacy Centre, which is Nigeria’s chapter of Transparency International, described the provision as outrageous.

The Executive Director of CSLAC, Auwal Rafsanjani, said the proposal, if passed would further put a strain on the fragile economy of the country.

According to him, public office holders had enjoyed more than enough from the lean public purse. He added that positions of leadership were meant for service and not to amass wealth.

Rafsanjani said, “I think this is one of the most self centered provisions for people who have been benefiting from the public fund to now permanently continue to burden Nigerians. This is at the expense of the deteriorating economy, lack of commensurate wages to hardworking Nigerians and also at the expense of social services Nigerians should be enjoying.

“These people should fear God and be fair to Nigeria. Elective positions are meant to serve the people as seen in other climes but in Nigeria it is seen as an avenue to milk Nigerians dry. This is unfair.

“We are calling on the right thinking people should not allow that particular provision to see the light of the day. We have more pressing issues in the country that they are not giving priority to.”

An economist and a senior lecturer of Economics at the Pan Atlantic University, Dr Olalekan Aworinde, condemned the lawmakers’ decision to vote for life pension, describing it as a form of high-level nepotism.

He said, “If it scales through, it is a function of the high level of nepotism. We will find ourselves in a situation whereby they will continue enriching themselves at the mercy of the poor. This is just a means for them to take more resources from the country. There are lots of negative implications to this.”

Aworinde added that it will be a financial burden to the government as there will be an increase in governance costs and increased fiscal deficits.

“It will increase the cost of governance. It would likely consume a huge amount of money and increase the cost of governance and an increase in the cost of governance will likely lead to deficit spending for the country. All of these are recurrent expenditures,” he added.

He further decried the state of pension in the country, adding that if the lawyers succeed with getting life pensions for themselves, it would be harmful to the country.

Aworinde added, “If we look at the pension system in Nigeria, some pensioners who have given a lot and contributed a lot in terms of their pension are not able to get their pension when due. Yet, the lawmakers instead of coming to the aid of these people are pursuing life pension for themselves.

“Nigeria’s democracy is not the government of the people for the people by the people. It is the government of the politician for the politician and by the politician.”

In a separate interview with The PUNCH, human rights activist, Mr. Ebun-Olu Adegboruwa (SAN), said it would be immoral for the National Assembly to approve pension for presiding officers.

Adegboruwa argued that it made no sense for a presiding officer who spent only one term in office to receive a life pension while those who worked for 35 years were not receiving their fair share.

The senior advocate said the National Assembly’s budget which included estacode, oversight allowances, constituency projects and other costs was already bleeding the public purse.

He said, “I believe that the burden of sustaining the National Assembly is too much on the economy of our nation having regard to the allowances, constituency projects, and the interventions in Ministries, Departments and Agencies of government and the amount that we expend on oversight functions on executive agencies.

“This is apart from the litany of aides that they parade, the estacode and other allowances that are paid to them. I believe that political office holders should not be entitled to pension given that the tenure of office is always incumbent on their return. It is possible that the heads of these chambers may return and not be voted as presiding officers. Are we saying they should be paid a pension? You cannot serve four years and get a pension for life.

“It is not like someone who works for 35 years. It won’t be good for the National Assembly to legislate pensions for themselves. I think it should be stepped down. There is no use paying a pension to people who work part time.”

Another senior advocate, Robert Clark, said the lawmakers were already earning more than they should. He said the bill must not scale through.

He added that elective positions are not permanent employment.

Clark said, “They cannot do that. Where did they derive that from? Are they in permanent employment? They are elected officials who are meant to serve the country and once their term has ended they go. They are already having enough, we are even calling on them to reduce their allowance, one day they would be asked to come and refund this money.”

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I Delivered $15m Agency Cash To Ex-NIMASA DG Akpobolokemi, EFCC Witness Tells Court

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A prosecution witness, Captain Ezekiel Bala-Agaba, testified in a Lagos Federal High Court on Thursday, that he personally delivered $15 million in cash to former NIMASA DG, Patrick Akpobolokemi.

The witness, Bala-Agaba, a former Executive Director of Maritime Safety, Shipping Development and Marine Operations at NIMASA, made the disclosure while testifying before Justice Ayokunle Faji of the Federal High Court in Lagos.

Captain Agaba, who appeared as the 15th prosecution witness, told the court that funds meant for pipeline surveillance were withdrawn from NIMASA’s accounts, converted into dollars, and handed over to Dr Akpobolokemi.

According to him, the money was taken to a Bureau de Change, which converted it into $15 million before the cash was delivered to the NIMASA office on Burma Road, Apapa, Lagos.

He said he subsequently took the money to the office of the then Director-General.

“The money was sent to a Bureau de Change, which later brought the dollar equivalent to our office at Burma Road, Apapa, Lagos. I asked my Personal Assistant, Ekene Nwakuche, to carry the bag and follow me to the Director-General’s office,” he told the court.

The witness explained that he collected the bag from his aide before entering the office.

“When we got to the door of the Director-General’s office, I collected the bag from him and asked him to wait outside. I then personally delivered the sum of $15 million to the Director-General.”

The witness was initially a defendant in the case but later opted to testify for the prosecution.

While being led in evidence by prosecuting counsel, Suleiman Suleiman, he explained the chain of command within NIMASA and how financial approvals were processed in the agency.

According to him, the Director-General is the overall head of the agency and issues instructions to directors, who then implement policies in line with the NIMASA Act.

He told the court that he chaired the agency’s Intelligence Committee, which was responsible for certain security-related operations.

“As chairman of the committee, I oversaw its activities and reported directly to the Director-General, Dr. Patrick Akpobolokemi,” he said.

During the proceedings, the witness was also shown a document containing a letter from Access Bank to the Economic and Financial Crimes Commission (EFCC) detailing transactions in NIMASA’s accounts between 2013 and 2015.

When asked how much money he took to the former Director-General, Agaba replied: “$15 million.”

After listening to the testimony, Justice Faji adjourned the matter until April 22 and 23 for cross-examination of the witness.

The EFCC had in December 2015 arraigned Dr. Akpobolokemi and seven others before the court on a 30-count charge bordering on conspiracy, fraudulent conversion of funds and money laundering.

Those charged alongside the former NIMASA boss include, Warredi Enisuoh, Governor Juan, Ugo Frederick, Timi Alari, as well as Alkenzo Limited and Penniel Engineering Services Limited.

They pleaded not guilty to the offences.

The anti-graft agency alleged that the defendants conspired to divert funds running into over N1.15 billion under the guise of providing security intelligence in Nigeria’s maritime domain.

According to the EFCC, the NIMASA Intelligence Committee allegedly received N1,153,000,000 between December 2013 and July 2015.

Investigations further revealed that several companies contracted to execute the intelligence operations were either unregistered or lacked the capacity to perform the services, while some were allegedly linked to the defendants.

The prosecution also alleged that the defendants nominated or owned many of the companies used to execute the contracts.

One of the charges stated that the defendants conspired to commit offences punishable under the Money Laundering (Prohibition) Act, 2012.

 

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CBN Bars Chronic Loan Defaulters from Accessing New Banking Services

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The Central Bank of Nigeria (CBN) has issued a directive to all financial institutions to immediately restrict certain banking services for large-ticket borrowers with non-performing loans (NPLs).

This move is aimed at strengthening credit discipline and protecting the stability of the Nigerian financial system following a rise in the industry’s NPL ratio to approximately 7%, exceeding the regulatory 5% threshold.

This order is specifically targeted at large-ticket obligors.

The CBN issued the directive in a circular to banks on Monday.

The latest instruction comes almost a week after the CBN asked financial institutions to stress test.

It is uncertain if the two directives are connected or what may have triggered the loan-related instruction, but the apex bank said it furthers its mandate to protect Nigeria’s financial system.

“In furtherance of its mandate to promote a sound financial system, protect depositors, and enhance prudential compliance within the banking sector, the Central Bank of Nigeria (CBN) hereby directs all banks to restrict non-performing large ticket obligors, whose activities pose systemic risk to the financial system, from accessing specified banking services,” the circular reads in part.

“Any large-ticket obligor with a non-performing facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities. For the purpose of this restriction, credit facilities include loans and other forms of direct credit.

“In addition, such obligors shall not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees.”

 

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Makinde Only In PDP Because He’s Not Seeking Re-election – Otitoju

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Babajide Kolade-Otitoju, the Director of News at TVC News, recently stated that Oyo State Governor Seyi Makinde would likely have defected from the People’s Democratic Party (PDP) if he was still serving his first term.

Otitoju stated this on Friday on TVC’s ‘Breakfast Show’.

He described the National Convention of the Peoples Democratic Party, PDP, in Ibadan last November as a mere waste of time.

“People must show good judgment at a critical phase. What was the point of having that convention? Two courts told you not to go ahead but you went ahead.

“I may not be a fan of former Senate President Bukola Saraki but if he says something that makes sense, I will be the first to admit it. He made sense when he said let’s go for caretaker. What’s the point of not listening to him?

“Later you will be shouting that the ruling party is behind your crisis, meanwhile you are the architect of your own misfortunes. You created this problem.

“If Makinde were in his first term, he would have fled like the dancing governor because his second term would have been in danger,” Otitoju said.

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