HEMBE-GATE, SUBSIDY PROBE REPORT: As Buffeted 7th House Stands Firm

With the infamous Hembe-gate saga and a brewing controversy trailing the protracted delay in release of the subsidy probe report topping the list of challenges bedeviling the 7th House, EDEGBE ODEMWINGIE examines the unfolding story, against the mood of the House.

If it looks like a snake, acts like a snake, then it must be a snake. The foregoing adage captures in large parts the N44 million corruption tale rocking the Securities and Exchange Commission (SEC) and the House Committee on Capital Market.

There are damning corruption allegations flying around and both sides have serious cases to answer. Well, the feuding parties were guests of the Economic and Financial Crimes Commission (EFCC) on Friday.

Also, the failed release of the subsidy probe report after the three weeks scheduled date has heightened widespread fears of yet another bungled probe. Following conclusion of the public hearing, allegations that the subsidy probe committee has been infiltrated by agents of those indicted by the panel have become rife, further heightening fears that the report will never be made public. In other cases, many fear that a ‘watered down’ version of the report may be released.

Roughly three weeks ago, the Chairman of the ad hoc committee that carried out the probe, Farouk Lawan, had exclusively revealed to LEADERSHIP that the report of the committee will be laid before the House in three weeks’ time.

The report of the probe becomes particularly critical following revelations by the Lower House’s spokesman, Zakari Mohammed that as a follow up to the anticipated report, further legislation will compel prosecution of persons indicted. “I want to also say that that investigation has developed a life of its own. You cannot kill it. It is living and it will continue until we get to that logical conclusion where people have been indicted and they are also brought to book.

“After the investigations and after the findings are made public, we will put up due legislative machineries that will make it compelling for any arm of government or agency of government that is supposed to go after those who profiteered from it.” Zakari told newsmen recently.

Familiar Scandals
The latest bribery scandal is all too familiar. When Chief Olusegun Obasanjo held sway as Nigeria’s president, he accused senators and members of the House of Representatives of receiving money from ministers to pass their budgets. Obasanjo alleged that the lawmakers demanded and received N55 million to pass or increase the proposals in the 2004 appropriation.

Nigeria’s first female Speaker of the House, Patricia Etteh, was forced to step down following allegations of inflation of contracts for renovation of the official residences of the Speaker and Deputy Speaker. Less than six months after she was sworn in, Etteh was caught in a controversy of N628 million contract awarded for the renovation of her official residence.

Etteh’s successor, Dimeji Bankole’s travails from the apogee of Lower House to the EFCC gulags, arguably remains the most spectacular. It started with his failed re-election bid in the April general election following factional tussle in the Ogun State chapter of the Peoples Democratic Party (PDP) which ended up decimating the party’s ranks.

This culminated in a 16-count charge bordering on an inflation of 9 billion naira in contracts. Another unresolved issue is the case of a whopping 10 billion naira Bankole reportedly, unilaterally sourced from a local commercial bank to finance jumbo increase in salaries and allowances of members of the House of Representatives, including some of the principal officers.

In what will probably go down as the most dramatic display of shame in the House yet, about 75 students from the City Royal Secondary School, Nyanya, Abuja on an excursion to the House to observe proceedings watched in horror as lawmakers engaged themselves in a free for all fight following allegations from some lawmakers that Bankole stole N9 billion between 2008 and 2009 through contract inflation and other methods.

Bungled Probes…
To name a few, the Godwin Elumelu-led House Committee on Power bungled probe of primarily Obasanjo’s $13 billion Independent Power Project stands out. Members of the committee were indicted in a N5.2 billion Rural Electrification Agency scandal. The Elumelu Committee report which indicted Obasanjo in the way and manner his administration executed the multi-billion dollar power project remains hidden till date.

The Farouk Lawan-led Ad-Hoc Committee on the Subsidy Regime wound down the receipt of submissions from stakeholders and participants in the Petroleum Subsidy Fund on February 13. The Federal Government paid out N1.7trn as subsidy on Premium Motor Spirit (petrol) and Dual Purpose Kerosene (DPK) as of the close of the 2011 fiscal year on December 31, according to the Central Bank of Nigeria (CBN).

This represented an astronomical rise above the about N620bn used to subsidise products in 2010. But, the N1.7trn only represented what had been paid, as the panel uncovered that outstanding subsidy claim, when totaled, could bring the final figure to about N2trn. The report of that probe also remains in limbo.

A Resolute House
Put side by side an ambitious legislative agenda unanimously adopted by lawmakers at the inauguration of the Seventh Assembly, House Speaker Aminu Waziri Tambuwal insists that the investigatory role of the National Assembly was a constitutional one, which it could not abandon.

“The Constitution of the Federal Republic of Nigeria 1999 (as amended) in Sections 88 and 89 places upon the Legislature the duty and responsibility to conduct investigations into the activities of government for the purpose of exposing corruption, waste and inefficiency.

“This is no doubt a responsibility which is hazard-prone. However, as I have stated elsewhere, these hazards notwithstanding, it is a duty from which we cannot and must not abdicate. Let me assure Nigerians once again that we are totally committed to fighting corruption and shall deploy all energies available at our disposal to fight this war. The old saying that ‘when the going gets tough, the tough gets going’ will continue to be our guide.

“I also wish to assure Nigerians that in fighting this war, we recognise that we must, like Caesar’s wife, be above board and suspicion. For the avoidance of doubt and the benefit of those who may be uninformed, all committees of the House have constitutional backing.” Tambuwal said in response to the barrage of corruption allegations the lower House presently grapples with.

Some Positives
An inquest into the controversial concessioning of a key import and export clearing documentation services contract to Single Window Systems and Technology Limited, by the Federal Ministry of Finance on behalf of the Nigeria Custom Service yielded visible results.

The concession deal awarded in secret under the watch of former Finance Minister and current Minister of Trade and Investment Olusegun Aganga, which stood to rip-off the national treasury by over $30 billion was cancelled following damning revelations in the Leo Ogor-led panel.

Reps To SEC: Wait For Panel’s Report
Meanwhile, the Lower House has said that pending the conclusion of its in-house investigation into the N44 million corruption, inflammatory comments from both parties are inappropriate as it can affect the outcome of the matter.

The House spokesman, Zakari Mohammed, told newsmen at a media briefing Thursday that it was necessary for all parties involved in the matter to give the Ethics and Privileges Committee of the House the benefit of doubt and wait for its report on the bribery allegation.

Alongside ongoing investigations by the Economic and Financial Crimes Commission (EFCC), the Samson Osagie-led Ethics and Privileges Committee is expected to present a report on the bribery allegation in 21 days.

Mohammed said, “The committee has 21 days to work on the matter and I can assure you that there will be fair hearing for all the parties involved.”

‘‘SEC should caution its spokesman from issuing inflammatory statements on this issue as Honourable Herman Hembe has kept silent, waiting for the outcome of the panel’s report.

“Anything the concerned parties say now will go a long way in distorting what is on ground because is just like a matter in the court.”

Indeed, this is a perilous time for the Lower House; yet there is still hope by many Nigerians for a change of fortune. Only time will tell whether Nigeria’s lawmakers act in consonance with these aspirations.
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