EDEGBE ODEMWINGIE chronicles significant legislative interventions by the House of Representatives in 2012.
A key driver of the nation’s democratic journey, the National Assembly’s expectation to deepen and stabilise governance has often suffered surprising setbacks.
Nigeria has been here before, as a fact, severally. By miles, the National Assembly with particular focus on the House of Representatives has stunned Nigerians with somewhat routine scandals, corruption and bribery tales. The legislative arm of government, compared to the executive and judiciary, has top bragging rights when it comes to brazen corrupt shenanigans, many will agree.
There have been some positives, federal lawmakers started the year on a populist footing when it held a special session to deliberate the federal government’s January 1, 2012 decision to remove fuel subsidy. On that January 8, the House resolved that the subsidy regime be continued, an action that endeared it to many Nigerians.
As typical of past legislative sessions, this year, the House of Representatives has been characterised by its two-way political horse trading with the executive, oversight, a cocktail of probes and deliberation on contentious areas in the 2013 national budget.
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Dana Crash
A probe report of the House of Representatives Committee on Aviation recommended the sack of the Director-General, Nigerian Civil Aviation Authority (NCAA), Dr. Harold Demuren over “professional negligence and incompetence” resulting in the fatal Dana plane crash that claimed 153 lives of passengers on a scheduled trip from Abuja to Lagos.
Also, Dana’s current Air Operating Certificate (AOC) should be revoked because it was not issued in compliance with NCAA’s Civil Regulations Guideline 2009, a report of the House Committee on Aviation recommended.
The report stated that the NCAA under Demuren brought in MD83 to operate in Nigeria even when there is no licensed engineer rated on the aircraft. Also, for the period under review Dana, according to the report, operated 14 air returns caused by system failure which is a sufficient indication of imminent danger.
“Up to the time of this report, NCAA is still without any licensed engineer type-rated on MD83 yet it is going ahead with technical audit on Dana operations with a view to restore its license. This constitutes negligence.” The report stated.
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Excess Crude Account Illegal
With Nigeria’s Excess Crude Account presently at $8.4 billion, the House of Representatives says the account is illegal and unconstitutional. Federal lawmakers say they will take advantage of the ongoing constitution amendment process to scrap the account which, it insists, is in violation of Section 80 (1,2,3) of the 1999 constitution (as amended).
The account, used to save oil revenues above a base amount derived from a defined benchmark price, was established in 2004 and its objective is primarily to protect planned budgets against shortfalls due to fluntuating crude oil prices.
Lawmakers say the operation of the account by the federal government is in clear breach of the constitution that provides for all government’s funds to be remitted to the country’s consolidated federation account.
House spokesman, Zakari Mohammed, on Wednesday while briefing newsmen on the state of affairs of the House in view of the faceoff between the legislature and the executive on the oil benchmark for the 2013 budget, stated that the slush account has been largely misapplied.
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PIB
President Goodluck Jonathan submitted to both chambers of the National Assembly the new Petroleum Industry Bill (PIB) ending fears on the fate of the revolutionary legislation.
The freshly presented PIB put mildly has suffered a healthy dose of delays since its introduction. The seventh legislative session undoubtedly chases history if it can see through the successful passage of the huge anticipated Bill.
The ambitious PIB which seeks to redirect Nigeria’s oil sector has been years in the making and several other versions have been inconclusively debated by the National Assembly.
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Reps/Oteh Face-off
In passing the N4,987 trillion 2013 national budget, the House ordered the withholding of funding for the Securities and Exchange Commission (SEC), insisting that the SEC Director-General, Arunma Oteh be removed.
Federal lawmakers insist that they will have no dealings with SEC under Oteh.
In passing the 2013 budget estimates, the House ordered at plenary: “All revenue howsoever described including all fees received, fines, grants, budgetary provisions and all internally and externally generated revenue shall not be spent by Securities and Exchange Commission for recurrent or Capital purposes or for any other matters, nor liabilities thereon incurred except with prior appropriation and approval by the National Assembly”
House spokesman, Zakari Mohammed told newsmen after the 2013 budget passage that the House will not touch SEC budget until and unless all its resolutions on SEC is implemented in entirety by the executive.
“If we (House) resolve and we have done our findings and say this is the situation. Of course, we don’t have the authority to say let her go, but we will always meet. It is like a child who has offended his parents, they will meet at the dinner table. In SEC’s case, we have met at the dinner table and we want to see what monies will be used to run SEC in the year coming.” Mohammed said.
Recall that a House sanctioned inquest into the near collapse of the country’s capital market suffered ill-fate when a N44 million bribery allegation led to the disbandment of the Herman Hembe-led panel.
The SEC Director General who made that allegation also stated that SEC provided monies for Hembe and his deputy to embark on a foreign trip to the Dominican Republican, a journey that was not made and monies not returned.
A second attempt by the Ibrahim Tukur El-Sudi-led panel concluded the probe and subsequently indicted Oteh recommending her sack, a resolution the Goodluck Jonathan administration is yet to comply with.
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Malabu Deal
A Leo Ogor-led House of Representatives Ad-Hoc panel probed the role played by the federal government and two multinational oil giants (Agip and Shell) in the alleged round tripping of proceeds in the sale of the contentious OPL 245 in favour of Malabu Oil and Gas Limited.
In a deal federal lawmakers described as “shady”, reports fingered top presidency officials of perpetuating one of the biggest financial heists in the country’s history, following the out of court settlement between the listed parties and the subsequent payment of $1.1 billion to Malabu Oil and Gas.
Proceeds from OPL sales, officially termed signature bonuses are expected to be remitted to the federation account, payments the panel is moving to verify.
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Fuel Scarcities: Reps Report and 2013 Timeline
Fuel scarcities recorded across Nigeria will linger beyond the first quarter of 2013, a probe report sanctioned by the House of Representatives disclosed.
A copy of the report obtained by LEADERSHIP fingered the finance ministry, Central Bank of Nigeria (CBN) and the Petroleum Products Pricing Regulatory Agency (PPPRA) on the incessant scarcity of petrol.
A report of the Dakuku Peterside led House Committee on Petroleum Resources (Downstream) stated that commercial banks are no longer willing to give credit facilities to petroleum products marketers principally because the federal government presently owes oil marketers N141billion – a situation that has discouraged others from importing products into the country.
Also, System 2B which distributes about 70 per cent of petroleum products starting from Lagos, Mosimi, Ejigbo, Ibadan, Ore and Ilorin has collapsed and has crippled the distribution of petroleum products.
In an executive summary presented at Wednesday’s plenary, the report regretted the inability of all relevant agencies to have accurate data of product consumption need of Nigerians.
“Lack of dependable data on accurate daily consumption of petroleum product is a serious challenge. It made extrapolation and planning almost impossible. This can be seen throughout the allocation, product importation and distribution chain. Nobody is sure of the approximate quantity or volume of products we need as a nation on daily basis.” The report read.
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Capital Oil Vs Coscharis
A meeting by the House of Representatives Committee on Public Petitions over a petition received from the Managing Director of Capital Oil and Gas, Mr. Ifeanyi Patrick Uba over non-payment of over N20 billion fuel subsidy claims due to the company remains deadlocked as some parties to the dispute refused to give testimony at the hearing.
Representatives of Access Bank PLC and Coscharis Group of Companies, parties to the dispute told the Uzor Azubike-led House Committee that they could not join issues with the petition since the matter was subject to litigation in several courts (local and foreign) hence it will be sub-judice.
The Capital Oil boss in a petition to the Speaker, House of Representatives, Aminu Waziri Tambuwal dated November 14, 2012 claimed “ serious breach of fundamental Human rights, gross misrepresentation, suppression and concealment of material facts, threat to life, fraud, deceit, infringement, gross violation of banking rules and regulations and the constitution of the Federal Republic of Nigeria via attempt to forcibly take over Capital Oil & Gas Industries Limited under false presence resulting and culminating in non-payment of over N20 billion due to Capital Oil &Gas Industries Limited.”
In the petition, Uba alleged unethical and insider abuse by Access Bank Plc and Mr. Cosmos Maduka on the disputed loans facility, contrary to sections 18 and 20 (2) of BOFIA 2004. Uba also faulted the report of the AIG-Imoukhuede-led Presidential Committee on Fuel Subsidy on several grounds, seeking the re-opening of his company’s closed facilities across the country.
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Faroukgate
The House of Representatives declared the $620,000 bribery scandal which one of its members, Farouk Lawan grapples with as “overflogged”.
Reacting to queries on the protracted release of the House in-house probe of the bribery plot, the Deputy Chairman House Committee on Media and Public Affair, Victor Ogene directed persons inquiring on the matter to approach relevant agencies since the matter has since been tagged “a criminal matter”.
LEADERSHIP had earlier reported that for lack of evidence, the House of Representatives was set to exonerate the embattled Lawan from the $620,000 cash-for-clearance allegation leveled against him by billionaire oil magnate, Mr. Femi Otedola.
Ogene had told newsmen that the report of the Ethics and Privileges Committee as it concerns Farouk Lawan was ready and remained “a question of scheduling”
He said, “This issue (Farouk Lawan) has been talked about if not over flogged. I still stand by what I told you last, the committee is through with it work. A lot of people have said that it is a criminal matter so if it is important to you, you know the relevant agencies to ask about criminal issues. But as a House I know that even before referring that matter to the ethics committee, you know that the House had gone ahead to take steps that we applauded.
In July, Otedola who was supposed to testify on his bribery allegations against the former chairman of Subsidy Probe Committee, Farouk Lawan, insisted that he will only give evidence in public.
Otedola in a purported sting operation reportedly sanctioned by Nigeria’s State Security Service (SSS) video tapped the $620,000 bribe offered Lawan to clear Otedola’s oil firm, Zenon, earlier indicted for fuel fraud investigated by the Lawan led House panel. Lawan insisted that he took the money as evidence.
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Constitution Review
The House of Representatives on November 10, 2012 consulted with electorates and a cocktail of stakeholders via simultaneous grassroot peoples’ public hearings in 360 federal constituencies on amendments to the 1999 Constitution (as amended). The Senate conducted separate hearings at zonal levels.
The Peoples’ Public Sessions are a novel response to the strident calls for a more participatory and transparent review of the Constitution. Some of these calls have taken the form of a clamour for a Sovereign National Conference (SNC) and/or referendum both of which are not provided for by the present constitution.
Deputy Speaker, Emeka Ihedioha, who chairs the House Committee on Constitution Review, said the second quarter of 2013 is the target to conclude work on an amended constitution for the country.
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$79 Oil Benchmark
The 2013-2015 Medium Term Expenditure Framework and Fiscal Strategy (MTEFFS) presented last October by President Goodluck Jonathan was December adopted by the House of Representatives.
In adopting the federal government’s economic strategy document, federal lawmakers shifted ground and approved a $79 per barrel crude oil benchmark for the 2013 budget.
Prior to the new development, the House had insisted on the $80 per barrel benchmark while federal government claimed that its $75 proposal remains the best for the country. The Senate nearly aligned with the lower chamber and stated that $78 per barrel is the appropriate benchmark for the country.
At plenary, Chairman, House Committee on Appropriation, John Enoh (Cross River/PDP) informed lawmakers that a joint conference of both arms of the National Assembly had agreed on the $79 benchmark as against the $80 earlier adopted by the House.
Additional funds arising from the $4 increase in the $79 per barrel benchmark is to be used to substantially reduce domestic borrowing and deficit as well as fund execution of critical infrastructures in the country.
In part, Enoh disclosed that the joint conference recommended that crude oil production levels be retained at 2.526 million barrels per day for 2013, 2.61 million for 2014 and 2.648 million for 2015.
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Fuel Subsidy
Federal lawmakers unanimously approved President Goodluck Jonathan’s request for supplementary appropriation for an additional N161,617,364,911 billion over and above the N888.1 billion approved for payment of fuel subsidy in 2012.
Chairman, House Committee on Appropriation, John Enoh while presenting the report of the Joint House Committees on Finance, Appropriation, Petroleum Upstream and Petroleum Downstream that scrutinised Jonathan’s request explained that the N888.1 billion initially budgeted for fuel subsidy included N232billion pencilled for the payment of fuel subsidy arrears arising from 2011 subsidy claims and N650billion for 2012 claims.?
He disclosed that 2011 arrears shot up to N451billion leaving N437billion for 2012 payments.?
Jonathan in his request letter to the National Assembly said the extra fuel subsidy cash needed to settle accumulated fuel subsidy arrears owed oil marketers, will assist to “maintain a steady flow of petroleum products, especially to the run-up to the festive season.”