Cash Crisis: Buhari Vows To Recover Stolen Billions

President Muhammadu Buhari

• U.S., others to support action

President Muhammadu Buhari sent yesterday a notice to treasury looters in the Goodluck Jonathan administration – we are coming after you.

He vowed to recover billions of dollars stolen from the treasury.

Buhari spoke during his meeting – the first – with governors of the 36 states at the Presidential Villa in Abuja. He told them: “There are financial and administrative instructions in every government parastatal and agency. But all these were thrown to the dogs in the past. Honestly, our problems are great, but we will do our best to surmount them.

The Nation report continues:

“The next three months may be hard, but billions of dollars can be recovered, and we will do our best.”

The President explained that his administration had received firm assurances of cooperation from the United States and other countries on the recovery and repatriation of funds stolen from Nigeria.

He stated this at another forum – his meeting with Northern Traditional Rulers Council led by the Sultan of Sokoto, Alhaji Muhammadu Sa’ad Abubakar – also yesterday.

The statement by his Special Adviser on Media and Publicity, Femi Adesina quoted the president as saying: “In the next three months, our administration will be busy  getting those  facts and the figures to help us recover our stolen funds in foreign countries.’’

Citing the report submitted by the Ahmed Joda-led transition committee, Buhari said many revenue-generating institutions in the country have been compromised, leading to a weak economy.

Expressing surprise that the governors had tolerated the atrocities allegedly committed with the Excess Crude Account (ECA) since 2011, the President promised to tackle the issue decisively.

For him, the days of impunity, lack of accountability, and fiscal recklessness in the management of national resources are over. Systemic leakages will be stopped, he added.

The President said payment of national revenue into any  account other than  the Federation Account is an  abuse of the Constitution, adding that what he heard was going on in many agencies and corporations, particularly the NNPC, was clearly illegal.

On the refund of monies spent on federal projects by state governments, the President assured the governors that the Federal Government will pay, but insisted that due process must be followed.

He promised special assistance for the three North Eastern states badly affected by the Boko Haram insurgency.

Buhari also said that a comprehensive statement on the economic and financial situation inherited by his administration will be made available within the next four weeks.

He said: “We will try and put the system back into the right position. What happened in the 2nd Republic has apparently happened again, and even worse, but we will restore sanity to the system.”

On an immediate lifeline for states that owe months of salaries, Buhari said a committee headed by Vice President Yemi Osinbajo will look at the ECA and see what can be shared immediately.

The governors presented a six-point wish-list to the President. These are:

•obedience of extant Supreme Court ruling that all monies go into the Consolidated Federation Account;

•an order from the President that all revenue generating agencies must pay into the Consolidated Federation Account;

•review of the Revenue Allocation Formula;

•refund of the monies expended by states on federal projects;

•a special consideration for the three states of the North East under Boko Haram infestation; and

•full details of the amounts that accrued into the Excess Crude Account from 2011, and how the money miraculously shrank without official sharing.

Nigeria Governors Forum (NGF) Chairman Abdulaziz Yari, who is also Zamfara State governor, spoke to reporters along with Bauchi State Governor Mohammed Abubakar and Abia State Governor, Okezie Ikpeazu, at the end of the meeting.

The proposals given to the President, he said, include reimbursement of some projects sums embarked upon by states instead of requesting for the bailout, extension of repayment periods of loans’ balances owed by states from durations normally between four and seven years to 20 years.

Opposing the operation of the ECA, he said governors  wanted first line charges stopped and revenue such as the US$1.6 billion tax paid by the Liquefied Natural Gas (LNG), be paid into the Federation Account.

Yari recalled that before the NGF was divided, US$10.3 billion was left in the ECA ‎but only US$2.6 billion was left even though sharing had been stopped since May 2013.

He said the meeting was not really about a bailout but how the states and the Federal Government can overcome their financial crises.

Yari said: “We proposed to Mr. President that instead of being given bailout, ‎that the funds for jobs, projects that were done by the states should be refunded by the federal government.  If the affected states are able to get the money owed them released, they can be able to start paying salaries without bail out.

“Secondly, we also brought to his notice that most of the loans owed by the state, some between four and seven years, if it can be stretched to 20 years, the states willl be relieved and would be able to continue other businesses, including paying salaries.

“Also, the first charge money that are paid by LNG about US$1.6 billion, we requested that instead of paying to the federal government, we requested that it be paid to the federation account so that it could be shared amongst the three tiers of government, so that we can also get money to do one or two things.

“Also, we urged the President to follow the Constitution when it comes to money sharing, Section 80 is very clear. That all monies should go to the Consolidated Revenue Account ‎for the purpose; no account should be kept anywhere because this is what the constitution says.

“And Section‎ 162 also is explanatory, that whatever is going to happen to the money will be after sharing to the three tiers of government. That the NNPC or any other revenue generating agency should not have the first line charges.

“So we met the President and we shared knowledge from what was gathered from the Transition Management committee, the findings and what is on ground. We also briefed him on the condition of our states, and we all appreciated that something has to be done and going forward, we are going to ensure that most of the states and the federal government that have not paid salaries, that something will be on ground in the next couple of days.

On Boko Haram, Yari said: “We also discussed the issue of frontline states as regards insurgency Borno, Yobe and Adamawa. The President briefed us on his meeting with the G7 countries which have agreed to support the Nigerian government to fight the insurgency.

“Also, it was noted that the insurgency has done so much damage to our infrastructure – schools, hospitals and bridges.

“The President said he has put a committee in place to assess the situation and he has also made a commitment that he will not request money from any G7 country but support to rebuild the destroyed infrastructure.

The governors kicked against the timing of the dismantling of military check points.

“We also raised concern about the dismantling of military checkpoints ‎on the highways. We are saying it is not timely. But Mr. President cited some incidents at the military checkpoints but where necessary, he has given the Chief of Army Staff the permission that they can continue, especially in the North, Southeast and the frontline states.”

In similar vein, Vanguard reports President Muhammadu Buhari, yesterday in Abuja, vowed that billions of dollars stolen from government coffers by past government officials would be recovered by his government.

Speaking with state governors during his maiden meeting with them at the State House, President Buhari said what happened in government in the recent past was worse than what happened during the Second Republic which led to the overthrow of the Shagari administration, but promised that he would do his best to restore sanity to the system.

President Buhari also said yesterday, that his administration has received firm assurances of cooperation from the United States and other countries on the recovery and repatriation of funds stolen from Nigeria.

Yesterday’s meeting was at the instance of the governors in a bid to address the crippling economic situation in some states which was responsible for non-payment of salaries by several states.

To address the situation, President Buhari announced the setting up of a committee under the leadership of the Vice-President, Professor Yemi Osinbajo to look at the Excess Crude Account and see what can be shared immediately to cushion the effects of the economic crunch on the states.

Speaking on the economy, President Buhari said although there are procedures and processes for running government agencies and departments, such processes and procedures were “thrown to the dogs”.

He, however, assured state governors that the days of impunity, lack of accountability, and fiscal recklessness in the management of national resources are over in Nigeria.

While expressing shock that the state governors would allow the money in the excess crude account to be spent without accountability since 2011, President Buhari noted that he would address the issue shortly.

“There are financial and administrative instructions in every government parastatal and agency. But all these were thrown to the dogs in the past. Honestly, our problems are great, but we will do our best to surmount them.

“The next three months may be hard, but billions of dollars can be recovered, and we will do our best,” the President told the governors.

The President declared that the payment of national revenue into any account other than the Federation Account was an abuse of the constitution, adding that what he heard was going on in many agencies and corporations, particularly the NNPC, was clearly illegal.

On the refund of monies spent on federal projects by state governments, President Buhari assured the governors that the Federal Government will pay, but insisted that due process must be followed.

The President also promised special assistance for the three North-Eastern states badly affected by the Boko Haram insurgency.

FG’s Report on economic situation soon

He further said that a comprehensive statement on the economic and financial situation inherited by his administration will be made to the nation within the next four weeks.

“We will try and put the system back into the right position. What happened in the Second Republic has apparently happened again, and even worse, but we will restore sanity to the system,” President Buhari assured the governors.

On an immediate lifeline for states that owe salaries running into many months, President Buhari said that a committee headed by the Vice President, Professor Yemi Osinbajo, will look at the Excess Crude Account and see what can be shared immediately.

The governors, led by Chairman of the Governors Forum, Abdulaziz Yari of Zamfara State, requested the President to, among other things, ensure the obedience of extant Supreme Court ruling that all monies go into the Consolidated Federation Account.

The governors also implored the President to give a directive that all revenue generating agencies must pay into the Consolidated Federation Account.

While also calling for the review of the Revenue Allocation Formula, the governors appealed to the Federal Government to refund monies expended by states on federal projects as well as a special consideration for the three North Eastern states of Borno, Adamawa and Yobe that have been under Boko Haram infestation.

They further called for full disclosure of the amount that accrued into the Excess Crude Account from 2011, and how the money shrank without official sharing.

What govs told Buhari

Addressing State House correspondents after the meeting, Governor Yari said the governors presented some requests to the President for immediate consideration.

He said: “We proposed to Mr. President that instead of being given bailout, that the funds for jobs, projects that were done by the states should be refunded by the federal government. If the affected states are able to get the money owed them released, they can start paying salaries without bail out.

“Secondly, we also brought to his notice that if most of the loans owed by the states, which are between four and seven years, can be stretched to 20 years, the states will be relieved and would be able to continue other businesses including payment of salaries.

“We also requested that US$1.6bn first charge paid by LNG to the Federal Government should be paid to the federation account so that it could be shared amongst the three tiers of government, which will enable us to do one or two things.

“Also we urged the President to follow the constitution when it comes to money sharing. Section 80 is very clear, that all monies should go to the Consolidated Revenue Account for the purpose, and no account should be kept anywhere because this is what the constitution says.

“Section 162 also is explanatory, that whatever is going to happen to the money will be after sharing to the three tiers of government and that the NNPC or any other revenue generating agency should not have the first line charges”.

Governors in attendance were Akwa Ibom -Emmanuel Udom (PDP); Adamawa -Bindow Jibrilla (APC); Benue – Samuel Ortom (APC); Borno – Kashim Shettima (APC); Cross River -Prof. Ben Ayade (PDP); Delta – Ifeanyi Okowa (PDP); Ebonyi – Dave Umahi (PDP); Gombe -Ibrahim Dankwambo (PDP); Imo – Rochas Okorocha (APC); Jigawa – Alhaji Badaru Abubakar (APC); Kaduna – Nasir El-Rufai (APC); Kano – Dr Abdullahi Ganduje (APC); Katsina – Aminu Masari (APC); Kebbi – Atiku Bagudu (APC); Kwara – Abdulfatah Ahmed (APC); Lagos – Akinwunmi Ambode (APC); Nasarawa -Umaru Al-Makura (APC); Niger -Alhaji Abubakar Sani Bello (APC); Ogun -Ibikunle Amosun (APC); Oyo -Abiola Ajimobi (APC); Rivers – Nyesom Wike (PDP); Sokoto – Aminu Tambuwal (APC); Taraba – Darius Ishaku (PDP); Yobe -Ibrahim Gaidam (APC); Zamfara -Abdulaziz Yari (APC); Anambra – Willie Obiano (APGA); Edo – Adams Oshiomhole (APC); Ekiti – Ayo Fayose (PDP); Kogi – Idris Wada (PDP); Ondo – Olusegun Mimiko (PDP); Osun – Rauf Aregbesola (APC).

Plateau (APC) and Bayelsa (PDP) states were represented by their deputy governors.

US, other countries to assist FG recover funds

Meanwhile, President Buhari said in Abuja, yesterday, that his administration has received firm assurances of cooperation from the United States and other countries on the recovery and repatriation of funds stolen from Nigeria.

Speaking at an audience with members of the Northern Traditional Rulers Council led by the Sultan of Sokoto, Alhaji Muhammadu Sa’ad Abubakar, President Buhari said that it was now up to Nigeria to provide the international community with the facts and figures needed to drive the recovery effort.

“In the next three months, our administration will be busy getting those facts and the figures to help us recover our stolen funds in foreign countries,” the President told the traditional rulers.

Citing the report submitted by the Ahmed Joda-led transition committee, President Buhari said that several revenue-generating institutions in the country have been compromised, leading to a weak economy.

On insecurity, the President said that the traditional rulers could play a key role in stemming terrorism and insurgency in Nigeria by assisting the government with cost-effective intelligence gathering.

President Buhari also assured the traditional rulers that his administration was working hard to end insecurity and terrorism in the country in the shortest possible time with the cooperation of neighbouring countries and the international community.

Sultan Abubakar had earlier presented the Northern Traditional Rulers’ recommendations to the President on issues related to national development.
The Sultan told the President that as custodians of tradition and stakeholders in the Nigerian project, the traditional rulers had a responsibility to always advise political leaders on the “path of truth and justice”.