TRACKING>>The Senate on Wednesday, backed the decision of the Nigerian Financial Intelligence Unit(NFIU) to stop the abuse of the funds of Local governments through the joint state and a local Government accounts.
The lawmakers, who adopted a motion moved by Senator Sabi Abdullahi, said that the NFIU must kickstart urgent steps to frustrate the use of local government funds .
In passing the motion, the lawmakers urged the State Houses of Assembly and the Presidency to expedite action on the nagging issue of granting Financial Autonomy to Local Government Councils across the country.
The lawmakers condemned the practice by which various state governors allegedly misuse local government funds.
NFIU’s new guideline mandates banks to ensure that funds meant for the councils go directly to them.
The directive indicated that : “With effect from June 1, any bank that allows any transaction from any local government account without monies first reaching a particular local government accounting will be sanctioned 100 per cent, locally and internationally.
“In addition, a provision is also made to the effect that there shall be no cash withdrawal from any local government account for a cumulative amount exceeding N500,000 per day.”
Deputy Senate President, Ike Ekweremadu in his contribution to the debate, urged the NFIU to ensure that the guidelines do not contradict with any part of the Constitution.
He also asked state assemblies to fast-track work on pending constitutional amendments which he said would give legal backing to local government autonomy.
He cautioned that that the decision by the Senate to support idea that, Financial institutions should support the implementation of the new guidelines, adding however that Section 162(6&7) of the 1999 Constitution as amended, contradicts the idea.
Section 162(6&7) states that “Each State shall maintain a special account to be called “State Joint Local Government Account” into which shall be paid all allocations to the local government councils of the State from the Federation Account and from the Government of the State.
“Each State shall pay to local government councils in its area of jurisdiction such proportion of its total revenue on such terms and in such manner as may be prescribed by the National Assembly”, he said .
He stated that Governors may Sue the federal government if any section of the constitution is flouted, the governors may challenge the matter in court.
While ,contributing to the motion, Senator Sabi said :”Guidelines to reduce vulnerabilities created by cash withdrawals from LG funds throughout Nigeria effective 1st June”,said issuance of the new guidelines was prompted by threats by international financial watchdogs to sanction Nigeria because of financial abuse.”
He stated that NFIU guidelines would reinforce the existence of local governments and enhance transparency, accountability, and criminal investigation.
But a former Plateau State Governor, Senator Jonah Jang, faulted the motion.
He said : “In some states, the state government takes over the local government funds and abuse it. We have also witnessed local government chairmen signing cheques at the beer parlours.”
Also contributing to debate, Deputy majority of Senate, Bala Ibn Na’alla, said:“If we succeed in executing this, 60% of corruption in Nigeria will be resolved.This will be a major landmark if the Senate decides to follow through its resolutions,”
“Let all financial institutions agree, and all of us agree that we must follow these guidelines and let the local governments be autonomous.”
Many of the Governors who are serving in the Senate also supports the idea adding that the reforms were long overdue.
Senate President Bukola Saraki, who presided, urged the standing committees on Anti-Corruption and Financial Crimes; State and Local Governments, to follow up and ensure that positions reached by the Senate are adhered to.
