Poor expenditure of recovered loot: Building structures around working chains of repatriated fund

Attention over the recent repatriated £4.2million James Ibori loot has since gathered cloud, following the disclosure of the arrival of the fund by the Attorney General of the Federation and  Minister of Justice, Abubakar Malami, SAN. The AGF had also last week disclosed plans to repatriate more than £80m of Ibori’s loot just as he disclosed that no less than $700m has been recovered by the Government. While Nigerians under normal circumstances should be rejoicing over the development, reverse has been the case. The outcry over the development has rather largely centered on flags pointing to possible intrigues which may lead to the fund finding its way back into private pockets. Concerned Citizens as well as Civil Society Organisations, and Social Right Groups had raised critical notations with some calls on the Federal Government to ensure the loot is not restolen. Frontline Social Right Group, Socio-Economic Rights and Accountability Project (SERAP) in this regard, had in a Freedom of Information request dated 22 May, 2021, signed by its Deputy Director, Kolawole Oluwadare requested that  President Buhari “urgently direct Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning to disclose spending details of the $700 million looted funds reportedly recovered by the Federal Government in the past four years, including the list and location of projects completed with the money, as well as details of the contractors that executed the projects.”

It further demanded that the President “direct Mrs Ahmed to disclose how the government plans to spend the returned £4.2m Ibori loot, including details of planned capital expenditure, and whether there is any plan to ensure that the money and any future returned Ibori loot would be spent to achieve justice and effective remedies for victims of corruption in Delta State. Disclosing spending details of the recovered $700m loot, and spending plans for the £4.2m Ibori loot would promote transparency, accountability, and be entirely consistent with your constitutional oath of office to ensure the well-being of Nigerians.”

The Group had further noted: “Rather than borrowing another N2.3trillion ($6.18bn) external loan, SERAP urges you to ensure a transparent and accountable use of recovered loot to fund the 2021 budget, improve the country’s economy, and address widespread poverty. This would promote a just and honest government, and ensure that recovered loot is not re-stolen at the expense of the poor.”

It would be recalled that report came forth on Sunday, of the invitation of the House of Representatives for all concerned stakeholders involved in the flow chart of repatriated funds to appear before the House to give explanations over the expenditure of all recovered loot between 2002 and 2020. The development was in response to an investigation on recovered assets within the period under review by the House of Representatives Ad-hoc Committee on Assessment and Status of All Recovered Loots, Movable and Immovable Assets — meant to commence  on Monday, May 24, 2021.

Stakeholders on the working chain who have been slated on the invitation role include: the Minister of Justice and Attorney-General of the Federation, Abubakar Malami; the Minister of Finance, Budget and National Planning; the National Security Adviser, Maj-Gen. Babagana Mongunu (rtd); the Economic and Financial Crimes Commission (EFCC); the Independent Corrupt Practices and Other Related Offences Commission (ICPC); the Nigeria Police Force; Nigeria Customs Service and Nigerian Navy. The summon also extends to the National Drugs Law Enforcement Agency (NDLEA); Nigeria Security and Civil Defence Corps (NSCDC);  Central Bank of Nigeria (CBN);  Accountant General to the Federation; Auditor General of the Federation; Nigerian Sovereign Investment Authority; Former Ministers of Justice; Former National Security Advisers; Former Chairmen of EFCC; Former Chairmen of ICPC; Former Inspectors General of Police and Former Comptrollers General of Customs were also invited. Other stakeholders invited by the Committee to make inputs were the Presidential Advisory Committee Against Corruption; Commercial Banks; Association of Bureau de Change Operators of Nigeria; Chairman of the Disbanded Special Presidential Investigation Panel for the Recovery of Public Property and the Chairman of the Disbanded Pension Reform Task Team. Former Commanders General of NSCDC Mr. Ngozika Ihuoma, M.D Crincad & Cari Nigeria Limited; Mr. Dipo Fatokun, CBN’s Director Banking Services; Mr. Abubakar Animasaun, EFCC’s Account Department Mr. Abdullahi Ibrahim Staff of EFCC Mr. Mukhtar Bello, Staff of EFCC; Non-Governmental Organizations and Civil Societies Organizations such as CISLAC; SERAP; HEDA and BUDGIT are also invited to the public hearing make inputs.

However, a new update came up on Tuesday with the disclosure of the Accountant General of the Federation, before the House of Representatives Ad hoc Committee on “Assessment and Status of all Recovered Loots Movable and Immovable Assets from 2002-2020 by agencies of the Federal Government of Nigeria for Effective Efficient Management and Utilization,” headed by Rep. Adejoro Adeogun (Ondo-APC) Mr. Ahmed Idris, that the recent recovered controversial £4.2m Ibori loot has since been returned to the current government of Delta state. It is recallable that the former Governor, James Ibori, who was not found wanting in Nigeria for stolen funds, was tried, convicted in the United Kingdom’s judicial system, served jail term and subsequently discharged to return to the Country.

At the plenary on Tuesday, while the  Accountant General of the Federation pleaded with the House to make the Treasury Single Account legal and constitutional for it to be more effective, the Attorney General of Federation, Abubakar Malami (SAN), rejected allegations by the House Panel, that he spent over N3billion from recovered funds. The House Committee had accused Malami of cornering  N3billion from recovered loot on 20th February, 2017. He however mentioned that the amount was appropriated for by the National Assembly, and duly released as fees for advocates, by the Ministry of Finance.

While there were contests on differences between the Federation Consolidated Revenue Fund Accounts and the Treasury Single Account, both the Attorney General of the Federation and Accountant General of the Federation could not however provide information on the exact figure of recovered loot within the timeframe investigated by the House. The development had led the Committee directing the later to within two days, make available to the House details of the recovered loot between 2002 and 2020.

In his response to inquiries from the Law makers on the difference between the Federation and Consolidated Revenue Fund Accounts of the Federation, and the desegregation of Recovered Assets and funds, the Accountant General of the Federation, was quoted: “All agencies’ revenues, go into the Treasury Single Account, but the TSA, does not apply to the Federation Account. And it depends on the nature of recoveries. Some recoveries are for state governments, and when they come, will send them to the state governments, including the Ibori loot. The recovery of the Ibori Loot, was paid to Delta State. The states will not allow their monies to be taken; they will take us to Court, and we don’t joke with that.” The Accountant General when questioned by Lawmakers on the significance for the TSA, given that section 162 of the 1999 Constitution provides that all revenue of government, must go into the Consolidated Revenue Fund, for appropriation by the National Assembly, argued that the TSA was not captured in the constitution. He however called for a constitutional amendment to accommodate and make it legal. He was quoted: “TSA should be given legal teeth; going by the financial regulation and constitution, it’s not there. But with the advent of the TSA, everything is now linked together and centralized. But there is a need of an amendment of the law.”

The need for thoughts to be given to legal provisions guiding the structure of financial architectures of the Country towards removing all seeming controversies is paramount. This is critical to eliminate all clumsy structures which open room to exploitation. It is important for the Presidency in collaboration with the National Assembly to work harmoniously to reconcile all seeming conflicting architectures which are sources of controversies. The need for harmonised efforts to be directed towards backing all emerging policies with institutionalised force through constitutional provisions is pertinent.

More importantly, it is paramount for the Federal Government to make effort towards consciously drafting non-controversial policies backed with robust legal provisions, institutionalised  with instruments to guide the recovery, disbursement and expenditure as well as the monitoring and evaluation of the projects to which those funds are channeled towards. Since, it has been disclosed that the £4.2m repatriated fund has been forwarded to the Delta State Government, it will only be rational that there be institutionalised instruments virile enough to monitor its disbursement and expenditure. The existing instruments appear to be vague and weak to produce the desired effect needed to attract the highest possible results achievable from the funds. While such loots as another £80m linked to Ibori among others, are being expected, raising architectural patterns of institutionalised structures to guide the working chains of the repatriation of stolen funds and its usage is paramount. This is important to ensure Nigerians are reasonably compensated for colossal losses from years of constant corruption.