Wednesday, 17 June 2015

Nigeria’s legislators will get $43 million of taxpayers’ money for a wardrobe allowance

Nigeria’s newly inaugurated National Assembly is set to receive a whopping 8.64 billion naira ($43 million) to spend on clothes.

Described as a wardrobe allowance, the amount will be split between both chambers of the National Assembly with the 109 members of the Senate receiving 21.5 million naira ($108,000) each while the 360 members of the House of Representatives, the lower chamber, will each receive 17.5 million naira.

Aside from a wardrobe allowance, the National Assembly will also receive other furniture and car loan allowances. The furniture allowance will see 107 senators receive 650 million naira while 358 House of Representatives members will receive total of 2 billion naira. The lawmakers can also access car loans with senators possibly provided with 867 million naira and House of Representatives members provided with 2.8 billion naira in car loans. While ordinary members of both chambers get these allowances, two principal officers from each chamber, the Senate President, the Speaker of the House and their deputies will have furniture provided by the Federal Government.
Before the inauguration of the new National Assembly, there had already been calls for transparency and reductions in funding for the lawmakers who rank among the world’s highest paid. Lawmakers in Nigeria earn around $160,000 annually based on current exchange rates- more than British lawmakers. While the lawmakers earn so much, regular Nigerians survive on the $90 monthly minimum wage.
In the United States, supplementary Congressional allowances make no provision for clothing and in the Britain, which was rocked by its ownallowance scandal in 2009, clothing expenses are not listed amongexpenses members of parliament can claim for.

For Nigerians who went to polls and voted for a new government on the premise of its Change campaign, there is a real need to see significant evidence that, under President Buhari, excesses such as extravagant allowances are effectively cut out.

The campaign tagged #OpenNASS is led by BudgIT, a civil start-up and outraged Nigerians have taken to social media to vent. Nigerians can also draw inspiration from events in Kenya where citizens forced legislators to rethink increases in their pay with fierce protests in 2013.

The National Assembly is already infamous for its wage bill as well as a litany of allowances and it continues to receive immense funds that do not reflect the current financial reality of the nation. Still in its early days, the National Assembly will have to make a bold decision on its expenses and while it appears that newly elected Senate President Bukola Saraki may be in support of fiscal transparency, many feel he must begin to show real intent on pushing the agenda for a prudent and transparent federal legislature.

New Nigerian leaders to meet anti-corruption watchdog head


Nigeria's new leaders will meet the head of a leading global watchdog on corruption to see how billions of dollars in oil revenue leakage can be curbed.
The head of Oslo-based the Extractive Industries Transparency Initiative (EITI) is expected to meet Nigeria's president or vice president this week, its local arm said on Monday.
Stamping out corruption was one of the main pledges of new President Muhammadu Buhari's campaign.
Clare Short, the head of EITI, has come to see how its recommendations can be implemented and help with long-term reforms. The initiative sets global standards for openness in the natural resources industries.
The executive secretary of EITI's Nigerian arm (NEITI) said last week that over $7.5 billion between 1999-2011 still needed to be recovered from oil and gas companies in Nigeria.
"The amount represents clear cases of underpayments, under-assessments of taxes, royalties, rents...which have not been adequately addressed in the past," Zainab Ahmed said.
NEITI has suggested selling the state oil company's stakes in producing joint ventures to fix its budget woes, a call echoed by many in the new administration, as well as scrapping the expensive and graft-riddled fuel subsidy.
The government relies on oil sales for the bulk of its revenues but there has been little oversight of how these are handled.
Central bank governor Lamido Sanusi was sacked under former president Goodluck Jonathan after he said that up to $20 billion in oil revenues between 2012 and 2013 had not been remitted to the government by the state oil company NNPC. Buhari said he would re-examine this allegation.
Ahmed also said NEITI audits showed that some $11.6 billion of dividends between 1999 and 2012 from the government's investment in the Nigerian Liquefied Natural Gas (NLNG) company were not remitted by the state oil company.
"NNPC was unable to provide any evidence that the funds were remitted to the federation as required by law," she said.
NNPC said the issue of reconciling accounts had been raised at a previous Inter-Ministerial Task Team and would be discussed at one this week. The team was designed to implement NEITI's findings.
NEITI has also said the sale of eight oilfields to NNPC's upstream arm in 2010-2011 should be reviewed, as they were sold at $1.85 billion of which only $100 million was remitted to the federation account in February 2014.
Before his sacking, Sanusi also criticized some of these deals for being awarded non-competitively to companies that supplied no services.
(This story corrects timeframe for $7.5 billion to 1999-2011, not 2008)

(Editing by William Hardy)

Business Corruption in Nigeria



Corruption in Nigeria is pervasive throughout all levels of society, frompetty corruption to cases of high-level government officials embroiled in scandals concerning the oil and gas industries.

The government has aimed at containing corruption through the enactment of laws and the enforcement of integrity systems, although concrete results are yet to be felt and are seriously undermined by recent reports of significant losses in oil revenue to corruption. Nigeria has established the Nigeria Extractive Industries Transparency Initiative (NEITI) and has compliant status with the Extractive Industries Transparency Initiative (EITI), which is aimed both at improving transparency in payments between extractive industry companies and government entities and at providing legal instruments to fight for increased transparency in the oil, gas and mining sectors in Nigeria. The government has setup several investment portals providing oversight and information on investment requirements and business registration procedures. Progress has been made regarding public procurement procedures: guidelines have clarified procedures, public tenders are now publicly advertised, and observers note that foreign companies are increasingly treated as national companies. Nevertheless, corruption persists. 
However, companies should note that it is still considered to be difficult to do business in Nigeria and that, for example, facilitation payments to officials are still very much the norm when acquiring services. Additionally, firms should know that property rights, contracts and commercial disputes can be difficult to enforce and settle in Nigerian courts due to corruption, inefficiency and under-staffing. The tax administration lacks transparency, resulting in high levels of tax evasion and in tax officials demanding bribes in return for lower tax rates. The police is perceived to be one of the most corrupt institutions in Nigeria, and the X-Squad (the disciplinary body responsible for investigating corruption inside the police) is reportedly no less corrupt itself 
May 2014

EFCC Starting Investigations Into Former Governors Across Nigeria For Corruption

In 2014 the EFCC discovered that Mr. Lamido and his sons used their positions to seize Jigawa State funds. N1.3 billion from the construction firm Dantata and Sawoe was paid into the accounts that the former Governor and his sons had interests in. The EFCC arrested Mr. Lamido's sons, Mustapha and Aminu, in 2013. However, their father, Sule Lamido, enjoyed full immunity.

After returning to Nigeria from abroad, the former Governor of Jigawa State, Sule Lamido, promised that he would pay a visit to the Economic and Financial Crime Commission (EFCC) this Thursday to follow up with ongoing EFCC investigations he is implicated in.
He stated that because the EFCC is the government's anti-graft agency, and commissioned by law, there was no reason he would deny the invitation. Lamido is willing to honor the invitation and claims he would have also gone if he was still a Governor with immunity.
During the period Lamido was in office, Dantata and Sawoe Construction Company was awarded contracts of about N13.5 billion. The State Government paid for these contracts.
In 2014 the EFCC discovered that Mr. Lamido and his sons used their positions to seize Jigawa State funds. N1.3 billion from the construction firm Dantata and Sawoe was paid into the accounts that the former Governor and his sons had interests in. The EFCC arrested Mr. Lamido's sons, Mustapha and Aminu, in 2013. However, their father, Sule Lamido, enjoyed full immunity.
Martin Elechi, the previous Governor of Ebonyi State, is also under corruption investigation and interrogation by the EFCC.
Until recently, Mr. Elechi had not honored the EFCC's invitation. Instead, his lawyer sent notification to the agency that Elechi was not available at the time they wanted to question him.
In January, the EFCC also interrogated Elechi's son, Nnanna Elechi, over fraud allegations.
Nnanna was said to have profited from State and Local Government contracts.
Prior to May 29th, Elechi was a former Governor who could not face any charges the anti-graft agency threw his way; he had constitutional immunity against legal prosecution. However, now that he is no longer in office the EFCC is resuming its investigation in full.
The EFCC has also questioned the Secretary of the State Ministry of Works, Cornelius Onwe, the State's Accountant General, Edwin Igbele, the Commissioner for Finance, Timothy Ogbonnaya Odaa, and the Commission for Local Government and Chieftaincy Matters, Cele Nwali.
All those mentioned above were suspected to partake in fraud concerning the Asphalt Project. It is probable that millions of naira were deducted from several Local Government accounts.
BY SAHARA REPORTERS, NEW YORK

Corruption in Nigeria

Political corruption is a persistent phenomenon that pervades the Nigerian state. Since the creation of modern public administration in the country, there have been cases of official misuse of resources for personal enrichment.[1] The rise of public administration and the discovery of oil and natural gas are two major events seen to have led to a litany of ignoble corrupt practices in the country. Over the years, the country has seen its wealth withered with little to show in living conditions of the average human being. A Nigerian political leader, Obafemi Awolowo raised a salient issue when he said, since independence, our governments have been a matter of few holding the cow for the strongest and most cunning to milk, Under those circumstances everybody runs over everybody to make good at the expense of others.[2] Characteristically, apologists for the failings of African governments have blamed colonialism for the pervasive corruption. According to this view, the nation's colonial history may have restricted any early influence in an ethical revolution. Throughout the colonial period, most Nigerians were stuck in ignorance and poverty. The trappings of flash cars, houses and success of the colonists may influence the poor to see the colonist as symbols of success and to emulate the colonists in different political ways. Involvement in the agenda of colonial rule may also inhibit idealism in the early stage of the nascent nation's development. A view commonly held during the colonial days was that the colonists property (cars,houses,farms etc.) is not "our" property. Thus vandalism and looting of public property was not seen as a crime against society. This view is what has degenerated into the more recent disregard for public property and lack of public trust and concern for public goods as a collective national property.[3]
Nigeria is estimated to have lost over $400 bn to corruption since independence

Causes

Some writers have posited about the different potential causes of flagrant and pecunious graft that exists in the country: many blame greed and ostentatious lifestyle as a potential root cause of corruption. To some, societies in love with ostentatious lifestyle may delve into corrupt practices to feed the lifestyle and also embrace a style of public sleaze and lack of decorum. The customs and attitudes of the society may also be a contributing factor. Gift giving as expressions of loyalty or tributes to traditional rulers may be fabrics of the society. Also, a political environment that excludes favors towards elites or wealthy citizens may also be influenced by corruption. Wealthy elites may resort to sleaze in order to gain power and protect their interest. However, the bottom line surmised from the views of most Nigerians is that corruption is a problem that has to be rooted out. In Nigeria another major cause of corruption is ethnicity called tribalism in Nigeria. Friends and kinsmen seeking favor from officials may impose difficult strains on the ethical disposition of the official. Many kinsmen may see a government official as holding necessary avenues for their personal survival or gain.[5] A culmination of use of official resources for private gain may lead to further pressures on incoming officials from other kinsmen. However, the fact is, the importation of modern rules on inter-ethnic political relationships is a recent colonial and western initiative that may take time to become the norm, deep allegiance to other ethnic groups for administrative decisions early on was sometimes viewed suspiciously, and an early institutionalization of a unitary system in the country, may also have led to a further familiar groupings induced corruption. Nevertheless, a modern practical approach to leadership and relationships has gradually taken a prominent role in the political process. The necessity for practical inter-depedence and cooperation is at the forefront of yearnings for good governance in the country

Corruption History and Cases in Nigeria

Pre-Independence and the First Republic[edit]

Corruption, though prevalent, was kept at manageable levels during the First Republic.[7][8] However, the cases of corruption during the period were sometimes clouded by political infighting.
  • Azikiwe was the first major political figure investigated for questionable practices. In 1944, a firm belonging to Azikiwe and family bought a Bank in Lagos. The bank was procured to strengthen local control of the financial industry. Albeit, a report about transactions carried out by the bank showed though Azikiwe had resigned as chairman of the bank, the current chairman was an agent of his. The report wrote that most of the paid-up capital of the African Continental Bank were from the Eastern Regional Financial Corporation.
  • In western Nigeria, politician Adegoke Adelabu was investigated following charges of political corruption leveled against him by the opposition. The report led to demand for his resignation as district council head.
  • In the Northern region, against the backdrop of corruption allegations leveled against some native authority officials in Bornu. The Northern Government enacted the Customary Presents order to forestall any further breach of regulations. Later on, it was the British administration that was accused of corrupt practices in the results of elections which enthroned a Fulani political leadership in Kano, reports later linking the British authorities to electoral irregularities were discovered.[9]

Gowon Administration (August 1966 – July 1975)[edit]

Corruption for the most part of Yakubu Gowon's administration was kept away from public view until 1975. However,informed officials voiced concerns. Critics labeled Gowon's governors as misguided individuals acting like lords overseeing their personal fiefdom. He was viewed as timid, in terms of being decisive against corrupt elements in his government. In 1975, a corruption scandal surrounding the importation of cement engulfed many officials of the defense ministry and the central bank of Nigeria. Officials were later accused of falsifying ships manifestos and inflating the amount of cement to be purchased.[10][page needed] During the Gowon administration, two individuals from the middle belt of the country were accused of corruption. The Nigerian government controlled the newspapers, so the Daily Times and the New Nigerian gave great publicity to denunciations of the administration of Gomwalk, and Federal Commissioner Joseph Tarka by the two critics. A situation which may signal a cause for exigent action on corruption.[11][page needed]

Murtala administration (1975 – February 1976)[edit]

In 1975, the administration of Murtala Mohammed made reformist changes. After a military coup brought him to power, the new government sacked a large number of prior government officials and civil servants, many of whom had been criticized for the misuse of power they wielded under the largely uneducated military of Gowon.[12]

Obasanjo administration (February 1976 – September 1979)[edit]

Shagari Administration (October 1979 – December 1983)[edit]

Corruption was deemed pervasive during the administration of Shehu Shagari.[citation needed] A few federal buildings mysteriously went on fire after investigators started probe on the finances of the officials working in the buildings.[13] In late 1985, investigations into the collapse of the defunct Johnson Mathey Bank of London shed light on some of the abuses carried on during the second republic. The bank acted as a conduit to transfer hard currency for some party members in Nigeria. A few leading officials and politicians had amassed large amounts of money. They sought to transfer the money out of the country with the help of Asian importers by issuing import licenses.[14] In 1981, a rice shortage led to accusations of corruption against the NPN government. Shortages and subsequent allegations were precipitated by protectionism. After its election the Nigerian government decided to protect the local rice farmer from imported commodities. A licensing system was created to limit the amount of rice import. However, accusations of favoritism and government supported speculation was leveled against many officials.[15]

Buhari Administration (December 1983 – August 1985)[edit]

In 1985, a cross section of political gladiators were convicted of different corrupt practices under the government of General Muhammadu Buhari. However, the administration itself was involved in a few instances of lapsed ethical judgment. The General himself was on his way to removing a Nigerian colonel from the army before his exit from power.[citation needed] The removal may have signalled a hard-line on corruption, it is a far cry from the 10–22 years of imprisonment, politicians under Shagari were sentenced to.[citation needed]

Babangida Administration (August 1985 – August 1993)[edit]

The regime of general Ibrahim Babangida, has been seen as the body that legalized corruption. His administration refused to give account of the Gulf War windfall, which has been estimated to be $12.4 billion. He rigged the only successful election in the history of Nigeria in June 12, 1993. He lives in a very exquisite mansion in his home state(Niger-state) in the Northern part of the country.[citation needed]

Abacha Administration (Nov 1993 – June 1998)[edit]

The death of the general Sani Abacha revealed the global nature of graftFrench investigations of bribes paid to government officials to ease the award of a gas plant construction in Nigeria revealed the global level of official graft in the country. The investigations led to the freezing of accounts containing about $100 million United States dollars.[16]
In 2000, two years after his death, a Swiss banking commission report indicted Swiss banks for failing to follow compliance process in allowing family and friends of Abacha access to accounts and depositing amounts totaling $600 million US dollars into the accounts. The same year, a total of more than $1 billion US dollars were found in various accounts throughout Europe.[17]

Abdusalami Administration (June 1998 – May 1999)[edit]

The government of Gen. Abdusalami was short and focused on transiting the country quickly to democracy. Albeit, suspicion remains that quite a huge of wealth was acquired by him and his inner circle in such short period, as he lives in quite exquisite mansion of his own adjacent IBB's that exceeds whatever he might have earned in legitimate income. Indeed, the major Halliburton scandal implicated his administration, and this might have financed his opulence.[18]

Obasanjo administration (May 1999 – May 2000)[edit]

Various corruption scandals broke out under Olusegun Obasanjo's presidency, including one of international dimension when his Vice President was caught in cahoot with US Congressman with cold hard cash (literally) in freezers. In addition to this, the KBR and Siemens bribery scandals broke out under his administration, which was serially investigated by the FBI and led to various international indictment that indicated high level corruption in his administration. According to reports,[19] "while Nigeria dithered, the United States Department of Justice had on January 18, 2012 announced that a Japanese construction firm, Marubeni Corporation, agreed to pay a $54.6 million criminal penalty for allegedly bribing officials of the Nigerian government to facilitate the award of the $6 billion Liquefied Natural Gas contract in Bonny, Nigeria to a multinational consortium, TSKJ". It involved the payment of bribes to Nigerian government officials between 1995 and 2004, in violation of the United States Foreign Corrupt Practices Act.
Some other acts of corruption tied to Olusegun Obasanjo included the Transcorp shares scandal that violated the code of conduct standards for public officers, and the presidential library donations at the eve of his exit from power that pressured associates to donate. Obasanjo was also said to widely facilitate his failed campaign to alter the constitution to get a third term by actively bribing the legislature,[20] further deepening corruption at the highest levels.

Umaru Musa Yar'Adua administration (May 2007 –May 2010)[edit]

Yaradua ascent and stay in power was short, albeit with a fair share of corruption scandals from previous administration coming to light under his tenure and going without investigation due to lack of political will and poor health. Yaradua various acts of political corruption included the use of his Attorney General to frustrate ongoing local and international investigations of his powerful friends like Governor Ibori, Igbinnedion and Odili which led to massive losses to their states. Indeed, AG Aondakaa was legendary in his inability to obtain conviction in Nigeria even as UK and foreign courts successfully tried Nigeria's deeply corrupt governors from the Obasanjo era that helped Yaradua emerge as president. In addition to these, WIkileaks revealed that the Supreme Court Justices were bribed to legitimize the corrupt elections that saw to his emergence as president through massive rigging.[21] WIKILEAKS documents also revealed the staying power of corruption under Yaradua that saw illegal payments from NNPC to Presidents continue unabated.[22]

Goodluck Jonathan Administration (2010-2015)[edit]

In 2014, Nigeria's rank improved from 143rd to the 136th position on Transparency International's Corruption Perceptions Index.[23] In late 2013, Nigeria's then central bank governor Lamido Sanusi informed President Goodluck Jonathan that the state oil company,NNPC had failed to remit US$20 billion of oil revenues, which it owed the state. Jonathan however dismissed the claim and replaced Sanusi for his mismanagement of the central bank's budget. A Senate committee also found Sanusi’s account to be lacking in substance.[24] After the conclusion of the NNPC's account Audit, it was announced in January 2015 that NNPC's non-remitted revenue is actually US$1.48billion, which it needs to refund back to the Government.[25] Upon release of both the PwC and Deloitte report by the government at the eve of its exit, it was however determined that truly close to $20 billion was indeed missing or misappropriated or spent without appropriation.[26] In addition to these, the government of Goodluck Jonathan had several running scandals including the BMW Purchase by his Aviation Minister, $250 million plus security contracts to militants in the Niger Delta, massive corruption and kick backs in the Ministry of Petroleum, Malibu Oil International Scandal, and several scandals involving the Petroleum Ministry including accusations of sweetheart deals[27] with select fronts and business people to divert public wealth.. In the dying days of Goodluck Jonathan's administration, the Central Bank Scandal of cash tripping of multilated notes also broke out, where it was revealed that in a 4 days period , 8 billion naira was stolen directly by low level workers in the CBN. This revelation excluded a crime that is suspected to have gone on for years and went undetected until revealed by whistleblower. The Central Bank claim the heist undermined its monetary policy.[28]

Public institutions perceived as corrupt[edit]

The following list contains the institutions perceived as the most corrupt. It is culled from the Nigeria Survey and Corruption Survey Study, Final Report (June 2003) Institute for Development Research, Ahmadu Bello UniversityZaria (IDR, ABU Zaria)[29]
Nigeria (as of 2003)
RatingInstitution
1Federal and State Executive Councils
2Political Parties
3National and State Assemblies
4Local and Municipal Governments
5Nigerian Police
6Traffic police and FRSC
7PHCN8NNPC9Nigeria Customs10FIRS

Monday, 15 June 2015

Tourists Shocked As Migrants Climb Into Lorry

Tourists on a coach were shocked to see several migrants climbing into the back of a lorry at Calais bound for the UK.
The incident was caught on video and one person was heard to gasp as around six men managed to get on board the lorry, which was queuing to board a ferry at the French port.
A passenger filmed as a large number of migrants surrounded the vehicle which was directly in front of the coach.
A tour guide tried to reassure the passengers, saying: "Don't panic guys. We've locked all the doors. Try not to panic guys."
One of the shocked passengers asks: "This is hardcore man. Do they not police this?"
Some of the migrants apparently got very close to the coach. A passenger said: "Shivers we nearly ran over someone, eh", adding "holey moley".
The other migrants who crowded around the lorry then slammed the back doors shut after appearing to realise they were unable to climb on board.
A tour guide tried to reassure the shocked passengers on the coach

Mr Adams wrote on their blog: "Returning from Europe we encountered a group of refugees who’ve set up camp just outside the Calais port.
"The refugees, who are desperate to cross the channel into the UK for better work opportunities and safety as they escape their own countries,  began rioting by setting up road blocks and began climbing into the hollows of trucks, breaking windows & opening side panels looking for supplies."
He added: "Behind our coach many of the migrants began to climb over the car of a solo elderly woman which would have been very traumatic."
He said his wife "had to stop filming when one of the refugees sees her filming and threatens to throw a rock through the windscreen"
He also wrote: "Moments after the video ends the migrants began to flee as French police arrived in riot gear, searching trucks and directing the refugees back towards their camp."
Around 2,500 migrants, mostly from Sudan, Eritrea and Syria, live in a makeshift tent village in Calais known as "the jungle".
Mr Adams said despite being shocked about the incident he also felt sympathy for the migrants.
He wrote: "Though we were initially shocked & alarmed, as you can hear in the video because this happening is so foreign to us, our heart truly does go out to the people of the Calais migrant camp."
Mr Adams went on: "We were really lucky that our driver had locked our luggage compartments underneath the bus (or our belongings would be long gone) & that they did not figure out the emergency open switch on the back door which would have allowed them to board.
"Generally the refugee camps tend to be harmless but on this day they group seemed to have an extra level of desperation."