The Rivers State government has challenged the Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, over the issue of $5 billion allegedly missing from the Excess Crude Account, insisting that the minister has not told Nigerians the truth.
In a statement issued yesterday by the Rivers State Commissioner for Information and Communications, Mrs. Ibim Semenitari, the state said Okonjo-Iweala’s response to the statement made by the state governor and Chairman of the Nigerian Governors' Forum, Rotimi Chibuike Amaechi, in Sokoto on the missing money was flawed as she has not told Nigerians the truth.
While the state acknowledged receipt of N56.2billion from the federation account as statutory allocation for January to September 2013, it said there was no indication that it came from the Excess Crude Account as funds from the account were not supposed to be shared in that manner, but according to established procedures.
Semenitari said in the statement: “First, the Rivers State Government wishes to acknowledge as highlighted by Dr. Okonjo-Iweala, that it received the sum of N56.2billion for January to September 2013 as statutory allocation from the federation account.
“The federation account is funded from receipts from oil and other sales (with oil accounting for over 90 per cent and taxes - VAT- custom duties etc.). When more crude is produced and sold above the quantity anticipated by the budget for any given year, the funds are by law meant to be kept as future savings in a stabilisation account, also known as the Excess Crude Account.
“Contrary to the coordinating minister’s claim, that Mr. Amaechi was closely involved and actively participated in making requests to the presidency for the account to be shared for the purpose of augmenting the regular allocations from the Federation Account whenever there was a shortfall,” Governor Chibuike Amaechi and his colleague governors have only attended only one meeting where one request was made for the sharing of $1billion from the Excess Crude Account.
“The federation account is funded from receipts from oil and other sales (with oil accounting for over 90 per cent and taxes - VAT- custom duties etc.). When more crude is produced and sold above the quantity anticipated by the budget for any given year, the funds are by law meant to be kept as future savings in a stabilisation account, also known as the Excess Crude Account.
“Contrary to the coordinating minister’s claim, that Mr. Amaechi was closely involved and actively participated in making requests to the presidency for the account to be shared for the purpose of augmenting the regular allocations from the Federation Account whenever there was a shortfall,” Governor Chibuike Amaechi and his colleague governors have only attended only one meeting where one request was made for the sharing of $1billion from the Excess Crude Account.
“Beyond that one meeting, there has been no other meeting where it was decided that money from the ECA be shared among the three tiers of government".
Semenitari said the position of the National Executive Council’s (NEC) on the matter of the Excess Crude Account was that the savings in the ECA belonging to all the states was not to be touched.
“Indeed this is in tandem with the position of the Honourable minister that the ECA is savings for all to be set-aside for the rainy day and not to be ‘shared’ in the manner she now seems to suggest. The Rivers State Government finds it curious and very disturbing that our rainy day savings has been ‘shared’ in complete breach of the known procedure for doing such and in what might be considered an under the table and clandestine manner,” she said.
Semenitari said the position of the National Executive Council’s (NEC) on the matter of the Excess Crude Account was that the savings in the ECA belonging to all the states was not to be touched.
“Indeed this is in tandem with the position of the Honourable minister that the ECA is savings for all to be set-aside for the rainy day and not to be ‘shared’ in the manner she now seems to suggest. The Rivers State Government finds it curious and very disturbing that our rainy day savings has been ‘shared’ in complete breach of the known procedure for doing such and in what might be considered an under the table and clandestine manner,” she said.
According to the commissioner, “The appropriate procedure as the honourable minster knows is that usually members of the NEC have to make recommendations to Mr. President should there be need for recourse to the Excess Crude account. The Rivers State Government is certain that its chief executive and governor did not participate in any such meeting where any such approval was requested or even discussed and given.”
Semenitari said it smirked of mischief for the finance minister to suggest that the state did not acknowledge receipt of its share of the booty.
Semenitari said it smirked of mischief for the finance minister to suggest that the state did not acknowledge receipt of its share of the booty.
She said: “Neither Rivers nor any other state would have any inkling that the money received by Rivers State government, and other state governments for that matter, were funded from the ECA. According to a communiqué issued by the office of the Accountant General of the Federation after the June allocation meeting, ‘the sum of N7.617 billion refunded by NNPC and the N35.547 billion from the Subsidy Re-investment Programme (SURE-P); formed part of the total distributable revenue for the month.’
“The communiqué confirmed that the gross revenue for the month was N863.026 billion. This was higher than the N590.777 billion received in May by N272.249 billion. It said very unambiguously, ‘the higher revenue was a result of increased crude oil production due to the completion of pipeline repairs in some terminals. There was also a significant increase in non-oil revenue during the period due to the receipt of accumulated arrears on companies.’”
The commissioner also said the state found it puzzling that the Federal Government said it used the savings from 2012 to fund the 2013 budget.
“The communiqué confirmed that the gross revenue for the month was N863.026 billion. This was higher than the N590.777 billion received in May by N272.249 billion. It said very unambiguously, ‘the higher revenue was a result of increased crude oil production due to the completion of pipeline repairs in some terminals. There was also a significant increase in non-oil revenue during the period due to the receipt of accumulated arrears on companies.’”
The commissioner also said the state found it puzzling that the Federal Government said it used the savings from 2012 to fund the 2013 budget.
She queried, “How much oil does the country produce per day?
Clarification that the benchmark price for oil in the 2013 budget is $79? Is it a fact that crude oil was sold at prices that hovered around $110 per day throughout the year? How much exactly has Nigeria earned from its oil sales in 2013 and what percentage of the budget is funded by these receipts?
Clarification that the benchmark price for oil in the 2013 budget is $79? Is it a fact that crude oil was sold at prices that hovered around $110 per day throughout the year? How much exactly has Nigeria earned from its oil sales in 2013 and what percentage of the budget is funded by these receipts?
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