Court stops Fashola's probe the second time.

Nigeria: Lagos - Fashola, Assembly Differ on Budget Cuts

Gboyega Akinsanmi25 May 2010


Lagos — Consequent upon a major reduction from the 2010 budget in Lagos State, Governor Babatunde Raji Fashola (SAN), recently sent a supplementary budget of N74.777 billion to the Lagos State House of Assembly to aid the implementation of some provisions in the 2010 Appropriation Law. But after intensive deliberations, the House rejected the supplementary budget.


The year 2010 has not been a bed of roses for Lagos State. This is no thanks to insufficient funds for the execution of vital projects in the state. This problem stemmed from the 9.3 per cent cut from the 2010 Budget by the House of Assembly as well as the rejection of the N74.777 billion supplementary budget by the House. This has generated fears among the general public that the friction between the executive and the legislative in the state may retard growth and development in the state.

These two decisions by the Assembly, according to investigation, have put the administration of Governor Babatunde Raji Fashola (SAN), under tight financial situation since the commencement of 2010 fiscal year. Towards the end of last year, Fashola proposed N429.596 billion appropriation out of which only N389.571 billion was approved by the House.

Consequently, the state Commissioner for Economic Planning and Budget, Mr. Ben Akabueze, raised an alarm, saying the lawmakers' move threatened the core objective of the 2010 budget. This episode compelled Fashola to write a letter to the Speaker of the House, Mr. Adeyemi Ikuforiji, where he sought contingency provisions for unforeseen expenditure and project funding.

In the letter dated March 22, Fashola intimated the House of his decision to evolve a supplementary budgetary proposal to address eight critical and strategic areas. According to him, his decision was premised on the need to consolidate democratic gains in the state and also ensure the completion of the on-going projects that can transform Lagos into Africa's emerging model mega city before the end of the next decade. Fashola therefore sought amendments to the provisions of the 2010 Appropriation Law of the state.

Under the first amendment which bordered on personnel cost, Fashola sought an approval for additional N10 billion to N45.079 billion earlier appropriated. He said the sum was meant to fund approved 15 percent furniture grants for the state public servants, 27.5 percent teachers' salary scale (TSS) allowance, increment in the emolument of health sector personnel and proposed recruitment of new public servants in the state.



Further amendments sought to add N3 billion to the approved N5.5 billion to cater for special expenditure and as well cover over N4 billion outstanding liabilities for the 2009 fiscal year for the unpaid vouchers. This covers a wide range of estimated expenditure relating to tourism development, settlement of various contractors and purchase of vehicles for judges and principal officers of the House, among others.

On works and infrastructure, Fashola made fresh demands for additional N2 billion to the earlier approved N5 billion for the former and N11 billion to the approved N39 billion for the latter.

The rationale for the request was said to be predicated on the need to sustain the continuation of the on-going projects being executed by the agencies and equally pay outstanding liabilities that the state government is owing some of its contractors.

Fashola sought N2.78 billion to the approved N1 billion for the funding of the state rice and vegetable projects as well as N32 billion to the approved N54 billion. The request for N32 billion was said to be premised on the need to avert a shortfall in the 2010 budget and also ensure that the budget performs maximally. However, further demands were made that N10 billion be removed from local government intervention fund and N4 billion from the Ministry of Justice to be added to the capital vote of the state judiciary.

For all the amendments sought to the provisions of the 2010 Appropriation Law, Fashola explained why it was expedient for the Assembly to reconsider some of the provisions with a view to making necessary amendments that would enable the state government to discharge its obligations to employees, contractors and other service providers. He urged the House to favourably reconsider all the amendments to the essential services so that the assembly can provide for the people of the state.

The letter read in part: "Subsequent to my assent to the 2010 Appropriation Law, my attention has been directed to some provisions of the law as they affect the state personnel profile and costs, contingency provision for unforeseen expenditure, funding of on-going projects and unpaid vouchers as at December 2009.


"These observations require that the provision in the 2010 Appropriation Law be reconsidered with a view to making necessary amendments to enable the state discharge its obligation to employees, contractors and other service providers to and in particular, to pursue strategic agriculture initiative to stimulate jobs and provide security of food, particularly staples and vegetables in the short to medium term.

"A detailed memo of the Honourable Commissioner for Economic Planning and Budget, Mr. Ben Akabueze, dated March 19, 2010 together with supporting annexure, highlighting the implications of the Appropriation Law, as recently enacted are attached for your consideration. Also attached for your consideration are recommended amendments to the law. I trust that the Assembly will kindly review and effect the proposed amendments in view of manifest benefits they portend," he stated.

Fashola's request for supplementary budgetary provisions, was described as reasonable, considering projects that the governor planned to fund with the budget. But despite Fashola's pleas, the House declined approval, saying rice and vegetable production project was not reflected in the 2010 Appropriation Bill adding that about N10 billion for personnel cost was not detailed and justified.

As indicated in the report of the House Ad-hoc Committee on Appropriation, the request was also rejected on the ground that the state executive council failed to give a detailed analysis from the affected ministries, departments and agencies (MDAs) in order to justify the need for supplementary budget that it sent to it. Hence, the 40-man Assembly threw out the supplementary budget, noting that the request for such amendments should have been brought at the third quarter.

The resolution was based on some critical recommendations contained in the report of the chairman of the committee, Hon. Taiwo Kolawole. As expressed during his presentation, Kolawole observed that the committee "noticed a gap between the approved budget and actual expenditure. The approval for supplementary budget will require detailed analysis and substantive grounds for such budgetary requests".


On his part, Ikuforiji warned the state executive council against incurring debts, adding that the state government "is borrowing too much. Currently, it has a debt profile of N100 billion. I do not think we can encourage this administration to move faster than that simply because we do not have commensurate income to offset the borrowing."

In his reaction, Hon. Rotimi Olowo (Somolou constituency), also threw his weight behind the resolution and challenged the executive to take advantage of other funds in the Ministry of Finance and Federal Government. Olowo cited a case of N244 billion which the Federal Government set aside to boost agricultural development in five states including Lagos adding that the council should tap from the facility to address rice and vegetable productions in the state.

He also cited N1 billion allocated to the state Ministry of Tourism and Inter-Governmental Relations in 2009 which he said "was not accessed throughout the fiscal years. Between January and March 2010, Lagos State Internal Revenue Service (LIRS) raked in about N33.8 billion compared with about of N36.8 billion it generated between the same period in 2009. This shows that revenue generation has not improved, thus borrowing will not serve our best interests now, given the state's striking revenue profile."

Arguments from both sides appeared substantive and tenable. But many believe that the House has the responsibility to incisively look beyond facts and figures contained in the supplementary budget.

They also said the House has more responsibilities to carry out an objectively conducted monitoring and evaluation of the on-going projects and as well examine the rationale for additional expenditure that the state executive sought an approval for. The evaluation exercise, it was stated, would avail the legislators of information to determine justification for either approval or disapproval for the supplementary budget.

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However, now that the House has declined its approval for the supplementary budget, Fashola's administration is left without options than to confine its spending within the approved N389.571 billion. But this situation, THISDAY learnt, has started having grave impacts on the strategic sectors of the state. Already, key infrastructure renewal projects have been witnessing major setbacks due to what Akabueze ascribed to the delayed passage of the 2010 Appropriation Law and a significant cut from the budget.

The impacts of the budget cut and the supplementary budget the Assembly rejected penultimate week therefore allegedly portend a tough future for the government and people of the state.

But there are hopes that the state may overcome the situation, given the comment of the House that the supplementary proposal should have been initiated at the third quarter when a rigorous budget assessment and performance would have been carried out.

http://allafrica.com/stories/201005260283.html

Enjoyment1:


Under the first amendment which bordered on personnel cost, Fashola sought an approval for additional N10 billion to N45.079 billion earlier appropriated. He said the sum was meant to fund approved 15 percent furniture grants for the state public servants, 27.5 percent teachers' salary scale (TSS) allowance, increment in the emolument of health sector personnel and proposed recruitment of new public servants in the state.

Further amendments sought to add N3 billion to the approved N5.5 billion to cater for special expenditure and as well cover over N4 billion outstanding liabilities for the 2009 fiscal year for the unpaid vouchers. This covers a wide range of estimated expenditure relating to tourism development, settlement of various contractors and purchase of vehicles for judges and principal officers of the House, among others.

On works and infrastructure, Fashola made fresh demands for additional N2 billion to the earlier approved N5 billion for the former and N11 billion to the approved N39 billion for the latter.

The rationale for the request was said to be predicated on the need to sustain the continuation of the on-going projects being executed by the agencies and equally pay outstanding liabilities that the state government is owing some of its contractors.

This supplementary budget get coma!

Barely 24 hours I said this supplementary budget has coma, Lagos State House of Assembly rejects the budget.

Supplementary budget: Assembly rejects Fashola’s request
By Gbenga Adeniji
Wednesday, 26th May 2010


Speaker, Lagos State House of Assembly, Mr. Adeyemi Ikuforiji
The Lagos State House of Assembly on Wednesday rejected the request of Governor Babatunde Fashola (SAN) on the 2010 supplementary budget.


Fashola had in a letter dated March 22, 2010 asked the Assembly to reconsider some observations in the Appropriation Act to make “necessary amendments to enable the state to discharge its obligations to employees, contractors and other service providers and in particular, to pursue strategic agriculture initiatives to stimulate jobs and provide security of food particularly staples and vegetables in the short to medium term.”


In the area of personnel cost, the governor had requested N10bn to the approved sum of N45.079bn.


On special expenditure, he asked for additional N3bn to the approved N5.5bn and on works and infrastructure, Fashola required additional N2bn to the approved sum of N5bn for the office of works and N11bn to be added to the approved N39bn for the office of Infrastructure.


Also, on agricultural projects, he requested for N2.7bn as an addition to the approved sum of N1bn for the Ministry of Agriculture and Cooperatives to cater for rice and vegetable product projects.


He also requested N32bn as financing requirements to be added to the approved sum of N54bn as the fund needed to match finance for the year 2010 budget to forestall shortfall.


The Assembly had earlier in the year reduced the proposed 2010 budget of N429.5bn by N40bn and approved N389.57bn for the state.


At a special plenary session on Wednesday, the Assembly adopted the report of its Ad-hoc committee on the review of the year 2008/2009 budget performance directed to look into the governor’s request.


The committee headed by the Majority Leader, Mr. Kolawole Taiwo, rejected many of the areas which the governor sought additional funds.


On financing requirements, the committee said that the request could only be adjusted through approval from the House, adding that the governor could bring a supplementary budget on his request on personnel cost with a detailed analysis from the Ministry of Establishments and Training to justify the need for the requested fund.


The committee refused to grant the request for the removal of the additional sum of N10bn approved as local government intervention fund just as it rejected the demand for the return of N4bn removed from the Ministry of Justice to the capital vote of Lagos State Judiciary.


Meanwhile, the state Attorney-General and Commissioner for Justice, Mr. Olasupo Shasore (SAN), on Wednesday appeared before the Assembly as pledged.


He was summoned by the House on Tuesday to explain the rationale of a letter he wrote on the Assembly’s Ad-hoc committee probing allegations of financial impropriety levelled against the governor by a group, The True Face of Lagos.


Before he was invited into the chamber, the Speaker, Mr. Adeyemi Ikuforiji, read a court injunction restraining the Assembly from continuing with the probe.


Ikuforiji, who said the order had an effect on the House and the probe panel as a whole, also described the claimant/applicant, Mr. Richard Akinnola, as trying to stop constitutional activities.


He said, ‘‘He (Akinnola) cannot be a human rights activist, but a human rights killer for he is trying very hard to stop constitutional activities of the House.”


The AG was later ‘discharged’. He was accompanied to the Assembly by the Solicitor-General and Permanent Secretary in the state Ministry of Justice, Mr. Lawal Pedro (SAN).


The Assembly also inaugurated a four-man Ad-hoc committee headed by the Chief Whip, Mr. Abdurrasaq Balogun (Surulere 11) to identify modalities and the logistics in hosting the Conference of Speakers of State Legislators of Nigeria and report back to it on May 26, 2010.


The CSSLN’s chairman, Mr. Istifanus Gbana, had in a letter dated April 26, 2010 requested the Assembly to host the association’s next conference.

Wow this thing is still going on? Even though the Lagos assembly are probing the so called "claims of corruption" made by "true face" against Fashola, people are still complaining? What exactly do they want Fashola to do?

He was summoned by the House on Tuesday to explain the rationale of a letter he wrote on the Assembly’s Ad-hoc committee probing allegations of financial impropriety levelled against the governor by a group, The True Face of Lagos.


Before he was invited into the chamber, the Speaker, Mr. Adeyemi Ikuforiji, read a court injunction restraining the Assembly from continuing with the probe.


Ikuforiji, who said the order had an effect on the House and the probe panel as a whole, also described the claimant/applicant, Mr. Richard Akinnola, as trying to stop constitutional activities.


He said, ‘‘He (Akinnola) cannot be a human rights activist, but a human rights killer for he is trying very hard to stop constitutional activities of the House.”


The AG was later ‘discharged’. He was accompanied to the Assembly by the Solicitor-General and Permanent Secretary in the state Ministry of Justice, Mr. Lawal Pedro (SAN).


The Assembly also inaugurated a four-man Ad-hoc committee headed by the Chief Whip, Mr. Abdurrasaq Balogun (Surulere 11) to identify modalities and the logistics in hosting the Conference of Speakers of State Legislators of Nigeria and report back to it on May 26, 2010.


The CSSLN’s chairman, Mr. Istifanus Gbana, had in a letter dated April 26, 2010 requested the Assembly to host the association’s next conference.

@Tubabie, I hope you are reading this? When people online tell you STUFF, please take your own time to RESEARCH what they say to make sure they even have a CLUE what they are talking about.

The above clearly tells anyone that is wants to know, that DUE PROCESS was followed to the necessary extent . . . I understand people need to have heroes and whatnots, but at the end of the day, we need to understand that common sense/the law should NEVER be trampled upon.

Kobojunkie:


@Tubabie, I hope you are reading this? When people online tell you STUFF, please take your own time to RESEARCH what they say to make sure they even have a CLUE what they are talking about.

The above clearly tells anyone that is wants to know, that DUE PROCESS was followed to the necessary extent . . . I understand people need to have heroes and whatnots, but at the end of the day, we need to understand that common sense/the law should NEVER be trampled upon.

Hmm! @ Kobojunkie, well said.