A state governor is in trouble for allegedly withdrawing about N100billion from his state’s Joint Local Government Account (SJLGA) under the guise of addressing security challenges.
Much of the funds was withdrawn in cash on the orders of the governor.
The alleged fraud was uncovered by the Nigerian Financial Intelligence Unit (NFIU) following suspicious transactions by the governor.
The banks which facilitated the withdrawals have been assisting security agencies, especially the NFIU, on how the fraud was perpetrated.
Sources said ongoing investigation by the NFIU has shown widespread abuse of the State Joint Local Government Accounts (SJLGA) by state governors.
The development was said to have informed the decision of the NFIU to ban banks, governors other financial institutions, public officers and relevant stakeholders from tampering with the statutory allocations of Local Government Areas from the Federation Account.
Although new financial guidelines by the NFIU will become effective from June 1, the agency has already put all the banks on alert to forestall last minute withdrawal from the Joint Account by governors.
The NFIU said as from 1st June any bank that allows any transaction from any local government account without monies first reaching a particular local government account will be sanctioned 100%, both locally and internationally.
According to a reliable source, the NFIU has retrieved a table of massive withdrawals by state governors from the joint account (SJLGA).
The source said: “of all the instances at hand, we have a case of cash withdrawal from a joint account which was as much as N100 billion by a governor. This is a state with all sorts of insecurity.
“About N10billion out of the N100billion was recently withdrawn in suspicious circumstances.
“We have shared the intelligence with all relevant agencies. We cannot allow the trend to continue at all because whatever we are doing have global implications. Some agencies are already handling the case of the said governor.
“The NFIU has tightened the noose on some complicit banks. Before the international community comes talking to us, we have decided to act with the issuance of new guidelines.
“Remember that all these electronic transactions are regulated worldwide, they have worldwide connection. They are seeing it; they are not just coming to Nigeria simply because they just want to blacklist us for blacklisting sake.
“So, rather than sacrifice the entire system, we sacrifice individuals and organizations involved, who are committing these crimes, and we will do that.
“Our findings are not empty, these documents are not empty, we attach with proves of structured massive withdrawals all amounting to money laundering, which is our responsibility to stop.”
The source said the NFIU will fully monitor compliance with the new guidelines on financial transactions by local governments.
The source added: “The volume of transactions from the account doesn’t matter; we have ways of how money laundering can be detected.
“Even if the guidelines do not work, we will do everything to make the banks comply because our main concern about Local government account is the corruption aspect of it, money laundering, terrorism financing and proliferation of weapon.
“We are prepared to face the task, we have options in stages on how to handle the issue at hand but if it gets apparent that our national security is threatened, we go international and blacklist the banks.”
The source said the agency will take all precautionary steps before wielding the big stick on banks collaborating with governors to siphon local governments’ funds.
Continuing, the source said: “We intend to be friendly with the banks with the assumption that they will implement the guidelines but if the banks refused, they will be blacklisted internationally.
“We will not allow the country to be blacklisted, instead we will sacrifice the banks and the individuals involved.
“We didn’t put this in the guidelines because once we blacklist anyone or bank, it appears real time in over 160 countries that are linked to the system.
“This is a system that politics don’t come to play. You can play your politics anywhere but you can’t bring politics into NFIU because once a name is on the system, it’s global and finger print scrambled internationally immediately.
“Beyond that, we are facing a lot of international pressure from international financial system to isolate and blacklist the entire country on account of several violations that are going on within the country.”
On the constitutionality of NFIU’s action, the source said: “We have instruments within our law and we’ll work with the Federal Ministry of Justice on the implementation of the new guidelines.
“Previous issue of contention between the federal government and the governors was about control of funds, and not within the context of money laundering, terrorism financing issues among others, which are our exclusive mandate.
“Constitutionally, the governors do not have powers to do anything with the joint account other than collection and distribution. The account is not for transactions to pay individuals or companies.”
“That is the reason for the guidelines, which was based on the conviction that there’s nowhere in the constitution where the Local Government Account was designated as a transaction account.
“The situation today is that the Local Government system is completely dead but we need to change the trend and that is why the cooperation of everyone is needed.”
The NFIU had on Monday unveiled the new guidelines in Abuja.
The complete copy of the guidelines has been released to the Governor of the Central Bank of Nigeria, the Chairman, Economic and Financial Crimes Commission (EFCC), the Chairman, Independent Corrupt Practices Commission (ICPC) and Chief Executive Officers of all Banks and other financial institutions.
A statement by the Acting Chief Media Analyst of the NFIU, Mr. Ahmed Dikko explained in details the steps taken to protect local government allocations.
The statement said: “The NFIU requests all financial institutions, other relevant stakeholders, public servants and the entire citizenry to ensure full compliance with the provisions of the guidelines already submitted to financial institutions and relevant enforcement agencies including full enforcement of corresponding sanctions against violations from 1st June, 2019.
“Having realized through analysis that cash withdrawal and transactions from the State Joint Local Government Accounts (SJLGA), poses biggest corruption, money laundering and security threats at the grassroots levels and to the entire financial system and the country as a whole, decided to uphold the full provisions of section 162 (6) (8)of the 1999 Nigerian Constitution as amended which designated “ State Joint Local Government Account into which shall be paid allocations to the local government councils of the state from the federation account and from the government of the state.”
“The amount standing to the credit of local government councils of a state shall be distributed among the local government councils of that state” and not for other purposes. As far as the NFIU is concerned the responsibility of the account as a collection account is fully reinstated.
“In addition, taking such measures was necessitated by prompting reasons on the NFIU to respond to threats of isolating the entire Nigerian financial system by other International financial systems due to deficiencies in our anti-money laundering and counter terrorism financing implementation and measures.
“Therefore, it is no longer possible to allow the entire system to suffer the deliberate and expensive infractions or violations by public officials and/or private business interests.”
“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, 000:00 per day. Any other transaction must be done through valid cheques or electronic funds transfer.”
NUC, NYSC to block ‘fake’ foreign-trained graduates from service
The National Universities Commission (NUC), in collaboration with the National Youth Service Corps (NYSC), on Tuesday said it had put measures in place to block fake foreign-trained graduates from partaking in the compulsory one-year national service.
The NUC said it would continue to ensure the credibility of certificates issued by Nigerian universities and block fake foreign-trained graduates coming into the country.
Its Executive Secretary, Prof. Abubakar Rasheed, spoke when the NYSC Director General, Brig.-Gen. Shuaibu Ibrahim, visited him at the commission’s headquarters in Abuja, the nation’s capital.
A statement in Abuja by the NYSC Director of Press and Public Relations, Adenike Adeyemi, regretted the challenges in vetting the certificates obtained from universities established by Nigerians outside the country.
The NUC chief said many universities produce quality graduates while some produce graduates who cannot defend their certificates.
He said the commission had not approved the degrees of some online universities operating in the country.
Rasheed added that the commission had approached the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to shut down some illegal universities operating in Nigeria.
“NUC and NYSC must work together to help the country in producing quality graduates. The NUC will continue to certify the credibility of certificates obtained from Nigerian universities,” he said.
The NYSC DG said the scheme will not issue Certificate of National Service to unqualified graduates.
Eid-el-kabir: FG declares Monday, Tuesday public holidays
The Federal Government has declared Monday 12th and Tuesday 13th August as Public Holidays to mark the 2019 Eid-Al-Kabir celebrations.
The Permanent Secretary, Ministry of Interior, Barr. Georgina Ehuriah, who made the declaration on behalf of the Federal Government, congratulated the Muslim faithful on the occasion .
She called on all Nigerians, at home and in diaspora, to use the period of this year’s Eid-Al-Kabir celebration to embrace the virtues of love, humility, peace and sacrifice as exemplified by the Holy Prophet Mohammed.
She urged Nigerians to shun any form of disruptive tendencies and join hands with the Federal Government to build a peaceful, strong and united Nigeria so as to achieve an enviable Next Level of growth and development.
According to a statement by Director (Press & Public Relations), Mohammed Manga, the Permanent Secretary reaffirmed the determination of the President Muhammadu Buhari led-administration to protect the lives and properties of Nigerians, adding that Security Agencies under the Ministry have been directed to ensure the provision of adequate security, before, during and after the Eid-Al-Kabir celebrations.
She restated government’s desire for all Nigerians to live a life of sacrifice, charity and love for one another.
Bar. Ehuriah wished Nigerians a happy, peaceful and fulfilling Eid-Al-Kabir celebrations.
Why Buhari must act now, by comedian Ali Baba
Foremost Nigerian stand-up comedian and actor, Atunyota Alleluya Akpobome, widely known as Ali Baba recently charged President Muhammad Buhari and Nigerians to be futuristic in their dreams.
The ace comedian who took to his social media page said the present administration needs to be proactive in creating the future for the next generation.
“Buhari needs to act now. He must start creating the future, developing our infrastructures and prepare them for the next generation,” he posted.
“The Eiffel Tower was built in the 1800s. Today, that structure is the centre of the economy of Paris. The Pyramids built in the days of Moses, still feed Egypt. The Walls of China. The leaning Tower of Pissa. The Ruins of Rome… What structures do we have, to drive economic development and help trigger different dreams. Where can you see those iconic landmarks in Nigeria? How have their values been maximized? Visit our Museums. Yet we want the artefacts taken away, that are getting the best treatment, to be returned. Laughable.”
The 54 years old comedians, however described the present situation of the country as ‘hand to mouth,” “We live from hand to mouth. We sell the oil. Spend it. Drill for more oil. Spend it. And the fraction we even spend is small. The rest of the money stolen. We have been stolen blind. And the thieves are living large amongst us. And we can see them but can’t make them face the music.”
Ali Baba who after completing his academic degree in 1990, relocated to Lagos to develop his comedic talent said he still think about how people tried to discouraged him when he started doing stand-up comedy in 1988.
“In 1988, when I started doing standup comedy, there were many who told me that much. My father disowned me. His reason? He could not see any future in what I did. Many people are limited by history of things and what they already know. Those who create the future get triggered by things that can be seen in the future.
“I look back now and think about how many people tried to discourage me. Those who thought the ladder to success, was exclusively by climbing as a Doctor, Lawyer, Engineer, Banker, Architect, Accountant, Civil Servant… Today, there are comedians who are worth 3 billion (more or less) in assets and liquid cash. There are comedians, whose social impact and economic value has empowered many who are in those core walks of life mentioned above.”