Governor Uzodinma’s move to restore Fiscal Accountability, Transparency in Imo Civil Service and NULGE opposition

By NewsTrack Nigeria
May 15, 2020

By MGBEAHURIKE Obinna

Recall that Imo State for lagging behind in international best practices vis-a-vis Fiscal Transparency, Accountability and Sustainability (SFTAS), totally lost out in performance-based grants of N43, 416,000, 000.

The Federal Government had disbursed the sum of ₦43,416,000,000.00 ($120.6 million) to 24 states of the federation through performance-based grants under the World Bank-Assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme-for-Results.

This calls for serious question why Imo State has continued to manage a seemingly entrenched secrecy in its financial management to the extent that successive governments have always thrown up the same hydra-headed conundrum.

According to the Minister of Finance and Budget, Mrs. Zainab Ahmed, (SFTAS), the disbursement followed the participation of the 24 eligible States in the recent Annual Performance Assessment (APA) carried out by the Office of the Auditor-General for the Federation (OAuGF) as the Independent Verification Agent (IVA) in collaboration with a third-party firm, JK Consulting Limited and the SFTAS Programme Coordination Unit (PCU).

On the Eligibility Criteria (EC), the minister said that States had to meet in order to be eligible to receive any grants included: the online publication of the approved annual budget and audited financial statement for the previous year.

In Imo, no such thing as publication of audited financial statement, an issue that must be questioned or probed into.

However to the chagrin of Imolites, the National Union of Local Government Employees (NULGE), Imo State chapter feels differently about this call for Transparency and Accountability. Instead of mobilising its members to work with the Governor towards achieving financial discipline, they surreptitiously moved against Governor Uzodinma and Auditor General for Local Governments, alleging non compliance to Nigerian Financial Intelligent Unit (NFIU) guidelines and plot of victimisation of its members.

The present Governor, Senator Hope Uzodinma must be commended for rising to the occasion to deliver the state from the present goshtly fiscal management that has continued to record expenditures on invisible stakeholders.

While National Union of Local Government Employees (NULGE) is supposedly an organisation billed to protect the interest and welfare of its members, especially local government workers but with the turn of event’s, they seem to have a posture of the leading opposition against Senator Hope Uzodinma’s government.

How about the benefits therein? It is on recorded that Kaduna State under Governor El-Rufai got a grant of over N3.96 billion, an appreciable sum that could be of great lift for any State of the Federation, especially at this period of economic downturn.

The Minister of Finance rightly observed: “the SFTAS programme couldn’t have come at a better time than now given the dwindling government revenue occasioned by oil price volatility coupled with the current impact of COVID-19 which has further intensified the need for improved practices in fiscal TRANSPARENCY, ACCOUNTABILITY and SUSTAINABILITY as enunciated in the SFTAS ideals.”

In its stiff opposition against Governor Uzodinma’s resolve to right the wrong, on April 28, 2020, NULGE in a letter titled: AN URGENT APPEAL FOR THE STATE HOUSE OF ASSEMBLY TO INVESTIGATE THE NON-IMPLEMENTATION OF THE NIGERIA FINANCIAL INTELLIGENCE UNIT (NFIU) IN IMO STATE LOCAL GOVERNMENT SYSTEM AND THE URGENT NEED TO AVERT THE “RUMOURED VICTIMIZATION OF THE DIRECTORS OF ADMINISTRATION AND GENERAL SERVICES (DAGS) AND THE TREASURERS OF THE LOCAL GOVERNMENT COUNCILS IN THE STATE” petitioned the Speaker of Imo State House of Assembly, requesting the above.

Probing into Senator Uzodinma’s request for an electronic payment system for Local Government Salaries, one is left more confused as to the the reason for the stiff opposition to such call that should have ordinarily been embraced.

The Union had claimed that non payment of March and April salaries was caused by non adherence to the NFIU guidelines, whereas from our investigation, Governor Uzodinma in a meeting he had with the leadership of NULGE, DAGS and Treasurers had requested the soft copies of March and April Salaries for easy upload in the banking system with the use of BVN. Till the payment of March salaries, most councils were yet to comply with the directive.

Leadership of NULGE further accused Uzodinma of partial compliance with NFIU guidelines and at some times total violation to the extent that local governments are not performing optimally as imprest and other emoluments to motivate workers were not paid, thereby calling on the State Assembly as part of its oversight function to investigate the situation.

Any discerning mind would readily suspect that leadership of NULGE and other local government officers at the top echelon may have cut a smart deal from the alleged missing fund.

Considering the SFTAS, among the requirements participating States must achieve are as follows;

-Improved financial reporting and budget reliability; increased openness and citizens’
engagement in the budget process;

– Improved cash management and reduced revenue leakages through the implementation of State Treasury Single Account (TSA);

– Strengthened Internally Generated Revenue (IGR) collection;

– biometric registration and Bank Verification Number (BVN) used to reduce payroll fraud.

Others are;
-Improved procurement practices for increased transparency and value for money;

– Strengthened public debt management and fiscal responsibility framework;

– Improved clearance/reduction of the stock of domestic expenditure arrears; and

-Improved debt sustainability.

Why would anyone reject the smartest approach to Administration by the adoption of technology, in salaries payment and pensions management.

So, what sin has Uzodinma committed by requesting that Imo Civil and local government Service key into the international best practices than continually remain in the past. Such is not just anachronistic but time wasting.

Meanwhile, the above requirements were achieved by the said 24 States that benefitted from the grant.

The vexatious issue NULGE should answer: and It will be more helpful to explain further and probably cite any section of the NFIU that abhors institutionalisation of transparency, probity and accountability.

Surprisingly, NULGE has bemoaned Uzodinma’s refusal for JAAC meeting, a conduit through which local government funds were frittered away, spent on things that are not directly related to local governments. It simply shows that Uzodinma has no interest in local government funds and he wants the money to be put to good use for the development of the local governments. It follows that he desires local government councils to have both financial and managerial autonomy, and create visible impact on the wefare of the grassroot.

It will even be more helpful if NULGE and its co-travellers could tell us the actual owners of local governments. The earlier NULGE realises that they are employees, the better for them. They must be accountable to the people.

It is also more worrisome and defeatist for NULGE to try to blackmail the Auditor-General For Local Governments. Barr. Osita Nwosu by accusing him of masterminding alleged plot to victimise its leadership, DAGS and Treasurers. This is an aspect of engagement that makes their move abrasively suspicious.

On the said Audit report from the Office of the Auditor – General for Local Governments, NULGE, DAGS and Treasurers need not entertain any fear, if they operated within the extant financial rules and regulations.

Such Offices like that of Auditor – General are created for its strategic purpose of enthroning checks and balances and foster continuity, while serving as a guide to policy makers.

Methinks every that every Governor on assumption of office ought to request seeing the audited reports for action plan and policy formulation to improve on the Administration and standard of living of the people.

So, if Senator Uzodinma as the Governor of the State requests seeing the Audit reports of the financial activities of local governments in the State within a period under study, what difference does it make. This an administrative process, which serves as a guide so as not to put successive governments in jeopardy and in confusion.

Accusing the Auditor General as positioning himself for extension of service or office is infantile as it behoves the Governor of the State, and as as a matter of fact his prerogative to decide on what to do, especially when the Office has shown capacity, diligence and competence by the Audit reports the Office has churned out from year 2012 to date.

After all, the former Governor of the State, Chief Ikedi Ohakim extended Dr. J.O Onyenze’s stay in office by two years as Auditor General for Local Governments, because he showed capacity and competence. Nwosu’s issue is rather diversionary and may just serve as alibi to the goals of NULGE and its partnership with DAGS, Treasurers and other top LGA officers.

Because of how important this issue of financial discipline is, Punch of Sunday May 10, 2020 used Imo in its editorial, titled “Imo Civil Service Payroll Fraud”.

The National Daily says that Fraud syndicates have for too long been running riot in the state Civil Service.

It made reference to the discoveries of the present government, where Governor Uzodinma revealed during his 100 Days in Office broadcast, that he had saved N2 billion.

It suggested that it does not take an individual to superintend such fraud, thereby calling for the arrest and prosecution of those found culpable in the whole criminal expedition.

The question is, why would NULGE leave its core objective to oppose Uzodinma’s move to instil true fiscal discipline and financial autonomy at the local government Councils?. Is this not a case in Igbo proverb that says: “Head hunters do not allow anyone with matchet to ever stand at their back?

– Mgbeahurike Obinna is the Coordinator of “Imo Watch for Good Governance