Anxiety in LG councils as EFCC launches probe into financial transactions

BY ORIAKU IJELE & BEN EMEKA

Fear and unease are the best way to describe the situations in all the 774 local government areas (LGAs), in Nigeria following the decision by the Economic and Financial Crimes Commission (EFCC), to monitor and track all financial transactions in the Local Government Areas of the Federation as a way of easing the poverty burden at the local level.

Sunday Times learnt that this move is obviously as a result of the hunger protests which serenaded many states of Nigeria.

This is also coming on the heels of the recent Supreme Court order that granted them financial autonomy from the state governors who have over the years held the finances of the LGs to themselves.

Recall that former Muhammadu Buhari had in December 2022 revealed that, “If the money from the Federation Account to the State is about N100m, N50m will be sent to the chairman but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with.”

But sequel to the recent allocation sharing, the chairmen and councillors of local government areas in the country, have been warned by the EFCC to shun corruption, be accountable and deliver the dividends of democracy to their constituents in line with the aim of the federal government.

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The chairman of the Commission, Olanipekun Olukayode warned that it would no longer be business as usual for the administrators, especially as more resources would be handed over to them.

“It is on this note that we (the EFCC) serve a notice to local government administration that it will not be business as usual; their activities will be scrutinized. They must make sure there is a presence of governance for their people. The citizens must feel the presence of government at local governments,” he said.

Last week, EFCC chairman, who spoke through a representative, at a policy conversation entitled; ‘Enthroning Accountability in Local Governance in Nigeria’ convened by Agora Policy and five partners, Yar’Adua Centre in Abuja, said the local government administrators must use the public resources at their disposal to intentionally provide healthcare centres, schools, potable water and more dividends of democracy to their people.

Speaking at the forum, the founder of Agora Policy, Waziri Adio, also said the recent approval of financial autonomy for the LGAs by the Supreme Court is a call on all stakeholders to hold the local government administrators accountable.

Mr Adio said there is a need to activate mechanisms to ensure accountability at the local government levels.

Africa Director, MacArthur Foundation, Kole Shettima, said Nigeria should look at how to strengthen local government administration for efficient service delivery, while also urging the push for ideas around local governance and local government administration.

“The level of the depth of problems we are dealing with is huge,” he stated.

According to Dr Shettima, local governments are places where people easily make money and are never scrutinized or made to account for resources allocated to them.

Also, the Executive director, African Centre for Leadership, Strategy and Development, Dr Otive Igbuzor observed that for the local government system to work in Nigeria there must be a firm entrenchment of an internal system within the government for transparent budgeting, open contracting and open governance.

“There is also a need for strong legislative oversight by the councillors, an independent mechanism for monitoring local governments by the various anti-graft agencies of government, and a vibrant media and citizenship participation for good governance.

“Unless these five mechanisms operate, we are creating another challenge,” he said.

Sunday Times gathered that the Commission has opened desk in all its state and zonal commands across the country for the monitor and tracking of the LGs’ funds and may have started work.

The same last week, Ibadan Zonal office of the EFCC, on Tuesday, invited five officials of the Ogun State government in connection with an ongoing investigation bothering on financial infractions in the state, said to be patterning local government funds,

Head, Media and Publicity of the EFCC, Dele Oyewale, confirmed the development but said, ‘’I just called our Ibadan zonal office and it was confirmed that some officials of the state government were invited for a chat in respect of an ongoing investigation and they have since gone back to their state. Nobody was also detained,”

The officials’ invitation by the EFCC was based on the petition written by the former Chairman of the Ijebu East Local Government Area, Wale Adedayo.

Recall that Adedayo had in August; last year alleged that Governor Dapo Abiodun diverted about N10.8bn meant for the 20 local governments in the state.

It was learnt that the former Adedayo had complained to former governor of the state, Chief Olusegun Osoba, last year August, alleging that Governor Abiodun diverted about N10.8bn meant for the development of the council areas.

Adedayo was said to have forwarded a petition to the EFCC, calling for an investigation of the state government for the alleged financial infraction.

But the state government denied the allegations, noting that it rather augmented the monthly Federal Government allocations sent to the local governments or else many of them would have found it impossible to fulfill their financial obligations like payment of salaries, among other projects.

The whistleblower, Adedayo, was later impeached and according to reports is currently being prosecuted before an Abeokuta Magistrate Court for raising false allegations and character defamation against Governor Abiodun.

It was gathered that Adedayo said he was happy that he has been vindicated by the invitation of some state officials by the EFCC over the matter.

“Yes, I heard about it on Tuesday. I am sure it is about the petition I sent to the EFCC. A lie can travel a thousand miles, the truth will catch up with it within a few seconds. A friend told me they were granted an administrative bail so they could return with some documents, which they claimed, would exonerate them.”

Investigations by our correspondent revealed that statutory allocation to state is based on the sharing of the federation account in which 56% goes to the federal government, 24% to the state government and 20% to local government.

Meanwhile, Socio-Economic Rights and Accountability Project (SERAP) had also urged the anti-graft agencies of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to investigate the actual disbursement and spending of federal allocations meant for local governments.