More challenges likely to threaten peace and cohesion in the Imo State House of Assembly are showing up regularly as the issue of how the approval was granted to the State Governor for a fresh loan has cropped up.
Since the Majority Leader, Hon Uche Ogbuagu was removed and another Lawmaker took over his position, a kind of mutual suspicion has erupted with some of the aggrieved Lawmakers now revisiting the method applied in the approval for the loan granted to Governor Hope Uzodinma recently.
Trumpeta recalls that the House, few weeks ago, through the Speaker, Rt Hon Paul Emeziem a motion authorising the State Government to discount the 13 per cent derivation fund refund accruable to Imo State from the Excess Crude Account, ECA, by Fidelity Bank PLC, received the nod of the lawmakers.
Details which came under announcement have it that the motion okays that the sum of Ten Billion, Ninety Three Million, One Hundred and Sixty Four Thousand, One Hundred naira, Forty Five kobo (#10,093,164,100.45), be remitted to a present value of Eight Billion, Nine Hundred Million naira (#8,900,000,000) only.
The Speaker read out the announcement during the plenary session.
It reads, “Whereas between 2004-2019, the Federal Account Allocation Committee (FAAC) made several withdrawals from the Excess Crude Account (ECA) belonging to the Oil Producing States;
“Noting that in the July 2020 FAAC meeting, the Post Mortem Sub-Committee of FAAC presented a report to FAAC which was adopted for the refund of a total of #861,135,887,749.10 ($2,272,126,352.90) from the Excess Crude Account (E. C. A) to the States of which Imo State portion amounted to #10,093,164,100.45”.
It continued, “Aware that the Hon. Minister of Finance, Budget and National Planning subsequently approved the refund to be paid in quarterly basis beginning from January, 2021;
“Observing that after the approval, the Hon. Minister for Finance, Budget and National planning and FAAC, the Federal Government was unable to pay the amount in one swoop, and rather opted to retire the amount on a quarterly basis over a period of twelve (12) quarters or 3 years but giving the States options to get it discounted by any bank of their choice and Imo State Government decided to approach some Banks out of which Fidelity Bank gave the best discount rate”.
However, the House of Assembly resolved as follows;
“To grant approval to the State Government to obtain a facility from Fidelity Bank Plc for the purpose of discounting the 13% Derivation Refund Fund due to Imo State from the Excess Crude Account (ECA) from #10,093,164,100.45 only to a present value of #8,900,000,000 only;
The House further resolved that; The interest rate for the facility shall be 7% per annum payable in 12(twelve) quarterly installments over a period of 36 (thirty-six) months; The source of repayment shall be the 13% Derivation Refund from the Excess Crude Account (E. C. A); and, The Commissioner for finance, Imo State and the Accountant General of Imo State should accept the Discount Facility on behalf of the State and sign all documents relating thereto”
Trumpeta was informed that Members of the House who are uncomfortable with the manner the fund was approved have started opening up trying to blame the Speaker for being the mastermind.
This Newspaper was informed that the best Legislative practice to have been employed in such case was for the Executive Arm to have sponsored such request through a Bill which would have also deliberated on the floor of the House during First and Second Readings as well as going through Committee of the Whole House and Public Hearing.
A Lawmaker who spoke to Trumpeta on the issue was of the view that the process the House applied doesn’t conform well to Legislative standards and accused some of their officers of compromise to win the favour of the Executive arm.
“It was wrong for the Approval to come in Motion where no one debated about it on the floor of the House. Such approvals don’t come up only at the Executive Session. It should also be discussed during Plenary to pass through proper Legislative procedure” the lawmaker who pleaded anonymity added.
Trumpeta was told that the argument canvassed above is the position of others who are no longer comfortable with the new Leadership under Rt Hon Paul Emeziem.
