By Tunde George & Kasali Martins
We are tax payers residents in Lagos who are desperately desirous of
accountability since taxes have recently become major revenue of Lagos
State government. In the developed societies where a similar revenue
regime operates, associations such as ours have acted as Government
Watchdogs, which is why some of us have decided to take up the gauntlet of
championing the cause of taxpayers in the state. After all if we don’t pay
our taxes, government can charge and eventually jail us.
In the last ten years, tax revenue has come to constitute about 75 per
cent of government revenue base, yet, the government never bothers to
render account to tax payers in Lagos . In the last three years alone, a
colossal sum of 1.1 trillion naira was budgeted by Fashola’s government
with the government itself affirming that it has consistently recorded a
minimum of 75 per cent of budget performance out of which 80 per cent came
from Internally Generated Revenue (IGR). This is 30 per cent more than
the entire budgets recorded by successive governments between 1992-2007-a
period spanning 15 years.
Today, the total tax revenue of Lagos on a monthly basis hovers between
N14 and N17 billion naira while federal allocations come to N6 billion
Naira monthly. This is more than the revenue of seven states put together
on a monthly basis. But how has the governor been spending the money?
While we note the heavy investments in roads and environmental
infrastructure mainly and commendably so, there is the need to question
some of the ways the governor has been expending tax money which in our
opinion reflects financial recklessness, mismanagement, gross
constitutional violations and abuse of office.
Set below are some of the expenditures which the government claimed to
have incurred on behalf of ‘Lagosians’ and which we feel were mere avenues
to corruptly enrich some privileged individuals in and out of government
and to which the state House of Assembly under the tutelage of ‘governor
emeritus’ otherwise known as the Lion of Bourdillon has become an
accomplice covering up a lot of misdeeds on the part of the executive.
Just last week, it was alleged that each member of the House was given a
sum of 20million naira through a lawyer member of the House from the Lagos
west senatorial district, the constituency of the governor emeritus
himself. When this was about to be leaked to the press, the Lion of
Bourdillon used his powerful media contacts through two of his former aids
who are media chieftains to suppress the leakage. Were this not to be the
case, we would have otherwise sent these complaints to the House of
Assembly. But since we no longer trust this pliant House of Assembly, we
have decided to go public with the following:
1. Last year, Fashola (BRF) gave N250 million to Rotimi Akeredolu led Exco
of NBA for the NBA conference held in Lagos . At a time when Lagos
teachers and doctors were on strike for improved welfare package.
2. The BRF government within 6 months, January to June 2009 spent N420
million on hiring of private security – to guard who – despite his heavy
investment in the Police Force through the State Security Trust Fund.
3. BRF spent N1.5 billion to demolish the Bank of Industry (BOI) building,
paying a company introduced by one Tunji Olowolafe in cash transfer only
for him and his cronies to claim the land adjacent to it.
4. BRF government awarded part of Western Avenue ( Funsho Williams Road ),
about 2 kilometres road for N7.7 billion just between Abalti Barracks and
Costain. And without the construction of any bridges, the project was
carried out by Julius Berger. This project must certainly be investigated.
5. Between January and June 2009, the BRF government claimed to have
fuelled 225 vehicles in his office alone with N135 million. These figures
amount to about N800, 000 per day, at a time that petrol was sold for N65
per litre and government always get it cheaper, but BRF claimed to have
bought it at N85 per litre.
6. Also between January and June 2009, BRF’s Chief of Staff and PAs
expended N290 million in sending TEXT Messages and phone CALLS on their
lines.
7. It is also very sickening to know that the BRF government awarded the
construction of a road and drains inside Gbagada General Hospital for over
N1.8 billion to the same Tunji Olowolafe’s company (DEUX Projects
Limited).
8. The sum of 1.5 billion naira of un-appropriated funds, without approval
was claimed to have been spent on demolition of Oshodi.
9. The Helicopter Deal – was a big fraud. The helicopter was not built for
any kind of emergency evacuation, rescue or to even combat urban fire.
Over N5 billion has been spent on the two helicopters. And, the seal of
Lagos State is not on it, and it is not even in Lagos but in the Niger
Delta making money for some private people in government. The whole
helicopter deal stinks to high heavens; it constitutes the biggest
governmental fraud of all times and confirms the rot in the State. See
ThisDay December 19, 2009
10. The SSA (Media) to BRF spent N183 million in 6 months on press
coverage and on editors outside the approved budget but funded directly
from the Governor’s Office.
11. In a State where children are sitting on the floor in classrooms,
where unemployment is rampant and poverty pervasive. BRF paid a lady wife
of a controversial pastor over N600 million in 2 years for Xmas
Decorations for about six streets in Lagos.
12. In Six months between January and June 2009, BRF spent on several
faceless organisations, subventions, grants and donations and they quickly
pocketed N2 billion.
THE RIPPING OFF OF LAGOS – ESSENTIAL DETAILS
1. The BRF government recklessly increased and paid over 60%
increase on the LASU – IBA road awarded by the Bola Tinubu government for
N6.2 billion but was jerked up to N10 billion less than 2 weeks that BRF
came on board.
2. Also, the Tinubu administration awarded the construction of
City Hall for N2.3 billion. BRF only changed the floor tiles to marble
tiles and increased the contract sum to N5.2 billion. This project was
increased by 126%.
3. Publishing of INDICATOR Magazine, is falsely presented to the
public as a private magazine but is actually co-ordinated by Tunji
Olowolafe and Hakeem Bello, SSA (Media) to BRF with government money.
4. BRF recently gave a media-related Permanent Secretary, and
some others the sum of N100 million to do a soap opera on himself. They
are presently in London recording the film.
5. The BRF government has failed woefully in the area of Public
Private Partnership (PPP) in three years. Yet, BRF is paying the PPP boss
in Lagos State N2 million per month in violation of the Constitution, when
even commissioners recognised by the Constitution are receiving N300,000
per month. The PPP guy is the highest paid government official presiding
over a non-performing and failed parastatal.
6. The Beautification Programme of Fashola administration is
reeking with corruption. In a State where there is no water, where over 90
per cent of the road in Lagos is in a deplorable state of disrepair, he is
spending over N13 billion on planting grass and flowers. Most of the money
was spent to import Palm trees from Niger Republic , a sahel region when
Lagos is in the rain forest which explains why most of them have dried
up...
7. Also, it is important to note that the renovation of
classrooms of usually 12 blocks plus one which was done for N26 million by
the Tinubu administration up till 2007 was increased to N53 million with
the collaboration of the housing commissioner who is supervising projects
in the education ministry.
8. CCTV project was awarded to BRF’s relation who claimed to be
acting for CISCO. The contract was awarded for $62 million dollars, while
the rejected quote for the contract was $30 million. It is important to
note that this is only a pilot scheme.
9. BRF’s wife travels abroad once bi-monthly and takes N30
million per trip from the State coffers, apart from her monthly running
cost.
10 The mother of all rip off is the award to DEUX PROJECT LIMITED,
a company owned by the powerful Tunji Olowolafe 11 out of 19 contracts in
the Lagos State Ministry of health between January and August 2009. Out of
N5.6 billion naira contract in the Ministry of Health, Olowolafe alone
collected N5.1 billion worth and was paid 70% upfront in cash.
OTHER QUESTIONS
1. Why did BRF divert N1.85 billion in the Ministry of Women Affairs
and Poverty Alleviation to a project that was not originally provided for
in the budget and promptly awarded to Olowolafe?
2. Why is Lawyer BRF’s administration illegally deducting funds from
the statutory allocation of the Local Governments in Lagos State ?
3. Why was the Mayegun Scheme which was sold to Olowolafe and other
friends and cronies against public interest without any independent
valuation by relevant agency of government? Why is the size of the scheme
shielded in secrecy? Why was N5.2 billion for which the land sold
untraceable? Where is the over N2 billion loan borrowed to sand-fill the
place? What is the fate of the Tourism and Art-craft sellers chased away
from the place?
4. Pinnacle – why did the governor and his cronies engage in
questionable transfer of 400 hectares of land to Pinnacle, South Africa,
when it is known that the company is almost bankrupt and the ABSA Bank now
owns over 60% of the Company. What nature of PPP is this? The world is
watching!
5. Why was the illegal sand-filling of about 1 km in the Badagry –
Marina awarded for N1.5 billion out of which N700 million has been paid
and yet the contractors and the Tourism Ministry have completely destroyed
all the historical relics and artefacts in the area? It has also created
an environmental disaster for West Africa because of greed. And it appears
the Commissioner has been settled.
FASHOLA AND CONSTITUTIONAL VIOLATIONS
1. Flagrant and deliberate disregard for the Appropriation law passed
by the Lagos State House of Assembly, in violation of Section 120 of the
1999 Constitution.
2. Criminal diversion of funds without due approval of the Lagos
State House of Assembly, in further violation of Section 120 (3) of the
1999 Constitution.
3. Indiscriminate award of contracts without due process, without
following the laid down financial regulation as well as the public
procurement guidelines. The payment of such contracts is in violation of
Part (E) Section 120(4) of the 1999 Constitution of the Federal Republic
of Nigeria.
4. Most Ministries, Departments, Parastatals sometimes do not know
when contracts are awarded in their names and for what purpose, they only
find out later. And they don’t know when payments to contractors are made
by the State Treasury Office. This is in further violation of Section
121(2) of the 1999 Constitution.
5. Illegal and unwarranted deductions from the statutory Allocation
of the local governments. This is in direct contravention of Public
Revenue Provision of the 1999 Constitution and in violation of Section 162
sub-section 6, 7 and 8.
6. Opening of illegal and unconstitutional Dedicated Accounts which
is contrary to the provision of the 1999 Constitution and which Revenue
Monitoring Agency is unaware of. This act is in direct violation of
Section 120(1) of the 1999 Constitution.
7. Office of the Chief of Staff which is unknown to the Constitution
has more staff than any other Ministry in Lagos State . This violation is
very grave as it is in direct breach of the Governor’s Oath of Office in
the 7th Schedule of the 1999 Constitution Section 13 and a gross violation
of Sections 192, 193 and 208(2d) of the 1999 Constitution.
8. Indiscriminate borrowing by the Ministry of Finance without
legislative approval, which the Finance Commissioner calls Bridging Loans,
is a grave assault on Fiscal Federalism, a coup against Financial
Regulations and a shameful and criminal violation of Section 120(1), (2),
(3) and (4) of the 1999 Constitution.
9. Concentration of over 70% of Lagos State Government contracts in
the hands of one Tunji Olowolafe. This is the clearest indication of the
betrayal of trust by Governor Fashola, it is against the Oath of Office he
swore to, it is a violation of Sections 14(4), 15(5) and 17(2a) of the
1999 Constitution on which social objective of a just, free and equitable
social order is founded.
10. Arbitrary use of Special Expenditure Vote for activities not
originally provided for under the Appropriation Law. This is a further
betrayal of Fiscal Federalism and a violation of provisions of Section
120(3) and (4), and Section 123(1) and (2) of the 1999 Constitution.
11. Payment of 70% up-front to persons and cronies for contracts not
yet executed. Similarly, this is a contravention of Section 120(4) of the
1999 Constitution.
12. Giving arbitrary donations to selective professional associations
and faceless organisations for acting as sycophants without appropriate
authorisation by relevant constitutional bodies. This is a clear violation
of sections 120(4) and 123 of the 1999 Constitution
13. The fraudulent purported acquisition of 2 Bell 412 EP Series
Helicopters from a Canadian firm constitute a flagrant violation of
Section 123(1) and (2) and Section 120(4) of the 1999 Constitution.
14. Furthermore, the award of contract of courts and other Judicial
Infrastructure as well as procurement for the Judiciary in Lagos State by
the Attorney-General, Tunji Olowolafe and Governor Fashola is in gross
violation of Section 121(3) of the 1999 Constitution.
In all these aberrations, the Lagos State House of Assembly has kept mute,
and the House has become inept, achaic, drab, docile and inefficient. All
the noise by Mr. Speaker about accountability and probity be only to
enable house members line their pockets and feed fat on the sweat and toil
of the people of the State?
Is it also true that they have been given their own share of the loot,
they are maintaining undignified silence over the report of the ad hoc
Committee set up to look into the books and activities of the Lagos State
Government pursuant to Section 103 of the 1999 Constitution with powers
expressly provided in sections 1a, b(i) and (ii), as well as Section 129 1
a b c and d.
We are aware that the report has been submitted since November 2009, so
why is the Lagos State House of Assembly still sitting on the report? This
is just a tip of the ice berg of financial recklessness by the Lagos
executive led the seemingly performing governor Fashola! More soon .
By Tunde George & Kasali Martins
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