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Gbajabiamila warns MDAs against diversion of retention funds
House of Representatives Speaker Femi Gbajabiamila yesterday warned that Ministries, Departments and Agencies (MDAs) that have formed the habit of not remitting retention funds to the treasury will be punished.
Gbajabiamila, who spoke at a public hearing on the need to investigate the failure of MDAs to remit retention funds, said such action is denying the government the much-needed resources to fund annual budget, especially at a time when the global price of fossil fuel is going down.
Retention funds often five per cent of contract sum are regularly held back from contractors by MDAs and kept for either six months or one year while the project is being observed to ensure that it meets specification.
It is either paid to the contractor after six months or paid back to government treasury.
The Fiscal Responsibility Commission had accused about 122 MDAs of failure to remit N 1.2 trillion in 2020.
Gbajabiamila spoke just as the Chairman of the Ad hoc Committee investigating the non-remittance, Aniekan Umanah, frowned at failure of MDAs to honour invitation from the parliament.
He said such action was not good for democratic practice and good governance.
The Speaker, who was represented by Deputy Chairman of the House Committee on Public Accounts, Abdullahi Sa’ad, said: “On Tuesday, March 23, 2021, the House of Representatives resolved to investigate the reasons why MDAs have routinely failed to payout or return to the coffers of the Federal Government, the retention funds withheld by them as part of the procurement processes in the different institutions.
“Retention funds are not intended to be converted by the MDAs. Where those funds are not paid out as required by the law, they ought to be properly accounted for, and refunded to the coffers of the Federal Government to address the substantial revenue shortfalls resulting from the ongoing collapse in the international value of fossil fuels, as well as significant contraction in the global and local economy owing to the COVID-19 pandemic and other adverse factors.
“Where this has not been done, it is a violation of the law, and those involved in this practice will because of this investigation account for the use of these funds.
“This public hearing and the mandate of the Ad-Hoc committee is in fulfillment of our commitment in the 9th House to ensure due process practices in the management of public finances. As such, I want to personally as all stakeholders, heads of Ministries, Departments and Agencies, who may be invited to participate in this public hearing and any other activities of the committee to engage with good faith, and in the knowledge that we are all engaged in the difficult yet necessary work of building a nation where all government actions are underpinned by clue process and the rule of law.”
Committee Chairman Aniekan Umanah said the practice was inimical to the growth of small and medium scale enterprises (SMSEs) as it denied them the much-needed capital to stay afloat while part of the funds formed part of N 1.2 trillion the Fiscal Responsibility Commission accused about 122 MDAs of failure to remit in 2020.
He said: “In view of the importance of the subject matter, constituted an Ad-hoc Committee to carry out investigation on this matter and report back to the House their findings and recommendations.
“However, it is pertinent to note that that the idea of this investigative hearing is a direct response to the yearning of the public outcry with the need to resolve some pending issues in a contractual relationship with various MDAs.”
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May Day: A’Ibom gov increases minimum wage to N40,000
May Day: A’Ibom gov increases minimum wage to N40,000
Governor Bassey Otu of Cross River State has said henceforth, the least paid worker in the state will go home with N40,000 monthly, instead of N30,000.
He made this announcement in his address to workers when they celebrated this year’s Workers’ Day at UJ Esuene Stadium, Calabar.
He said he increased the wage based on economic reality as well as the lean federal allocations accrued to the state, and not out of sentiments.
Otu said his government was very appreciative of workers even though their industrial output was only 5 per cent which was very poor.
He said, “Government considers its workforce as the driver of lofty projects and programmes for the common good of the people. Workers in the State are always held in high esteem to achieve good results, which reason prompt payment of salary and pension has been up to date.”
“The State Government is presently on the verge of concluding necessary arrangements for the staggered payment of outstanding gratuity to its retired workers. I therefore sue for a little patience from the pensioners in this regard.”
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However, the Organised Labour in the State have have accused the state government of neglect and deceit, calling for open recruitment of employable youths to fill up various vacant positions.
Chairman of TUC, Comrade Monday Ogolodom, said the administration deceived the senior citizens when it failed to deliver its promise to clear off backlog of gratuities since 2013.
Addressing workers, Ogolodom said, “Payment of gratuity in the state has become a mirage. I recall on the 4 of October, 2023, during the swearing-in of the Head of Service, Innocent Eteng, His Excellency, the Governor made a very welcoming, sweet and promising speech, saying “before the end of December, 2023 all backlog of Gratuity in the state shall be cleared”.
“Today is 1″ May 2024, 4 (four) months after, nothing has started”, adding that this has portrayed the governor in bad light and appealed to him to set up machinery towards actualizing the promise as some of our elder statesmen and women were dying due to lack of funds for medications.
He alleged that bribes for promotion were now rampant, adding that it was appalling and discouraging for industrious and qualified workers.
He described as unending the verification exercise that was supposed to weed out ghost workers in the state, saying this has denied workers overdue promotions.
He called on government to officially embark on recruitment exercise instead of secret recruitments.
May Day: A’Ibom gov increases minimum wage to N40,000
News
El-Rufai ignored us for 8 years, Kaduna NLC praises Gov Sani
El-Rufai ignored us for 8 years, Kaduna NLC praises Gov Sani
The Chairman of the Nigeria Labour Congress (NLC), Kaduna state, Comrade Ayuba Magaji Suleiman, has hailed Governor Uba Sani for personally attending the May Day rally in Kaduna.
Speaking at Murtala Square, Kaduna, on Wednesday, Suleiman said the last time a governor personally attended the rally was nine years ago.
“Your Excellency, we want to thank you for personally attending the May Day Celebration. Labour has not witnessed the presence of a governor at such an occasion in the last nine years,” he said.
Malam Nasir El-Rufai, Sani’s predecessor, spent two terms of eight years as governor.
While commending the governor for prioritizing workers’ welfare through prompt payment of salaries and allowances, as well as involvement of the labour unions in decision making in the state, the NLC Chairman expressed hope that workers would enjoy favorable working conditions.
In his speech, the governor assured the workers of his support, saying development is about the people, just as governance is also about the people.
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He said governors were working with NLC to come up with decent and acceptable pay for workers.
The Government under my leadership will continue to prioritize workers’ welfare and equip them appropriately within available resources, conscious of the fact that a committed and motivated workforce is critical to the achievement of our Rural Transformation Agenda. Human capital development and poverty reduction will continue to receive robust government attention through investment in education, health, agriculture, housing, micro, small and medium enterprises, as well as support to security agencies as they tackle terrorism, banditry, kidnapping, and other violent crimes.
“Nigerian Governors, under the platform of Nigeria Governors Forum, are in consultation with Labour Unions at the federal and state levels in order to come up with a decent and acceptable salary increase for state and local government workers. As a comrade and veteran of the struggle for better working conditions for Nigerian workers, I will not rest on my oars until we agree on a wage package that will put smiles on the faces of our workers.
“As we ramp up our Rural Transformation Drive and implement innovative programmes to reinvent our economy, we seek the cooperation and total commitment of Kaduna State workers. Increased productivity and sustained industrial harmony will help reposition our economy and put our government in good stead to frontally tackle our myriad security and developmental challenges.”
El-Rufai ignored us for 8 years, Kaduna NLC praises Gov Sani
News
Umahi replies Obi over Lagos-Calabar coastal project criticism
Umahi replies Obi over Lagos-Calabar coastal project criticism
The Minister of Works, David Umahi has said that Peter Obi, the former governor of Anambra, is inciting the southeast to rebel against the federal government over the Lagos-Calabar coastal road project.
Umahi disclosed this on Wednesday at a road project stakeholders’ meeting in Lagos.
The Lagos-Calabar coastal road, which will pass through eight other states including the beach resorts along Lagos’ beachfront, has had its construction processs commenced by the federal government.
The project has generated controversy and concerns about funding and the businesses that would be affected during construction.
On Tuesday, Obi, presidential candidate of the Labour Party (LP) in the 2023 elections, criticised the federal government over the project, describing it as a misplaced priority.
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The former Anambra governor said the “insensitive” demolition of structures for the project was “heart-wrenching”.
Responding to Obi’s comment, Umahi said Obi supported the demolition of structures for road infrastructure while he was the governor of Anambra.
The minister condemned Obi for criticising the federal government over the project, adding that affected property owners are already being compensated.
“When you condemn people you bring judgment upon yourself and that is what he has done,” Umahi said.
“I think he is inciting some of the south-east people that are not well informed.
“He is inciting and getting them into trouble and he does not go to fight for them.
“Wisdom is a defence. It gives light to those that practice it. I want our people to have wisdom because I’m involved.”
Umahi added that the federal government did not destroy the facilities of Landmark Beach, noting that only shanties on the right of way were removed.
He said the owners of Landmark Beach were not unfairly treated in the construction of the project.
The minister accused Paul Onwuanibe, chief executive officer (CEO) of Landmark Africa Group, of politicising the issues arising from the project.
Umahi replies Obi over Lagos-Calabar coastal project criticism
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