Reps probe FG’s withdrawal of N114bn without approval

Posted by admin House, Latest Politics, Legislature Wednesday, March 28th, 2012

The House of Representatives on Wednesday frowned on the alleged “indiscriminate withdrawals” from the Stabilisation Account by the Federal Government, ordering an investigation into the matter.

A motion by a lawmaker from Kano State, Mr. Haruna Fatahi, indicated that in the last eight months, the government had withdrawn “about N114bn” from the account and spent it without approval by the National Assembly.

The House resolved to mandate its Joint Committee on Appropriation/Finance to “investigate this issue and determine the amount of monies so far withdrawn and the legality or otherwise of the expenditure made and report to the House within four weeks”.

According to Fatahi, the purpose of creating the stabilisation account is to use it to fund “deficits in the budget when the oil price is below the benchmark price”.

The oil price benchmark for the 2012 budget as passed by the National Assembly earlier this month is $75 per barrel of crude.

The commodity has, however, sold above $100 lately on the international market.

But, Fatahi expressed concern that the alleged withdrawals from the account could pose problems to the country whenever there was a remarkable drop in oil prices.

Part of Fatahi’s motion reads, “That the revenue sharing laws provide for the remittance of 0.5 per cent of funds accruing to the Federation Account being kept in the Stabilisation Fund.

“That the Stabilisation Account is meant to be used in funding deficits in the budget when the oil price is below the benchmark price.

“That this account being a buffer against oil price shock, spending from it should be guided by caution and great circumspect in order to maintain sound fiscal policy.

“That within a period of eight months about N114bn was withdrawn from this account by the Federal Government for some expenditure most of which should ordinarily be budgeted for.

“That most of the indiscriminate withdrawals are gradually converting the account into a mere slush fund instead of its original mandate.”

The presiding Deputy Speaker, Mr. Emeka Ihedioha, referred the matter to the joint committee for investigation.

“We should not pre-empt the outcome of the investigation by debating this motion.

“Let it go the committee to investigate the issues raised,” he said.wp_posts