The Stabilisation Fund Account which is meant to save funds for the future generation has been depleted by the Federal Government with periodic withdrawals made of over N114 billion in eight months, documents available to Daily Trust show.
President Goodluck Jonathan’s administration made withdrawals in different instalments between September 2010 and May 2011 for various expenditure, including loans to the police and funding of committee activities, according to the documents.
The revenue sharing laws provide that 0.5 percent of funds accruing to the Federation Account should be remitted to the stabilisation account. The account had balances of about N120 billion in August 2010 but was depleted to N37 billion by October 14.
Funds were withdrawn for activities of the Federation Account Allocation Committee (FAAC), the National Council on Finance and Economic Development (NACOFED) and the Consolidated Revenue Fund Charges (CFR), consumer car finance scheme, police peace keeping mission in Haiti, INEC, among others.
Documents reveal that the Federal Government withdrew over N75 billion in September 2010 alone. On September 1 and 15, the government withdrew N40.5 billion and N35.5 billion which was purportedly “released to CFR as loan to fund the Independent National Electoral Commission (INEC) for 2010 General Election.”
Another N11.3 billion was withdrawn on October 13 and “released” to INEC as loan for the same election.
The stabilisation account rose to about N36 billion between January to May 2011 only to be depleted again to N11 billion. Also, about N400 million was withdrawn as funding for the activities of FAAC and NACOFED between January and May 2011.
Also, N150 million was withdrawn through five memos on the same day.
Another withdrawal was made on January 26, 2011 of N255 million as “funding for NACOFED & FAAC Activities for 2011.”
A number of other withdrawals for FAAC and NACOFED were backdated as payments for 2004 and 2005 activities. The breakdown shows: N31 million was “released to FAAC Secretariat for year 2004;” N25 million for “NACOFED conference expenses for year 2004;” N27 million was “release to FAAC secretariat for year 2005;” N26 million was NACOFED conference for year 2005” and N35 million was released to FAAC Secretariat for year 2006.”
FAAC comprises largely state commissioners of finance and headed by the minister of state for finance. Officials told Daily Trust that since these commissioners come to FAAC meetings on official assignment from their states, it was unlikely that the Federal Government would truly spend these millions on “FAAC activities.”
On May 11, 2011, N242 million was withdrawn and “granted as loan to Inspector General of Police (IGP) for purchase of vehicles for UN peace keeping in Haiti- 1st instalment.” Another N33 million and N32 million were released on the same day to the IGP, according to the documents, as second and third instalments for the vehicles purchase.
Similarly, N4.5 million was withdrawn and released “as loan granted to pay the second Tranche of FGN 50 % contribution to the funding of 2006 Tranches of the Pioneer Consumer Car Finance Scheme.” Another N10 billion was withdrawn and released as “loan granted to pay 2nd Tranche of FGN 50% contribution to the Phase II of the Pioneer Car Finance Scheme for public servants and in the paramilitary agencies.”
Other withdrawals were N4.5 billion loan granted to fund 2006 virement; N827 million equivalent of loan granted Sao Tome ($5m); N1.6 billion loan granted to fund 2006 virement; N2.8 billion loan granted to pay 2nd Tranche of FGN 50 percent contribution to the Phase I of the pioneer car finance scheme; distribution of 50 percent of balance in the Excess Crude Proceeds Account in 2004 and another N985 million advance to FGN to meet shortfall in revenue since beginning of year 2011. All these withdrawals were made on May 11, 2011.
‘This is profligacy’
Yinka Odumakin, a spokesman for former head of state Muhammadu Buhari, described these withdrawals from the stabilisation account as the signature tune of the ruling party characterised by profligacy and waste of public resources.
“It is a pity that Nigerians have signed a prodigal nation. The country is broke because the PDP regime has emptied all the treasuries.
“The same government has depleted our foreign reserve, excess crude account and now stabilisation account. The country is broke, that is why we are being forced to buy new drivers licence, new plate numbers and worst of all pay N145 for petrol litre,” he said.
Spokesman for the opposition Congress for Progressive Change Rotimi Fashakin said, “There is nothing surprising in Jonathan government dipping its hands into the stabilisation account having specialised in financial recklessness and waste of public funds.”
He said “due to the insatiable quest for public funds, the ruling party has also depleted our foreign reserves, excess crude account, among others. The regime conducted the most expensive elections in the history of the country in 2011. We are not surprised at the level of its financial recklessness.”
In his reaction, the Publicity Secretary of the Conference of Nigerian Political Parties (CNPP), Mr Osita Okechukwu, said that the development is the usual “food- is- ready” politics of the ruling PDP.
“It is not surprising at all; it is the usual food-is-ready style of the PDP. It is very tragic as well,” he said. The government “has carved a niche for itself in squandering the country’s resources. That is why the same government in the last 12 years couldn’t complete a single federal road; build or even maintain our refineries or resuscitate our railway system.”
He said that the depletion of the stabilization account is tantamount to toying with the future of “our children and grandchildren.”
