By Francis Ogwo
The fight against the dreaded COVID-19 19 has exposed plans by state governments to illegally withdraw billions of Naira from local governments’ accounts under the guise of their ‘contribution to the fight ‘.
Reactions have trailed the move as the Association of Local Governments of Nigeria (ALGON) is angered and vowed to resist the attempt by the governors to fleece the councils of their funds.
The Cross Rivers State Government could have unwittingly set the machinery in motion with a letter to the State House of Assembly urging it to pass a motion to compel the 18 local government areas in the state to contribute N50m each to the fund for coronavirus.
The letter signed on the 8th of April ,2020 by the Secretary to the state government, Barrister Tina Banku Agbor and addressed to the Speaker Cross Rivers State House of Assembly reads: “The Cross River State Government in its avowed desire to effectively pursue the implementation of measures that would curb the spread of the current corona virus(COVOD-19),a pandemic that is ravaging the whole world and increasingly gaining momentum with cure yet to be discussed noted that the main focus of governance is to apply precautionary measures against contracting the virus.
“In consideration of the above , the executive council at its 6th emergency meeting of Wednesday 1st April 2020(CRSEXCO 6/2020) approved that the 18 local government council’s in the state key into the fight against covid 19 by contributing N50 million each amounting to N900 million(Nine Hundred Million only)”the letter stated.
Kaftan Post sources revealed that more state governments are hatching the idea of towing same path as Cross River.
Experts argue that this would create an enduring depletion of the fortunes and reserves of the local government financial system while enriching the states.
In a swift reaction, ALGON has expressed dismay while threatening to let the cat out of the bag with this statement credited to the apex body of Local Governments in Nigeria.
“These governors are adopting another trick to fleece Local government funds using state exco and state assembly resolutions.
“ALGON is ready to explore and stop them and they are now using COVID 19 as an excuse to perpetrate unconstitutionality and illegality”
ALGON had overtime argued that they have autonomy of their funds without interference from the states
“It has been passed by NASS into the law several times, including this year, and held by the courts that LGA funds belong to the third tier of government not the State as second tier.
“Recently, State Governors diverted billions of US dollars in Paris Club refunds belonging to the LGAs which are yet to be refunded despite court judgment. The Minister of Finance has before her now a legal mandate to deduct diverted LGA funds from the State Govts at FAAC and credit LGAs back. Some of the Governors actually paid the Paris Club refunds to their private pockets including Yari of Zamfara and Okorocha of Imo both now facing criminal investigations by the EFCC” the source added.
ALGON is of the view that their development as a tier of government can be better enhanced when governors hands off their funds.
