ECA: FAAC faults Okonjo-Iweala, denies approving $2bn withdrawal

ECA: FAAC faults Okonjo-Iweala, denies approving $2bn withdrawal

The Federation Account Allocation Committee on Tuesday faulted
comments credited to a former Minister of Finance, Dr. Ngozi
Okonjo-Iweala, that it approved the withdrawal of $2bn from the Excess Crude Account.

The committee, in a statement issued on its behalf by Forum of Finance
Commissioners in Abuja, stated that the law setting it up did not give it the power
to approve withdrawals from the ECA.
Okonjo-Iweala had while responding to allegations made by state governors that
she made withdrawals from the ECA without authorisation, said issues relating to
expenditure were usually discussed at FAAC meetings attended by finance
commissioners of the 36 states of the federation.
She had said through a statement issued by her spokesperson, Paul Nwabuikwu,
“The allegation by some governors that former Minister of Finance, Dr. Ngozi
Okonjo-Iweala, spent $2.1bn out of the Excess Crude Account ‘without
authorisation’ is false, malicious and totally without foundation.
“It is curious that in their desperation to use the esteemed National Economic
Council for political and personal vendetta, the persons behind these allegations
acted as if the constitutionally recognised FAAC, a potent expression of Nigeria’s
fiscal federalism, does not exist.
“But Nigerians know that collective revenues, allocations and expenditures of the
three tiers of government are the concern of the monthly FAAC meetings.”
But reacting to the ex-minister’s comments, the committee said in its statement
that Okonjo-Iweala’s expalnation “is far from the fact and is misleading.”
It said, “It has come to our notice the statement credited to the former
Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-
Iweala, that the Federation Account Allocation Committee approved the
withdrawal from Excess Crude (Foreign) Account the sum of $2bn. This
statement is far from the fact and is misleading.
“We wish to state unequivocally that FAAC does not have the authority to approve
withdrawals from the ECA and, therefore, could not have approved the withdrawal
from the Excess Crude (Foreign) Account the sum of $2bn.
“According to the law setting up FAAC, which pre-dates the ECA, it cannot
approve withdrawal and has not done so in the past.
“If anything, FAAC, as records of its meetings indicate, had often queried the
activities on the ECA, and, therefore, did not decide any withdrawal.”
The statement noted that while FAAC had in December 2014 observed the
withdrawal of $2bn from the ECA, the then Minister of State for Finance and
Chairman of FAAC, Bashir Yuguda, had when asked during the plenary of FAAC
meetings of the respective months explained that former President Goodluck
Jonathan gave approval for the withdrawals to pay oil marketers’ subsidy claims.
Yuguda reportedly stated that the action would be ratified by NEC.
FAAC stated in the statement, “It should be noted, therefore, that FAAC did not
and could not have approved nor taken the decision to withdraw the sum of $2bn
from the ECA.
“We would want to excuse Dr. Ngozi Okonjo Iweala on this misrepresentation
because she was not in attendance during FAAC plenary and may not have been
fully and adequately made abreast of every FAAC activity.”
But Okonjo-Iweala, while reacting to the finance commissioners’ statement on
Tuesday, said the approval for the withdrawal of the funds was given by former
President Goodluck Jonathan.
She said in a statement by Nwabuikwu, “Payments made were used for petroleum
subsidies for the Nigerian people and were approved by Mr. President. Therefore,
there is no question of mismanaging any resources here.
“For the avoidance of doubt, at no time did Dr. Okonjo-Iweala say that FAAC
approved such expenditures. What she said was that all these expenditures were
discussed at FAAC meetings attended by finance commissioners from the 36
states.
“It is, therefore, clear that there was no misrepresentation by Dr. Okonjo-Iweala.
“The question before us is: why is there such an excessive attempt to batter her
name in an attempt to damage her reputation? It is clear, as I said in my previous
statement, that the motive is malicious and very political, and, therefore, will not
succeed.
“If monies were used to pay for subsidies for the Nigerian people and duly
approved, why is Okonjo-Iweala’s name being battered in this way? This
persecution should stop.”