ON DELTA STATE GOVERNMENT BUDGETS – THE NEED FOR ACCOUNTABILITY AND TRANSPARENCY

 

By Zik Gbemre

 

It is regrettable that Delta State in the last Sixteen years or so is one state in Nigeria where the issues of accountability and transparency have often questioned the integrity of the State government in the management and appropriation of Delta State public funds and resources. A look at Delta State from 1999 till date would reveal that there are more questions than answers, on the part of the State governments’ ability to account to Deltans; on how every Naira and kobo of revenues/allocations coming into Delta State’s purse were expended, not to mention the huge amounts of money also ‘borrowed’ by the Delta State government that were not accounted for in all these years.

What we even find more disturbing is the fact that whenever we consider the huge amounts of funds (be it through internal revenues, Federal allocations or borrowed money) that come into the Delta State Government’s purse every now and then, and then compare this with what we see on ground in terms of development at all levels of the State, the disparity that exists is enough to drive any sane mind mad and angry. Despite several calls by us and well meaning Nigerians in the past, on the need for the former Delta State Governments of first – Chief James Ibori, and later, Dr. Emmanuel Uduaghan, to be more accountable and transparent in the management and appropriation of the State’s public funds while they were in government, we were bewildered the more every now and then by the atrocities that were committed by the former Governors as supposed custodians of State’s public funds. It is like the more Deltans cry out for Government’s need for accountability and transparency, the more the government does whatever pleases them with reckless abandon and impunity. As such, every time the Delta State Government reels out their usual yearly budgets of the State, we consider it as a mere waste of time because at the end of the day, the huge public funds budgeted are never honestly and holistically accounted for or judiciously used for what they were budgeted for.

This was the same mindset we and many Deltans have when Governor Ifeanyi Okowa of Delta State presented a budget proposal of N265.156bn for the 2016 fiscal year to the Delta State House of Assembly. The Governor said the 2016 budget has N153.136bn for Recurrent expenditure while N112.511bn is for Capital expenditure. He said the budget would be sourced from four major revenue sources which he listed to include: Internally Generated revenue to the tune of N75.378bn, Statutory Allocation including mineral revenue derivation at N137.948bn, Value Added Tax at N10.218bn, and other capital receipts at N42.122bn; totaling N256.668bn for 2016. Out of the Capital expenditure of N112.511bn, further breakdown shows that the economy would gulp N23.8543bn, Social services would gulp N17.30bn, and Environmental services will go for N26. 987bn, General administration for N15.568bn, the Delta State Oil Producing Areas Development Commission (DESOPADEC) will go for N28bn while contingency N800m.
Okowa said the 2016 budget christened: “Budget of Renewed Hope and Inclusive Development’’ showed a marginal increase of N12.7 billion when compared to the 2015 amended budget of N252.9billion. Okowa said N2.2 billion had been proposed in the budget for job creation, Agricultural support package and wealth creation scheme. He said that the scheme would continue to receive priority attention, adding “we have recorded remarkable success in implementing the various entrepreneurship/vocational skills training programmes’’ He said following fluctuating price of the crude oil in the international market, his administration was determined to stabilize the revenue of the State by broadening the tax base.

Now, the problem we usually have with these Delta State Government budgets is its lack of details and preciseness of how every naira and kobo will be expended; at the budget presentation and during every stage of its implementation. For instance, when the government says that out of the Capital expenditure of N112.511bn, further breakdown shows that the economy would gulp N23.8543bn, Social services would gulp N17.300bn, Environmental services will go for N26.987bn and General administration for N15.568bn. Deltans will like to know what aspects of the Delta State economy would gulp N23.8543bn? What sort of ‘Social services’ is the Delta State Government reportedly referring to that would gulp N17.300bn? And what kind of ‘Environmental Services’ in the State that will take N26.987bn? again, DESOPADEC as the Government’s Development intervention agency, will be given the lion share of N28bn, which Okowa said was in line with the funding prescription of the law setting up the commission. But when we consider the fact that DESOPADEC has over the years become an avenue through which the State’s public funds are misappropriated and drained by the Executive Government, one then begins to wonder.

As a matter of fact, everything about the proposed Delta State budget for 2016 presents more questions than answers. For instance, we are very much aware that former Governor Emmanuel Uduaghan reportedly left behind a total debt of more than N773 billion, according to stated estimates by officials of the State. They disclosed that ex-Governor Uduaghan accumulated liabilities to the tune of N238.6 billion in the form of bonds, bank debts and related obligations, and an additional N534.6 billion in pure contractual liabilities. These reported facts were even reaffirmed by the Delta State Governor, Dr. Ifeanyi Okowa sometime last year when he decried the financial position of the State and disclosed that the government had over N636 billion debts, including contractual obligations, to contend with in the next three years. With this in mind, one would have expected the Delta State 2016 budget as presented by governor Okowa to explain to Deltans the plans, structures and modalities put in place by the Government to address and service these mind boggling debts. Nothing was mentioned in Okowa’s 2016 budget about the debts hanging on the neck of the State.

Again, little or practically nothing was explained by Governor Okowa in his 2016 budget proposal for Delta State on how he and his administration intends to ‘execute’ every aspect of the said budget or what plans he has to address the many abandoned infrastructural projects of the immediate past government of Uduaghan. Some of these obviously failed/abandoned projects of the immediate past Uduaghan administration include: the well-publicized Warri Industrial Park, the Independent Power Station, the Effurun—Ughelli-Isoko-Asaba Dual Express Road, the Osubi Warri Airstrip Expansion and Second Runway Project to International Airport, the BRT Lane on the famous Warri-Sapele/Effurun-Sapele Road that presently runs from Enerhen Junction to Effurun Roundabout, some school projects, the ICT Park, the Effurun-Eku road, Koko Port Free Trade Zone, Trans Warri – Ode Itsekiri Road and Bridges, etc. Agreed that it is a budget, and the Government may not necessary read out to the public every detail of its activities. But one would have expected the Governor to at least hint to Deltans how he intends to use the State funds and what projects he intends to use them on, especially when we have pressing abandoned projects in the State that are begging for Government’s attention. As it stands, Deltans do not know if the Delta State Government under Okowa wants to embark on new projects in the State, or complete all the abandoned ones or do both simultaneously.

We believe this is a well calculated tactic of the Delta State Government to do whatever pleases them in the name of executing the 2016 budget without raising any dust or give room for prying eyes to expose their ill-advised dubious intentions. By leaving Deltans and Nigerians in the dark, as regards details of the 2016 budget, they have succeeded in creating the avenue to misappropriate State’s public funds without any questions being asked. Let us remind Governor Okowa and his administration that he is there to serve the general interest of the people and not any political or self-centered interest. And as such, Deltans as the electorates deserves the exclusive right to know every detail of how every naira and kobo of public funds are spent under the budget. Deltans and Nigerians will like to know explicit details of what the 2016 Delta State budget entails. It is not enough to give the public sub-heads and huge amounts proposed to be spent on different sectors of the Delta State economy and entity. We need further details and how these monies will be expended along the way. Call it monthly or quarterly reporting of the Delta State Government on how every public fund is spent; this is to ensure accountability and transparency.

The problem we have always had with past and present Delta State Governments is the way they display ‘gross insincerity’ in their dealings and activities with the public during their reign. Take the immediate past Delta State Government under Uduaghan. Never have we seen or witnessed a government that loves to use all manners of publicity stunts to make itself look good in the eyes of the world, like we had seen exhibited by the former Delta State Government led Uduaghan. In fact, such publicity by the then Delta State government were often coated with ‘sweet talks/write ups’ that pleased only the eyes and ears but all aimed at deceiving the public. The democratic attributes of ‘transparency’ and ‘accountability’ embedded in ‘good governance’ have practically eluded Delta State in all ramifications within the past sixteen years or so. This has made Delta State Government to be branded by well-meaning Nigerians and social critics as a “self-perpetuating government” of the ruling Peoples Democratic Party (PDP) in the State; which ultimately makes whatever the government does, a well-decorated ‘white lie’ specifically designed for ‘deception’ – for the benefit of some few but to the detriment of many.

 

As we speak, even the ‘basic infrastructural amenities’ like regular power supply, good road networks, a friendly business environment and friendly tax policies are not evident in Delta State. All the Ports around Delta State are not functional. There is no guaranteed security in Delta State as the ‘ill-equipped’ security operatives are left struggling with the battle against kidnappers, armed robbers and other criminal elements. When the basic infrastructures are not there, and no guaranteed security, how then will investors be attracted to come and invest in the State? Today, big oil companies like Shell (SPDC), and others have left Delta State and many are still planning to leave to invest in other States like Edo, Rivers, Bayelsa, Akwa Ibom, Lagos, etc, simply because of the ‘unfriendly business’ environment in the State. Yet, the Uduaghan Government was drumming about “Delta State Beyond Oil” before it left office. The Delta State Beyond Oil infinitive was just a mere expression on paper used by the immediate past Delta State Government to deceive themselves and not the people.

As usual with every new government, Okowa came on board with a lot of promises to “turn Delta State to heaven” and “prosperity for all Deltans”. But it is no news that Governor Okowa has been dancing to the tunes of his predecessors (Ibori and Uduaghan) that put him in office.  Considering the fact that Governor Ifeanyi Okowa, can best be described as an ‘offshoot’ and more of a ‘continuation’ of the immediate past two governments of Dr. Emmanuel Uduaghan and James Ibori, many stakeholders like us are not expecting much (or any NEW) ‘sustainable change’ at all with regards to the development of Delta State. However, one expects the present Delta State Government under Okowa to at least start, improve, continue and complete all the said existing failed/abandoned projects of the last administration before embarking on any new project in the State. This is why we are surprised that nothing much was stated in his 2016 budget concerning the fate of some of these abandoned projects in the State. But like we said, the issue of “being genuinely accountable, responsible and transparent to the public in the management of State funds”, is never a habit of the past and present Delta State Governments.

 

It is high time we started telling it to the face of Nigerian Politicians in Delta State to stop deceiving the people with their creation of avenues of looting and misappropriating the State’s public funds in the name of ‘government work’. Until we start asking them such questions and demand answers to them, they will continue to milk the State’s resources dry to the detriment of all and sundry.

To give us a glimpse of what we are saying here, Delta State, which is one of the ‘major’ states of the oil and gas producing Niger Delta region, is amongst the highest earners of Federal allocation in the country. Let us consider some past facts and figures. From 2012, following the promise of former President Goodluck Jonathan at the inception of the Subsidy Reinvestment and Empowerment Programme (SURE-P), on commitment to transparency and accountable implementation of the programme, the then Federal Ministry of Finance, through the former Minister, Dr. Ngozi Okonjo-Iweala, started making available the breakdown of subsidy savings allocated to the Federal, States and Local Government. For instance, for August 2012, Delta State got N1, 249, 164, 421.92. This amount included the 13% derivation while in the subsidy savings at N97 per litre, Delta State got, N188, 148, 007.01. For the distribution of revenue allocation to state governments by the Federation Account Allocation Committee for the month of July, 2012 which was shared in August, 2012, Delta State made up of 25 local government areas got a Total Gross Amount of N20, 550, 712, 001.30 and a Total Net Amount of  N17, 962, 569, 852. 75. Ughelli North, Warri South and Burutu Local Government Areas had the highest revenue allocations to local government Councils for the month with N213, 668, 720. 95, N203, 854, 422.70 and N185, 375, 240.96 respectively, while the lowest were allocations to Patani, Bomadi and Aniocha South Local Government Councils that got N130,719,212.28, N185,375,240.96 and N141,446,624.83 respectively. From the Federation Allocation, Delta State gets N24billion monthly aside the N4billion Internally Generated Revenue, of which more recently risen to about N50.4 billion according to the Chairman of Delta State Internal Board of Revenue, Hon. Onowakpo in his report last year.

Further facts showed that a total of N8.8 trillion was actually accrued to the three tiers of government from the Federation Account between January and December 2012 from the statutory and VAT allocations. According to a report, this amount is exclusive of other allocations such as Derivation (for oil-producing states), Excess Crude Account, Domestic Crude Account, Subsidy Reinvestment Programme (SURE-P), and Nigerian National Petroleum Corporation refund and foreign exchange differentials. And from statistics provided then by the Federal Government, South-South states received the highest allocations, in which Delta State got a total of N156, 052,071,645.19, while Edo State got N68, 169,040,433.24. Cross River State N63, 894,575,941.74.  Then for the month of March 2013, the gross revenue from the Value Added Tax (VAT) witnessed an increase of N1, 492 billion. The sum of N64, 199 billion was available as against N62, 707 billion distributed in the preceding month. A breakdown of the distribution showed that for the month of March 2013 alone, the Federal government got N232, 529 billion (52.68%) as against N209, 856 billion received for the month of February.  The State governments shared a total of N117, 942 billion (26.72%) as against N106, 442 billion received for the previous month. The Local governments shared N90, 928 billion (20.60%) against N82, 062 billion received for February. The oil producing states, which include our dear Delta State, shared the sum of N55, 008 billion as 13% derivation revenue for the month of March 2013 as against N47, 484 billion collected for February 2013.

Another summary of distribution of SURE-P and other Federal allocations for the month of May shared in June 2014, as published by the Office of The Accountant-General of The Federation, Federal Ministry of Finance, showed that Delta State got N1, 027, 490, 326.44 (for SURE-P including 13% derivation), and is amongst the South-South States like Akwa Ibom, Rivers, and Bayelsa with the highest figures received for just that month alone. And the total gross amount for the same month for Delta State stood at N14, 867, 591, 158.05, and so on do the figures go. Let us bear in mind that these staggering figures of Federal Allocations came into Delta State Government coffers during uduaghan’s reign on a ‘monthly basis’. Let us also not forget the 2015 budget proposal stood at N327, 682,982,917 for the services of Delta State in the 2015 fiscal year. The amount, according to former governor Udugahan, comprised N161,606,428,928 or 49.32% for Recurrent Expenditure and N166,076,553,989  or 50.68% for Capital expenditure. The 2015 budget proposal however showed a decrease of N123,055,244,165  or 27.30% when compared to the year 2014 approved budget of N450,738,227,082. Again, we could see that all they usually do is to present figures upon figures as monies being spent on various sub-heads of the Delta State economy without being ‘specific’ in actually stating one thing that these public funds were used for.

We decided to take our time to present summary of some of these figures to give us an idea of the sort of public funds available to past and present Delta State Governments to transform the State. And let us not forget that all these monies were different and separate from the State’s internally generated revenue that nobody has any idea of what is really the monthly amount that comes into government coffers. Or what happens to all the monies usually ‘borrowed’ by the State Government and how they are spent during every fiscal year. The question begging for answer is: Why are states like Edo, Anambra, Rivers, etc, moving on the “fast lane of development” but Delta is grappling with infrastructural development with poor road network across the State which shows that the amount received monthly and budgeted yearly does not commensurate with what is on ground?

Before we go any further, let us make it categorically clear here that we are not using this to witch-hunt or castigate anyone. We do not belong to any political party neither are we affiliated or linked to any political party or political interests. Our aim and advocacy here like always, is to praise that which is worthy to be emulated by our political leaders and to equally condemn (where necessary), that which is bad and unworthy, without fear or favour. Our deepest desire here is to bring to limelight some of the pressing issues in our polity, specifically in Delta State, with the hope that those concerned will change their ill-advised ways as custodians of State resources for the general good of all and sundry and not for some selected few.

It took former Governors Ahmed Bola Tinubu and Mr. Raji Fashola 16 years to transform Lagos State to what it is today. In the same token, former Governor Rotimi Amaechi left a legacy in Rivers State within 8 years. Our sister state of Edo was a shadow of its self until Adams Oshomole came to clean up the mess. Good governance was difficult to define in Kaduna State until El Rufai was sworn in on May 29, 2015 and within the first 100 days in office; he was able to recover over N55 billion for the State government and launched a master plan for the overall development of the State. It is also not every time that we hear or see an outgoing governor in Nigeria handing over the baton of leadership to a successor and equally doing so on a clean slate, showing ‘accountability’ and ‘transparency’ with nothing to hide but simply praises for a “job well done” from stakeholders in most parts of the polity. That was the story of the immediate former governor of Anambra State, Mr. Peter Obi, when he left office in 2014. The former Anambra State Governor, Mr. Peter Obi had said his administration had a whopping N75 billion in savings for the State. Obviously, this was to allow the incoming governor, Willie Obianu to have something to start with and “continue” from where Obi left off. And today, the former notoriously-dirty and ill-organized Onitsha as the commercial nerve center of Anambra has been turned into a spectacle of a modern and well-maintained urban city with the best network of good roads.

In Delta State, the journey began in 1999 with the Peoples Democratic Party (PDP) and 16 years gone. Looking back after 16 years, Deltans cannot still come to terms with themselves on how to rate PDP performance in terms of overall development of the three Senatorial Districts made up of 25 Local Government Areas of the State. Today, virtually all the roads linking towns and villages in Delta are in a bad state. The Power project which started in 2007 has gulped well over N47 billion without success. The PDP government in Delta State has been paying lip service to the core issue of industrialization either by setting up small scale industries or through public-private partnership (PPP). Asaba Textile Mill, Delta Glass Company, Delta Steel Structure Company and many others are almost down or completely down. No tangible efforts have been made so far to turnaround the existing factories and establish new industries. Each year we churn out graduates from both public and private tertiary institutions without ready jobs for them. Our graduates have been reduced to mere unskilled labourers at construction sites while several others take to crime and riding Okada/keke (tricycle) for survival.

The Asaba Airport project has become one of the major conduit pipes for the looting of our commonwealth. The PDP chain of corruption has crippled social and commercial activities in the State. After few years of operation the Federal Ministry of Aviation raised alarm over poor infrastructure at the said airport and another N5 billion was doled out for upgrade. It is very sad that a rich oil and gas State is now crippled by acute corruption and huge debts. Delta State reportedly now owes over N1.5 trillion. It was nearly N700 billion when Governor Ifeanyi Okowa took over from Uduaghan on May 29, 2015. It was reported that Okowa took a little over N20 billion bailout funds from the Federal Government and took loans of over N56 billion excluding high interest rates. We can go on and on. But in all of these, it is more pathetic and rather unfortunate to see that some political gladiators and PDP supporters are happy and celebrating mediocrity and poor governance. Poverty, ignorance and greed have completely blindfolded our youths that they have become stooges in the hands of these political interests. They must wake up from their deep slumber and fight for their economic well being. The time is NOW.

As rightly noted by a public commentator recently: “Each time I go to Delta State, I get pained to see how docile they are. The Governor is practically doing nothing yet you never see them agitate even if nothing will come out of their agitation. The only ongoing project in that State is NDDC and Ministry of Niger Delta projects. When you make enquiries you will find out that their Traditional leaders and elders who ought to pressure the Governor to do something are only interested in getting their own share of the State money. When you look at the resources available to Delta State then you will be forced to say Abia State Governor whom many of us say is doing nothing is doing a great job. Delta State people need to wake up from their slumber.”

The question is, where will this praise singing for the sake of our stomachs take us to in Delta State? The crux of the matter is that Deltans, especially those in political circles, should stop all the praise-singing and sycophancy for things to change for the good of all. Until we begin to tell ourselves the truth as Deltans, mediocrity would continue to be enthroned as lord over all of us.

Do the accolades for PDP that we see on social media correspond with the socio-economic realities on ground? The unadulterated answer is NO. It is therefore very important that we as Deltans must ensure that elected leaders are held accountable for their electioneering promises to the people and account for every naira and kobo of public funds they spend in the name of budgets. This way we make fast and better progress. We hear that one Rescue Delta Media Group is currently working on a documentary that will X-Ray the policies and programmes as well as the successes and/or failures of PDP government in Delta State from 1999 till date. Let us hope that they will not compromise but honestly do a good job and we also hope that the documentary will be aired in major television stations and cable networks so it will be an eye opener to Deltans.

As noted by Dr. Fred Latimore Oghenesivbe in this subject, a situation where the dividend of democracy is only noticeable among the political elites and elected representatives must be checked by the electorate to guarantee their future and the future of children yet unborn. We hope and pray that PDP government in the State under Governor Okowa is able to respond to the issues raised above by being more accountable and transparent in the management of the State funds without dodging them to attack those who have come forth to speak the truth.

 

 

Zik Gbemre, JP.

National Coordinator

Niger Delta Peace Coalition (NDPC)

No.28, Opi Street, Ugboroke Layout, Effurun-Warri,

P.O. Box 2254, Warri, Delta State, Nigeria.

Tel:       +2348026428271

+2348052106013

Website: www.ndpc-zik.org

 

 

 

 

 

 

 

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