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CACOL cautions firm on defamatory statements against RMAFC

The Centre for Anti-Corruption and Open Leadership (CACOL) has cautioned a consulting firm, Zilcon Higgs International Limited, to stop making defamatory statements against the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), following the inability of the firm to get paid for a job it allegedly carried out on behalf of the nine oil-producing states.

Speaking through its Chairman, Debo Adeniran in Lagos, said the centre was reacting to a release by the firm published in a national daily on Friday, September 13, 2024, where Hon. Sampson Orji, the CEO of Zilcon Higgs International Limited, disclosed that the firm was contracted by governors of the nine (9) oil-producing states to recover the total sum of $2,471,040,983.38 omitted in the recommendation of the FAAC Post-Mortem Committee in an earlier refund to the states.

In the said publication, Adeniran observed that Zilcon Higgs accused RMAFC of failing to authorise payment of a consultancy fee for a job that was purportedly awarded by a different entity. The firm also alleged that on August 8, 2023, the Nigeria Governors’ Forum, under the Chairmanship of Governor

AbdulRahman AbdulRazak had issued a letter to another firm, Tiaras White Consult Ltd., as a consultant to the oil-producing states for the same job they claimed to have earlier carried out on behalf of the nine (9) oil-producing states that had earlier engaged them.

According to the CACOL Chairman, the same Zilcon Higgs said in their release that Mohammed Bello Shehu, Chairman RMAFC, told EFCC investigators that Tiaras White was the only consultant engaged by the Nine (9) oil-producing states to recover the sum of USD 2,471,040,935.48 allegedly owed to them as 13% derivation arrears. Bello had equally explained that the Chairman of the nine oil-producing states had written a letter to the Commission refuting the claim by Zilcon Higgs International Limited of appointment for the same job.

“Our findings indicate that the said sum being claimed by the nine oil-producing states, namely: Abia State, Akwa Ibom State, Bayelsa State, Cross River State, Delta State, Edo State, Imo State, Ondo State, and Rivers State, as revenue due to them from the Federation Account at various periods starting from 2005 to 2010, is based on the Court judgements.”.

CACOL stated that the firm is crying more than the bereaved, asking, “Why not allow the affected states to claim their monies before asking for their consultancy fee? The company also claimed that it had equally petitioned the EFCC on the matter and that the EFCC had already interrogated Alhaji M.B. Shehu and some members of staff of RMAFC who were privy to the subject matter. Why not allow the EFCC to conclude their investigation?”

CACOL added that the “RMAFC Chairman has said that no money has been released to any of the oil-producing states or any consultant since the payment is subject to confirmation by the OAGF and Ministry of Finance and that the said funds will only be paid directly into accounts belonging to each of the beneficiary states.

“This is because, going by Section 162 (3-8) of the 1999 constitution (as altered), both the NGF and ALGON can neither draw funds nor authorise deductions from sources as a first-line charge on the Federation Account. The Constitution is quite explicit on the three tiers of government who are the only direct beneficiaries of funds accruing to the Federation Account.

“The position of the Constitution on the above subject matter is further supported by a legal opinion from the Office of the Attorney General of the Federation (OAGF) guiding the Federal Ministry of Finance and related agencies in dealing with matters associated with NGF and ALGON, engagement of consultants by state governments, in order to avoid undue liability and safeguard the overall interest of the Federal Government of Nigeria as well as the States of the Federation.

“Accordingly, the Federal Government through RMAFC cannot therefore continue to authorise or make deductions from statutory allocations due to the States or Local Government Councils without their individual authorisation or concurrence of the State House of Assembly through the appropriate instruments and with the concurrence of the State House of Assembly through the appropriate approvals or provisions in their appropriation law.

“It is therefore maladroit to continue to effect payments of judgement debts arising from contracts or agreements entered into by either the NGF or ALGON that are to be financed by deductions at source from statutory allocations due to the States or Local Government Councils without proper appropriation. We cannot forget in a hurry a similar incident involving the consultancy and contract claims associated with the payment of London-Paris Club refunds, which generated a lot of controversy.

“It is common knowledge that when a case is brought before a competent court of law, it is subjudice for parties to a dispute to continue to make public statements on the issue pending the determination of the substantive suit. We believe this is why RMAFC does not want to join issues with Zilcon Higgs International on the vexatious issue via a rejoinder,” Adeniran added.

CACOL concluded that “it is, therefore, our candid opinion that the company should await the judgement on the matter since it is pending before the Federal High Court and the Court of Appeal, Abuja, instead of resorting to wild allegations and a campaign of calumny against the person of the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Muhammed Bello Shehu, and staff of the Commission.”

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