The House of Representatives on Tuesday accused the management of Revenue Mobilization Allocation and Fiscal Commission (RMAFC) of breaching the provisions of 1999 constitution (as amended) on the five year review of the revenue sharing formula in the country.
The chairman of the House Ad-hoc Committee investigating ‘data collection processes, maintenance and usage’, Hon Mark Gbillah disclosed this yesterday in Abuja at the investigative public hearing organized by the Committee.
According to him, “the action of the Commission contravenes Section 32(b) of the Third Schedule Part I of the 1999 Constitution, which stipulates the “review from time to time, the revenue allocation formulae and principles in operation to ensure conformity with changing realities.”
Hon Gbillah who frowned at the flagrant disregard for the extant laws,observed that the Commission had the responsibility of collection and maintenance of the integrity of data utilized for the computation of indices for horizontal revenue sharing in the case of Federation Account and both vertical and horizontal revenue sharing in respect of the 13% Derivative Funds.
“RMAFC’s failure to undertake the review of the 2012 horizontal an vertical allocation sharing formulae after over five years of obviously changing realities as statutorily envisaged has stifled equitable revenue allocation that will enhance good governance.
“The impending implementation of a new minimum wage across the country has exacerbated widespread agitation among the 36 states and 774 local government areas of the country for additional revenue and has generated increasing doubt and concern about the efficacy, accuracy and fairness of the current horizontal and vertical revenue allocation to the State and LGAs.”
He further alleged that the Committee in the bid to discharge its constitutional responsibilities in tandem with section 4 of the Legislative Houses (Powers and Privileges) Act had encountered intentional recalcitrance from RMAFC who have delayed the progress of the committee by refusing to honour invitations and requested for information including their condemnable and unlawful official instruction via correspondence to another tier of government not to honour the constitutional requests of a legitimate committee of the National Assembly,
” In line with the provisions of section 89(1d) of the 1999 constitution (as amended) section 6(1,2,3) and section 11(a,b) of the Legislative Houses (Powers and Privileges) Act, the Speaker of the House of Representatives , Hon Yakubu Dogara,has approved the initiation of statutory sanctions (issuance of an arrest warrant and criminal prosecution) against the acting chairman and management of the RMAFC and will not hesitate to approve same against any party who refuse(s) to honour the constitutional requests of the Committee”.
While stressing that the committee has absolutely no vested interests or intentions to vilify or patronize any party, he assured all “stakeholders of objectivity and equity in the conclusion of its mandate and in the spirit of reconciliation and camaraderie therefore the committee is willing to prevail upon the Speaker to suspend the institution of sanctions against all erring parties if related parties are willing to provide the committee with the statutory enshrined and required cooperation and compliance.”
In his response to the committee’s stand on the matter, Benue State commissioner of Finance and Economics Planning, Mr David Olofu said that the revenue sharing formula was lopsided.
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Mr Olofu then advised that it should be properly looked into to avoid crisis in the country.
The representatives of the three States present at the hearing admitted that the indices approved in 2013 has since been in use for the sharing formula.
On their part, CBN and FIRS representatives, Abubakar Kure and Abdulazeez Mustapha noted that they have not had any interface with RMAFC as required in the statutory act except through Federation Account Allocation Committee (FAAC) meetings.
“CBN has not have any interface with RMAFC as requested in the act. However, if they request any detailed information from CBN we are ready to provide. All information ever given to RMAFC are in hard copies”, said Acting director Banking and Services department, CBN, Abubakar Kure.
The stakeholders at the hearing however advised that RMAFC move from analogue to electronics means in transmission of data.
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