FROM MILLIONAIRE TO PRISONER, TO PASTOR: THE ATIKU ABUBAKAR CONNECTION

  Many strive to achieve the American dream just once in their lifetimes. But Vernon Jackson has already lived two versions of the American dream: invention and reinvention. A 2006 photo shows Vernon Jackson leaving the U.S. District Court in Alexandria, Va. He later went to prison for three years on bribery charges. Once a tech millionaire, this pastor from Louisville, Ky., thought his telecommunications device would bring him wealth and success. And it did, but only for a time. Ultimately, his business dealings landed him in prison. Jackson's story is about making it big, blowing it even bigger — and coming back, renewed. Today, he can laugh about his roller-coaster-like transformation. These days, Jackson spends his Friday mornings with a Bible study group in the lobby of a suburban Holiday Inn. The group is made of up middle-aged black men, pastors and professionals. In his own words, "to go from a master to a servant, [Once] I gave orders ... and now I take orders" — from God. Jackson grew up in humble circumstances in Charlotte, N.C., but says he caught a break at 17 with an AT&T affirmative-action program. He was trained in electronics and sent to work in Louisville. "We had to do better than the majority because we were considered minority. Expected to fail," Jackson says. "So we didn't have the choice to fail. So we insisted on whatever they threw to us, we would make it work." He became a network supervisor, and did well. He felt comfortable and secure. After 20 years at AT&T, Jackson struck out on his own. He had an idea. His invention made copper wire — old-fashioned telephone lines — broadband-capable. "I saw the need," Jackson says. "I saw an opportunity and I was driven by the fact that I believed it was doable." It was the 1990s, and the U.S. economy was in the throes of the telecom bubble. Jackson started a company that went public, obtained a patent and started making his device. He figured black neighborhoods and African countries would be the last to be rewired with modern fiber optics. Those communities, he thought, were on the wrong end of a technological divide, and he had the device to bridge it. With his invention, he thought, the poor could get access to teleconferencing and email — and he could get rich. Jackson's company was valued at more than $1 billion at its initial public offering in 1995. His personal wealth was soon valued at around $30 million. But between competition and problems with financing, the company went broke. A Fateful Partnership So Jackson started a second company, iGate. But, again, there were financing problems. Jackson recalls a conversation with a potential investor who was white. "He said, 'Let me tell you something. Because of the color of your skin, you will never get the money you need. You need me, or somebody with my complexion,'" Jackson recounts. Jackson says that conversation made him angry — and even more determined to succeed. But the company still needed an angel investor. Jackson soon found an angel: Rep. William Jefferson, D-La. Although his benefactor didn't have money, as a senior member of the Congressional Black Caucus, Jefferson had power. "His relationship to me was to make sure that my products and services got installed in ... places he had influence," Jackson says. "Jefferson was a very influential and powerful man." But he was a corrupt one, as well — known to his detractors in Louisiana politics as "Dollar Bill." But Jackson says he had never heard that, and that he trusted Jefferson. The congressman became iGate's advocate, drumming up business for the company in the U.S. and Nigeria. Little did either man know, Jefferson was being monitored at the time in an FBI sting operation — and Jackson was caught up in it. In 2001, after Jefferson had helped iGate win some business, the congressman suggested the two men begin a new relationship. "He says, 'I've really done all that I can do, but you need to be marketed at a high level. So, I can't do that per se, but there's a company owned by my wife and my daughters who do just that,'" Jackson recounts Jefferson telling him. Jackson started paying that company $7,500 a month, and transferring shares of stock, as well. "I remember saying something [like], 'You sure this is OK?'" Jackson recalls asking Jefferson. "Because I saw a little red flag. And he said, 'Of course! I wouldn't steer you wrong. This is my wife, my daughters.'" In retrospect, Jackson says he was, in effect, bribing a public official. But at the time, he says, he didn't realize it. The arrangement went on for five years, until a night in late May 2006, when the FBI raided Jefferson's office. The congressman was indicted, later tried and convicted. He is remembered as the congressman with $90,000 in cash in his freezer. Jackson pleaded guilty, testified against Jefferson and went to prison for three years. Along the way, he says, he found religion in dreams and visions. He declared himself a pastor, ordained by God. But what makes an otherwise law-abiding businessman write his own ticket to federal prison? Why say "yes" when Jefferson told him to sign a deal with his wife? Jackson calls it "the moment of truth." "What's in one's heart determines what one does," he says. "We had had so much difficulty getting to this point, in terms of all the raising the money and so many hurdles we had overcome." Knowing there were people willing to pay for their product and feeling confident it would be a success, Jackson says he felt he had to move forward. "We know it's worth billions, so the shareholders will do well," Jackson says. "We're looking at our own glory, if you will, we will do well. And so you say, 'You know what? I'm going to go down this road, and see where it takes us.'" Jackson says he knew he had a product that could do good. "You've struggled and struggled and struggled, and now you're here, and you see all the good you can do ... You know you have something here that can really change people's lives." In the end, it was Jackson's life that changed. He's at home a lot these days. He takes care of his wife, whose back was broken in a car crash. He says he does some consulting. And his device to make broadband connections over copper wire is still being marketed, now by a firm in Houston. Jackson keeps a white Christmas tree in his living room, even in the middle of summer. It stands for Christ, he says. He has a problem, Jackson says, of celebrating him just once a year. For a man who once had a mansion in the works, who was worth millions and dreamed of billions, and who used to hobnob with Nigerian high rollers, Jackson's life these days is modest. And it is a very American second act: The self-inflicted wounds of an outsized ambition, bathed in faith — a different kind of American dream. Jackson’s friend, former Louisiana Rep. William Jefferson was found guilty of 11 felonies, including bribery and racketeering. The federal jury that delivered its verdict four years and two days after FBI agents found $90,000 in his freezer. But it was less than a complete victory for the Justice Department. During the trial, prosecutors laid out five years' worth of deals in which Jefferson wanted payments from business people. The jurors saw a crisp FBI photo of the cash in his home freezer. They also saw a video of Jefferson collecting the money — the moment when the Democratic congressman reached into the trunk of an FBI informant's car and took a briefcase filled with the greenbacks. The informant, a businesswoman, wore a wire during the handoff and at restaurant meals with Jefferson. She recorded incriminating conversations about business deals in Africa and the payments he expected. Neither she nor the congressman testified at the trial. The government's case took eight weeks. The defense case, by contrast, took a couple of hours and argued that Jefferson had been acting as a business consultant, not a member of Congress carrying out official acts. The jury considered 16 counts against Jefferson and convicted him on 11. Afterward, Joseph Persichini, assistant director of the FBI's Washington office, told reporters, "The people of New Orleans need to know that they gave Congressman Jefferson his power, and he used his greed to attain money."  In 2010, a two-year US Senate investigation into foreign corruption shed new light on two key players in that infamous scandal, one of Washington’s most recent — Atiku Abubakar and his wife, Jennifer Douglas Abubakar.  Abubakar was the former Nigerian vice president who former Rep. William Jefferson (D-La.) was planning to bribe with $100,000 provided to him by an FBI informant, Lori Mody. Mody, a wealthy businesswoman,  gave the money to Jefferson in a parking lot in July 2005, a transaction secretly videotaped by the FBI. When federal agents raided Jefferson’s home in Virginia two days later, they found $90,000 in his freezer.  An undercover FBI special agent had driven Jefferson and Mody to Douglas' home in Potomac, Md., to meet with Abubakar just weeks before Mody gave Jefferson the money, according to legal documents filed by prosecutors. Abubakar was reportedly seeking as much $500,000 to help a company that Jefferson had a secret stake in win a lucrative Nigerian telecom contract.  A federal investigation of Jefferson’s activities revealed a wide-ranging corruption scheme, and following a lengthy legal fight, the Louisiana Democrat was convicted and sentenced to 13 years in prison, the harshest punishment ever handed out to an ex-lawmaker. Neither Douglas nor Abubakar has been charged with any wrongdoing.  However, the Senate investigation alleges that Douglas and Abubakar brought “over $40 million in suspect funds into the United States” from 2000 to 2008 — a prime example, according to investigators, of the ease with which so-called politically exposed persons, foreign officials and their family members, friends and business associates, can move money into U.S. financial institutions without explaining where the money came from.  The investigation also “substantiated” a $2 million-plus transfer from Siemens AG, a German electronics company, into a bank account controlled by Douglas. Siemens pleaded guilty in Dec. 2008 to violating the Foreign Corrupt Practices Act and paid $1.6 billion in civil and criminal penalties.  Sens. Carl Levin (D-Mich.) and Tom Coburn (R-Okla.), the chairman and ranking member of the Senate Permanent Subcommittee on Investigations of the Homeland Security and Governmental Affairs Committee, want Congress and the Obama administration to tighten restrictions on moving money into the U.S., and new report is designed to build support for such a move.  Jefferson’s lawyers unsuccessfully sought to depose Abubakar and Douglas, as well another Nigerian businessman, as witnesses for the Louisiana Democrat’s trial, but they refused to return to the United States to be deposed or testify in the case.  With tens of millions of dollars from shadowy offshore companies at her disposal, Douglas — Abubakar’s fourth wife — lived a lavish lifestyle in the U.S., according to the report. Her personal expenses sometimes ran to as high as $90,000 per month. Douglas also spent $14 million on the American University of Nigeria, a Western-style university Abubakar set up in northern Nigeria. The school was affiliated with American University in Washington, where Douglas, a naturalized U.S. citizen who was born in Nigeria, received a doctorate in international relations.  AU officials told Senate investigators that they never questioned where the funds came from because Douglas had hired a Washington lawyer with whom the school had a long relationship. AU was also under no legal obligation to determine the source of money.  The source of Abubakar’s fortune is unclear. He spent roughly 20 years as a Nigerian customs official, starting businesses on the side while still working for the government. He left the Nigerian customs office in 1989 and went into business. Abubakar told the BBC in 2007 that he had gotten wealthy “through wise investments, hard work and sheer luck of being at the right place at the right time.”  In 1999, Abubakar was elected vice president of Nigeria, a post he held for the next eight years. Abubakar created a blind trust to control his investments. Through a complicated series of moves, the blind trust was taken over by a shell company, which in 2003 started sending millions of dollars to U.S. banks for use by Douglas and an American attorney hired by the couple, Edward Weidenfield.  The Senate report notes that Abubakar’s name came up during the Jefferson trial, “but no evidence was introduced showing that Mr. Abubakar had actually sought or accepted a bribe from the Congressman. Mr. Abubakar asserted his innocence, and that his name had been invoked in the matter to ruin his reputation and prevent him from winning the presidency in Nigeria.”  Abubakar declined to be interviewed by Senate investigators.  Douglas now lives in the United Arab Emirates, serving as a professor of political science at the American University of Sharjah, according to the Levin-Coburn report. She too declined to be interviewed by panel investigators. Culled from Elombah.com

SSS ARRESTS 7 UNDERGRADUATE CULTISTS FOR RAPE

Seven students of one of the Colleges of Education in Kwara State have been apprehended by the State Security Service (SSS), on Friday for alleged abduction and rape of a female student. Williams Alogba, the state Director of the SSS, made this known to journalists in Ilorin while parading the suspects. He said that the female student summoned courage to report the case to the SSS, adding that investigation led to the arrest of a suspect, who later revealed the identity of the others. According to Alogba, “It would be recalled that precisely last month, we had a resurgence of cult activities in Kwara State. Two cult members were killed and one was beheaded. We were made to understand that the beheaded cult member was directed to hide the identity of that victim.” As a result of this development, Alogba said, the State Government had decided to clamp down on the activities of the cultists, and mandated the police and the SSS to monitor and curtail such activities. He continues: “Our efforts yielded fruit. We got information that a student of a College of Education was abducted and raped by two other colleagues… In the course of our investigation, one of the cultists was arrested. He named other people in the gang who were also arrested. In the course of our search, three cutlasses, assorted charms, locally made pistols and masks were recovered from the suspects.” He then appealed to the public to cooperate with security agents by exposing criminals elements.   Culled from NigeriaNewsDesk

EDO/DELTA: LINKED BY HISTORY, SEPARATED BY DEVELOPMENT

With a higher revenue base than that of Edo, Delta State has no reason to remain in its present state, while Edo is gradually becoming a haven.  Historically, Edo and Delta states, South-South Nigeria, were intertwined politically, economically and culturally before the military regime of Gen. Ibrahim Babangida separated the two states in 1991. With that singular action by the military, both states, hitherto known as Bendel State, were left to pursue their own separate destinies. In fact, the common ancestry of the two states had earlier been affirmed on May 27, 1967, when the then Lt.-Col. Yakubu Gowon divided Nigeria into 12 states. The present Edo and Delta states made up the Bendel State from the Midwestern Region. Twenty-one years after, it would seem that both states have found their paths. However, while Edo State appears to have a clear direction, Delta is still wobbly in terms of development. For many, the inability of Delta State to judiciously appropriate the huge resources accruing to it, its failure to plug all financial drain pipes in government and the civil service, and its apparent incapacity to significantly affect the lives of its people positively, have combined to stunt the progress of the oil-rich state. In terms of resources, especially financial, the two states do not seem to be on the same pedestal as most of the oil wells, and by extension oil revenue, fell into Delta’s territory during the creation of the two states. As opposed to Delta State’s 2012 budget as passed, which stands at N437.2bn with N180.8bn as recurrent expenditure, while capital vote is N256.3bn, Edo has a 2012 Appropriation Act of N150bn with a capital expenditure of N86.417bn and recurrent expenditure pegged at N64.548bn. The revenue and expenditure trend has been the same for both states for many years. However, a visit to both states would show a clear difference in terms of government’s conscious effort to revamp infrastructure and ensure sanity in governance. Against the backwardness, which the Peoples Democratic Party’s Lucky Igbinedion, ex-governor of Edo State, returned the state after what many critics have called the years of misrule (1999 and 2007), the state, especially Benin, now looks like a place where public utilities function; where there is sanity on the roads, where traffic lights work and are obeyed and where one can drive around without fear of a vehicle breakdown due to bad roads. Though the Action Congress of Nigeria-led government critics believe that the governor of the state, Adams Oshiomhole, has concentrated most of his projects in Benin City, the state capital, and Edo North, where he comes from, most residents of the state say it is a good starting point. Little wonder then that the people of the state defied all odds penultimate week and trooped out in their thousands to vote for progress and sustained development. Pundits believe that what is needed in Delta State is a committed leader, a peoples’ man, who will clear the seed of rot planted by the James Ibori Administration and watered by the current PDP government in the state. Interestingly, many Deltans still believe that demonised as Ibori and his administration might be, he started and completed many lofty projects in the state, many of which if they were built on, would have set the state on the path of growth and progress. But even more important is the thinking of the Edo people that the current government in place is owned by them as against the seeming alienation of the “leaders” from the led in Delta State. Just  taking  road infrastructure alone, a visit to Edo State would show that the government has completed the Gani Fawehinmi Layout comprising six roads, walkways and street lights; Oba Market Road and Stadium Road.  A few other projects, which are fast turning the once rustic city into a modern one, are the Sakponba Road, 2nd West Road, Akpakpava Road, Sapele Road (a dual-carriage way) and Airport Road (another dual-carriage way). These roads are complete with covered drains, walkways and street lights. Outside Benin, the Isua-Uzenema Road, it was learnt, has been completed with side drains; while the Igueben-Udo Road, Igueben-Ewohinmi-Ewatto-Ohordua Road; the Amedokhian-Ugboha Road; the Irrua-usugbenu-Ugbegun-Ujogba Road among many others, are all ongoing. But in contrast, as important as Warri is to the survival of Delta State, being the commercial capital of the state, it is like an abandoned city: chaotic, lawless, jungle-like, flooded, with deteriorating infrastructure littering the entire landscape. Ironically, a chunk of the state’s Internally-Generated Revenue, which has leapt from N1.2bn to N4.2bn this year, is spawned in Warri. The Delta State Government says its major focus is to pay less attention to oil as a form of revenue and give more consideration to tourism as a major revenue earner for the government, yet the state remains one of the most crime-prone states in the country with kidnappers and robbers having a field day. Even as small as Asaba, the state capital is, issues as basic as flooding and a functional waste disposal system are still a big challenge. The argument has always been that the state should concentrate on its areas of comparative advantage and discard its white elephants, which many believe currently dominate most of the purported projects in the state. One of those who believe in this line of thought is the Democratic Peoples Party chairman in the state, Chief Tony Ezeagwu. Ezeagwu believes that there is no basis for comparison between the two states. He said, “There is no way you can compare the two states because there is nothing to write home about for anybody visiting Delta. “It is like insulting the people of Edo State, given the amount of resources we have in Delta. In Edo, the tunnels are well laid out, while in Delta, the government is covering drainages that do not exist in the first place. “It will take a government after this one a lot of resources to excavate the ones the present government is covering because they are too shallow and cannot allow water through. That’s why we have so much flooding in Delta State.” However, the governor of Delta State, Dr. Emmanuel Uduaghan, who has received serious flaks for non-performance, believes he is “building for the future.” He says if more money is made available to the state, he will transform it. He admits that though he is aware of the expectations of the people of the state, his strategy for moving the state beyond its dependence on oil would not bear fruits in the short term, adding that future generations would look back and thank him. After five years as governor of the state and less than three years to go, Uduaghan adds, “The risk of a building phase of development is the pressure of managing high public expectation. The public demand on government to finalise project delivery before acceptable timeframe is enormous and sometimes unrealistic. I fear that is the burden we have to bear as we strive to bring desired transformation to our people. “I do not regret that we began this journey; I am rather pleased we had the confidence and willpower to even begin it at all. Future generations will, I am sure, look to this moment and salute our courage.” But the belief of most residents of the state is that only the living in the short term stand to benefit from projects meant for the long term, if they ever come to fruition. The governor, they say, can start by fixing a few of the dilapidated roads that have become a source of angst to residents, restore order to the chaotic life, especially in Warri, where everyone is law unto themselves, create a handful of jobs by revamping the dead publicly owned companies and tackle insecurity. He could also map out a functional strategy to deal with the mounting refuse in major parts of the state, confront the consistent flooding in the state and give the people some level of hope that the government is collectively theirs. This, it is believed is not rocket science. All he needs to do is to take a cue from the neighbouring Edo State.   by EMMANUEL ADDEH

PDP SHOULD TENDER APOLOGY TO NIGERIANS AND LET JUSTICE BE DONE

PRESS STATEMENT PDP SHOULD TENDER APOLOGY TO NIGERIANS AND LET JUSTICE BE DONE Rather than insulting the intelligence of Nigerians, the Peoples Democratic Party {PDP} should tender unreserved apology to Nigerians over the embarrassing, despicable and unconscionable handling of the Fuel Subsidy Financial Profile between 2006 and 2011. We also call on judges handling the Fuel Subsidy Scam to let justice be done. Conference of Nigerian Political Parties {CNPP} was outraged over the puerile statement and lame excuse emanating from the National Deputy Chairman of the PDP, Dr Sam Jaja to the effect that, ‘On the issue of some of PDP members in the Oil Subsidy Scam, these are individuals and everybody will bear his or her cross. PDP did not send anybody to go and misbehave.’ We regard the statement as crass insult to the intelligence of Nigerians; for a patriotic political party whose body and soul is polluted by conspiracy and conflict of interest could have hid its head in shame, show sense of remorse, reflect and tender unreserved apology to Nigerians who gave them the mandate to preside over their commonwealth, instead of lame excuse. The lame excuse shows that PDP cannot change. No matter how long PDP perches on its high horse, Nigerians cannot easily forget that the criminal looting and bazaar which took place in the Petroleum Support Fund {PSF} of the Petroleum Products Pricing Regulatory Agency {PPPRA} commenced with the appointment of its former chairman, Dr Ahmadu Ali as chairman of Petroleum Products Pricing Regulatory Agency. The subsidy scam recklessly rose from –N261 billion in December 2006 – to almost N3 trillion in December 2011. Dr Ali expanded the importers of petroleum products from less than 40 to over 140 importers. It became an all comers’ game with all manner of fronts and the minimum conditions like ownership of storage facility was discarded. Is not PDP and the then President, Chief Olusegun Obasanjo who sent Dr Ahamdu Ali to chair the PPPRA? It is on record that PDP led Federal Government of Nigeria first appointed Dr Ali as Ambassador to South Africa, and he vehemently rejected it, complaining that there is nothing there, then PDP without reference to his past posted him to convert the PSF into a slush fund. For converting the PSF of PPPRA into slush fund, PDP cannot absolve itself of conspiracy and conflict of interest in the Fuel Subsidy Scam. And for the children of leaders of PDP to be indicted by Presidential Committee on Verification and Reconciliation of Subsidy Payment PDP should start packing for 2015 elections. Moreso, when reports coming-in indicate that some of the stolen Fuel Subsidy Fund was used to fund the 2011 elections; we wait for the opening of the Ponderous Box as the trial unfolds. Finally, we urge the judiciary to be stead-fast, stand up and be counted in serving the course of justice in the trial of the Fuel Subsidy Scam; for the money fleeced off by members, supporters and affiliates of the PDP in the subsidy scam contributed to gross unemployment, dilapidated infrastructure and decay of social services. The stolen fund is more than enough to build two refineries of 500,000 barrels of oil per day. Osita Okechukwu National Publicity Secretary CNPP

SENATORS BACK REPS ON JONATHAN IMPEACHMENT PROCESS

There were indications at the weekend that some Senators are now backing members of the House of Representative on a plot to impeach President Goodluck Jonathan by September if there is no improvement in the 2012 budget’s implementation. It was reported in “The Nation” that the senators met with members of the lower chamber at the weekend in Abuja and giving a support on the impeachment process of the President. But, a presidential aide alleged that the House is angry because the executive rejected its demand for the execution of what was described as  some “bogus” constituency projects. The aide also accused Speaker Aminu Tambuwal of using the House as a platform for his supposed 2015 presidential project. It will be recalled that Last Thursday, the House threatened the president with impeachment over what it called “poor implementation” of the budget. It gave him up till September 30 to ensure “full implementation” of the fiscal policy or “we will start drafting articles of impeachment”. Sources said the senators joined forces with the representatives because both chambers (Senate and House) must work together on impeachment in line with constitutional provisions. According to Section 143 (1): The President or Vice-President may be removed from office in accordance with the provision of this section. (2): Whenever a notice of any allegation in writing signed by not less one-third of the members of the National Assembly: (a) is presented to the President of the Senate; (b) stating that the holder of the office of President or Vice-President is guilty of gross misconduct in the performance of the functions of his office, detailed particulars of which shall be specified. At plenary last Thursday, the House accused the president of “gross misconduct” for alleged poor implementation of the budget. A senator who spoke in confidence said: “Some of us have met with some members of the House of Representatives to tell them that we are in support of their action. “The battle is not that of the House alone, it is for the National Assembly. Let Mr. President take his time to gauge the feeling of all senators, he will know that they are not happy with his administration on the poor implementation of the budget. “As a chamber, the Senate has passed many resolutions too which the president has not implemented. We considered the reports on Bureau for Public Enterprises (BPE) and pension fraud but the government just kept quiet as if we are in the Senate as spectators. “I can tell you that there are sufficient grounds to initiate impeachment process against the President.” Another senator said: “The Presidency will be making a great mistake to bank on the Senate for reprieve if the House is adamant to actualise its impeachment threat. “On security ground alone, the impeachment proceedings will succeed. We are all tired of the high-level of insecurity in the country. “So, it is in the interest of the executive to implement the budget as directed by the House instead of glossing over last Thursday’s resolution of the House.” Yet another senator said: “We will use this recess to consolidate our plans on what to do if the President does not address the budget implementation target. “We all felt insulted that the president also recalled the Director-General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh, in spite of issues surrounding her tenure. “Nigerians should appreciate that even if the Senate maintains a parallel position, senators and representatives will eventually hold a joint session where votes will count equally. With the numerical strength of the House, any motion can sail through at the joint sitting.” A high-ranking member of the House said the overwhelming support for the ultimatum given to the President should be a signal that there is a communication gap between the executive and the House. “Not even members of the House from the Southsouth could rally round the executive. That has confirmed that we all saw the Nigerian Project beyond ethnicity. It also showed the waning influence of the President in the National Assembly. “As a matter of fact, the motion on the budget was drafted by a member of the House from the Southsouth. The member was determined to move the motion openly but for tactical reasons, the House leadership decided otherwise. The country is not moving forward, we are unhappy. “We have opened up talks with some senators on the way forward. I think constitutionally, we can find a solution to the challenges at hand in the country. We have our game plan.” “Some senators and House members are also meeting in the United Kingdom and United States during the vacation on this game plan.” Culled from the Daily Post

 NATURAL RESOURCES ACCOUNT TURNED TO SLUSH FUND: HOW FG MISUSED N143B IN 8 MONTHS An account meant to save for natural resources development appears to have been turned into a slush fund by successive Presidents including President Jonathan, who approved periodic withdrawals of billions for sundry expenditures, according to documents obtained by Daily Trust. The account, called the Development of Natural Resources Account, was set up through an executive order in 2002 to develop alternative mineral resources to lessen the nation’s dependence on petroleum. But government records show that since its establishment, funds in the account have hardly been used to achieve this purpose. Instead, the Federal Government has been drawing the monies to pay for items that should have been budgetted for—like monetisation arrears for PHCN staff and fertiliser procurement contracts. Since 2004, government withdrew a total of N701 billion for purposes other than development of natural resources. President Goodluck Jonathan’s administration alone made withdrawals of N142.63 billion in eight months, beginning weeks after when he assumed office as acting President in February 2010, documents from the Office of the Accountant General of the Federation show. From March to October 2010, the Jonathan administration drew sums from the account for payment of monetisation arrears for staff of the Power Holding Company of Nigeria (N57.59 billion), loan to Consolidated Revenue Fund to accelerate capital budgets releases (N70 billion), funding of fertilizer revolving account (N10.7 billion) and withdrawals to fund reversal of excess crude distribution (N4.3 billion). Although the withdrawals are called loans, there is no evidence to show that any of these loans have been defrayed. The revenue sharing laws provide that 3 percent of funds accruing to the Federation Account should be remitted to the natural resources account. The account was set up after then-President Obasanjo issued an executive order to make the revenue sharing formula conform with the Supreme Court ruling of 2002. “This fund is supposed to be accessed by all tiers of government and it is to be channelled towards the development of natural resources aimed at diversifying our revenue base outside the oil and gas,” chairman of the Revenue Mobilisation, Allocation and Fiscal Commission Elias Mbam told Daily Trust. But President Obasanjo himself approved periodic withdrawals from the account to the tune of N270 billion between October 2004 and May 2007 for sundry expenditure that had nothing to do with natural resources development. In two days alone, just two weeks before Obasanjo left office, his government withdrew N179 billion on May 7 and May 15, 2007 for national identity card project, purchase of chancery in Tokyo, budget financing and NHIS payments among others. Early this month, at a Senate committee hearing, Permanent Secretary of the Ministry of Finance Mr. Danladi Kifasi said a total of N873.4 billion had accrued into the natural resources account over the years but it was depleted by N701.48 billion. “The cumulative balance in the account as at June 30, 2012 is N171.9 billion,” he said, adding all “releases from the fund are based on approvals from Mr. President. In some instances, the Federal Government do borrow from the fund and which is promptly paid back.” A slush fund for the President Speaking with Daily Trust in Abuja, RMAFC chairman Mbam said one of the problems about the account is that there is no specific government office managing it. “Somebody who doesn’t know the details would assume it is a Federal Government fund, it is not. It is a federation fund which is held in trust by the Federal Government,” he said. “Unfortunately, there is no administrative structure that I know for the management of the fund like we have for the Ecological Fund, and so the President, being the head of the federation can use his discretionary approval on allocating this fund on demand after all the necessary verification and confirmation have been done and it is supposed to be utilized in that direction— that is the development of natural resources,” Mbam added. Apparently because of lack of administrative structure to manage the funds, drawing from the natural resources account appears to be a past time for successive Presidents. President Umaru Yar’adua also made withdrawals from the account, making four approvals even at a time when illness was taking its toll on him. Yar’adua approved four payments between June and October 2009 totaling N173 billion for the funding of 2009 supplementary budget (N50 billion), loan to settle liabilities of 2009 season fertilizer supplies (N27.8 billion), and N95 billion and N1 billion for the 2009 agric and food security programmes. His administration earlier withdrew N10 billion for payment of arrears of monetisation of parastatals (October-December 2005) in August 2007, and then N1.9 billion for “release to IDP & ACGSF” in October 2007. Also, N21.8 billion was drawn on December 24, 2008 as “loan approved by Mr. President to offset outstanding liabilities of ’08 season fertilizer supplies and to repaid back all affected states in four installments starting Jan ’09.” How the monies are drawn Mbam explained how the fund is accessed thus: “Sometimes what happens is that the states passed their request to the commission here, the commission inspects and then analyse the project they want to do so that it is conforms with what the fund is meant to do and then recommend to the president. So the greatest handicap is that there is no administrative structure to manage that fund.” But he couldn’t say if any state has ever accessed the fund. “Since I came in here, we have received some applications but I can’t remember any state that has accessed it since I came in. We have processed like about five, six states. We have processed Zamfara, FCT, Plateau, Taraba and Adamawa. We are also processing now Imo, Kogi and Abia states. Those are the ones we have already processed,” Mbam said. The probe instituted by the Senate public accounts committee is on going, and Accountant General of the Federation Jonah Otunla has been asked to appear before the panel to explain the withdrawals from the natural resources funds. Culled from Daily Trust

NIGERIA POLICE RELEASE DEDICATED EMAIL ADDRESS FOR WHISTLE-BLOWING, CRIME REPORTING The Force say established cases of deliberate falsehood or intentional misrepresentation of facts may attract reprimand and in extreme cases, outright prosecution in courts of law. The Nigeria Police have released a dedicated email address through which citizens could report crimes and police conducts directly to the office of Inspector General Mohammed Abubakar. The release of the address, policemonitor@npf.gov.ng, came few weeks after Mr. Abubakar made his telephone number (08059666666) public, although some people who tried to reach him said the number had consistently failed to connect. In a statement, Force Public Relations Officer, Frank Mba, said the new address is part of efforts by the leadership of the Force “to promote access to justice, transparency and accountability in matters relating to policing and general crime fighting”. He assured users of the e-mail that information provided through the medium would be treated with almost confidentially and the anonymity of their providers respected. Mr. Mba said the address should be used only under the following circumstances. - When providing information on the activities of criminal groups, terror gangs or other forms of organized crimes such as armed robbery, kidnapping, human trafficking, advanced fee fraud, arms trafficking etc. - To report cases of breach of public peace or imminent breach of public peace. - When providing information relating to ongoing criminal investigations by the Police and other law enforcement agencies,also when reporting the conduct of Police personnel or the conduct of personnel of other law enforcement agents involved in corrupt and other forms of unlawful acts. - In commending  members of the Force for acts of gallantry or other forms of exemplary or exceptional conduct displayed in the course of their duties, - In reporting cases or incidents of electoral offences or other matters related thereto advising or commenting on matters relating to national security especially when such matters have direct bearing with the activities of the Nigeria Police.”  The statement urged potential users of the email to ensure the integrity of their information and make conscious efforts to avoid providing false, malicious or deliberately misleading information to the Force. It also warned users to be ”guided by the higher virtue of patriotism, selflessness and ultimate service to the community, taking steps to ensure that they act in good faith at all times. Mr. Mba warned “that established cases of deliberate falsehood or intentional misrepresentation of facts may attract reprimand and in extreme cases, outright prosecution in courts of law.” “It is the belief of the IGP that the effective use of the new email address will help in checkmating excesses of law enforcement personnel, encourage free flow of information between the public and police managers, and ultimately promote efficiency and better service delivery,” he added. The statement urged the public to take advantage of the new communication channel in exposing the ills of the society and partnering with the Police to tackle them.