Trending Story

Fashola Blasts Senate, House Spokespersons For Wilful Ignorance on 2017 Budget

325

Minister of Power, Works and Housing Babatunde Fashola Monday said the National Assembly’s response to his observation on the 2017 Budget failed to address the fundamental points about development-hindering cuts in the allocations to several vital projects of the Ministry of Power, Works and Housing, as well as those of other ministries.

Fashola in a recent interview had disagreed with the practice where the legislative arm of government unilaterally alters the budget after putting members of the executive through budget defence sessions and committee hearings to the extent that some of the projects proposed would have become materially altered.

The minister had observed that it amounted to a waste of taxpayers’ money and an unnecessary distortion of orderly planning and development for lawmakers to unilaterally insert items not under the exclusive or concurrent lists of the constitution like boreholes and streetlights after putting government Ministries, Departments and Agencies through the process of budget defence.

With specific regard to the Ministry of Power, Works and Housing, Fashola listed the Lagos-Ibadan Expressway, the Bodo-Bonny road, the Kano-Maiduguri road, the Second Niger Bridge and the long-drawn Mambilla hydropower project, among others, as projects that the National Assembly materially altered their allocations in favour of boreholes and primary health care centres, which were never discussed during the ministerial budget defence.

In their responses, the Chairman, Senate Committee on Media and Public Affairs, Senator Abdullahi Usman; and the House of Representatives spokesperson, Abdulrazak Namdas, accused the minister of spreading half-truths and making fallacious statements.

They argued that Fashola should have known that the National Assembly only interfered with projects that had concession agreements and private sector funding components.

They also accused the minister of wanting to hold on to such projects in order that he would continue to award contracts.

However, while dismissing the allegations, Fashola said it was sad that the lawmakers would resort to name-calling without understanding the facts of what they were getting into.

Taking the projects, which the lawmakers chose to focus individually, the minister insisted that there was no subsisting concession agreement on the Lagos-Ibadan Expressway.

He noted that what the Infrastructure Concession Regulatory Commission had as a financing agreement from a consortium of banks was like a loan that would have to be paid back through budgetary provisions.

According to him, there was no fallacy or half-truth in the allegation that the allocation to the road was reduced, adding that the lawmakers admitted this and sought to rationalise it by a concession or financing arrangement that had failed to build the road since 2006.

The biggest momentum seen on the road was in 2016, the minister said.

In the case of the Second Niger Bridge, where one of the spokespersons of the National Assembly alleged that the fund provided in the 2016 budget was not spent and had to be returned, Fashola explained that this showed very stark and worrisome gaps in the knowledge of the spokesperson about the budget process he was addressing.

According to him, a budget is not cash, but an approval of estimates of expenditure to be financed by cash by the Ministry of Finance.

“The Ministry of Finance has not yet released any cash for the Second Niger Bridge, so no money was returned,” he stated.

He added that three phases of early works of piling and foundation were approved and financed by the previous government in the hope that a concession would finally be made, but this had yet to happen because the concessionaires had not been able to raise finance.

“The continuation of early works IV could not start in May 2016 when the budget was passed because of high water level in the River Niger in the rainy season. The contract was only approved by the Federal Executive Council in the first quarter of 2017 and the contractor is awaiting payment.”

Dismissing the allegation that his ministry was holding on to projects that could be funded through Public Private Partnership so that he could award contracts, Fashola said from day one of his assumption of office, he made it clear that his priority would be to finish as many of the several hundreds of projects that the ministry inherited, which had not been funded for close to three years.

He said if the spokesperson was in tune with the Public Procurement Law, he would realise that the minister had no unilateral power to award such contracts whose values run into billions of naira.

He observed that all the new projects presented to the Federal Executive Council for approval were either federal roads requested by state governments or those put in the budget by the legislators to service their constituencies.

Fashola said the focus on contracts by the spokesperson was probably a Freudian slip that revealed his mind-set and interests, when indeed he should be focused on developmental projects that would strengthen the economy.

On the N20bn provision in the ministry’s budget, which the lawmakers alleged that the minister failed to provide the details, Fashola said the spokesperson was hiding behind a finger.

He said it was a very basic principle of good planning to make provisions for unforeseen contingencies, adding that in the 2016 budget, a similar provision enabled the ministry to respond to the failures of the Tamburawa Bridge in Sokoto, the Ijora Bridge in Lagos and the Gada Hudu Bridge in Koto Karfe along the Abuja-Lokoja Expressway.

 

Leave a comment

Related Articles

Emirship crisis: Kano govt. allocates N99.9m for Nassarawa mini-palace renovation

In response to the court’s order reinstating him, the Kano State Government...

Nigeria’s foreign exchange reserves up by 5 percent to $33.58bln

Nigeria’s foreign exchange (FX) reserves have increased by five percent in the...

Billionaire philanthropist Tony Elumelu mulls buying NPFL team

As part of his corporate social responsibility, billionaire banker and philanthropist Tony...

Terry G speaks on Davido, Wizkid, and Burna Boy rivalries, faces backlash from fans

Nigerian music sensation Terry G, also known as the Apako master, has...

Dani Alves pays €1m bail, set to leave Spanish jail

Former Brazil and Barcelona star Dani Alves, convicted of rape in Spain,...

World TB Day: 70 percent of TB cases in Africa now being diagnosed and treated – WHO

The World Health Organization (WHO) has disclosed that about 70 percent of...

13th AAG: Tobi Amusan wins gold in women’s 100m hurdles

The Nigerian sprint star, Tobi Amusan, won gold in the women’s 100m...

FG approves N12.7bln for mass metering of army barracks nationwide

The Federal Government says it has released N12.7 billion to provide electricity...

Women’s Day: Tinubu felicitates women, vows to prioritise their welfare, rights

President Bola Tinubu has promised to prioritize the welfare of women, protect...

All African Games: Nigeria’s Flying Eagles start their campaign on a losing note

The Flying Eagles of Nigeria started their campaign in the men’s football...

EFCC sets up task force to combat dollarization of economy, mutilation of naira

The Economic and Financial Crimes Commission (EFCC) has announced the setting up...

How Bafarawa diverted N4.6bln from ex-NSA for prayers, election, acquire luxury vehicles

A startling revelation has been made about how a former governor of...

CBN redeploys 1,500 staff to Lagos

The Central Bank of Nigeria (CBN) says it has redeployed 1,500 staff...

AFCON: Pres. Tinubu says unimpressed with Super Eagles’ performance

President Bola Tinubu has expressed his displeasure over the performance of the...

I’ve not met a man kind enough to marry —Ini Edo

In a candid revelation, renowned actress, Ini Edo, has hinted about the...

Ogun CP visits shot Nollywood actor, Ijaduade, vows to punish trigger-happy cop

Nollywood actor and Director, Azeez Ijaduade, who was shot “accidentally” by a...

Breaking: Actor, Azeez Ijaduade, allegedly shot by policeman in Ogun

In a shocking incident that has sent shock waves to Yoruba section...

Fast and furious actor, Vin Diesel, accused of sexual assault

Vin Diesel, known for his role in the Fast & Furious Series,...

Anyone asking for money this festive season lacks conscience, fear God – Comedian AY

Amid Nigeria’s challenging economic downturn, renowned comedian, Ayo Makun, popularly known as...

Octogenarian actor, Dejumo Lewis, dies

Nollywood community was on Friday night thrown into grief as the news...