Anti-Corruption Agenda for the Federal Republic of Nigeria
P. O. Box 1171
Fairfield, CT 06432
Dear Readers,
Movement for New Nigeria (MNN) has the pleasure of introducing to you the MNN Anti-Corruption Agenda for the Federal Republic of Nigeria. The agenda is aimed at providing a practical and concrete guide to the resolution of the corruption problem in the country.
Please note that MNN is not a political party. We are a group of Nigerians from within and from all over the world, who are concerned about the numerous problems facing the country. We are concerned that CORRUPTION has become a toga by which the Federal Republic of Nigeria and her citizens are globally identified. The present Nigeria government has recognised the problem and has championed the enactment of The Corrupt Practices And Other Related Offences Act 2000.
We, the members of Movement for New Nigeria (MNN), believe that laws alone, no matter their nature, will not solve the corruption problems without first identifying the fundamental causes and devising the means, methods, and systems for effectively tackling the problem. In this regard, we propose the following anti-corruption agenda to:
a) Identify the cause(s) of corruption in Nigeria and amongst Nigerians
b) Devise means to eliminate or minimise corruption in Nigeria.
It is hoped that this document will serve as a useful guide to the Federal Government of Nigeria, the State/Regional and local governments, and to all Nigerians now or in the future for eradicating the problem of corruption that has ravaged and still ravaging Nigeria, its peoples, and institutions.
We recommend the document to you for publication at your web pages and we also request that you challenge every other Nigerian you know, by making the agenda available to them. You may direct any queries you might have about any issues raised in the document to any of the listed signatories to the agenda.
May God bless you and bless Nigeria.
Yours sincerely
Francis Nnamdi Elekwachi-Mpuomigbo
Sgd.
For and on behalf of MOVEMENT FOR NEW NIGERIA [MNN]
The Movement for New Nigeria (MNN) Anti-Corruption Agenda for The Federal Republic of Nigeria
Executive Summary
Objectives
The purpose of this Anti-Corruption Agenda is to:
a) Identify the cause(s) of corruption in Nigeria and amongst Nigerians
b) Identify the socio-cultural, economic, and political effects of corruption on Nigeria and Nigerians, and
c) Devise means to eliminate or minimise corruption in Nigeria.
Methodology
Each contributor to this project conducted independent research on corruption in Nigeria, drawing from information available in the media, their own personal experiences, and first-hand accounts by other Nigerians of the types and nature of corruption that are prevalent in Nigeria. Some contributors used statistical and computer models, and interviewed Nigerians including politicians, business men and women, law enforcement agents, civil servants, students, market women, the unemployed, and peasants to draw conclusions.
Contributors understudied and investigated the current anti-corruption systems and measures in Nigeria, including the current state of existing logistics and support infrastructure. They also understudied and investigated anti-corruption measures and systems used in most Western countries, in particular Australia, USA and in nations of the European Community.
The scope of the Agenda, causes, effects and means of eliminating or minimising corruption in Nigeria were identified through brainstorming by the contributors. Each item so identified was debated amongst contributors until either a unanimous or consensus position was arrived at and documented.
Emphasis was placed in adapting any solutions to Nigerian conditions.
All Contributors are Nigerians resident in many parts of the world including in Nigeria.
Conclusions
Causes of Corruption in Nigeria
The following were identified as the causes of corruption in Nigeria:
* A fundamentally flawed structure of the Nigeria Republic
* The absence of functioning government systems in the Federation
* Federal Government monopoly of the economy, over concentration of resources at the centre, and a culture of unregulated informal economy
* Excessive Federal involvement in corporate business enterprises
* Inefficient contract awards standards and procedures
* Inadequate enforcement of existing laws, absence of the rule of law, and a culture of offering preferential treatment to certain individuals
* Nepotism and tribalism in the administration of justice, running of government, and conduct of businesses
* Reckless expenditure of public funds, including unnecessary foreign trips by public officials
* Inadequate regulation of access to public funds by public officers
* Inadequate accountability mechanisms in government, politics, and public life
* Political instability and frequent Military intervention in government
* Inadequate and inefficient means of verifying the personal integrity of those appointed into public offices
* Ineffective and inefficient Police force and Police structure
* Absence of civic education and civic responsibility in the populace
* High levels of poverty, unemployment and under-remuneration
* Massive tax evasion by citizens and businesses
* Non or late payment of contractors by the Government
Effects of Corruption on Nigeria
The effects of corruption on Nigeria and Nigerians range in economic, political, and socio-cultural spheres.
The economic effects include the following:
* The breakdown and liquidation of Government Business Enterprises
* The breakdown of National Infrastructure and National Psyche
* Devaluation of the National Currency
* It discourages foreign Investment in the country and causes high levels of capital flight from the economy
* Drop in Gross Domestic Product (GDP)
* Ineffective Government and Economy
The socio-cultural and political effects include the following:
* Mass poverty in the Nigerian populace
* Workers' remuneration is reduced to less than "Slave Wages"
* Economic and political re-colonisation and enslavement of the nation and its citizens
* Political instability and breakdown in law and order
* Brain drain
Recommendations
This Anti-Corruption Agenda recommends the following:
1. The Federal Government should continue to implement economic reforms in the form of divestiture of its interests in and privatisation of Government Business Enterprises. Privatisation should include targeted measures that ensure mass participation of the population in the economy.
2. All arms of the Government should support constitutional reform to restructure the Nigerian federation so as to decentralise power and resources control to the component units of the federation to the extent necessary to ensure true federalism.
3. Governments (Federal and States), should implement Total Government Systems (TGS), which incorporate citizen registration systems, death and births registration, property registers, business registers, taxation registers and various other integrated sub-systems and registers that will ensure effective "checks and balances" in, and monitoring of the creation, acquisition, distribution and redistribution of wealth in the Nigerian economy.
4. The implementation of the "TGS" and other anti-corruption measures should be focused at the local levels of government - Wards/Streets, then Council, then State and finally Federal. The backbone of the program is at the lowest level of government where citizens know each other.
5. Government divestiture from power and communication sectors will make them efficient logistics needed to support to create and operate the "TGS" and other anti-corruption measures. The Government should invest in the reactivation and maintenance of other national infrastructure like roads, rail roads, and transportation necessary to support the economy and TGS.
6. An act of the National Assembly that will enable investigation of a sitting Government or past Governments in any allegations of financial impropriety or mismanagement is required. There should be no statute of limitation for investigating past governments and officials after the governments and individuals vacate offices.
7. An act of the National Assembly that will establish and fund an autonomous Economic Crime Court (ECC) with the power to gather intelligence information on the economy and investigate suspected fraud is required. The body should also be given the power to prosecute suspects.
8. An act of the National Assembly that will establish and fund the office of the Inspector General of Public Works (IGW) with the responsibility to perform oversight functions on government contracts and to recommend offenders to the office of the Attorney General for prosecution is required.
9. The Federal Government should amend the tax laws to enable the implementation of a "National Taxation Register" and "Compulsory Yearly Tax Returns" for all adult citizens, irrespective of their income. Such compulsory tax returns should include a declaration of a citizen's assets and income earned from all sources without exception, including interests earned from banks, inheritance and bequests and earnings from overseas etc.
10. Governments (Federal and States) should reform the Nigerian Police Force by allowing each State to create a State Police Force, including the introduction of the "neighbourhood police principles" and the abolition of the "barracks system".
11. New anti-money laundering laws should be implemented to check huge cash transactions and limit/outlaw the hoarding of cash to certain amounts and dealing in cash transactions to certain amounts, except where such cash had been withdrawn from a financial institution.
12. The Federal Government should set guidelines that encourages the use of credit systems and credit cards transactions.
13. Anti-corruption conventions should be implemented to guide the conduct of public officers or persons intending to become public officers. These should be in addition to the existing code of conduct requirements.
14. A national wage structure should be implemented to properly remunerate all wage earners according to their levels, and make Nigerians competitive in the global economy. Government should ensure that fair and adequate remuneration for work done is paid to all public and private employees in Nigeria. Such wages should and must be comparable to equivalent wages for similar work as is obtainable in other countries. To boost productivity, hourly wages should be paid to middle and lower level manpower, and weekly salaries to all grades of workers except top management and CEOs who should paid monthly wages.
15. Government should implement civic education at the primary and secondary school levels, which include a targeted focus on anti-corruption. Public enlightenment may also be undertaken.
16. With the exception of technical training and emergency travels, foreign trips by government officials using public (tax payer's) money should be suspended until the economy improves or an effective anti-corruption system such as TGS is implemented. Also, a moratorium on foreign loans by Federal and State/Regional governments is recommended until an effective accountability system is assured.
17. The National Assembly should enact law that grants the Central Bank of Nigeria true autonomy that will allow the apex bank to perform true economic and monetary functions, and be immune from political interference.
18. The President, elected officials, appointed officials, and civil servants should not be entitled to any special allowances or incentives besides their salaries. However, their salaries should be reviewed as recommended in item 14 above. Government (Federal or State/Region) should not pay furniture allowances directly to public officials, legislators or civil servants.
19. Renting or leasing of real estate property by government for business or otherwise should be discouraged. Government should not be in the business of providing accommodation for public employees, except for very high level appointments and positions, where accommodation becomes part of the negotiated wages.
20. Estacodes or inconveniences allowances to government officials travelling abroad should be abolished. The government wastes or loses billions of Naira yearly on estacode. Estacode is inherently corrupt and fraudulent.
21. An act of the National Assembly should make the Judiciary more independent of the Government. Supreme Court Judges should be appointed to serve for life and should only vacate through resignation, retirement, impairment, impeachment, or death. The President shall have no powers to remove a Supreme Court Justice.
22. Citizens with information leading to the arrest and successful prosecution of corrupt persons should be encouraged to contact the appropriate authorities. Financial incentives may be given in cases of very serious crime and where police efforts appear to have reached or are reaching a dead end. Witness protection programmes should be established by the Federal and State/Regional governments to protect witnesses from any reprisal from any convicted/corrupt powerful Nigerians. The protection may take the form of resettling a witness and his/her family in any safe part of Nigeria or the world.
23. Treasury looters in previous governments should be encouraged to embrace a time-limited amnesty programme offered by an Act of the National Assembly to return looted public funds. Suspected looters should be investigated and prosecuted by current or future governments after the amnesty period has lapsed.
24. The use of plea bargain as contained in the criminal justice system should be re-emphasised and applied where necessary.
25. The Government should expanding the powers of the Economic Crime Court to cover intelligence services in the ministries to counter growing incidents of fraud in the ministries. The Permanent Secretaries should be political appointees and the word "Permanent" should be dropped from the title.
26. The Audit General should perform yearly audits of the Presidency, the National Assembly, all ministries, all government Parastatals, institutions, and establishment and independently publish the audit results.
27. An act of the National Assembly that will make it possible to prosecute any Nigerian who changes the Federal government unconstitutionally is required. The bill should provide for coup plotters to be tried anywhere in the world whenever a legitimate government returns.
28. Any public officer, including the President or Head of Government at any level, who has been indicted by a court of law or tribunal as having a case to answer, or whom either the Director of Public Prosecution/Attorney-General or the Police or any arm of the security agencies has investigated and decided to prosecute for any form of corruption, including conflict of interest, must as a CONVENTION, temporarily stand aside from their position or public office, pending the determination of their case by the appropriate court or tribunal.
29. Huge sums of money could be generated if laws are strictly enforced and offenders are adequately punished through fines. Various aspects of the Total Government System (TGS) will also generate revenue by making tax evasion difficult, creating new taxes, and maximising tax collection.
30. All the States/Regions/Federating units should adapt the recommendations in this agenda.
Detailed Report
For further details of the issues canvassed in this Executive Summary, please see the detailed report, which totals 41 pages. The content page may be used to access specific aspects of the Anti-Corruption Agenda.
Contents
Preamble *
1. Introduction *
2. Causes Corruption in Nigeria *
3. Effects of Corruption on Nigeria *
3.1 Economic *
3.1.1 Breakdown and Liquidation of Government Business Enterprises *
3.1.2 Breakdown of National Infrastructure/ Psyche *
3.1.5 Causes High Level of Capital Flight From the Economy *
3.1.6 Drop in Gross Domestic Product (GDP) *
3.1.7 Government and the Economy Ceases to Function Effectively *
3.2.1 Mass Poverty in the Nigerian Populace *
3.2.2 Workers Earn Less than "Slave Wages" *
3.2.3 Economic and Political Re-Colonisation and Enslavement *
3.2.4 Breakdown in Law and Order *
3.2.5 Political Instability *
3.3 General/Other *
3.1.1 Brain Drain *
4. Genuinely Fighting Corruption in Nigeria *
4.1 Economic Reform *
4.1.2 Government Divestiture, a Necessary Fight Against Corruption *
4.1.3 Government Divestiture, Necessary Catalyst for Economic Growth *
4.1.4 Grassroots Economic Participation Fights Corruption *
4.1.5 Provision of Standards, guidelines, Law, and Safety *
4.1.6 Economic Crime Court *
4.2 The Flawed Structure of the Republic *
4.3 Contract Awards *
4.3.1 Who Should Award Contracts *
4.3.2 Mobilisation Fees *
4.3.3 Defective and Substandard Projects *
4.3.4 Contract Award at State/Regional Level *
4.3.5 Local Government/Province Level *
4.4 Investigating and Prosecuting Corruption *
4.4.1 Statute of Limitation *
4.4.2 Economic Crime Court (ECC) *
4.4 Tax Collection *
4.4.1 Real Estate Taxation *
4.4.2 Real Estate Property Rental *
4.5 Government Ministries *
4.5.1 Economic Crime Court (ECC) in the Ministries *
4.5.2 Appointing and Confirming Ministers *
4.5.3 Auditing Ministries *
4.5.4 Make the of Permanent Secretary Position Political *
4.5.5 Investigate Minister's Tenure *
4.6.1 National Identification Number-System *
4.6.2 Other Sub-Systems *
4.7 Police Reform *
4.7.1 The New Structure *
4.7.2 Neighbourhood Policing *
4.7.3 Abolish the "Barracks System" *
4.8 Implementation of Anti-corruption Conventions *
4.8.1 Private Business While in Public Office *
4.8.2 Indicted Persons *
4.8.3 No Exception to the Rule *
4.9 Civic Literacy *
4.9.1 Public Awareness Campaign *
4.9.2 School Curriculum *
4.10 Fair and Adequate Remuneration for Work Done *
4.11 Implementation of Anti-Money Laundering Laws *
4.11.1 Anti-Money Laundering Law *
4.11.2 Huge Cash Withdrawal and Deposits *
4.11.3 Real Estate Purchase Or Transaction *
4.11.4 Cash Hoarding *
4.12 Implementation of Compulsory National Taxation and Yearly Tax Returns for All Adult Citizens *
4.12.1 Tax Payment *
4.12.2 Yearly Tax Returns *
4.12.3 Tax Records Archive *
4.12.4 Tax Alarm Systems *
4.13 Foreign Trips by Government Officials *
4.15 Obtaining Foreign Loans *
4.16 Central Bank Control *
4.18 Wages and Allowances *
4.18.1 The Executive *
4.18.2 Elected and Appointed Political Offices *
4.18.3 Civil Service *
4.18.4 Furniture Allowances *
4.18.5 Property Rental or Lease by Government *
4.18.6 Other Allowances *
4.18.7 Estacodes *
4.19 The Judiciary *
4.20 Auditing Government Accounts *
4.21 Decentralisation of Power and Resources *
5. Law Enforcement *
5.1 The Police and Other Law Enforcement Officers *
5.1 Police Reorganisation *
6.1 Citizen's Incentives *
6.2 Witness Protection Programmes *
6.3 Amnesty for Past Looters *
6.4 Plea Bargain *
6.5 Sources of Income *
7. Implementing Our Proposal *
7.1 Law Enforcement *
7.2 Typical examples of Implementation of the Anti-Corruption System *
Preamble
CORRUPTION has become a toga by which the Federal Republic of Nigeria and her citizens are globally identified. In Nigeria, corruption is having devastating consequences on our families, friends, morality, communities, public services, private services, public institutions, democracy, the economy, and our country. Internationally, it has earned the country disgrace and shame as Nigerians, irrespective of their positions and personal achievements, are often classified as crooks. The present Nigeria government has recognised the problem and has championed the enactment of The Corrupt Practices And Other Related Offences Act 2000.
We, the members of Movement for New Nigeria (MNN), believe that laws alone, no matter their nature, will not solve the corruption problems without first identifying the fundamental causes and devising the means, methods, and systems for effectively tackling the problem. In this regard, we propose the following anti-corruption agenda to:
a) Identify the cause(s) of corruption in Nigeria and amongst Nigerians
b) Devise means to eliminate or minimise corruption in Nigeria.
It is hoped that this document will serve as a useful guide to the Federal Government of Nigeria, the State/Regional and local governments, and to all Nigerians now or in the future for eradicating the problem of corruption that has ravaged and still ravaging Nigeria, its peoples, and institutions.
Note: The terms "State", "Region", "Federating Unit" mean one and the same thing. The terms are used interchangeably in this document.
1. Introduction
The unprecedented level of CORRUPTION in Nigeria is a national disgrace and shame. It has now brought into question the norms and standards of our country and our people. The standard and acceptable norms ought to be:
Personal Integrity – to let the image that we project in all our actions and in our dealings with others be of such paramount consideration that even a perception of wrong-doing should be anathema
Family – to strive to be good family men and women at all times, because the family is the cradle for the foundation of our every good manifestation
Community – consistently wanting to be proud members of our individual communities and giving and seeking support and succour from them in ways that are both constructive and responsible; seeking to offer our talents in helping to build and not to destroy our communities; accepting that when a tiny part of the whole is bad the rest will rot as a natural consequence.
Public Institutions – holding these as earthly temples in which only that which is right, proper and therefore moral can take place, and approaching our responsibility to them with the fervour of intense worship
Public Service – accepting it as the highest privileged calling, and therefore, always acting in ways that express our gratitude for the honour of the call and not expecting more reward than the gratitude of a satisfied community
Commitment to Democracy and The Rule of Law – to let our unflinching loyalty be to the constitution and the institutions established by it, for the sanctity of this determines the overall health of the state; permitting no one to be above the Laws of the land
Country – to let the country of our dream be one in which the small communities have as much stake in the integrity of its structure as the larger communities; where patriotism, pride, fairness, progress and prosperity for all should be our watch-word
Where the above and perhaps many more are lacking, there would be corruption and decadence.
2. Causes Corruption in Nigeria
* The fundamentally flawed structure of the Nigeria Republic and the lack of a working system in the Federation * Federal government monopoly of the economy and over concentration of resources at the centre * Government involvement in corporate enterprises * Lack of accountability in government, ministries, and politicians * Poor contract award standards and procedures * Lack of prosecution and punishment when crimes are committed by "important" persons offers no deterrent to would-be fraudsters and criminals; if the "big" man or woman can be tried and punished, little men and women would think twice before committing crimes * Lack of respect for law by "important" Nigerians makes a mockery of the laws of the land and therefore encourages lawlessness and corruption * Nepotism in administration of justice and businesses * Disrespect for the Judiciary by certain "VIPs" – a clear mockery of the constitution and the Nigeria state; the Judiciary should be supreme and all persons no matter their positions must respect the courts * Unnecessary foreign trips by public officials * Ability to loot public funds and get away with it – this makes more Nigerians and repeat offenders commit more fraud * Political instability and Military interruptions – changing governments illegally breeds corruption and should be outlawed * Lack of integrity in those entrusted with high public offices * Ineffective and inefficient police force and police structure * Absence of civic responsibility in the populace; Civics and citizen education is non-existent; an aware citizen is difficult to manipulate and cheat * High levels of poverty, unemployment and under-remuneration or "slave wages" * Massive tax evasion and living tax-free tax * Non or late payment of wages to public employees * Non or late payment of contractors by the government
All of the above conditions and many more severally and collectively breed and nurture mismanagement, tribalism, nepotism, favouritism, ethnicity, injustice, kick-backs, ineptitude, embezzlement, and corruption
3. Effects of Corruption on Nigeria
3.1 Economic
3.1.1 Breakdown and Liquidation of Government Business Enterprises
Corruption results in the breakdown and liquidation of Government Business Enterprises. Typical examples in the case of Nigeria are NEPA, NIPOST, NITEL, NAFCON, Nigeria Airways, all the Petroleum Refineries, all the Paper Mills, Ajaokuta Steel Complex, all the Steel Rolling Mills, and virtually every enterprise or Statutory Authority in which the Federal and State governments have controlling shares. Businesses which, in all developed and most developing nations, return huge profits to the Government coffers are run at a loss in Nigeria due to misappropriation of proceeds and undue government interference. These businesses are run down because funds voted for their maintenance are embezzled, and also because incompetent staff are appointed to manage them not because they have the requisite qualifications but because of who they know and their States of origin.
3.1.2 Breakdown of National Infrastructure/ Psyche
Corruption results in the breakdown of national infrastructure, thus denying the economy of the strategic and logistical support necessary for economic development. Funds voted for capital projects are misappropriated, thus leaving certain sectors of the economy weakened and unable to support other arms. Typical examples are roads and transportation, the steel sector, communications, power and others listed in 3.1.1 above.
3.1.3 Devaluation of the National Currency
Corruption results in devaluation of the national currency (the Naira) and consequently causes degradation of the national economy. Where foreign loans are acquired for Government projects and programs and funds so borrowed are subsequently misappropriated, more loans are then acquired to complete the projects already commenced, thus resulting in mounting foreign debts and subsequent devaluation of the Naira.
3.1.4 Discourages Foreign Investment In the Economy
Corruption discourages foreign investment in the economy. The business environment is unstable due to unpredictable distortions resulting from corruption and inconsistent government policies and regulations. The cost of doing business becomes too high, thus resulting in high bankruptcy rates and low business confidence. Confidence in the integrity of the Government and it's officials become very low. There is high, spiralling and uncontrollable inflation due to the high speculative nature of a corrupt business environment. Where these conditions exist, foreign investors are difficult if not impossible to attract.
3.1.5 Causes High Level of Capital Flight From the Economy
Corruption causes high levels of capital flight from the economy as funds are being laundered and siphoned overseas by both local and foreign businesses and corrupt business officials. This is possible because of failure of the Government to enforce existing laws and punish offenders whether or not they are well connected at the top level of the government.
3.1.6 Drop in Gross Domestic Product (GDP)
Corruption causes a drop in the GDP (Gross Domestic Product) as the manufacturing and services industries operate at less than their fully installed capacities as a result of the pressures imposed on industries by the factors in 3.1.1 through 3.1.5 above. Some Nigeria industries are known to have been operating at a capacity varying from 0% to 25% for the last decade. The near total breakdown in the power, communications, and transportation sectors and the unstable and frequent variation of the Naira are quite devastating for the private and public sectors of the economy.
3.1.7 Government and the Economy Ceases to Function Effectively
Government and the economy ceases to function effectively as they are denied the necessary revenue and funds required for the running of the systems.
3.2 Social
3.2.1 Mass Poverty in the Nigerian Populace
Corruption has caused mass poverty in the Nigerian populace, resulting in one of lowest "slave wages" in the world, thus precipitating hunger, malnutrition, disease and one of the world's highest mortality rates. Funds budgeted for social and capital programmes that would have some impact on ordinary citizens are often mismanaged and misappropriated by those entrusted with the business of governance.
3.2.2 Workers Earn Less than "Slave Wages"
Most Nigerian lowest paid workers earn less than "slave wages", earning in real terms, when compared with the earnings of their counterparts in the Western developed nations, is five cents (5 cents) in every United States Dollar of the work they perform. The balance of ninety-five cents (95 cents) of the labour input of every such Nigerian is appropriated towards the servicing of foreign debts and by implication towards the sustenance of the luxurious life-styles of the citizens and residents of Western countries. In this age of global economy, wages in Nigeria must be competitive to ensure participation in the new world economy.
3.2.3 Economic and Political Re-Colonisation and Enslavement
Corruption has caused economic and political re-colonisation and enslavement of Nigeria citizens because of the factors raised in 3.2.2 above. Whereas Nigeria has experts in all fields of human endeavour both at home abroad, our governments would rather consult foreign "experts" with huge sums of money to solve our local problems.
3.2.4 Breakdown in Law and Order
There is a breakdown in law and order, as citizens resort to self-help in various forms, including armed robbery, prostitution, fraud also known as "419", and an endemic and pandemic all-pervading corruption at all levels of society.
3.2.5 Political Instability
There is political instability threatening the very existence of the country, as government is robbed of the funds and means of effectively performing the most fundamental governmental duties such as provision of security and basic infrastructure.
3.3 General/Other
3.1.1 Brain Drain
Corruption is a major cause of brain drain in Nigeria. Nigeria ranks as one of the major countries in the world with her intellectuals, professionals and vocational resources scattered all over the world. These intellectuals rather than help develop their homeland(s) are forced by the economic situations in their home country to seek refuge in other more stable societies. The result is that Nigeria has lost a major knowledge base, and has inadvertently transferred skilled labour force and knowledge to its competitors. Also, knowledge is wasted when some of the skilled labour cannot be absorbed in any economy. This is the case when some of the Nigerians that cost the country significant resources to train are employed in low skilled jobs in foreign countries.
Implications of the loss of this knowledge base are multi-fold. One is the capital flight from Nigeria through massive import of products and services that could have easily been developed. The other is lack of innovation and research and development as the skilled labour force is lost thereby making Nigeria’s economy completely dependent on other countries for support. Another effect is the loss of a generation of well-trained experts and the portrayal to foreign investors that Nigeria is a highly unstable economy. A severe breakdown of our education systems and reduction in quality of education are other long-term effects of this brain drain.
4. Genuinely Fighting Corruption in Nigeria
In order to effectively and efficiently address the corruption problems in Nigeria and resolve them on a more permanent footing, we recommend that the following approach, means, methods, and systems be considered for implementation.
4.1 Economic Reform
As allegations and revelations have shown, the overwhelming number of the massive fraud committed in Nigeria are linked to government establishments, institutions, Parastatals, and organisations. Examples are listed in 3.1.1 in this document. On the contrary, private sectors that have not been influenced by the corrupt tendencies of government officials and their agents appear to be relatively free from the shades of corruption that now pervade the country. Unfortunately, the private sector of the economy is not well developed to neutralise the impact of fraud in the public sector. But the Nigeria Government, design controls, controls about 90% of the economy. Economic reforms and liberalisation must therefore be considered in fight against corruption in Nigeria.
4.1.1 Government Corporations/Parastatals and Fraud
NEPA, NITEL, Nigeria Airways, and all the companies listed in 3.1.1 are few examples of the hundreds of government-owned/controlled companies that ought to be providing services and meeting the ultimate goals for which companies are established – making profits. These companies that neither provide good services nor return profits year and year out have one thing in common – make millionaires out of their top management at the expense of the state. Some of these government made millionaires who failed miserably while running government corporations often turn out to be successful entrepreneurs once they leave public service to manage their private companies. Others are flat out mediocre who are corruptly appointed to manage businesses they know little about.
In the normal situation, because the management of public companies is accountable to shareholders, it is not possible for such institutions to continue to operate with the same management when the shareholders are dissatisfied with their performance. The situation whereby political connections and the old tie network are the predominant considerations in determining continued investment in our government-owned corporations is anomalous and encourages waste of public funds and should be stopped.
We recommend a total reform that transfers all government holdings in our public corporations to private investors since there is no better determinant of efficiency in corporations than the power of the marketplace.
4.1.2 Government Divestiture, a Necessary Fight Against Corruption
That millionaires are made from former managers of these failed government enterprises, and that those responsible for bringing them to their knees are never punished show that various governments in Nigeria have had interest in perpetrating the fraud that render government-owned corporations inefficient, wasteful, and indebted.
To truly fight corruption, the government must take the crusade of ridding our public corporations of this prevalent cancer seriously; like all cancers the measures that are taken to guarantee any chance of success must be radical and extensive. This is another reason we ask the Federal and State/Regional governments to divest completely from all the enterprises and corporations that they currently control so they would stop being part of a fraudulent status quo. If this were done, the following would be the advantages:
* Tremendous savings by the government from money that would otherwise be misappropriated, squandered, and embezzled by a few * Government would have the resources to focus on doing people's business and therefore would be more productive and respected * A vibrant economy would be ushered in and sustained * Normalcy, efficiency and productivity would be guaranteed in the failed enterprises listed in 3.1.1 in this document, and in our infrastructure * Unemployment would be reduced as economic activities would peak * Fewer opportunities for indiscriminate awards of contracts would exist * Kick backs at the expense of the state would be minimised * Favouritism and greed in these corporations would be diminish * Less opportunity by top government officials to get pre-occupied by their "get rich quick" mentally * Opportunities for embezzlement would be reduced
4.1.3 Government Divestiture, Necessary Catalyst for Economic Growth
Given a level-playing field, Nigerians, home and abroad, have proven they can be competitive in all fields of endeavour on the world stage. Nigerians have demonstrated this in academics, medicine, science and technology, engineering, literature (Nobel Prize), economics, humanities, sports, etc. In the industrialised countries, Nigerians continue to excel in research and development of the economy and technology of these nations. Successful Nigeria entrepreneurs abound in America, Europe, and Australia where they have been given opportunities.
Unfortunately, such situations are rare at home. The government's Father Christmas mentality has denied its citizens the chances to compete. The Nigeria government in the 21st century still holds anachronistic economic policies of state control. This has proven to be a disaster in the old Soviet Union and its surrogate countries and will always fail in Nigeria.
When the government allows the people to provide most of their needs for themselves, by providing the necessary conditions for this to occur, there is greater participation and therefore greater yield. What, for example, is the point of buying shares in a company you know is corrupt, unproductive and loaded with incompetent managers? Where in the world is this done but Nigeria? Such companies rapidly go under, as they must, because they waste resources.
As we know, most savvy investors want to see your performance records, a full dossier on your management personnel, structure and most importantly, who heads the company before they consider investing their money. This means the system that will be least susceptible to corruption and its effects is the one that actualises full and real participation by the ordinary citizens in his/her own decision-making processes as well as implementation.
A test case is the power production sector. Giving licenses to Nigerians to produce 70% of our power needs (in 1 to 20 megawatts capacity producers), distribute and market to Nigerians has the potential to provide at least 5 million direct and indirect jobs in the private sector in the next 5 years. The issue of corruption becomes less destructive and the issue of security becomes even less dire, since it will be much more difficult to compromise a large number of companies. The issue can be settled very quickly and easily through executive action that will not require slow legislative participation or constitutional amendments. If the problem is unfamiliarity with its implementation, let some States that want to begin take the risk and provide a base for others to follow. Not to consider this is still thinking in the mode of being the saviours of the people and falling into the erroneous assumption that people cannot save themselves. This way of thinking is suicidal for democracy. While other countries are talking about prosperity, we must end our own talk of poverty reduction or alleviation. We must talk about prosperity and do what must be done. For when all is said and done, two things are most important for all democracies:
a) The people, not the government, control the destiny of the people.
b) The people are happy because the government creates the right conditions to make the people take and control their own destiny.
4.1.4 Grassroots Economic Participation Fights Corruption
This is the key to the eradication of corruption in a democracy. If people don’t have anything, they have nothing to protect. Open Government does not exist without full participation by the citizens. An open Government can reduce or eradicate corruption. Openness is not the ability to see government officials alone. Open government provides the conditions for the average citizen to make decisions without having to see government officials.
Nigerians cannot be expected to protect a democracy that tells them they lack the intelligence and skills to actualise their own prosperity. Nigerians and any normal person would rather invest in New Companies that they can control with the laws of the land than continue to invest in destructive, ineffective, failures they have no control whatsoever over. No one can take NEPA to court for the destruction of food in their refrigerators when NEPA fails to perform. They don’t even have the choice of going to other companies for their electric power needs when NEPA fails as usual. NEPA and other government corporations are being imposed on Nigerians needlessly. How democratic is that?
Each Local Government, State/Region/Federating unit should be able to provide licenses (as many as apply) to small power producers to produce, distribute and market residential electric power, with 70% of them being owned and operated by Nigerians.
Power regulation enforcement in terms of ensuring compliance with production, distribution, labour and safety standards will devolve on governments that provide the licences, based on agreed standards with the Federal Government. NEPA may be best placed to perform this task.
Power distribution would be on a strictly pay-for-service basis between producing companies and NEPA where NEPA grid is used. All marketing and financial control could be vested in the companies. All taxes would go directly to the license issuing authority and the Federal government (on a negotiated disbursement configuration agreement between the Federal Government and each licensing jurisdiction). For example, the taxes can be disbursed to the authorities by the companies, on a 60% (Local) - 30% (State) - 10% (Federal) basis for residential while on a 60% (State) - 30% (local) - 10% (Federal) basis for the commercial and light industrial producing/distributing/supplying companies. Grid use, Rental and other services would be paid directly to NEPA, based on prizes fixed between the local jurisdictions and the Federal Government. The justification for this is that everyone involved will be interested in protecting their own income, thereby ensuring participation and negotiation. This ought to be the way a democracy really works.
Power generation must be liberalised, deregulated, and democratised. For distribution, a central control through NEPA is recommended. A central grid must be established and power bought from all the peripheral producers. This is important because, apart from reducing the potential for chaos in an unregulated distribution marketplace, it will also act as an ombudsman to sometimes decide to selectively target or ration more power to certain regions as seasonal demands dictate or when natural events reduce the total quantity of power available within the grid system.
4.1.5 Provision of Standards, guidelines, Law, and Safety
The primary duty of our Government should end at giving a clear economic vision, setting standards and guidelines for businesses to operate, enforcing the laws and standard it has set, and ensuring safe and stable environment for businesses to thrive. It must not attempt to run corporations and companies. When businesses flourish, the govt can make its income through taxes.
4.1.6 Economic Crime Court
We recommend an act of the National Assembly to establish and fund an Economic Crimes Investigations & Prosecutions Department or Economic Crime Court (ECC) that would investigate and prosecute all economic crimes and sabotage. See section 4.3.2 of the document for details.
4.2 The Flawed Structure of the Republic
The fundamentally flawed structure of the Federal Republic of Nigeria has contributed to the high level of fraud in the country. Whereas it is generally perceived that some sections of the country believe it is their right to rule and misrule the country, whereas other sections believe they are being marginalised, yet many more believe their labour and endowed resources are enjoyed only by a particular sections at their own expense. The structure of the military and its formations across the country and the concentration of modern infrastructure and the location of certain capital projects in certain parts of the country by the Federal Government over the last 20 years lend credence to these claims.
The flawed structure gives economic and political advantages to some parts of the country at the expense of the others hence encouraging inequity in resource control and distribution. This has contributed to the lack of patriotism and out-right favouritism and mediocrity as evidenced by the Government recycling of deadwoods.
This subject has been well articulated in our recent policy paper. Please refer to MNN's True Federation Charter for the Federal Republic of Nigeria, issued in November 2000.
4.3 Contract Awards
4.3.1 Who Should Award Contracts
The President of the Federation, President of the Senate, and Speaker of the National Assembly should not be involved in awarding contracts. All contracts must be handled by the appropriate Tender’s Boards as required.
4.3.2 Mobilisation Fees
The popular contract advance fee or mobilisation fee should be abolished. Contractors should use their company money or loans from non-government financial houses to fund/begin their projects. Payment should be scheduled in accordance with terms that preclude paying for jobs not satisfactorily executed.
4.3.3 Defective and Substandard Projects
In all contracts, the public interest must be paramount, and government must seek to secure the best TERMS possible, including obtaining full warrantees where applicable. Where deemed necessary, contractors may be asked to provide Bank guarantees and insurance against failure to complete the contract or breach of contract. Only contractors who have such bank indemnity and insurance may succeed in securing certain government contracts. In addition, the government must as part of the contract process demand a specified warranty period for structural work and also such warranty must be secured by bank or insurance bonding. In case of any breach, the Government may then recover from either the bank or the insurance as applicable. A contractor may sue to recover money where the latter fails on its side of the bargain.
4.3.3.1 Inspector General of Public Works (IGW)
An act of the National Assembly should establish and fund the office of the Inspector General of Public Works with the responsibility to perform oversight functions on government contracts. The primary function of the inspector would be to ensure that specifications relating to standards, quality and safety are strictly adhered to by all public work contractors. These specifications must be clearly spelt out in the contract. There should be Associate Inspectors General with full staff in all Ministries responsible for verification and certification of all contracts in respective ministries. There reporting relationship should be to the National Office of the Inspector General of Public Works and not to the Ministers.
The IGW office must be an independent body but answerable to the National Assembly. The Inspector General of Public Works can serve a maximum of two terms of 6 years each and should be pointed by the President and confirmed by the Senate. Only the National Assembly may remove the IGW on ground of substantiated professional misconduct.
4.3.4 Contract Award at State/Regional Level
Similar to the rules at Federal level above.
4.3.5 Local Government/Province Level
Similar to the rules at Federal level above.
4.4 Investigating and Prosecuting Corruption
An act of the National Assembly that will enable investigation of a sitting Government or past Governments in any allegations of financial impropriety or mismanagement is required. The act should provide for the establishment and funding of independent counsel who should be charged with investigating corruption allegations of high level Nigerians. Such an independent counsel could be supervised by a college of federal judges who should from time to time expand this jurisdiction if sought and if found to be germane to the progress of ongoing or any further investigations. The Independent Counsel once appointed must operate independent of the attorney general’s office except in areas where it seeks professional assistance and co-operation.
Where allegations have been substantiated, the Independent Counsel must prosecute suspects under relevant laws. All States/Regions should enact similar statutes for investigating and prosecuting allegations of financial impropriety against sitting or past governments.
4.4.1 Statute of Limitation
There should be no statute limitation for investigating past governments and officials after the governments and individuals vacate offices. Where an alleged offender becomes deceased before a trial or investigation is concluded, ill-gotten wealth accumulated by the offender may be forfeited to the government.
4.4.2 Economic Crime Court (ECC)
An act of the National Assembly should establish and fund Economic Crime Court (ECC) or Economic Crimes Investigations & Prosecutions Department with the power to gather intelligence information on the economy and investigate suspected fraud. The body should also be given the power to prosecute suspects. This agency should enjoy the co-operation of the various law enforcement agencies in Nigeria. All Nigerians, home and abroad, should be encouraged to support and help the designated agencies by reporting information about dubious economic activities or practices sabotage of any Nigerians or foreigners. Toll-free telephone numbers should be set up for citizens to report economic crimes or fraud. Nigerians abroad should also play a prominent role in monitoring the activities of unscrupulous Nigerian leaders. Many ill-acquired properties by Nigerians are open secrets.
4.4 Tax Collection
Billions of Naira is lost yearly by the government due to inefficient system and tax evasion. Every citizen should pay his/her fair share of taxes. In addition to the Total Government System (TGS) proposed in this charter, the following are being proposed to address massive tax invasion in Nigeria.
There is a dire need to radically overhaul the public institutions charged with the responsibility of discharging this all-important function. But first governments at all levels should be made to understand that public expenditure should be tied to revenue receipts. And the citizens should be educated to accept that provision of services is tied to this important civic responsibility. And that as long as they discharge their own side of the bargain that the government is morally and legally bound to perform to their satisfaction. Paying taxes is the most convincing claims citizens can make as stakeholders in the government.
We should borrow a leaf from the developed countries of the world and make most taxes local since the need for revenue for services that the citizens need most to make life comfortable and worthwhile are most efficiently provided at the local level. It is also easiest to hold those who are involved in collecting these taxes accountable if they are local folks known to most people at the local level.
The bureaucracy should become better trained than they are at the moment. This training should focus on the different needs of the revenue collection process at the different tiers of government.
The federal courts should be strengthened and Judges with specialisation in the area of finance and business law appointed to administer strict compliance with the set rules and regulations. All these, of course assume that the legislature would live up to their responsibility to make laws that ensure that the citizens need for legitimate pursuit of happiness is guaranteed.
4.4.1 Real Estate Taxation
Recognising that acquisition of property in the form of homes in Nigeria and abroad is a major contributor to corruption and tax evasion, we propose the taxation of homes over a certain value and luxury property as follows. In addition, all property including real estate should be titled not only by the owners name, but also the National ID number or tax identification number.
4.4.1.1 Residential Homes
An Act of the National Assembly should be passed that enable State/Regional and Local governments to subject residential home to an annual tax of between 0.5% to 1.5% of the appraised value.
4.4.1.2 Inherited Real Estate Property
Inherited real estate should be subject to a one-time tax of between 5% to10%. Thereafter, taxes would revert to normal real estate taxes. The aim is to generate income for the local, State/Regional governments and also to discourage mismanagement and embezzlement.
4.4.1.3 Leased/Rented Property
The appropriate national and state/regional laws and local ordinance that make income realised from leased/rented real estate property subject to annual tax should be enacted. This includes rented business and residential homes. Again, the aim to generate income for the local, state, and federal governments.
4.4.1.6 Luxury Item Tax
We recommend an act of the National Assembly pass that would subject luxury items like boats, yachts, certain non-commercial automobiles, private air planes, and certain categories of vacation homes etc. to tax by local, State/Regional and Federal governments.
NOTE:
It is important to realise that countries that do not have oil to "burn" realise their primary income from taxation.
4.4.2 Real Estate Property Rental
The appropriate national and state laws and local ordinance that ban landlords from demanding and collecting more than two months advance rent for a rented property at any given time should be enacted. To move into accommodation, a tenant should only be required to pay first month's rent and security deposit of an equivalent sum. However, a minimum rent period (say six months) for which the tenant is reliable may be specified in the contract. The goal is to make accommodation affordable to more Nigerians so that people will not be tempted into fraud in order to raise large sums of money to secure accommodations.
4.5 Government Ministries
The Federal and State/Regional ministries are perhaps the most corrupt government institutions in Nigeria. Employees, from the lowest up to the highest, in these public establishment often demand bribes and kick-backs for doing their job. The ministries are also full of ghost workers and fathom contracts. We recommend the following:
4.5.1 Economic Crime Court (ECC) in the Ministries
The power of the office ECC should be expanded to enable them obtain intelligent information from all ministries. Bribe seekers and givers should be prosecuted under the relevant laws.
4.5.2 Appointing and Confirming Ministers
All ministers should continue to be nominated by the President and confirmed by the Senate for specific ministries. No nominee must be given a blanket confirmation. The Senate must know the portfolio to which a nominee is to be confirmed.
4.5.3 Auditing Ministries
As in section 4.20, the Office of Auditor General should perform audits of all ministries annually and independently publish the results of the audits.
4.5.4 Make the of Permanent Secretary Position Political
Permanent Secretaries often use their "permanent" positions to perpetrate fraud. We recommend that Permanent Secretaries be political appointees of the Government in power and the appointment be subject to Senate confirmation. The word "Permanent" should be dropped from the title (Permanent Secretary) and simply called Secretary.
5. Investigate Minister's Tenure
The provision in section 4.4, Investigating and Prosecuting Corruption, in this document should be applied to all ministers during and after their tenure in the office. Any minister accused of mismanagement must be investigated by the office of Independent Counsel, and prosecuted if evidence of allegations exists.
4.6 Implementation of Effective Government Systems (Checks and balances)
4.6.1 National Identification Number-System
To effectively detect, prevent, and fight fraud we recommend that a national identification number-system, linked with taxation and a national tax system, should be implemented to register all citizens who earn any income (including Social Security benefits) and whoever must operate other financial accounts. This system though the same as the National ID project, does not necessarily have to involve card carrying, but could operate by each citizen having a unique number.
4.6.2 Other Sub-Systems
Other sub-systems which must be established and linked together with the tax system to create a National Anti-Corruption and Security Grid or the "Total Government System" (TGS) include but are not limited to:
4.6.2.1 Property Register
Property Register is about certificate of ownership and its issuance and transfer of property (conveyance). It registers ownership of all property, including land in the State/Federating Unit. The Federating Unit collects all the land transfer and purchase tax and registration fees involved in creating and maintaining the register. This register is not about property rate which is traditionally collected by councils. However, City/Province will be entitled to charge council rates on every property in its council area.
While the Federating Unit or State runs the Property Register, the system has to maintain offices at various levels across the State, including registration offices at council head quarters or at kindred, as may be administratively expedient to ensure that registration occurs at every corner of the State.
The Property Register system should be independently managed by State/Regional government in the Federation. When necessary, Federal investigators may be permitted access to this system.
4.6.2.2 Residential Tenancies Act and Tribunal Register
This register consists of a Residential Tenancies Act and Tribunal System at appropriate level of government, which must be empowered to create and maintain a register of all Tenancy Agreements or Contracts between every Landlord and a Tenant and must have the power to collect from all landlords, no more than two months (2 months) rent or lease as bond, to be maintained in an account and held in trust for the Tenant and the Landlord, until the rent or lease terminates and the original bond sum is returned to either the tenant or the landlord or shared between both parties, depending on whether or not both parties had fully met all of their obligations to each other under the terms of their contract.
The Tribunal will arbitrate all disputes between landlords and tenants and both parties are adequately protected by the law.
The Tribunal Register system means that appropriate taxation of landlords income from rentals can be monitored and implemented. The Tribunal Register system means that every level of State government is aware at all times, who is living where and who has moved to what address.
The TRIBUNAL REGISTER is very simple. It is one single form showing the details of the Landlord and the Tenant, the duration of the lease/rent agreement, the rent and the amount of security deposit paid, signed by the parties. The form and the security deposit is lodged at the Tribunal's office nearest to the parties.
4.6.2.3 Motor Vehicle Register
The system should be independently managed by State/Regional government. Access to the system data may be granted to Federal or investigators from other states when necessary. Motor vehicle registration system should be maintained at the city/provincial/State/Regional levels.
4.6.2.4 Drivers Licence Register
This should be at city/provincial/State/Regional level. The system should be independently managed by each State/Regional government. Access to the system may be granted to federal or investigators from other states/regions when necessary.
4.6.2.5 Business Registers
These are for Corporations, Incorporated non-profit and profit making organisations, co-operatives and sole businesses. These registers must be maintained at all levels of government and must all be compatible and integrated into a national greed, which can be queried, and searched from any terminal any where in the corporation. These will include compulsory information on all business addresses and locations of every business enterprise and the full details of owners and directors. Heavy penalties and jail terms must be imposed by the laws where false information is provided or where registrants fail to notify any changes in their details which might occur for instance by relocation to a new premises. Inspectorate units will operate to ensure compliance.
4.6.2.6 Births and Deaths Registration and Registers
There shall be births and deaths registration and registers maintained at the appropriate levels of government. No new born baby can be released from clinics, health centres and hospitals without an authentic birth registration. Nor can any corpse be buried or coffin bought without an authentic death certificate which must be verified. Every government service to be offered to or to be received by any child under 16 years or an alternative age can only be provided on satisfactory proof of registration of birth. Penalties, including jail terms shall be imposed for illegal burials or dealing in corpses, and also for failure to register a birth. This register will rely heavily on the lowest levels of government at the Kindred or Ward levels, where everyone knows every other person. This data must be compatible at all levels, such that interrogation can occur from any terminal across the federation.
4.6.2.7 Voters Registers
Voters registers which could be Federal and State/Regional. These Register systems must be maintained at all levels. The system must be compatible and capable of interrogation at any terminal. The system must be linked with all other register systems, particularly, the Register of Deaths and Birth, such that applications are automatically generated and mailed to perspective voters immediately the person turns eighteen years of age or whatever age is chosen as the minimum voting age. An application for amendment or re-registration is also generated automatically, immediately a voter moves into a new address (this uses the Residential Tenancies Register).
4.6.2.8 Banking System Register
The banking system register must be compulsorily maintained by every bank and financial institution, to minimum national standards and the banks must maintain a reporting system linked the relevant Government systems. Each Bank's databases must be independently accessible to the relevant government units, but they cannot be linked to each other because of the need to protect business secretes and confidentiality.
4.6.2.9 Certificate Register and Student Register System
Every Secondary School, university and higher institution must maintain a student and certificate/course/enrolment register using the National ID which must meet minimum national standards. These may be independent from State to State, but must all be compatible and capable of interrogation. Primary schools should have local registers up to LGA level.
4.6.2.10 Health Insurance Register
Where there are Health Insurance schemes there must be a National register or a State by State register, if each State operates its own Scheme.
4.6.2.11 Compensation Register
Where there are Workers or Workmen's compensation systems, there must be registers for every such scheme and these must be linked to the National Health Insurance Scheme or the Medicare Scheme where a public health Insurance system is in operation.
(Where there is a motor vehicle accident compensation scheme, there must be a register of all compulsory insurance payments/registration (tied to the vehicle registration system) and there must be a register or beneficiaries or claimants as in the Workers Compensation system, which must be linked to the National Health Insurance Schemes (Private and Public).
4.6.2.12 Courts, Correctional Services and Police Records Register
The Courts, the Correctional Services (prisons) and the Police should operate State/Regional registers, which can be interrogated at various levels in the state/region. Where exchange of data and information is warranted, the data can be accessed at any terminal across the state/region/federation.
4.6.2.13 Business Accounting Records
Business accounting records to be maintained by every business, whether private or public. Destruction of any business records before a statutory period expires, should be made a crime punishable with imprisonment. The records needed for tax purposes.
4.6.2.14 Other Registers
There are other minor registers which must be maintained at various levels, including institutional levels such as hospitals etc.
Almost all of the above and other current registers should be integrated into a National Anti-Corruption and Security Grid or the "Total Government System" which will be applied to fight corruption at all levels of government.
4.7 Police Reform
The current structure of the Nigeria Police Force makes it prone to corrupt practices and inefficiency. We believe the Police needs to be restructured and changed from a unitary centralised force into State/Region/Federating Unit policing. Such reform would make the police less prone to corruption. The Movement for New Nigeria (MNN) will issue a detailed paper on this subject in 2001.
4.7.1 The New Structure
The Nigerian Police Force should be restructured from unitary centralised force into one allowing each State/Region/Federating Unit to operate and run its own police force.
4.7.2 Neighbourhood Policing
The Police Force of the States should operate under the principles of the "Neighbourhood Police". This would mean that the routine policeman or woman in any part of a State must necessarily be a local of the area. Being local means being a resident of the area for a sufficiently long period to know everyone and every nook and corner of the locality, it does not mean being an indigenous to the locality. Being local means the Police will protect its own. For Police Officers of certain higher ranks, it may not matter but a comprehensive knowledge of the State, and area of posting must be an essential requirement for engagement of any person as a police officer.
4.7.3 Abolish the "Barracks System"
The Police forces should abolish the "Barracks System", except for police colleges and academies, which would require such facilities for training purposes only. The Police force should only maintain offices at the relevant levels and appropriate police detention facilities without accommodation for its members. Members of the police force should live in and with the community which they are meant to protect.
The Barracks System and the deployment of members of the police force in places other than their area of residence, is essentially a colonial approach to policing which required Police for the purposes of "expeditions against the natives", rather than for "protecting the citizens" from crime and corruption, which should serve as the purpose of a police force in any independent country.
Implementation of 4.7.1 to 4.7.3 above would considerably reduce corruption, both in the police force and in the society. On the one hand, it will be very difficult for the local person who is in the police to take bribes from their fellow locals. At the same time, locals will hardly accept to easily bribe the police person, whose parents and relations they know, and if they do, it will be "talk of the town", and would either be reported or it would be detected.
4.8 Implementation of Anti-corruption Conventions
4.8.1 Private Business While in Public Office
Corruption includes abuse of statutory power, use of statutory power for improper purpose and use of statutory power or privilege of one's office to benefit self personally or relations and friends. Corruption also includes conflicts of interest and engaging in any manner of business or owning any interests in any business connected to the government, while being in public office.
Any persons engaged in any public office should and must divest themselves from any private business interests that have any link whatsoever to the government. Divestment means "total divestment" and not merely transferring ownership and operation of a business to other persons as fronts or proxies.
Private business interests have been the front used by most former Nigerian Heads of States and top public officers to hide their ill-gotten wealth. They have always claimed that their wealth came from their private businesses. Private business owned by a person includes businesses being owned, run or operated by proxy, using other people as fronts.
4.8.2 Indicted Persons
Any public officer, including the President or Head of Government at any level, who has been indicted by a court of law or tribunal as having a case to answer, or whom either the Director of Public Prosecution/Attorney-General or the Police or any arm of the security agencies has investigated and decided to prosecute for any form of corruption, including conflict of interest, must as a CONVENTION, temporarily stand aside from their position or public office, pending the determination of their case by the appropriate court or tribunal.
4.8.3 No Exception to the Rule
No one, including persons occupying the highest public office in the land, should be exempt from anti-corruption provisions.
4.9 Civic Literacy
4.9.1 Public Awareness Campaign
A long term educational campaign should be implemented to educate the populace on the evils of corruption. It should also emphasise the civic duty of every citizen to report corruption, emphasising that no one is above the law.
4.9.2 School Curriculum
School curriculum both at primary and secondary school levels should be reviewed to include civic education which would include emphasis on the evils of corruption and the duties of a good citizen to report all crimes, including corruption.
4.10 Fair and Adequate Remuneration for Work Done
Nigerians must receive fair and adequate remuneration for the work they do, which is commensurate or equivalent to wages paid in other parts of the world. Because we all make our purchases from the same World Market, the Nigerian government must ensure that Nigerians do not earn "slave wage". Where people are paid a fair wage, there is a natural disincentive to corruption.
If the West cannot fairly assess or accept to properly assess all aspects of the Nigerian economy and accord our GDP and currency its true and accurate value, then the Government must consider defloating the Naira and operating outside the IMF system, as did the government and peoples of Malaysia under their President Dr Mahatir, when the West and its speculators attempted to sabotage the economies of the Asian Tigers. Maylasia and its economy survived the Western bid to enslave its people through massive devaluation by pulling out of the British and American controlled World Monetary System.
Devaluation of both the economy and the currency breeds corruption because it impoverishes the people by repatriating more than 90% of the real wages accruing from their labour to servicing the Western economies, while allowing them only 5% of the real value of their labour.
(We should however note that this was possible because of the influence of the Chinese diaspora and Japan. The interest of both parties and the Malaysian government were served better by the innovative and radical measures taken. In Nigeria’s case there is a dearth of available credit outside the World Bank monitored system and so it will be difficult for us to act so radically.)
With registers and National ID system in place, the Government and employers should consider paying hourly wages to employees.
4.11 Implementation of Anti-Money Laundering Laws
4.11.1 Anti-Money Laundering Law
A new anti-money laundering law should be enacted and implemented to make it a criminal offence punishable by forfeiture, fine and imprisonment, for transactions in cash beyond a specific amount, unless there is evidence that such cash had been secured or withdrawn from a Bank.
4.11.2 Huge Cash Withdrawal and Deposits
Huge cash transactions in non-business bank accounts must automatically trigger the Federal Tax agency alarms for investigation. If the Federal Tax agency finds something criminal in the transaction it should involve the appropriate law enforcement agency.
4.11.3 Real Estate Purchase Or Transaction
Every real estate purchase or transaction or any other significant purchases, which are registerable in a Register (such as those discussed in 4 above), which was not financed by a bank or a loan, may automatically trigger Federal Tax agency alarms for investigation. If the Federal Tax agency finds something criminal in the transaction, it should involve the appropriate law enforcement agency. This will include every transfer of property or real estate, whether with or without valuable consideration.
4.11.4 Cash Hoarding
Hoarding of cash beyond certain sums should be a punishable offence, including forfeiture where there is a failure to show legitimate source of such hoarded cash.
4.12 Implementation of Compulsory National Taxation and Yearly Tax Returns for All Adult Citizens
The National Assembly should consider a tax act that includes the following provisions that are necessary to fight corruption and tax evasion in Nigeria:
4.12.1 Tax Payment
Every Nigerian adult, from the age of 21 years must pay a national tax, which would vary from N0.00 (zero Naira) for the unemployed and those on social security or those who earn income which is below the tax-free threshold, to the maximum possible income tax which would vary according to income.
4.12.2 Yearly Tax Returns
Once the National ID system has been implemented, every Nigerian adult from 21 years of age must file a tax return at the end of each financial year, whether or not they earned any income, and must declare their income for the given year (even if it is N0.00) and their total accumulated assets, including bank accounts and deposits and shares, debentures and investments and interests earned from them. Earnings from overseas must be included, if they are repatriated into Nigeria.
It would be an offence punishable with both fines and imprisonment not to file a tax return or to make a false declaration of assets or earnings on a tax return.
This provision is not only to collect tax and maximise tax collection, but also to ascertain that every citizen declares all their incomes and assets every financial year.
4.12.3 Tax Records Archive
Tax return records for each year should be archived by the Government, and there should be no statutory limitations on prosecution of offenders.
4.12.4 Tax Alarm Systems
Part of the anti-corruption system is a continuous matching of data and personal tax records of citizens against each other over the years and against other relevant data-bases or records held in other systems. The alarm systems will trigger automatically, on discovery of any major discrepancies, and these must be investigated without necessarily disturbing the peace of the citizen, except where a prima facie case of corruption is manifest.
4.12.4.1 Advantages
a) Records of accumulated assets of every citizens over the years would make it difficult for public officers to alter their records by giving false declarations when they come into public office. It would have become difficult to transfer excess assets to others, or to claim to own assets belonging to others
b) Corruptly or illegally acquired assets or funds would be detected by the system because legitimate income is known. Corrupt officials and citizens would be compelled by the system to hold illegal income and assets outside the system, thus increasing the risk of detection by one or more of the total government systems network.
c) It would become difficult to use other people or relations with lower incomes as fronts to hide illegal funds or assets, as they also face detection by the system and higher taxation
NOTE:
To implement the above measures, thoroughly enforce laws, and ensure an effective fight against corruption, the Federal and State/Region/Federating Units should collaborate and implement a centralised management information system with the capability for data mining. The MNN supports and will give its advise on a true national ID system Nigeria. We believe a management information system (MIS) must be effectively developed so that Federal agencies can easily collaborate information. The current system makes it impossible to track and relate information.
4.13 Foreign Trips by Government Officials
With the exception of technical training and emergency travels, foreign trips by government officials using public (tax payer's) money should be suspended until the economy improves or an effective anti-corruption system such as TGS is implemented. Our foreign missions and embassies should be utilised in the interim to perform functions that would require foreign travels.
It is important to note that top government officials use these trips to siphon public funds, arrange private businesses, and defraud the government of its hard-earned foreign currency. It is equally fraudulent for any state Governor to undertake foreign trips with a huge entourage for the purpose of "learning" how democracy works or how a particular foreign system works. A Governor who lacks the understanding of democratic principles has no business seeking Governorship of his/her State/Federation Unit. The Internet is a good resource for the information our top public officers seek abroad.
4.15 Obtaining Foreign Loans
We recommend a general moratorium on foreign loans by Federal and State/Regional governments until an effective accountability or anti-corruption system is implemented. Any loans obtained must be properly accounted for.
As identified earlier, foreign loans have been abused and misused by various Nigeria governments while the projects for which the loans were taken have been abandoned.
4.16 Central Bank Control
The National Assembly should enact law that grants the Central Bank of Nigeria true autonomy that will allow the apex bank to perform true economic and monetary functions, and be immune from political interference. The Governor of the Central Bank should appointed to a six-year term for a maximum of two consecutive terms by the President of the Federal Republic of Nigeria and should be confirmed in each case by the Senate. Only the National Assembly can remove the Governor only after serious allegations of professional illegality or corruption have been proven.
NOTE: It is important to note that various past federal governments have used the central bank to commit fraud.
4.17 Living Wages
A national wage structure should be implemented to properly remunerate all wage earners according to their levels. Every Nigerian wage earner should be properly remunerated, commensurate with their levels. The current wages of Nigerian workers are low and do not enable them compete in the new global economy.
4.18 Wages and Allowances
4.18.1 The Executive
The President of the Federal Republic of Nigerian resides in the national state house at the people's expense. The President should not be entitled to any allowance or incentives besides his/her salary. However, we recommend that the salary be reviewed to reflect cost of living whenever the salaries of other public servants are reviewed. This should be spelled out in an Act of the National Assembly. In addition, the act should include provisions to independently audit the account of the Presidency yearly. The audit should be presented to the National Assembly and should be made available to the public.
4.18.2 Elected and Appointed Political Offices
Members of the National Assembly may reside in housing quarters owned by the government. On no account should the government rent or buy property for housing members of the National Assembly, political appointees, or civil servants. We however recommend that the salaries of these officers be reviewed yearly to reflect the cost of living. This should be spelt out in an Act of the National Assembly.
4.18.3 Civil Service
Allowances for all levels of civil service employees, elected officials and political appointees should be clearly set forth by the National Assembly. Arbitrary compensations deviating from the statutory allocation scheme would constitute criminal conduct with specified penalty for all those involved.
We recommend that as a guide, such allowances in totality (housing, transport, etc.), should never exceed 25-50% of the base salary, and such allowances may not be exempt from Federal tax.
The judicial service commission shall make recommendations to the National Assembly with respect to equitable structure for the allowance scheme of the members of the Federal Judiciary. These recommendations should reflect the peculiarities and uniqueness of the Judiciary and would be specific to the Judiciary. The final structure however must be set forth in an act from the National Assembly, in line with the budget and financial realities. Under no circumstances, however, would the total allowances exceed 50% of the base salary and in addition would be subject to the legal requirements in the Tax code.
Employment benefits, e.g. health insurance, life insurance, tuition reimbursements, disability, workers compensation etc., must be clearly detailed in the Federal Civil Service and Judicial code to eliminate arbitrary and inconsistent applications. Extra-procedural applications would constitute fraud and should be prosecuted under the full weight of the law. The Press must be encouraged to play an active role in this regard and expose any apparent wrong doing or malfeasance.
4.18.4 Furniture Allowances
Government (Federal or State/Region) should not pay furniture allowances directly to public officials, legislators or civil servants. The relevant Act of the National Assembly should vest ownership in all furniture and fixtures in public buildings in the relevant government. Every public officer to whom a government housing has been assigned for the duration of their term/appointment must sign and account for the inventory of government furniture in such buildings when taking up and giving up occupancy respectively of the said government housing. The relevant government accounting systems should and must apply to all government property, including furniture
4.18.5 Property Rental or Lease by Government
Renting or leasing of real estate property by government for business or otherwise should be discouraged. Where it is necessary for the government to rent such property, it should only do so from certified Realtors or banks. Under no circumstances should the government rent or lease any property directly or indirectly from a government employee or political appointee. All lease and rental agree agreements should be done by the Government Budget and Contracts Office.
The goal is to discourage the practice by highly connected individuals in the Government and big Multi-National Companies to take out bank loans, build a big high-rise building, and have government lease the buildings for ten years or more at incredibly highly inflated terms.
4.18.6 Other Allowances
1. Government should not be in the business of providing accommodation for public employees, except for very high level appointments and positions, where accommodation becomes part of the negotiated wages. There general presumption should be to adequately remunerate all employees, who must accommodate themselves and provide themselves with transport out of their personal wages. Where government provides a car or housing, it MUST be on the condition that the government employee MUST pay for such from their personal wages.
2. The nature of duties should naturally determine the tools required by the employee to fulfil their employment contract obligations. Where the duties of a government employee are such as to require computers or mobile telephones or vehicles etc., whether during office hours or after-hours, then there is an obligation on the government to provide those tools. These are generally not considered as allowances. The use of these tools must be strictly monitored to prevent their abuse or misuse for private purposes, rather than for the intended Government work.
4.18.7 Estacodes
Estacodes or inconveniences allowances to government officials travelling abroad should be abolished. The government wastes or loses billions of Naira yearly on estacode. Estacode is inherently corrupt and fraudulent. Only accommodation and feeding allowances should be paid to such officials irrespective of their positions. No financial incentive shall accrue to an individual to perform his official duties other than his/her salary and employment benefits.
We recommend the creation of independent travel offices for the Presidency, Federal Civil Service, Judiciary and the Police Departments, and National Assembly. These travel offices should co-ordinate all official reimbursable travels. There should be no reimbursement for accompanying individuals on no direct official assignments (e.g., spouse, children, friends etc.)
4.19 The Judiciary
An act of the National Assembly should make the Judiciary more independent of the Government.
Supreme Court Judges should be appointed to serve for life and should only vacate through resignation, impairment, impeachment, or death. A Federal Supreme court Justice should be appointed by the President and confirmed by the Senate.
Federal High Court and Appeal Court judges should be appointed by the President and confirmed by the Senate. A judge may not serve more than three terms of six years each.
State/Regional courts should fashion the appointment of judges and magistrates in the same manner as the Federal courts.
4.20 Auditing Government Accounts
The office of the Auditor General should perform annual audits of all government accounts including all ministries, Parastatals, government institutions and establishment, the Presidency and the National Assembly. The results of the audits should be independently published by the office of the Auditor General.
4.21 Decentralisation of Power and Resources
Concentration and control of resources at the centre gives too much power and influence to the central government. Absolute power corrupts absolutely, and when a powerful centre is corrupt, its bad influence is generally asserted on all the subordinate states. Decentralisation or devolvement of the control of power from the centre to the States/Regions/Federating Units and local levels of government is therefore required. In broad terms, this means establishing true Federation and restructuring of the federation. This has been well articulated in our recent policy paper. Please refer to MNN's True Federation Charter for the Federal Republic of Nigeria, issued in November 2000.
5. Law Enforcement
This is perhaps the most important element of any anti-corruption programme. Unless all laws are strictly enforced without respecting any offenders, fighting corruption would be unsuccessful. Human beings, by nature, are prone to violating laws and rules, but it is the fear of the consequences of the violation that separates progressive nations where laws are respected from Nigeria where laws are often flouted with impunity by powerful individuals.
Efforts of governments at all levels should be directed at the establishment and ongoing maintenance of all the Register Systems (Total Government Systems), which will enable police to easily trace and track down corruption. If those systems are implemented, some corruption are capable of being automatically identified, thus enabling law enforcement to become more effective.
5.1 The Police and Other Law Enforcement Officers
This subject will be dealt with in details under a separate and independent project. However, we recommend that the following measures must be implemented.
5.1 Police Reorganisation
We recommend reorganisation of the Police Force along State/Regional lines.
The judiciary should be strengthened and expanded to deal with the backlog of cases and timely rendering of justice. The courts should be supreme and must be allowed to interpret the law.
6. Incentives for Effective Prosecution
The aim is to make it easier for the government to identify and prosecute corrupt government officials and agents. It should also serve as a source of income to the government.
6.1 Citizen's Incentives
Citizens with information leading to the arrest and successful prosecution of corrupt persons should be encouraged to contact the appropriate authorities. Financial incentives should be given only in cases of very serious crime and where police efforts appear to have reached or are reaching a dead end.
If an informant choose, she/she may enter a government witness protection programme. Refer to details in 6.2 below.
6.2 Witness Protection Programmes
This should be established by the Federal and State/Regional governments to protect witnesses from any reprisal from any convicted/corrupt powerful Nigerians. The protection may take the form of resettling a witness and his/her family in any safe part of Nigeria or the world.
3. Amnesty for Past Looters
Treasury looters in previous governments should be encouraged to embrace a time-limited amnesty programme offered by an Act of the National Assembly to return looted public funds. The full weight of the Federal, State/Regional, an local laws should apply to those who fail to take advantage of the amnesty programme and return their loot after the statute of limitation has expired. The Act should remind Nigerians that there is no time limitation for investigating and prosecuting alleged crimes.
6.4 Plea Bargain
The use of plea bargain as contained in the criminal justice system should be re-emphasised and applied where necessary.
6.5 Sources of Income
Huge sums of money could be generated if laws are strictly enforced and offenders are adequately punished through fines.
Various aspects of the Total Government System (TGS) will also generate revenue by making tax evasion difficult, creating new taxes, and maximising tax collection.
7. Implementing Our Proposal
7.1 Law Enforcement
7.1.1 Reform the police forces as indicated in sections 4.7 and 5.1 of document.
7.1.2 Implement Total Government Systems (TGS) and all the Registers indicated under 4. 5 above.
7.1.3 Anti-corruption implementation must be focused at the local levels of government - Wards/Streets, then Council, then State and finally Federal. The backbone of the program is at the lowest level of government, where every one is known to the other.
7.1.4 Creation of all the required Registers like the ID program and other Total Management Systems constitute more than 80% of the work and effort involved in any anti-corruption program.
The Registers and the Total Government Systems must be maintained as on-going systems which must be continually updated daily. The systems must also focus at the lower levels of government, if it is to be successful.
7.1.5 The various registers are most desirably established and maintained using computers and specifically designed data-base systems. But given possible difficulties in securing adequate IT manpower and other logistic problems such as inadequate power supplies and poor communications systems, simple inexpensive systems, with potentials for progressive upgrades could be applied to still achieve the desired efficiencies and effectiveness.
7.1.6 A typical register system referred to in 7.1.5 above would be one based on a four-tier progressive integration system with the Ward as the primary level, then the Council level, the State/Federating Unit level and the Federal Level. For the National ID system for instance, the Register System could be operated thus:
(a) Every Ward in the LGA would operate and maintain its own Register data-base of its citizens, which must be updated and compulsorily forwarded to the Council/LGA System at the end of every first week of each month.
(b) Every Council/LGA in the State/Federating Unit would operate and maintain its own Register data-base of citizens, which must be collated from all the Wards in the Council/LGA, and must be updated and compulsorily forwarded to the State/Federating Unit System at the end of every second week of each month.
(c) Every State/Federating Unit would operate and maintain its own system, which must be collated from all the Councils/LGAs such State/Federating Unit, and must be updated and compulsorily forwarded to the Federal System at Abuja at the end of every third week of each month.
(d) The Federation would operate an maintain its own Register of citizens, which must be collated from the States/Federating Unit and compulsorily updated before or at the end of every fourth week of each month.
(d) For the purposes of data integrity, no data, ones certified at any level of the Register, may over-ridden by the another level, unless approved by the source level.
(e) The citizen register model described herein and all other Registers forming the Total Government System rely heavily on the lowest levels of government and emphasises government systems which are strongest at the grass-roots levels of the entire country. All Registers must have compatibility with each other, so that data held at any Register can be matched and cross-checked and compared with that held at the other. Deaths and Births register is tied to and matched against the citizens register continuously at all levels.
7.1.7 Over 80% of the anti-corruption system and government systems generally therefore, consists of creating and maintaining the integrity of the Registers.
7.2 Typical examples of Implementation of the Anti-Corruption System
Examples of implementation can be demonstrated by specific case studies.
7.2.1 Tax Evasion and Case Study – Example (1)
If every adult citizen is required to file a tax return each year as described earlier, including declaration of all assets, investments, bank accounts and income, then all the information provided by a citizen are verifiable, at least at the person's Ward or Council. If there is corrupt enrichment, such a citizen would either risk detection by either banking the money or investing it in the system or otherwise, holding the proceeds as cash off the system, thus also breaking the anti-money laundering laws and risking detection. Tax declarations of previous years are able to be compared with that of the current year.
If a corrupt official decides to dispose of illegal funds or assets through fronts or proxies (say an unemployed relation or a low income friend), then the discrepancies will manifest in the records of such persons who become fronts.
If traders or business persons for instance, under-declare their incomes, their bank records and real property purchases will betray them. They may hold cash outside the banks and the system, but that is at great risks, both in terms of risk to their lives and risks of being jailed for breaching monetary laws described earlier.
If a landlord who collects rentals under-declares their income, then they are caught out when the data held at the Residential Tenancies system is matched against their tax returns.
The wealth of any Nigeria, at least within Nigeria, can be verified and ascertained up to any given year, thus making it impossible for public officials to dispose of the proceeds of corruption.
The central thrust of the Total government systems is that it becomes very difficult to acquire wealth by corrupt means without detection. And even if one succeeds in evading the system, it becomes almost impossible to dispose with the proceeds of such corruption without being detected.
7.2.2 Defrauding Banks or Other Persons or Institutions – Example (2)
Where a Nigeria defrauds any person or institution and this is reported, the system is interrogated to reveal the persons address and place of birth or origin and other pertinent information, and the reported fraud is entered against the suspect in the system. All it takes to arrest the culprit is for such a corrupt person to make contact with any aspect of the system at any Ward in the Federation, and the system will pick it up. Even siting the person's car plate number, or making a simple bank withdrawal or signing a new tenancy agreement with a landlord at a new location or State or town, is adequate to trigger the system and provide information on the person's location.
7.2.3 Duplication of Identifications Such As Nigerian Passports and Drivers Licenses – Example(3)
Duplication of identification documents is a major plank in the corruption chain. The Registers described earlier would make these impossible, as details of applicants are verified down to their Ward/Kindred of birth, and their genealogy can be verified and confirmed prior to the issuing of such documents. All the person's records are matched and verified, and any duplication is rendered impossible.
7.2.4 Embezzlement of Funds – Example(4)
A public officer who successfully embezzles public funds would be faced with the difficulty of how to dispose of the excess funds. Several collaborators would be required by such an official to beat the records in the system. Even at that, getting the funds out of the system, whether by withdrawal in bulk or in parts or by money transfer, would leave a trail all over the system, as funds transfer exceeding say the equivalent of US$5,000.00 would automatically trigger the investigation systems.
The thrust of the system is that evidence of corruption/fraud and the identities of the perpetrators would abound all over the system, such that detection and successful recovery of loot and prosecution are almost 100% guaranteed.
7.2.5 Disposal Of Corrupt Funds By Acquiring Real Property – Example(5)
All property and all land in the Federation and their owners are registered. Every tenant and their address is known, including the landlord and the amount of rent and security bond paid. Any dealing on property and transfer of ownership is recorded by a separate Register. At all times, all such transactions are verifiable and all these are matched with other data-bases like income tax declarations to detect corruption.
7.2.6 Polling Fraud Through Fictitious Names on the Voters Register – Example(6)
The Voters Register at all levels is tied to the Deaths and Births Register, the Citizens Register, the Residential tenancies Register.
(a) Once a citizen under the Births and