Bayelsa Assembly The Heart of the Matter

Bayelsa Assembly: The Heart of the Matter

Before now nobody could imagine any form of friction between the legislative and executive arms of government in Bayelsa State as each saw nothing bad in each other's operations.

Even when there was obvious financial anomalies, it was allowed to pass. Infact it was a period where you see no evil, hear no evil and talk no evil.
But things started going wrong when questions were raised about how the state fund was utilised for the benefit of the masses.

The fear of that very question, probe and accountability, is the root cause of the crisis in the state's House of Assembly. The call for accountability started first within the legislative arm given the volume of money received by the Assembly without anything to show for it.
This quest for accountability polarised the Assembly into two camps, those who were in support of the removal of the speaker Hon. Lokpobiri over financial impropriety and those who were against his removal.
The apprehension occasioned by the infighting led to the suspension of three members who blew open the can of worms in which the Speaker, Hon. Lokpobiri was protecting.

Soon other prominent Bayelsans including youths' associations joined the call for the probe of the House's finances. Having known that he could not avert the probe, the deposed Speaker alongside his cronies in the House drew up a document which was supposed to be an impeachment notice as a tool for bargain so that the Governor could order the stoppage of the probe.

But unknown to the deposed Speaker and his group, the state Governor had his own game plan as he had insisted on the probe. To make the job easier, the Governor directed that the Clerk and the Accountant of the House be redeployed to either ministry or parastatal. Before now the Governor had directed the state's Auditor General to audit the Assembly finances. By so doing the young and inexperienced Speaker was left with nobody to give him superior advice on accounting principles and administrative intricacies. The auditors swung into action immediately exposing the outrageous financial anomalies in the Assembly.

As at the time they finished their job, all the records were intact and were supposed to be used by a committee set up by the new leadership of the House headed by Hon. O.O. Osusu to probe the accounts of the House as the Speaker had already been impeached. The Speaker out of fear of being totally exposed was alleged to have arranged for the bombing of the accounts unit and the main administrative unit so as to destroy whatever records that would have implicated him in any fraud.
The deposed Speaker was obviously shaken by the outcome of the audit sent to him by the Auditor General even when the auditor had played down on a lot of areas on Speaker's demand.

According to the audit report with reference No. AUD: 30/4/VOL.I/T and dated May 30, 2001 with the title "Audit Inspection Report for the period January 31st to December 2000," the sum of N2,505.87 was found in the safe during the initial cash survey and the payment vouchers found in the safe when recorded agreed with the Cash Book.

The auditors gave the capital summary receipt as: January 2000 N1,085,000.00, payments N1,095,468, N138.32, and balance as at 31/12/2000 N10,468,138.32. The recurrent summary was given as: receipts January - December 2000 N95,144.06, payments N93,698,683.01 and balance N1,445,471.05. However, it was observed that the Honourable House, inspite of receiving a total capital sum of N10,468,138.32 at the financial year ended December 31, 2000, the excess expenditure was not covered by authority.

For a bank to grant over-draft facility to any government agency or office, a written clearance has to be obtained from the accountant-general of the State before withdrawals could be made, but guideline was not followed as the auditors advised that in future the correct procedures be followed. The auditors also observed that during the audit, it was found that the House used their capital receipt for Recurrent Expenditure contrary to Financial Regulations no. 515 - 520.
The total amount involved in non-capital items charged to capital vote is N265,998,738.90.

The detail of the expenditure as regards the last amount was given as follows:

fumigation of legislative quarters - N2,974,000.00,

medical expenses - N890,910.00,

lunch allowance - N3,505,500.00,

constituency allowance - N59,865,000.00,

publication/Press - N1,896,200.00,

Repairs/installation of mace & coat of arm - N1,417,440.00,

claims - N828,047.50,

unspecified payments - N24,397,204.00,

committee expenses - N3,868,275.00,

hospitality/entertainment - N2,131,000.00,

security - N3,900,900.00,

insurance - N6,263,999.95,

minor Works/renovations - N12,495,155.00,

touring advance - N29,699,160.00,

curtain blinds - N788,906.45,

imprest - N14,345,000.00,

procurement of international. passports - N586,000.00,

building construction - N303,919,331.26,

loan refunds - N3,411,607.52,

interest on loan - N1,402,608.49,

supply of file/stationeries N4,974,252.8,

supply of intercom, telephone, CCTN - N3,346,043.01,

purchase of cars - N94,158,000,

furniture grants - N99,920,200,

foreign trip, - N60,150,000.00,

mini filling station - N5,100,000.00,

sand filling - N5,565,000.00,

sick-bay - N500,000.00,

fumigation N2,974,000.00,

construction of drainage, culvets, fencing - N11,740,821.25,

supply of speed boat - N38,430,000.00,

celebration - N 1,600,600.00,

constituency tour allowance - N19,876,000.00,

constituency enlightenment campaign N29,500,000.00,

lunch allowance - N3,505,500.00,

computer accessories - N4,387,000.00

purchase of equipment NN11,463,460.00,

supply of generator - N2.300,000.00,

repair of vehicle - 2.235,771.85,

fuel - N1,097,000.00

financial assistance - N4,005,000.00,

internet website - N823,400.00,

miscellaneous expenses - N1,600,600.00,

water mains/borehole - N4,839,892.25,

supply of medical equipment - N6,136,048.00,

supply of air-conditioner - N6,6617,000.00,

pilgrimage - N9,701,928.25,

restoration of electricity - N1,319,800.00,

sub-measible pump - N2,693,970.00,

Supply of Safe - N4,141,787.58,

transfers - N16,000,000.00,

road construction - N1,600,000.00,

repairs of generator - N14,083,974.00,

training - N1,564,200.00, recess allowance - N19,879,000.00,

tax refund (Nelson belief) - N166,000.00,

temporary staff salaries - N1,046,800.00, public relations - N480,000.00,

out-of - engine repairs - N368,400.00, printing - N1,050,000.00,

out-of-pocket expenses - N1,858,700.00,

xmas bonus for Hon Members N13,600,000.00,

crusade (Speaker) - N1,830,000.00,

office running (Speaker) - N700,000.00, bank charges - N9,040,098.79

VAT - N282,503.89,

Total N1,095,468,138.32

When audit inquired to know why this was done, in reply, Honourable Lokpobiri said that this happened because the total amount that was approved for the House on recurrent expenditure was not released in full by the executive thereby rendering the House unable to meet its recurrent financial obligation.

He said, on the other hand, the capital budget was released in excess of the approved estimate and in order to meet the recurrent financial obligations in its early days of existence, there was no alternative than to use the money available to service the more urgent recurrent liabilities.
The auditors also took a look at the contract building of an administrative block for the Assembly which initially was given at the cost of N140,000,000.00 with a variation of N38,695,492.80 bringing it to a total of N178,695,492.80. A total amount of N117,000,000.00 has already been paid to contractors, Messrs Ultimate Construction Ltd.

The Deputy Speaker's residence and 32 unit boys' quarters which are also being constructed at the legislators' quarters cost N18,000,000.00 and N138,447,838.00 respectively. The audit found that the mode of award of contract as spelt out in the financial regulation was not followed.
The report also contained that the State Assembly obtained a loan facility from the Yenagoa Branch of Standard Trust Bank totalling N60,439,999.92 for the purchase of 25 Honda Civic cars and prado four wheel drive for the Honourable members and the Speaker.

Audit was able to verify the cars, which were properly taken on ledger and were allocated to members for use. But it was observed that the prado four wheel drive car was reported stolen from the Hon. Speaker at gun point, but the normal procedure has not been applied to reflect the loss officially. However it was observed that the cars have comprehensive insurance cover, in the circumstance the audit report recommended that contact be made with the insurer to see that the cost of the car at the time it was stolen be recovered from the company.

Apart from the inability of the House to effect the deduction of VAT/Withholding Tax in all services rendered by companies and business enterprises, the House also paid outrageous amount to themselves in the name of Constituency Allowance.

A total sum of N150,233,500.00 has been paid to the honourable members as follows: constituency allowance - N59,865,000.00, constituency tour allowance - N19,877,000.00, constituency enlightenment campaign allowance N29,500,000.00, lunch allowance - N3,505,500.00, financial assistance to Hon. members - N4,005,000.00, recess allowance - N19,879,000.00 and christmas bonus - N13,000,000.00 totaling N150,233,500.00.

The House had also before now paid itself a duty tour allowance of N30,696,860.00. The report contained that the payment of such money is also another way of wastage of government fund as the House has not passed a Bill or motion to resolve how much each member should take.
The audit report also queried the payment of the sum of N30,787,950.00 as professional fees to consultant and legal practitioners even when the House has not established the assembly service commission. They observed that rather the professionals in the ministry of works, ministry of lands and housing and the ministry of Justice in the alternative should be more utilized. It was also resolved that contracts were awarded generally in the House without recourse to tenders board procedures as required by chapter 33 of the financial regulation.

In their recommendation, the auditor emphasized the need for the leadership of the House to abide by the extant rules and regulations guiding public expenditure and that the House should revert to the existing financial regulations governing payment of allowance.
It also recommended that the operational guideline on tenders board procedures and powers of spending be strictly adhered to in order to avoid abuse of procedures through anticipatory approvals and indiscriminate payment of mobilization fee.

The accounting system was also recommended for streamlining in order to enhance effective internal control, while the financial rules and regulations regarding advances should be strictly followed. Members should retire previous advances before new payments are made.