Questionable breaches of TSA policy
An Adhoc Committee of the House of Representatives is presently investigating the circumstances surrounding the questionable diversion of government revenue totaling about N50 billion from the Treasury Single Account [TSA] regime. The funds which comprise revenue generated by NNPC are in several banks which were instructed to withhold same from being remitted to TSA. NNPC […]
An Adhoc Committee of the House of Representatives is presently investigating the circumstances surrounding the questionable diversion of government revenue totaling about N50 billion from the Treasury Single Account [TSA] regime. The funds which comprise revenue generated by NNPC are in several banks which were instructed to withhold same from being remitted to TSA. NNPC claims that it acted on the strength of a Presidential directive which is yet to be verified. The basis so far for NNPC’s action is a memorandum written by Chief of Staff to the President Abba Kyari. The Central Bank of Nigeria is apparently privy to this violation of TSA policy as its official also cited the COS’ memorandum to justify the bank’s acquiescence to the diversion.
Ever since it came to light the issue has attracted much public interest, with the House Committee demanding evidence of presidential approval for this slap on the TSA policy which he had launched with fanfare and gusto. So far no evidence has surfaced of a specific presidential executive order. Besides even if the President would issue such an order it is still questionable unless it was captured in the 2017 budget. Public interest in the matter is therefore hinged on several factors including the possibility that this revelation could just be the tip of the iceberg. Could it be that there are many more cases of unauthorized diversion of public funds from the NNPC to holding accounts outside TSA?
Some experts have wondered whether the COS has official authority to intervene in the affairs of the NNPC in spite of his membership of the corporation’s board and his official sway in the Presidential Villa. As a public institution NNPC is established by law and has extant statutory processes for running its regular business and such do not provide for any other officer except the President to dictate how money flows in or out of the corporation. Unless it can be established that the president expressly authorized this diversion from TSA, the action is illegal and it calls for a full explanation from the government.
NNPC and its Group Managing Director erred administratively in honouring a directive to breach a standing policy covering all MDAs including the corporation when it was not clear that it was a presidential directive. A mere memorandum should not have been elevated to the level of an executive order, which is necessary before funds could be withheld from the TSA system. Given the startling revelations that we had in this country during the former regime, of diversion of trillions of naira from NNPC, the current administration must not allow a porous system that gives the impression that we are returning to the old ways.
Much hope lies with the ongoing probe by the House Committee which should not leave any stone unturned in getting to the root of this matter. It should press on not only with unearthing the faults of the recent episode but should also ensure that the right thing is done and all public funds are routed back into TSA. If anyone is found to have willfully created an infraction, adequate sanctions should be applied.
Beyond the foregoing is the need for a law to be enacted by the National Assembly for the successful operation of the TSA regime nationwide and by every tier of government. This will save the TSA regime from the surreptitious manipulation and unscrupulous exploitation. Contrary to the present state of affairs whereby the policy is suffering selective abuse, is the need to consolidate it for the good of the country. TSA is an initiative of the World Bank which is intended to assist countries with fragmented financial systems better manage such resources. So far the country has made significant gains from its implementation since 2015. These gains must be preserved and any abuse of its principles and processes, if uncovered by the House of Representatives Committee, should not be tolerated.