Loot recovery management agency unnecessary, RMAFC tells NASS

The Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) says the bill seeking to establish an agency to manage
recovered assets and funds from looters is unnecessary.

Acting Chairman Shettima Abba-Gana said this in an interview
with the News Agency of Nigeria (NAN) in Abuja on Monday.

Mr Jones Onyereri (PDP-Imo) had in 2017 sponsored a bill to
establish an agency called Nigerian Assets Management Agency (NAMA)
that would be responsible for management of all seized and
forfeited funds and assets recovered by various security agencies
and courts.

The bill, which has passed its second reading, seeks to ensure
proper coordination of all Federal Government owned assets whether
existing or acquired through seizures, court orders and
forfeitures.

Abba-Gana, however, said that creating such agency would only
result in duplication of agencies as there were other existing
agencies that could carry out the responsibility.

“The commission’s position is very clear and we wrote as such to
the National Assembly informing them that there is no need to
create such agency when there are several agencies that can manage
assets of government.

“We recommended Asset Management Corporation of Nigeria (AMCON)
and there is the Sovereign Wealth Fund (SWF) which can also manage
assets.

“Therefore, creating another agency when two agencies exist that
can manage these assets is absolutely unnecessary.

“We will just be paying salaries unnecessarily and putting
burden on taxpayers.

“And the lesser cost of governance becomes and efficient, the
less it will be a burden to taxpayers and on businesses and the
more the private sector will thrive,” he said.

He said that one of the mandates of the RMAFC was to give fiscal
advice and monitor accruals and disbursement of funds to and from
the federation account.

The acting chairman also said the commission was also mandated
to look at general fiscal issues.

According to him, if the laws that established these existing
agencies did not give room for them to handle such
responsibilities, then the laws can be modified to accommodate what
is needed.

He said that it was easier to modify, alter or amend the law
than to create a brand new agency.

“If you check the laws or mandate establishing these agencies,
like that of the RMAFC, there is a provision at the end of it that
says apart from its specific mandate; it can carry out any other
assignments given to it by the authorities.

“So, it means that there is an opening for even more work to
come to the commission if the National Assembly passes it.

“So, for most of these agencies, they also have the same
provision that any other assignment by the National Assembly or the
president should be carried out.

“However, if that provision is not there, the National Assembly
can amend the law to carry out this extra responsibility rather
than creating more agencies,” he said.

Abba-Gana also said that the Oransaye report which recommended
merger of agencies to reduce cost of governance was still very
valid and should be looked into to avoid duplication of
agencies.

The Central Bank of Nigeria (CBN), Nigeria Deposit Insurance
Corporation (NDIC) at a public hearing organised by the House of
Representatives Committee on Banking and currency also opposed the
bill.

The Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) says the bill seeking to establish an agency to manage
recovered assets and funds from looters is unnecessary.

Acting Chairman Shettima Abba-Gana said this in an interview
with the News Agency of Nigeria (NAN) in Abuja on Monday.

Mr Jones Onyereri (PDP-Imo) had in 2017 sponsored a bill to
establish an agency called Nigerian Assets Management Agency (NAMA)
that would be responsible for management of all seized and
forfeited funds and assets recovered by various security agencies
and courts.

The bill, which has passed its second reading, seeks to ensure
proper coordination of all Federal Government owned assets whether
existing or acquired through seizures, court orders and
forfeitures.

Abba-Gana, however, said that creating such agency would only
result in duplication of agencies as there were other existing
agencies that could carry out the responsibility.

“The commission’s position is very clear and we wrote as such to
the National Assembly informing them that there is no need to
create such agency when there are several agencies that can manage
assets of government.

“We recommended Asset Management Corporation of Nigeria (AMCON)
and there is the Sovereign Wealth Fund (SWF) which can also manage
assets.

“Therefore, creating another agency when two agencies exist that
can manage these assets is absolutely unnecessary.

“We will just be paying salaries unnecessarily and putting
burden on taxpayers.

“And the lesser cost of governance becomes and efficient, the
less it will be a burden to taxpayers and on businesses and the
more the private sector will thrive,” he said.

He said that one of the mandates of the RMAFC was to give fiscal
advice and monitor accruals and disbursement of funds to and from
the federation account.

The acting chairman also said the commission was also mandated
to look at general fiscal issues.

According to him, if the laws that established these existing
agencies did not give room for them to handle such
responsibilities, then the laws can be modified to accommodate what
is needed.

He said that it was easier to modify, alter or amend the law
than to create a brand new agency.

“If you check the laws or mandate establishing these agencies,
like that of the RMAFC, there is a provision at the end of it that
says apart from its specific mandate; it can carry out any other
assignments given to it by the authorities.

“So, it means that there is an opening for even more work to
come to the commission if the National Assembly passes it.

“So, for most of these agencies, they also have the same
provision that any other assignment by the National Assembly or the
president should be carried out.

“However, if that provision is not there, the National Assembly
can amend the law to carry out this extra responsibility rather
than creating more agencies,” he said.

Abba-Gana also said that the Oransaye report which recommended
merger of agencies to reduce cost of governance was still very
valid and should be looked into to avoid duplication of
agencies.

The Central Bank of Nigeria (CBN), Nigeria Deposit Insurance
Corporation (NDIC) at a public hearing organised by the House of
Representatives Committee on Banking and currency also opposed the
bill.