Jumbo pay: RMAFC queries top officials

 

L-R: Dimeji Bankole, Sanusi Lamido, David Mark

The newly-constituted Revenue Mobilisation, Allocation and Fiscal Commission has demanded for briefing from the senior management staff of the commission on how the controversial jumbo remuneration of federal lawmakers was arrived at.

The Chairman of the RMAFC, Mr. Elias Mbam, who fielded questions from journalists after a news conference in Abuja on Monday, promised that the RMAFC would take a holistic look at the jumbo package.

“I have demanded that the management should provide me information on this. We will take a look at the issue holistically,” he said.

THE PUNCH had reported that the salary and allowances of a senator total N15.18m per month and those of a member of the House of Representatives, N10.59m.

To keep the federal lawmakers in office for one year, the Federal Government spends a staggering N67.32bn on their salaries and allowances.

RMAFC had in 2009 prepared a bill meant to reduce the official earning of the lawmakers in conformity with the directive of the late President Umaru Yar’Adua following the global financial crisis.

However, the bill could not get the approval of the National Assembly.

Mbam had ealier at the news conference, described as outdated, the revenue sharing formula currently in use in the country.

Explaining that the current formula was put in place by the military, he added that a committee to assist the commission prepare a new revenue sharing formula would be constituted soon.

He said, “I intend to establish a committee on a new revenue sharing formula immediately. The one we are using now is quite old. Most of the bases are already overtaken by events. We will look at a new formula that will be fair to all Nigerians.”

Revenue sharing formula, which has remained a controversial subject in the Nigerian federation, refers to the proportion of resources accruing to the federation that goes to each of the three tiers of government.

It also defines the proportion of resources that must be retained in the territories where they are generated as well as what goes to the agencies of government that collect the revenues on behalf of the federation.

Currently, 13 per cent of mineral resources known as derivation go to the oil – producing states. Four per cent of the money collected by Nigeria Customs Services is given to the organisation as the cost of collection.

Similarly, the Federal Inland Revenue Services is given seven per cent of the money it collects to cater for the cost of collection.

After these deductions, the revenues are pulled together – both mineral revenue and non- mineral revenue – are pulled together and shared among the three tiers of government.

The Federal Government gets 52.68 per cent. The state governments get 26.72 per cent while the local government councils get 20.6 per cent.

From Value Added Tax, four per cent cost of collection is assigned to FIRS.

After this deduction, the net revenue is shared among the three tiers of government in the proportion of the Federal Government, 15 per cent; state governments, 50 per cent; and local government councils, 35 per cent.

The RMAFC is charged with the responsibility of designing and reviewing the nation’s revenue sharing formula in line with changing realities as well as the remuneration of political office holders. Its work, however, must be approved by the National Assembly.

It is also a statutory member of the Federal Account Allocation Committee, the Local Government Joint Account Allocation Committee, the Joint Tax Board and the Commission of Ecological Fund.

Mbam, a former Minister of State for Finance, also said the commission would pay more attention to new sources of revenue rather than concentrating on the traditional sources that had fed the federation account in the past.

He said, “The revenue accruable to the federation account comes from oil and gas, FIRS, Customs and DPR. We need to take appropriate measures to expand the nation‘s sources of revenue.

 Source:Punch

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President Obama's tax compromise with GOP saved economy and himself

President Obama reminded critics that he's still relevant with Republicans in control.
WASHINGTON - Democratic purists can complain all the way to 2012, but President Obama did what he must to save the economy - and himself - from falling into the abyss.
The $858 billion tax compromise he cut with resurgent congressional Republicans is the political equivalent of a divorce settlement: a deal that leaves both sides squealing.
Obama had the most to lose, so this two-year back-room package is a bigger victory for him than the Republicans who vow to make him miserable when the 112th Congress convenes Jan. 5.
Furious liberals convinced that Obama could have gotten a better deal might be right. He doesn't have Lyndon Johnson's horse trading skills or sense for the jugular, but this accord says he shares Ronald Reagan's pragmatism.
The orthodox conservatives who worship Reagan forget that he liked to say he'd rather get half of what he wanted than jump off the cliff with the flag flying.
Obama emulated that sage philosophy in the tax negotiations, trading away temporary heftier breaks for the hyper-rich in exchange for billions more in job-creating economic stimulus.
"Being attacked by the left is not such a bad place for him to be," a prominent Democratic operative often critical of Obama's performance told the Daily News.
Had he played chicken, taxes would rise Jan. 1 and the GOP would reap the credit for rolling them back on their watch. That would have been a debacle, leaving Obama infinitely weaker than his still-anemic poll numbers.
Now, Obama has reminded critics that, in Bill Clinton's celebrated phrase after losing Congress to the Republicans, "the President is relevant here."
His presidency remains in serious trouble.
Afghanistan policy is almost as unpopular as his landmark health care plan. He seems to have mislaid his Great Communicator portfolio, and Democratic allies say his underachieving White House staff needs a thorough makeover.
Still, many pols from both sides of the barricades still believe he has a decent chance for reelection - assuming the economy rises from its knees.
If he wins a second term, the historians and punditocracy will conclude his political recovery began with the Holiday Compromise of 2010.


Read more:nydailynews

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Jumbo pay: Import of Sanusi’s comment on the National Assembly

L-R: Dimeji Bankole, Sanusi Lamido, David Mark
Following the Central Bank Governor, Lamido Sanusi’s insistence that 25 per cent of the nation‘s budget is spent on the National Assembly, CHARLES ABAH writes that the comment has further raised the bar of the argument vis-à-vis the place of the lawmakers in the country
When the other day the Central Bank Governor, Mr. Lamido Sanusi, said that 25 per cent of the Federal Government budget overhead was spent on the National Assembly, many public commentators raised an eyebrow about the figures. And, more than one week after the revelation, the topic has continued to elicit interesting commentaries from even a cross-section of Nigerians. Interestingly, the more they talk about it, the more engaging the issue has become.

Indeed, those who thought that the invitation of the CBN helmsman to the floor of the National Assembly a few days later would have ended the discussion got it all wrong. Rather, Sanusi‘s insistence that he stood by his statement has not only increased the tempo of the argument, it has attracted more attention to the debate, as well as the state of the National Assembly.

The comment has, in fact, raised the bar, attracting with it other fundamental issues vis-à-vis the place of law-making and democracy in the country. As a matter of fact, arising from the debate, a political group, the Hope Democratic Party, has canvassed that the membership of the National Assembly should be on a part-time basis. In the thinking of the party, the recommendation would greatly reduce the huge expenditure on lawmakers.

According to the party‘s presidential candidate in the 2007 election, Ambrose Owuru, the country cannot continue to tolerate a legislature that serves as a drain-pipe on the economy.

He added that it was morally outrageous for the lawmakers to be adjusting their allowances to the detriment of good governance.

The HDP and Owuru are not alone in kicking against the attitude and the huge expenditure on the nation‘s lawmakers. Many other public commentators and groups including the Civil Liberties Organisation have expressed their views on this debate. For instance, apart from the fact that part-time lawmaking in the country will reduce cost, the CLO, through its Executive Director, Ibuchukwu Ezike, said the idea would discourage corruption and waste.

He said, “Law making process in Nigeria as indeed in most countries of the world should be on part-time basis. This will reduce unnecessary cost and discourage parasitic dependence, corruption and waste of public funds, especially as our lawmakers have failed to use their oversight roles to curb corruption and executive lawlessness.”

But for a human rights activist, Shehu Sani, the issue should not be limited to just part-time lawmaking. Insofar as he is concerned, the way democracy is practised in the country is too costly. To save cost therefore, he canvassed that there was the need to adopt the unicameral legislature in the country.

Besides, Sani who charged the nation‘s lawmakers to try to make sacrifices noted that there was the need to review their allowances and salaries.

He added, “Following the hard times and the state of the nation‘s economy, there is need for our lawmakers to make sacrifices. Elective office should be selfless. The image of the lawmakers for now is not good for the integrity of that office. So, the revelation by Sanusi should be a challenge to the lawmakers to demonstrate that the office is not self serving.”

Beyond charging the lawmakers not to be self serving, the human rights crusader wants the CBN governor to extend the searchlight to the executive arm of government.

Like Sani, a Lagos based lawyer, Mr. Pat Anayadubalu, argued that the Sanusi searchlight should be extended to the executive arm of government.

He argued, “We should also not criticise only the legislators without talking about the executive office holders like the governors because if we impoverish the legislators, they will be puppets to the governors. Remember, the legislators are meant to serve as a check on the executive and cannot competently do it if they are not adequately remunerated or their remunerations are so poor that they will be at the mercy of the executives.”

Anyadubalu further described the Nigerian economy as “still growing” and argued that she had so many things to direct her resources into.

He added, “The job of the National Assembly should be on part-time and their remunerations drastically streamlined so that the economy will be able to sustain the running of their activities. I believe also that if it is lesser remunerated it will be less competitive and the “do or die” attitude we experience in the polity will reduce.”

A university teacher and public affairs analyst at the Lagos State University, Ibukun Kolawole, also agrees with the CLO, HDP and some other public commentators on the issue.

Kolawole, who extolled Sanusi‘s courage, however took the argument to another level. Declaring that the debate was timely, especially with the ongoing minimum wage debacle, the academic said the lawmakers were not doing anything spectacular in the country for now to deserve the hefty salaries that they receive.

Again, Anyadubalu while examining the nation‘s nascent democracy, said election in the country was very expensive and the electorate were not helping matters as a result of their inordinate demand on the public office seekers.

The electorate, he said, should be properly educated to vote according to their conscience and not according to the highest offer that they receive.

In the same vein, the Organised Labour through the Trade Union Congress of Nigeria readily admits like Anyadubalu that Nigeria‘s creaking political system desperately needs an overhaul.

The union in a statement by its President, Peter Esele and the Secretary-General, Chief John Kolawole said, “This revelation has further justified our earlier stand that Nigeria operates the most expensive democracy in the world. If our National Assembly members are not selfish and self-centred, how can they justify collecting between N10m and N15m monthly as salaries in a country with near absent or total collapse of social infrastructure and where people they claim to represent can hardly afford one square meal?”

The union also recommended that membership of the National Assembly should be on part-time basis to reduce the huge expenditure on lawmakers.

Even with the above scenarios, there are still some analysts who hold the view that lawmaking, the world over, is no child‘s play. A political scientist who craved anonymity argued that legislative business was a serious issue that should not be looked upon with lightness. In other words, he holds the view that lawmaking on part-time basis should be out of it in the country.

Given Nigeria‘s ‘modest‘ experience in democracy, he posited that the citizenry should not expect an optimum performance from the lawmakers and by extension the nation‘s politicians.

 Source:http://www.punchng.com/

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I didn’t insult Fayose – Obasanjo

Former President, Olusegun Obasanjo

Former President Olusegun Obasanjo on Monday denied exchanging hot words with a former Ekiti State Governor, Ayodele Fayose, at the thanksgiving reception organised by the sacked former governor of Osun State, Prince Olagunsoye Oyinlola, in his Okuku hometown, Oyo State, because he (Obasanjo) could not condenscend to the level of the former Ekiti governor.

Fayose, impeached as governor in 2006 in controversial circumstances during the second term tenure of the Obasanjo’s eight-year regime, was reported to have launched a verbal attack on Obasanjo at the Okuku event but the former president told our correspondent on Monday that he did not respond to Fayose’s diatribe.

Obasanjo, who spoke on the telephone through his Consultant on Media, Mr. Adeoba Ojekunle, wondered why he would exchange hot words with “someone that I could be his father.” He said Fayose’s “aggression was misplaced.”

The former President insisted that there was no exchange of hot words between him and the ex-governor as he claimed that Fayose left shortly after the encounter which was said to have almost ended the ceremony.

Ojekunle explained, “He (Fayose) came into the inner room of Oyinlola’s house, where Baba (Obasanjo) was with the rest of the visitors. Fayose was not around during the thanksgiving service; he came after the service. He greeted everyone in the inner room except Baba. So, the other people asked him why he would not greet Baba. That was what sparked off his anger as he started raining abuses on Baba. But if you know Baba very well, he would not say a word; and he didn’t say anything,” said the consultant as Obasanjo tried to find out from the background who was seeking clarifications on the Okuku encounter.

“You can ask me, was it Baba that was behind his trouble? Was he the EFCC that is trying him for corruption? Baba was not even there (in office) when he was arraigned for corrupt charges. So, he should go to his state and sort out his troubles.”

He claimed that Fayose could not continue his visit (to Oyinlola) after the verbal assault as he “hurriedly left the place because other dignitaries took exception to his conduct.”

Since Fayose was impeached four years ago, there had been no love lost between him and the former president. He had publicly blamed Obasanjo for his impeachment and subsequent trial by the Economic and Financial Crimes Commission. The Okuku episode on Sunday apparently provided Fayose the opportunity to confront the former president.

Meanwhile, the Nigerian Farmers and Hunters Union, popularly known as the Agbekoya, on Monday issued a statement asking Fayose to apologise to Obasanjo for his conduct which the union said amounted to disrespecting an elder.

In the statement signed by the media consultant to the NFHU, Mr. Olatunji Bandele, the Agbekoya, reputed to have fought a fierce war of liberation against the defunct Western Region Government in the first republic, said Obasanjo “by all standards can have Fayose as a son and as such there can not be comparison between their ages and status in Nigeria.”

The association of farmers apologised to the former president for Fayose’s conduct but insisited that the former Ekiti State Governor, whom it said “must have misunderstood some issues,” must publicly apologise to Obasanjo.

Also, a former minister of Aviation under the Obasanjo administration, Chief Femi Fani-Kayode, on Monday faulted Fayose’s attack on the former president.

“There comes a time when you have to look at the person that is insulting you and you opt not to bother to respond because there are certain types of people that you just can not reason with. What we do not need is for anyone to unleash an unprofitable assault on such a great achiever (Obasanjo),” he said.

Source:http://www.punchng.com/



 


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Democrats need Pelosi's toughness

This week, visitors entering Washington's Union Station are greeted by a work of art -- a two-story, red open-toed lady's dress shoe. It reminds me of Cinderella's lost glass slipper. I thought to myself, if someone is looking for the woman big enough to fill this, they need look no further than Nancy Pelosi.
The nation is fortunate, not to mention the Democratic Party and the president, that Ms. Pelosi will be re-elected Democratic leader for the next Congress, because we are surely entering one of the nation's most difficult eras.
Voters rejected many incumbents across the country earlier this month, and the Democrats remaining still need a few political giants in the Congress. Thank God, they have one in House Speaker Nancy Pelosi.
There aren't any congresswomen in American history I can compare to Nancy Pelosi, because none was in a position to equal her accomplishments. Pelosi, as we all know, is the first ever woman ever elected to be Speaker of the House. The esteemed newspaper The Christian Science Monitor wrote of her this last July: "Make no mistake: Nancy Pelosi is the most powerful woman in American politics and the most powerful House speaker since Sam Rayburn a half century ago."
Read More:http://www.cnn.com/2010/OPINION/11/15/brazile.pelosi/index.html?hpt=T2 Read more...

Lame duck Congress convenes

House Speaker Nancy Pelosi is set to give the gavel to House GOP leader John Boehner in January after the lame-duck session.

The so-called "lame duck" session of the Democratic Congress convened Monday, with members preparing to make decisions on a host of contentious issues that could have major political ramifications for both President Barack Obama and the incoming Republican House majority. Newly elected House members, meanwhile, were given a daylong orientation on the rules and procedures governing life on Capitol Hill. They are set to take office in January.
In the Senate, two new members -- Delaware's Chris Coons and West Virginia's Joe Manchin -- were sworn in by Vice President Joe Biden. Coons and Manchin are both Democrats; their addition to the Senate did not change the chamber's 59-41 Democratic edge for the lame duck session. Senate Democrats will have a smaller 53 to 47 majority next year.
Manchin was elected to fill the final two years of the late Sen. Robert Byrd's term. Coons will serve the final four years of Biden's term.
One of the first challenges for the House is the selection of its new leadership. Republicans are expected to tap Ohio Rep. John Boehner and Virginia Rep. Eric Cantor as speaker and majority leader, respectively. Democrats appear ready to tap current House Speaker Nancy Pelosi of California as the new minority leader, while also keeping Maryland Rep. Steny Hoyer and South Carolina Rep. Jim Clyburn in the leadership.
Read More:http://www.cnn.com/2010/POLITICS/11/15/lame.duck.congress/index.html?hpt=T2
 

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US Elections 2010: Patty Murray wins Washington state

President Obama campaigned twice for Ms Murray in the run-up to the vote
With final votes still being counted, Republican challenger Dino Rossi said he had called Ms Murray to "offer my congratulations".
The result leaves the Democrats with 51 seats in the 100-member Senate following Tuesday's mid-term polls.
Republicans have 46 seats and two independents caucus with the Democrats. The Alaska vote is yet to be called.
The mid-term elections resulted in heavy losses for the Democrats.
The president's party lost control of the House of Representatives and despite the Washington state victory, has a reduced majority in the Senate.
US President Barack Obama campaigned for Ms Murray twice during the run-up to the polls, including at a rally in Seattle which took place just as voters were receiving their ballots.
Washington state has a large number of postal ballots, so counting the vote takes longer than in other parts of the country.
The Republican concession came as Ms Murray's lead hit about 46,000 votes out of more than 1.8 million counted - about three-quarters of the expected total cast.
Source:http://www.bbc.co.uk/news/world-us-canada-11700077 Read more...