The Labour Party Caucus in the National Assembly on Thursday expressed grave displeasure over ongoing moves by Governor Charles Soludo of Anambra State to enact joint State and Local Government joint Account law, in circumventing the landmark judgement delivered by the Supreme Court on Local Government financial autonomy.
The Caucus led by Senator Tony Nwoye who spoke during a press briefing in Abuja, also tasked the Speaker and members of Anambra State House of Assembly to toe the path of honour by stopping forthwith further consideration of the obnoxious Executive bill for posterity’s sake.
The federal lawmakers who spoke in turns argued that the provisions of the proposed Bill titled: ‘Anambra State Local Government Administration Law, 2024’ currently at the Committee stage, is subservient to the landmark Supreme Court rulings as well as extant provisions of the 1999 Constitution (as amended).
The aggrieved Labour Party lawmakers specifically frowned at the provisions of Clauses 13, 14 to 20, among others, with special focus on the ‘State, Joint Local Government Account’, ‘Local Government Consolidated Account’, ‘Local Government Consolidated Account’, ‘Consolidated Account Management Committee’, ‘Local Government Security Trust Account’, ‘Local Government Security Trust Account Committee’s, among other issues.
The controversial Clause 13(1) stipulates that ‘The State shall maintain a special account called State Joint Local Government Account and shall pay into it all allocations from the Federation to the Local Governments, of the State. (2) The State shall distribute the funds due to the Local Governments as provided in subsection (1) of section 11, on such terms and in such manner as prescribed by the State House of Assembly.’
They also protested against the provisions of Clause 14 on ‘Local Government Consolidated Account, which stipulates that: “There shall be established, a Local Government Consolidated Account which shall be managed on behalf of the Local Government Areas in the State. (2) The Consolidated Account shall be administered for the uniform provision of common services across all the Local Government Areas in the State.
(3) Each Local Government shall, within two working days from the receipt of their allocation from the Federation Account in a case where the allocations are received directly from the Federation be Account for any month, remit to the Consolidated Account, 4 percentage as determined by the Anambra State Economic Planning Board.”
Senator Nwoye who decried the ravaging insecurity situation across the State, queried the rationale for the proposed 20 percent deduction from the Federal Allocation to Local Government as proposed in the bill.
He said: “The good People of Anambra State that we all represent in the National Assembly, we all have gathered to raise an alarm over the growing threat by Anambra State Government led by Professor Chukwuma Soludo to financially strangulate the 21 Local Government Areas in Anambra State and deprive them their financial autonomy recently confirmed by the Supreme Court of Nigeria.
“Kindly recall that On Thursday, July 11, 2024, the Supreme Court in Sc/343/2024 delivered a landmark judgment in which Justice Emmanuel Agim Jsc ruled that all funds due to the 774 Local Government Areas (LGAs) in Nigeria must be paid directly into the accounts of Local Governments and no longer through State and Local Government Joint Account.
“(1A) We are seriously worried that Anambra State Government wants to take our dear state back to era of impunity especially where the House of Assembly seem to be complicit in this show of ignominy. (2) Permit us to illustrate this proposed obnoxious Law with specific reference to some sections side by side with the pronouncement of the Supreme Court in its judgement delivered on 11th July 2024.
“Section 13(1) of the proposed Anambra State Local Government Administration law 2024, under the subheading: ‘State, Joint Local Government Account’, stated that the “State shall maintain a special account called State Joint Local Government Account and shall pay into it all allocations from Federation to the Local Governments of the State.
“13(2) The State shall distribute the funds due to the Local Governments as provided in subsection (1) of section 11, on such terms and in such manner as prescribed by the State House of Assembly.”
“(4A) The Supreme Court per Justice Emmanuel Agim at page 55 of the judgement in granting relief 12 gave an order of injunction restraining the State Governments by themselves, their privies, agents, officials or howsoever called from further collecting, receiving, spending or tampering with Local Government Council funds from the Federation Account for the benefit of Local Government Councils.
“Furthermore, the Supreme Court in the said judgement in granting relief 9 at page 54 declared that the current practice of states keeping, controlling, Managing and disbursing Local Government allocations from Federation Account is Unconstitutional and illegal.
“Again, the Supreme Court at page 28 of the judgement held that it is obvious from the provision of Section 162(3)1999 constitution as amended that the Constitution did not intend Joint ownership of the amount standing to the credit of the Federation Account to each of the 3 tiers of Government. This distribution makes each of them separate owner of the part distributed to it.
“In section 14(1) and 14(3) of the said Anambra State proposed obnoxious Law labeled ‘Local Government Consolidated Account’ it was stated in section 14(1) that there shall be established a Local Government consolidated account which shall be managed on behalf of the Local Government areas in the State. It further provided in section 14(3) ‘Each Local Government shall, within two working days from the receipt of their allocation from the Federation Account, in a case where the allocations are received directly from the Federation Account for any month, remit to the Consolidated Account, a percentage as determined by the Anambra State Economic Planning Board.”
“The Supreme Court in the above judgement at page 34 held that the Constitution did not give the states any right or interest in the allocations to a Local Government Council from Federation Account.
“The Supreme Court in granting relief 10 at page 54 of the above judgement made a declaration that a State either by itself or its Governor or other agencies have no power to keep, control, manage or disburse in any manner allocations from the Federation Account to Local Government Councils.
“Another obnoxious section of the proposed Anambra State Local Government Administration Law 2024 aimed at stifling Local Government financial autonomy is section 16 which established Local Government Joint Security Trust account which shall be managed on its behalf and which requires the Local Governments to remit 20% of its allocation within two working days of receipt of its allocation from Federation Account.”
He maintained that Governor Soludo should withdraw the obnoxious legislation now! “It’s a slap on Anambra, it’s a slap to the rule of law, it’s a slap to Federal Republic of Nigeria especially the person of record in his own right, because the Attorney General initiate the action on behalf of the Federal Government, it’s a slap on constitutional democracy and our judiciary because it’s the apex law in the land which the law overrides any other law.
“So, that is why we are saying let them withdraw it, let it stop now because once they pass it and it’s signed into law we’ll now swing into action.”
On his part, Minority Deputy Whip, Hon. George Ozodinobi who noted that the State Governor is challenging Federal government and the Attorney General of the Federation over their recent approval, urged Governor Soludo to withdraw the proposed bill without further delay.
He said: “We will avail you with the copy of the obnoxious bill sent to the State House of Assembly to critically look at their section 17 subsection 1a, b, c, that’s the core crux of the bill. His Special Adviser will be chairman to manage the supposed 20 per cent they want to pass; his Commissioner will be the Deputy chairman too and himself as a Governor will now appoint Mayors rather than Chairman of Local Governments, one per 3 Senatorial district, he’s the one that’ll appoint who’ll be members of this Board. And he will direct on the disbursement of such, those are the core issues.”
While urging Governor Charles Soludo to retrace his steps, Leader of the Labour Party Caucus in the House of Representatives, Hon. Victor Ogene said: “While we are urging the Governor to do the needful by withdrawing the proposed bill that he has sent, we are also calling on members of Anambra State House of Assembly to be mindful of the judgement of history. People who sit over bad laws, obnoxious laws, also have their names written in infamy.
“They will not be on that seat forever. In our dear State, issues have come up even when Mr. Peter Obi was impeached. Many of those who sat and superintended over that still bear the burden of that criminality till this day.
“So, current members of the Anambra State House of Assembly should be mindful of their names, should be mindful of where they come from and that if they don’t render account to the people today, they will certainly do so in the future.”
The Caucus also protested against Clause 17(1) which stipulates that: “there is established a local government joint security trust account committee which shall comprise of the following: (a) The special adviser to the governor on security who shall be the chairman; (b) The commissioner in charge of security; (c) Three Mayors of the local government areas to be appointed by the governor as chief security officer of the state, each of whom shall be selected from each of the senatorial districts in the state; and (d) The accountant general of the local government.”
“The Supreme Court per Justice Agim held at page 46 of the above Judgement that a Law made by the Government of a state to ensure the existence of a Local Government council in accordance with Section (7)(1)1999 Constitution as amended must not contain any provision that undermines or destroys the democratic nature of the Local Government Councils or that renders them departments or mere appendages of a state Government.
“The Supreme Court in the above judgement per Justice MOORE ASEIMO ADUMEIN JSC in his contribution to the judgement at Page 21 held ‘The chokehold on thr allocations to Local Government Councils from the Federation Account by the States has to be stopped by the Court, otherwise the Local Government Areas in Nigeria will suffocate, die and go into extinction’.
“He further held that “States should stop treating Local Government Areas as their Colonies’.
“We humbly call on Anambra State Governor Professor Chukwuma Soludo especially Anambra State House of Assembly to adhere to the appeal of Hon Justice Moore Adumein JSC in the above judgement at page 22 wherein he held: ‘It is becoming worrisome that some Legislative Assemblies make Laws that take only the interest of some privileged people into consideration and not the overall interests of the general public.
“By way of a very subtle appeal to the Legislature both the National Assembly and Houses of Assembly, there iis a sacred duty for Laws to be made with the interest of all the citizens of the Federation in mind irrespective of colour, creed, gender, size or status’.
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