Senate set to review release of Paris Club refunds to states
The Senate has resolved that it will next week consider how the Paris Club refunds doled out to state governments was approved.
President Muhammadu Buhari gave part of the Paris Club refunds to state governors as bailout funds to assist them to offset salary arrears they owed their workers.
The Senate resolution followed observation by Senator Samuel Anyanwu that the upper chamber should look into the legality of the bailout funds given to governors by President Buhari.
Anyanwu who represents Imo East in the Senate sought to know who gave approval for the distribution of the Paris Club refunds since the National Assembly was not consulted before the disbursement of the funds to state governors.
Anyanwu said, “I am worried about the Paris Club refunds. Governors are asking for more funds. Where is this money coming from. The Senate has not given any approval for the disbursement of any such funds. Who gave approval for the bailout funds and where is the money for.
“I heard the President scolding them the other day. The President was asking them how they sleep at night even when they do not pay salaries. They have received billions of naira. I feel worried. Even the Nigerian Labour Congress (NLC) has told the President to stop giving bail out funds to governors.
“If you look at front page of newspaper, you will see the issue there. This is the problem. If my colleagues will allow me, I want to bring this as a motion at our next legislative day. I so submit.”
Senate President, Abubakar Bukola Saraki, sought the leave of the Senate to authorize that a proper motion be brought on the issue.
Saraki said, “Senator Samuel Anyanwu has spoken. Is it the wish of our colleagues that this motion be brought at another legislative day.”
The approval came unanimously.
It would be recalled that President Buhari, in 2015, few weeks after he assumed office, approved bailout funds to states to settle salary arrears, without any recourse to the National Assembly.
The 1999 Constitution, (as amended) noted in Section 80 (4) “No moneys shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly.”
Also, in late 2016 and early 2017, President Buhari approved the disbursement of N760.17 billion in two tranches of N243.79 billion each to the 36 state governments and the Federal Capital Territory.
The funds were also meant to offset backlog of salaries of state civil servants.
Only last Tuesday, governors once again met with President Buhari, to demand for the release of the outstanding Paris club refund by November, to enable them include it in their 2018 budget appropriation.