The National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) yesterday applauded the conviction of the former National Vice Chairman of the People’sDemocratic Party (PDP), Chief Olabode George and five other members of the party for financial impropriety amounting to about N85 billion and commended the judiciary its courage.

The union then called on the judiciary and the Economic and Financial Crimes Commission (EFCC), to intensify efforts at ensuring quick disposal of cases involving former governors in various courts across the country.

In a statement by the General Secretary of the union, who is also the Comrade Issa Aremu in Kaduna, noted that the N85 billion which was mismanaged took place under former President Olusegun Obasanjo, who claimed that he was fighting corruption.

Aremu who doubles as the National Vice President of the Nigeria Labour Congress (NLC) congratulated well meaning Nigerians for taking positive steps towards the fight against corruption.

“We join other well meaning Nigerians to commend the Judiciary in particular and EFCC as well as to congratulate all Nigerians for the positive step towards the fight against corruptionas demonstrated by yesterday’s conviction of the former Chairman of NPA and chieftain of the Peoples Democratic Party (PDP) Chief Olabode George and five other members of his board namely Arc. Aminu Dabo, Captain O. Abidoye, Abdullahi Aminu Tafida, Alhaji Zanna Mai Deribe and Engr. Sule Aliyu who were sentenced to two and a half years jail terms without an option of fine by an Ikeja High Court presided over by Justice Joseph Oyewole.

“The six defendants were arraigned by the Economic and Financial Crimes Commission, EFCC, alleging financial impropriety of N85 billion, disobedience of lawful authority and abuse of offices.

“The judgment is significant and commendable.  For once, public officers are being convicted and jailed by the court over abuse of public trust and due process in a multi-billion Naira contract scam.

“This shows that if there is the will there will be the ways on the part of anti-corruption agencies namely EFCC and ICPC to enforce accountability and sanction corrupt practices.

“We recommend the process (speed and thoroughness) as well as good outcomes (judgment and justice) of the Lagos High Court under Justice Oyewole for other judicial officers in the quest to fight corruption.

“As Justice Oyewole rightly asserted, when public office is abused, the entire system is assaulted.

“This must not be condoned or treated with kid gloves if the quality of services in our public life is to attain an appreciable standard of civilized world. For the right deterrent to be served therefore, sufficient firmness must be demonstrated” the statement said.

Aremu expressed the hope that the judgment will energize other moribund cases to be put to their logical conclusions, notably impending cases of corruption involving some former governors.

According to him, democracy should not only guarantee freedom for the citizens as it is, but must let public officers know that freedom goes with responsibilities and urged that the judiciary must make the point that democracy can punish corrupt practices in high places and reward credible and honest public officers.

“Beyond that, the judgment also tasks the current and future Executive and State Executives about the need for good governance in allocations of public resources.

“It is a scandal that contract splitting and contract inflations of such magnitude of N85bn which is one quarter of 2009 budget for Lagos State could take place under Obasanjo administration who celebrated much of due process and accountability.

“Interestingly this violation is done by the chieftain of the ruling party.  President Yar’Adua must put necessary machineries in place and empower due process office to be on top of all public contract awards.

“Again this judgment should make the executive to stop politicization of boards’ appointments.  It is clear that the way these officials rigged elections was exactly the way they abused public trust when in boards of public corporations.

“The impunity and disregard for due process by the convicts show that it is an excess of absolute power as they feel they are not accountable to anybody.

“All said, what should worry us is that during the processes of trial and after the conviction, the attitude of the convicts and their hired supporters showed no remorse at all and there is the need for attitudinal change.

“This tasks all Nigerians that we have to bring back old values in which naming corruption means shaming corruption and convicting them as the court has done means damming corruption. Nobody should be allowed to celebrate corrupt people.

“Lastly, the promise of the 1999 constitution is protection of public welfare and security of the citizens.  We must make our public institutions to work.

“It is time President Yar’Adua replaced corruption agenda with development agenda.  It is not yet uhuru until we return to good governance, transparency and accountability.  We must strengthen public procurement process” the statement said.

ENDS.

BUT for adherence to rule of law, the Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi says those found culpable in the current crisis rocking the banking industry ought to be tied to the stake and shot.

Sanusi noted that whenever Nigerian banks failed, it was only the poor depositors that suffered while the rich were never touched. He said the CBN was fully out to protect depositors' money and shareholders.

The CBN governor stated this yesterday in Lagos at the Nigerian Economic Summit Group (NESG) Policy Dialogue with the theme: "Post-consolidation crisis in the banking sector: The challenge of regulation, going forward."

Sanusi said Nigerians need to understand the role of the apex bank in the whole saga, adding that at the assumption of office as the CBN governor and at the discovery of the rot in the system, he had two options: either expose the rot in the sector and make necessary corrections or fold his arms and keep his friends in the industry while its collapse became imminent.

He said the N620 billion-bailout package for the troubled banks was not enough to tackle the exposure of the banks to margin loans.

Sanusi disclosed that the apex bank was working assiduously to ensure that no bank went under. He said the liquidity problem in the sector started in 2008, stressing that most of the banks were walking corpses, which were relying on the discount window borrowings to remain afloat.

He said as a risk-trained banker, he could not have failed to take proactive steps through the audit of the banks on assumption of office, declaring that there was strength in weakness "if we are ready to accept it"

The CBN chief revealed that the rot in the sector was so alarming that a bank gave out loans to the tune of N45 billion secured by shares in a bank that is owned by a state government, with the loans becoming non-performing on a collateral not more than N5 million.

He said: "Those found culpable in this dastardly acts are not vulnerable people that need our sympathy. If not for the rule of law, some of them (offenders) should be tied to a stake and shot.

"At the discovery of the crisis, we had the option of liquidating these banks and hand them over to the Nigerian Deposit Insurance Commission (NDIC) under the law, where a lot of people would have lost their savings or go after the so-called rich and powerful people in the country and make them to pay. What we have done so far remains the best option that could have been taken by any body," he insisted.

Sanusi said there was need to have improved disclosure of activities in the banks because of the rot that had damaged the reputation of the sector, adding that there was need to spend more time talking and evaluating the value system because it remained an elixir for a sustainable political and economic system.

He challenged anybody with proofs of his borrowing from any bank and the loan not performing to expose him.

He admitted that the Nigerian economy was not immune to the global economic recession, but added that most of the country's problems were self -inflicted which "we must resolve ourselves if we want to remain in the comity of nations.

"The rest of the world is dealing with credit-based crisis, but the credit squeeze in Nigeria is not a consequence of the CBN's present actions. It is the consequence of the actions and inactions of our banks.

"We need to be realistic and very judgmental in decision-taking. It is not possible for the banking sector to lose 25 per cent of its equity and still expect the economy to grow. There is need to fast track the process of moving the banking sector to the next stage of development."

Sanusi said monetary policy does not determine economic growth, but that all machinery of government must be on deck if the needed economic growth would be attained, adding that the recapitalisation of the banks would facilitate the drive.

He said Nigeria's inflation was expected to fall below 10 per cent in December, down from 10.4 per cent reported in September, adding that if the current reforms in the sector and those of the economy could be sustained, Nigeria should be better than South Africa by 2012.

According to him, the CBN was working with stakeholders in the sector such as the Security and Exchange Commission (SEC), Ministry of Finance, the Corporate Affairs Commission (CAC) to reposition the financial sector.

Commenting on the nationalisation of the bank as credited to the Finance Minister, Dr. Mansur Muhta, Sanusi said: "The minister never said weak banks will be nationalised, he only said if the issue of mergers and acquisition should come up and some of these banks could not get partners, the government will acquire majority shares in the banks and when the banks get stabilised, government can withdraw its money and the banks continue to run as an independent institutions."

On allegations that he was pursuing a northern agenda, the CBN governor said it was not true. If he had such hidden agenda, Sanusi said he would have allowed the banks to collapse to create room for another set of people to buy their shares.

He also said that President Umaru Musa Yar'Adua's stand on the reforms was clear, noting that the President "wants a financially strong sector that can compete globally. Bank PHB has as shareholders, relatives of the President, yet he never queried the actions taken on the bank. So we are working to re-position Nigeria's financial sector."

Some of the discussants like Olisa Agbakoba (SAN), said the problem came as a result of weak institutions and complete failure of the legal framework.

Agbakoba canvassed sound credit reporting in the sector to guide the bankers, stressing that what happened in the first phase of the sanitisation was in order but that the rest phase must be done with proper legal analysis.

Mrs. Ibukun Awosika, managing director of SOKOA Chair Centre, said there had been a breakdown of "our social values, with issue of trust being breached seriously."


@ Guardian Newspapers Limited