Govt objects to releasing fund for Lagos councils
By Mustapha Ogunsakin,
Snr. Judicial Reporter
R EPRIEVE seems not yet in sight for Lagos State council workers and teachers who had rejoiced last week in the hope that the Federal Government would take an advice by the Supreme Court to release funds for the payment of their salaries and other entitlements.
The Federal Government at the weekend filed a 33-paragraph affidavit before the apex court detailing why it would not release the funds.
It emphatically declared in the affidavit that the court only "advised" the parties to the dispute on the release of funds and not that there was an express directive to that effect.
The Chief Justice of Nigeria (CJN), Justice Mohammed Lawal Uwais, leading a panel of seven justices of the apex court, had last Tuesday said that releasing the funds was imperative since doing otherwise would wreak unnecessary financial havoc on the affected citizens.
The Lagos State government is disputing the withholding of its funds for the third tier of government for creating new councils without federal approval. Also affected by the Federal Government's action are Nasarawa, Ebonyi, Katsina and Niger states.
Justice Uwais and his co-panelists would be expecting a report of the payment of the workers today, based on an acceptable working strategy between the Federal Government and Lagos State, as advised.
The Federal Government's reaction is entitled: "Affidavit pursuant to the advice by the Supreme Court." Sworn to by one Bodunde Adeyanju, a special assistant to the president, the Federal Government stated:
"The President appreciates the advice of their lordships concerning the` plight of the affected teachers and staff of the former 20 local governments established under the constitution.
"It was in order to arrest this sort of situation that the president had earlier invited all states involved in the creation of local governments to a meeting where he expressed the Federal Government's stand that before the local governments created under the constitution can be abolished, there is a need for the input of the National Assembly."
It added: "All states which embarked on the creation of new local governments except Lagos State agreed with the President and reverted to existing local governments established under the constitution."
Adeyanju also averred that President Obasanjo does not believe that any component part of the country can alter the structure of any part of the federation without the input of the National Assembly. The affidavit also stated that the president believes that any dispute on the matter could be resolved amicably but if not, by the Supreme Court, the decision of which he (president) would respect.
The special assistant then stated: "The president also believes that it is unconstitutional and illegal for anybody to first dismantle the structure created by the constitution, put others in place before going to court to ask whether he was right or wrong in doing so."
He continued: "The plaintiffs who were desirous of arrogating power for the creation of local governments to themselves exclusively ought to have sought for the interpretation of constitutional provisions on this proposal before embarking upon same."
He further averred that it is not after the plaintiff has dismantled the constitutionally established structure that he should approach the court to seek an interpretation on whether his action is right or wrong.
Adeyanju averred that it was not correct that teachers and staff of the dismantled local governments were paid solely from the federal allocation, noting that the Supreme Court had earlier ruled that the Federal Government should not be involved in the payment of teachers salary for local governments.
He said: "Federal Government's allocation is paid into a pool for the local government which is made up of federal allocation, state government contribution and internally generated revenue," adding that the federal allocation only forms a part of the money from which teachers are paid. He further stated that the salaries of teachers and other staffers could be paid from states contribution and internally generated revenue by the local governments.
"The contribution to local government funding from Lagos State is sizeable having regard to the huge amount the state receives as state allocation from the federal allocation unlike most other states," the Federal Government stated.
It accused Lagos State of failing to attend a scheduled meeting with the Federal Government's counsel, Chief Afe Babalola (SAN), despite the apex court's advice that the plaintiffs should meet to verify how teachers and staff are paid.
The Federal Government then stated: "Having regard to the above facts, the president has been considerate and it is the intransigence of the plaintiff that had led to this situation.
"It would be unfair to ask the defendant to fund local governments which are not recognised by the constitution and which were defiantly created by the plaintiff.
Section 162 of the 1999 Constitution does not, however, have provision for a "federal allocation account." What it provides for in S. 162 (3) and (6) is the "Federation Account."
S.162(1): "The federation shall maintain a special account to be called 'the Federation Account' into which shall be paid all revenues collected by the government of the federation, except the proceeds from the personal income tax of the personnel of the armed forces of the federation, the Nigeria Police Force, the ministry or department of government in charge with responsibility for foreign affairs and the residents of the Federal Capital Territory, Abuja."
S.162(3): "Any amount standing to the credit of the Federation Account shall be distributed among the federal and state governments and the local government councils in each state on such terms and in such manner as may be prescribed by the National Assembly.
162(5): "The amount standing to the credit of local government councils in the Federation Account shall also be allocated to the states for the benefit of their local government councils on such terms and in such manner as may be prescribed by the National Assembly.
162(6): "Each state shall maintain a special account to be called "state joint local government account into which shall be paid all allocations to the local government councils of the state from the Federation Account and from the government of the state."
Based on the perceived Supreme Court directive, the Lagos State government had filed a 28-paragraph affidavit before the apex court listing the total emoluments of workers, teachers, and pensioners in its local government service.
The affidavit was deposed to by Mrs. Josephine Oluseyi Williams, the Lagos State Accountant-General, who stated in part: "As at March 31, 2004, there were 937 public primary schools within the territory of Lagos State having a combined staff strength of 27,218."
She continued: "The salaries and allowances of all staff in these public schools are paid through the Lagos State Primary Education Board (SPEB) by the Lagos State Joint Account and Allocation Committee out of amounts allocated to the state government from the Federation Accounts for the benefit of local government councils in the state."
Williams further gave details of the total payments made in respect of the public schools for the first three months of the year: January N704,221,079.35; February 703,005,621.35; and March 741,849,827.35.
She made averments with respect to the local government staff strength in the state as follows:
"As at March 31, 2004, the total number of local government councils staff in Lagos State is 21,992 and the individual workers are paid their salaries and allowances by their respective councils out of the revenue allocated to the councils through the state government.
"In view of the foregoing fact, Lagos State Joint Account and Allocation does not make any bulk payment to local government councils for the purpose of offsetting workers' salaries and emoluments, rather, each council pays its individual worker out of its own allocation through banks of its own choice."
She stated that it is impossible to make copies of 263, 904 individual cheques or bank statements issued over a year to 21, 992 local government workers by their respective councils through different banks in the state within one week.
Williams, however, gave the total emolument of all local government workers in the state as: January - N369,291,178.86, February N373,999,526.10, and March - N367,685,853.47.
A similar analysis of the payments to pensioners was also given as follows - January N63,086,179.00, February N63,086,179.00, and March N63,086,179.00.
She thereafter stated: "The total minimum amount required every month for the payment of staff salaries, allowances and pensions in all public primary schools and local government councils in the state is N1,148,437,207.82. The average monthly receipt by all local government councils in the state from federal allocation in January, February and March 2004 is N1,812,626,579.10.`
