Daily Independent Online.
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Wednesday, July 21, 2004.
FG, states dispute LG fund allocation
bill
By Uchenna Awom
National
Assembly
Correspondent,
Abuja
Abuja and the states
disagreed on Tuesday over some provisions in the new bill that prescribes the
basis for revenue allocation to councils from the Federation Account.
But House of
Representatives Speaker Aminu Bello Masari advised state governments and other
stakeholders to consider the fundamental issues involved in the bill and avoid
sentiments since the bill is principally meant to protect public funds.
At a public hearing in
Abuja, organised by House Committee on Justice and Judiciary, Justice Minister
Akin Olujimi said the bill is a necessary tool to control funds allocated to
councils.
He told the audience,
which included states and council representatives, that henceforth any
allocation to councils, including area councils, in any quarter shall not be
released unless fund for the previous quarters has been accounted for to the
satisfaction of the federal accountant general.
Olujimi insisted that
the federal capital should be regarded as a state for the purpose of the bill.
Anambra State Attorney
General U.N. Udechukwu and his Lagos State counterpart Yemi Osibajo disagreed
with him. They said there is no need for the bill as the establishment of a
state joint local government account has already been provided for by the
Constitution “in clear and unambiguous terms”.
In opposing
Olujimi’s stance that FCT should be regarded as a state, Udechukwu said
the status of Abuja has been subject of clear pronouncement of the Supreme
Court in the case of AG Federation vs AG Abia State and 35 others where
Ogundare, JSC put it thus:
“The Federal
Capital Territory is not a state nor a local government in a state. It,
therefore, cannot qualify for distribution of the Federation Account. Nor are
the area councils in the Federal Capital Territory as they are not local
governments ‘in a state’ as provided in subsection (3) of section
162 of the Constitution”.
Udechukwu advised the
President to look elsewhere for funds for the FCT.
The hearing continues today.
