LG Allocation: ALGON Flays FG, States
From Ahamefula Ogbu in Abuja
The Association of Local Governments of Nigeria (ALGON) yesterday criticised the law endorsing the creation of State/Local Government Joint Account as it enables the State and Federal Governments to tamper with the funds through deductions or outright withholding.
Speaking at a public hearing on "The Bill to Prescribe the Basis for Allocation of Revenue Standing to the Credit of Local Government Councils and Area Councils in the Federation Account and For Other Related Matters Connected Therewith," ALGON President, Hon. Baver Dzeremo, said that the LG Bill would jeopardise the independence of the third tier of government.
Dzeremo said a situation whereby funds standing to the credit of the Local Government Councils were subjected to redistribution by the States House of Assembly negated the provisions of the 1999 Constitution especially on issues of decentralization, devolution of powers and fiscal autonomy as practised in other advanced democracies.
"ALGON prefers that each Local Government receives its statutory share of the Federation Account directly, as usually calculated by the Revenue Mobilization, Allocation and Fiscal Commission in accordance with the formula indicated in paragraph two of the bill.
"This approach would preclude the possibility of tampering with the respective Local Government allocations by anybody including the State Government. It also provides the requisite fiscal independence, which an elected chairman is supposed to have in order to perform creditably.
"ALGON does not support the establishment of a State Local Government Joint Account to which all monies allocated from the Federation Account to the Local Government Councils and Area Councils, as the case may be, shall be paid", he stated.
The only acceptable modality for the operation of such account, Dzeremo said, was for the purpose of the remittance of 10 percent of each state's Internally Generated Revenue (IGR) as was prescribed by the bill.
He argued that it was a "misnomer" for State Assemblies to redistribute funds standing in favour of Local Government Areas from the Federation Account.
He also condemned the provision which empowers the Federal Government to hold back the allocation to any Local Government Area, which fails to render satisfactory account of previous allocations.
"Furthermore, ALGON does not support a situation where any part of the Statutory Allocation made to a Local Government (or Area Council) from the Federation Account is withheld because of unsatisfactory accounting for a previous release, which might be caused by the State authorities. We consider this as an illegal tampering with the statutory allocation to the Local Government, and the allocation should not be subject to any conditionalities", he added.
Other provisions of the bill to which the LG workers expressed aversion include the mopping up of unreleased funds at the end of the fiscal year and the non-description of modalities for the distribution of 10 percent IGR to councils.
Dzeremo called for a speedy review of the 1999 Constitution to enable the removal of what he termed, "obvious ambiguities, contradictions and retrogressive provisions pertaining to Local Government Administration in this country".
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