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...For a better society...

Monday, October 04 2004

Vol 17 No.30

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    New Page 9

    ALGON flays new revenue formula

    COSMAS EKPUNOBI, Abuja

    TWENTY-Seven local governments in Imo State have condemned the proposed revenue formula to local governments by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), describing the action as an attempt to emasculate the councils.

    The councils under the aegis of the Association of Local Governments of Nigeria (ALGON) said the proposed deduction of 5.39 per cent from the 20-60 per cent allocation to councils from the federation account to fund primary education in the states is uncalled for.

    The councils in a position paper prepared by their official consultants, Messrs Crincad and Cari Limited, viewed the proposed deduction "as a grand design by the commission to further emasculate and undermine the grassroots development of the third tier of government"

    A five-page document signed by the president of the firm, Hon Ngozike Ihuoma said that the action of the commission was contrary to the position of the late attorney general of the federation, Chief Bola Ige (SAN) that deduction from source for primary school teachers was illegal and unconstitutional, a position upheld by the Supreme Court on April 5, 2002.

    According to the councils, the suit filed last month by the RMAFC at Abuja High Court asking it to declare that no state of the federation has the power to pay any of its local council "was an action done in bad faith and meant to deceive Nigerians that it is local government friendly".

    The councils are however asking the RMAFC to compel the various state governments to refund over N1.5 trillion being over deduction from councils allocation and transferred to National Primary Education Commission (NPEC) which finally paid same to the State Primary Education Boards (SPEBs)

    ALGON is also asking the State Primary Education Boards (SPEBS) to liaise with the various local governments to conduct on authentic pupil/staff audit so as to determine the actual teachers’ salaries which have been the contentious issue since April 1994 leading to zero allocation.

    The councils also want the same court to determine the legality or otherwise of the 15 per cent deduction from its allocation for the funding of traditional rulers.

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