STAR NEWS: The
Okigbo Panel Report Revealed !
By
Mobolaji E. Aluko, Ph.D.
alukome@aol.com
Dear Compatriots:
On January 15, 1994, as part of his early moves to convince the nation
of a new broom of probity and accountability, General Sani Abacha (who
had become military head of state November 17, 2003)
empanelled a group of eminent Nigerians chaired by the late economist
Dr. Pius Nwabufo Charles Okigbo to probe the Gulf War period receipts.
The full report, submitted 27th September, 1994, has NEVER seen the
light of day, and was declared mysteriously "missing" from government
records soon thereafter.
Until now....
The full Okigbo Report - all 365 pages of it, with much arcane stuff -
is now in the public domain, and has begun to be serialized by the
ever-enterprising TheNews Magazine in Nigeria ! It's actual title
is:
PANEL ON THE REORGANISATION AND REFORM OF CENTRAL BANK OF NIGERIA (1994)
The report's contents are divided up as follows:
Executive Summary of the Main Report: Pages 1 -13
Chapter 1: Introduction - Pages 1-30
Chapter 2: The Evolution of the Central Bank of Nigeria - Pages 31-44
Chapter 3: The Regulatory Framework - Pages 45 - 66
Chapter 4: Legal Framework - Pages 67 - 88
Chapter 5: Domestic Operations - Pages 89 - 126
Chapter 6: The Growth and Management of Domestic Debt - Pages 127 -150
Chapter 7: External Sector Policies - Pages 151 - 224
Chapter 8: Fiscal and Monetary Policies - Pages 225 - 256
Chapter 9: Administrative and Managerial Structure of the Bank Pages 257
- 291
Chapter 10: Information Management - Pages 292 - 311
Catalogue of Recommendations: Pages 312 - 351
Members of the Panel Secretariat - Page 352
For significant excerpts of it (Executive Summary, several pages of
Chapters 1 and 7 for now), pl ease see pdf files in:
http://www.nigerianmuse.com/nigeriawatch/okigbo/
Nigerian Muse
"That the World May Know"
_____________________________________________________________________
The Punch, Monday, May 16, 2005
Okigbo report indicts IBB, two others
Yusuf Alli
A window may have been opened on a dark era in the country's past as the
long-sought-for report of the Pius Okigbo panel entered the public
domain on Sunday.
In spite of desperate official efforts to keep the report away from the
public in the last 11 years, there are indications that the report
indicted th e former military President, Gen. Ibrahim Babangida, and two
others for mismanaging about $12.4billion oil revenue in six years.
The others are the late Gen. Sani Abacha, and a former Governor of the
Central Bank of Nigeria, the late Alhaji Abdulkadir Ahmed.
Okigbo's panel was set up by Abacha in January 1994, as part of efforts
at the time, to re-organise the CBN.
The panel was also mandated to examine the use of dedicated accounts and
other special accounts for oil receipts. The panel submitted its report
in September 1994.
As part of its duties to the public, PUNCH had written several letters
to the Secretary to the Government of the Federation, Chief Ufot Ekaette,
for a copy of the report.
In a letter on October 27, 2004, PUNCH informed the government that its
investigations had traced a copy of the report to a former Permanent
Secretary, Federal Ministry of Finance, Alhaji Ibrahim
Idah.
In his last letter to PUNCH on the repo rt, Ekaette said, "We have since
written to Idah to send us a copy of the report. We are still awaiting
his response."
Also, in one of his public outings, President Olusegun Obasanjo said, "I
don't have the report. In fact, I don't know if any such report existed.
I will be happy if anyone can give me the report."
But The News magazine, in its current edition, circulated on Sunday,
published the Executive Summary of the 335-page report of the Okigbo
Panel.
In the summary, the three former public officers were accused of wasting
the oil revenue from September 1988 to June 1994.
The report claimed that the $12.4billion was secretly sourced and spent
from six extra-budgetary accounts, which were only known to the two
former heads of state and the former CBN Governor.
The report further identified the sources of the $12.4billion fund as
Central Bank Dedication Account, NNPC sales of Mining Rights Account,
Stabilisation Account, the Signature Bo nus Account and GHQ Special Fund
Account.
The report said, "In 1988, the President authorised the dedication of
crude oil of 65,000 barrels per day for the finance of special priority
projects including Ajaokuta Iron and Steel, Itakpe Iron
Mining, and Shiroro Hydro electric projects. The account was also to be
used for external debt buy-back and the build-up of reserves. The
quantity was subsequently increased to 105,000 barrels per day and in
early 1994 to 150,000 barrels per day.
"In addition, a stabilisation account to receive the windfall of oil
proceeds from the Gulf War and a special account for Mining Rights and
Signature Bonus were opened. Altogether, $12.4billion was
received into these accounts from 1998 to June 1994, all of which have
been spent leaving a balance of $206million as at the 30th of June,
1994."
It said, "The problem with these accounts is that even when revenues
were shown globally, as in the case of dedication account, the
expenditures were not included in the Federal Budget.
"Apart from the projects which the accounts were established, their use
was extended to a wide variety of projects, many of which could not be
classified as priority. The details of receipts and disbursements on
these accounts were, however, carefully maintained and all payments were
duly authorised by the President."
The panel said if the two former Heads of State prudently managed the
funds, the exchange rate of the Naira would have been stronger to the
dollar in 1994.
It said, "If only the funds had been regarded as part of the external
reserves and had been counted as such, the impact on the exchange rate
in the year under review would have been so significant that the
Naira would have been stronger in 1994, in relation to the dollar, than
it was in 1985."
On the operation of the accounts, the Okigbo Panel said it was not
subjected to budgetary processes and lacked transparency.
"By limiting the authorisation process for its operation to the approval
of the President or Head of State, which was communicated directly only
to the CBN Governor, it created considerable room for
abuse of procedures, abuse of application and reduced accountability.
"From the foregoing, it is clear that the instructions relating to the
operation of these accounts ran between the President and the Governor
and between the Governor and the Director, Foreign
Operations.
"The Panel was informed that each time the Governor received an
authority from the President to effect a payment, a Minute was sent to
the Director, Foreign Operation, through the Deputy Governor,
International Operations. The dedicated accounts were not operated
whenever the Governor happened to be away. The Deputy Governor,
International Operations and the Director, Foreign Operations, had no
discretion with regard to the operation of the dedication accounts. They
acted only on the aut hority of the Governor."
On the disbursement of the accounts, the panel traced it to three
categories, including security and defence expenditures, contractors and
presidential fleet and other payments.
Although the details of the expenditure of the $12.4billion were not
provided, the Okigbo Panel identified some projects of importance but it
added that there were many large projects of doubtful viability and many
more of clearly misplaced priority.
Some of the curious sub-heads included a documentary film on Nigeria,
$2.92million; purchase of TV/Video for The Presidency, $18.30million;
ceremonial uniform for the Army, $3.85million; staff welfare at Dodan
Barracks/Aso Rock, $23.98million; travels of the First Lady abroad,
$.99million and the President's travels abroad, $8.95million.
Other expenses were medical (Clinic at Aso Rock), $27.25million; Gifts
(Liberia), $1million; Gifts (Ghana) $.50million; Embassies- London,
$18.12million; Riyadh, $14.9 9million; Teheran, $2.76million;
Niamey, $3.80million; Pakistan, $3.80million; Israel, $13.07million; TV
equipment for ABU, $17.90million; Ministry of Defence, $323million;
Security, $59.72million; Defence Attaches, $25.49million and General
Headquarters, $1.04million.
The panel said, "In addition to these, the Dedication and Special
Accounts had become a parallel budget for The Presidency. The President
alone made the decision as to what expenditure items to be
financed out of these dedicated accounts, depending on the pressures
brought to bear on him by the sponsors of the items.
"For example, the accounts had been utilised to defray assortment of
expenses that could not in any way be described as priority."
The panel did not recommend any sanction for Babangida, Abacha and those
involved in the illegal operation of the six accounts.
It, however, urged the Federal Government to discontinue the Dedication
Account and other Special Accounts.
It said, "The balance in the existing Dedication and other Special
Accounts should immediately be taken into the external reserves of the
Central Bank.
"Receipts from sales of dedicated crude oil should be paid into that
account up to the end of the 1994 fiscal year. Thereafter, with effect
from January 1995, there should be no further dedication of
crude oil.
"But if for any reason, there is to be a dedication account, there
should be a total and full disclosure of both the expected revenue and
the item(s) of expenditure in the budget and the GHQ Special Account
should be transferred to the normal budget of the government."