SERAP to Buhari: Drop borrowing plan from dormant accounts, unclaimed dividends

By AdvocateNews on 11/01/2021

Share on facebook Yahoo mail icon Gmail icon

Views: 403

President Muhammadu Buhari
President Muhammadu Buhari

Socio-Economic Rights and Accountability Project (SERAP) has sent an open letter to President Muhammadu Buhari, urging him to promptly drop the plan by the federal government to borrow about N895bn of unclaimed dividends and funds in dormant accounts using the patently unconstitutional and illegal Finance Act, 2020 and to ensure full respect for Nigerians’ right to property.

Recall that the Finance Act, signed into law by Buhari last December, would allow the government to borrow unclaimed dividends and dormant account balances owned by Nigerians in any bank in the country.

But SERAP in a letter dated 9 January 2021 and signed by its Deputy Director, Kolawole Oluwadare, said borrowing unclaimed dividends and funds in dormant accounts amounts to an illegal expropriation, and would hurt poor and vulnerable Nigerians who continue to suffer under reduced public services, and ultimately lead to unsustainable levels of public debt.

The letter, copied to Attorney General of the Federation, Abubakar Malami, and Minister of Finance, Budget and National Planning, Zainab Ahmed, read in part: ‘’Rather than pushing to borrow unclaimed dividends and funds in dormant accounts, your government ought to move swiftly to cut the cost of governance, ensure review of jumbo salaries and allowances of all high-ranking political office holders, and address the systemic corruption in MDAs, as well as improve transparency and accountability in public spending.’’

‘’The borrowing also seems to be discriminatory, as it excludes government’s owned official bank accounts, and may exclude the bank accounts of high-ranking government officials and politicians, thereby violating constitutional and international prohibition of discrimination against vulnerable groups, to allow everyone to fully enjoy their right to property and associated rights on equal terms.’’

‘’SERAP is concerned that the government has also repeatedly failed and/or refused to ensure transparency and accountability in the spending of recovered stolen assets, and the loans so far obtained, which according to the Debt Management Office, currently stands at $31.98 billion.’

‘’We would be grateful if your government would drop the decision to borrow unclaimed dividends and funds in dormant accounts, and to indicate the measures being taken to send back the Finance Act to the National Assembly to repeal the legislation and remove its unconstitutional and unlawful provisions, including Sections 60 and 77, within 14 days of the receipt and/or publication of this letter. If we have not heard from you by then as to the steps being taken in this direction, the Registered Trustees of SERAP shall take all appropriate legal actions to compel your government to implement these recommendations in the public interest, and to promote transparency and accountability in public spending.

‘’The government cannot lawfully enforce the provisions on Crisis Intervention Fund and Unclaimed Funds Trust Fund under the guise of a trust arrangement, as Section 44(2)[h] of the Nigerian Constitution 1999 [as amended] is inapplicable, and cannot justify the establishment of these funds.

‘’SERAP notes that while targeting the accounts of ordinary Nigerians, the Finance Act exempts official bank accounts owned by the federal government, state government or local governments or any of their ministries, departments or agencies. Our requests are brought in the public interest, and in keeping with the requirements of the Nigerian Constitution, the country’s international human rights obligations including under the African Charter on Human and Peoples’ Rights to which Nigeria is a state party, and which has been domesticated as part of the country’s domestic legislation.”

The organisation further said: “According to our information, your government has reportedly completed plans to borrow an estimated N895bn of unclaimed dividends and funds in dormant accounts using the Finance Act 2020 you recently signed into law.

“Under the law, the government will be able to access and take without consent unclaimed dividends and funds in dormant accounts in any bank, on the basis of the vague and undefined ‘Crisis Intervention Fund,’ and patently unlawful ‘Unclaimed Funds Trust Fund.

“The government is justifying the borrowing on the ground that it would improve access of the Federal Government to much needed funds, and remove the burdens of foreign exchange and punitive loan conditions imposed by multilateral lenders.

‘’According to the Finance Act, the operation of the trust fund is to be supervised by the Debt Management Office (DMO) and governed by a governing council chaired by the finance minister and a co-chairperson from the private sector appointed by you. The Nigerian Constitution in Section 44(1) provides that, ‘no moveable property or any interest in an immovable property shall be taken possession of compulsorily and no right over or interest in any such property shall be acquired compulsorily in any part of Nigeria except in the manner and for the purposes prescribed by a law.’’

 

Posted 11/01/2021 07:29:33 AM

 

Share on facebook Yahoo mail icon Gmail icon


 

You may also like...
Coronavirus: 24 cases have been exported from Italy...

NAF denies dropping weapons in Enugu forest through...

Ondo 2020: Akeredolu emerges APC Flagbearer

Lai Mohammed to appear in court over N2.5bn...

Reject gunshot victims and get jailed, Police warn...

Police arrest Onitsha ‘beggars’ who make N25,000 daily...

Okogie to Buhari on killings: Give up your...

Twitter hit hard as scammers hack Obama, Bill...

Suspected food poison kills 7 family members in...

Corruption: Jonathan doled out N100bn, $295m cash in...

The National Examinations Council, NECO, announced Sunday, that...

Ohakim, 13 other gov aspirants form new APGA...

 

Latest News NAF personnel, 30 bandits die in Zamfara gun battle HURIWA asks Nigerians to protest, boycott NIN/SIM registration COVID-19: FG releases N10bn for domestic vaccines production Experts fault re-opening of schools amidst COVID-19 second wave We are focused on security, economy, anti-corruption – Buhari CAN issues fresh guidelines for church operations Hilary Kelechi Madu appointed NSCDC Acting Commandant-General NCC begins forensic audit of telcos over data depletion ZONING AS PANACEA FOR POLITICAL STABILITY SEEDS OF DESTINY JAN 19, 2021: INFORMATION – THE PATHWAY OF TRANSFORMATION Kaduna bandits kidnap prof, kill son, three others COVID-19 vaccines, plot to introduce disease that’ll kill Nigerians —Gov Yahaya Bello

 

Most Read I’ve no Coronavirus, govt wants to kill me – Anambra Index case (42,485 views) Fleeing ex-DG Imo Broadcasting Corporation who stabbed wife to death arrested (27,994 views) FG sends new directive to banks, schools as Buhari extends lockdown by four weeks (21,629 views) HUSHPUPPI: CRIMINALS HAVE NO TRIBE. THEY SHAME ALL OF US... (19,575 views) Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (19,148 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (18,865 views) All you need to know about Peter Obi, PDP VP Candidate (18,469 views) ASUU strike: Senate intervention ends in deadlock (18,303 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (16,684 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (15,745 views) Ebonyi bans embalming of corpses in homes (15,596 views) Sickle cell support group seeks government intervention (15,442 views)

 

SECTIONS EDITORIAL (14) NEWS (4,392) FAITH (47) POLITICS (477) SOCIETY (124) SPORTS (40) BUSINESS (338) HEALTH (47) EDUCATION (39) ENTERTAINMENT (31) INTERNATIONAL (127) TECHNOLOGY (1) COLUMNISTS (29) LETTERS (3) OPINION (27)

 

 


There are no video entries posted yet.