Gov. Makinde in trouble over Supreme Court verdict on LG autonomy

…as loans tied to LG funds crystalize

The recent judgment of the Supreme Court abolishing the State/Local government Joint Account, which permitted governors to plunder local government funds, by granting them financial autonomy, may have more serious implications for Gov. Seyi Makinde of Oyo state. This may explain his defiant reaction to the judgment, and its denunciation by the local government chairmen in the state.

Business Hallmark reliably gathered that the governor had borrowed heavily from commercial banks, using the local funds as collateral. With the new financial autonomy granted the local governments, Gov. Makinde may be in serious trouble finding the means to repay the loans. This, sources said, explained his setting up a committee to review the decision and how to find ways to maintain the status quo, clearly contemptible of the Court.

As Nigerians were basking in the euphoria that greeted the judgment, the Oyo State local government chairmen, stunned the nation for being indifferent to the news, as they announced that they were not pleased with the verdict and they don’t want financial autonomy, as they still prefer their allocations being paid through the state government, under Governor Seyi Makinde.

They also, as a result, denounced the position of ALGON, the Association that binds all the Local governments together, for supporting the decision. Since the Oyo State Local government Chairmen rejected the court’s verdict, their action has generated controversies, and reactions, across the nation, which baffled many, who wonder about the motives behind their actions.

There were speculations, which partly border on loyalty to their principal, Governor Makinde, who was accused of single-handedly ‘selecting’ them, in an election, which was described as a sham by other political parties, who failed to produce a local government chairman, despite the fact that they had fielded candidates more qualified than those favored by the governor, who now occupy the local governments

Ordinarily, the local governments in Oyo State ought to have been happy that they were off the hook of the governor, who gives them stipends to run their affairs but Business Hallmark has discovered that there is more to the their actions than what people are speculating.

It was learned from one of the chairmen, who wants to remain anonymous, that although they were not happy making that decision, they had no choice but to protect the governor, who put them in office.

It was also learnt that they took that decision because the governor had used the Local government accounts to procure some loans and with the Local governments allocations which will now go directly to them, he would be in trouble paying back, since he has been using the substantial part of the allocations to service the loans due to the joint account system being operated.

All avenues to however verified this officially failed as those contacted for comments refused to pick calls.

Before then, the States and the Local government have been operating joint allocation account system, with the allocations of the whole 774 local governments going directly to the states coffers, before being disbursed to them in a manner that pleases the state governors, who appointed the Local government Chief executives and their councillors, under the caretaker arrangement.

Often, most of the projects, which are expected to be executed by the local councils, like markets, community roads, maternities, dispensaries, which are supposed to be free but now tagged primary health centers, etc, were being carried out directly by the state.

The arrangement had been under serious criticism for decades, and the President Bola Tinubu administration took the steps which now liberated the Local governments, by challenging the caretaker arrangement in the councils through the Attorney General of the Federation, Chief Lateef Fagbemi, (SAN) who sued the 36 state governors over abuse of local government funds and got the Supreme Court’s backing.

In a landmark judgement, the apex court ordered the Federal Government to immediately start the direct payment of local government funds to their exclusive accounts.
In its lead judgement read by Justice Emmanuel Agim, the apex court condemned the decades of long withholding of the state government on financial autonomy for local governments and ordered that the 774 local government councils in the country should manage their funds themselves. He pointed out that only democratically elected local government administrations are entitled to these funds and not caretaker committees.

From what is presently available, the Federal Government gets 52.68%, and states get 26.72%, while the LGs get 20.60% of the country’s monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) which operates under the Presidency, and disbursed by the Federation Account Allocation Committee (FAAC).

Meanwhile, it was baffling, that Governor Makinde rather than accepting the court’s verdict like some of his colleagues, stated that, his government would study it.

He even went further to say that the Supreme court verdict “is diversionary when there is hunger in the land”

In its reaction to the Oyo State Local governments chairmen’s remark on the apex court’s verdict on financial autonomy, the All Progressive Congress (APC) in the state argued that the chairmen should not let Governor Makinde push them to jail.

It said that it was criminal, for the executive chairmen and career officer in all the 33 local governments councils across the state, not to distance themselves from the spirited efforts by Governor Seyi Makinde to subvert the verdict of the Supreme Court, which recently granted financial autonomy to the third tier of government in the country, warning, that toeing the the line of the governor might land them in jail, sooner than later.

The APC which commented through its Publicity Secretary in the state, Olawale Sadare, pointed out that Governor Makinde disrespected the court with his committee to review the judgment and mandated members of the committee to come up with recommendations, which would enable him maintain the status quo, as it concerns the joint account arrangement between states and local government councils.

Sadare, accused the governor of covetousness and lack of respect for constitutional democracy and the rule of law as well as having inordinate ambition to make Oyo state a separate republic from Nigeria with a view to making himself a demi-god that would be worshipped by all and sundry.

Also reacting, Dr. Bayo Busari a lecturer at the Department of Mass Communications, Leads City University in Ibadan, told Business Hallmark that the Supreme Court judgment on Local government financial autonomy can be viewed from the perspective that the court’s ruling became expedient and acceptable to the generality of the people because of the persistent abuse that the governors have subjected local government funds.

“It’s, however, disheartening that local government chairmen in Oyo State, who are expected to be the beneficiaries of the court ruling are the ones constituting themselves as impediment to the implementation of the Supreme Court ruling.”

“It’s imperative for the local government administrators in Oyo State to know that they can’t disobey the court’s ruling. It’s not a matter of convenience.” he further argued

“Pulling out of ALGON is laughable and ridiculous. The Association is voluntary, and it has no basis in law.”

The Association of Local Governments of Nigeria (ALGON) also, hailed the Supreme Court verdict. The ALGON National President Maifata Aminu Mu’azu said. “It is a welcome development as you all know even though there are certain states that have been enjoying this type of autonomy before now,”

The National Coordinator of the Joint Initiative Forum Kola Onadipe in his own comment, said, the Supreme Court’s judgment is a new dawn for Nigeria.