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Author: Chinweizu
Posted to the web: 8/18/2005 10:14:03 AM

Chinweizu, yesterday, criticised the debt deal negotiated by the President and his team, saying the President deserves quizzing by the EFCC for playing ‘inside man’ for the Paris Club racketeers. Today, he says the National Assembly should create a Special Prosecutor to investigate the debt relief deal. These are just a few of the aspects of this so-called Debt Relief that I find curious and troubling. Perhaps the press reports on which I have based my observations are inaccurate, but who is to say that they are? The ordinary citizens and even the press cannot uncover the facts much beyond what has already been done. They do not have the administrative instruments or constitutional powers to inspect the documents in the files of the Presidency.  Since it is apparent that the EFCC has been perverted into a private instrument for harassing handpicked adversaries of the President, the public cannot trust it to look, let alone impartially, into this debt relief affair. Thus, only the National Assembly (NASS), which has the constitutional power to inspect the documents of the Executive branch, can further illuminate this debt deal. Perhaps this is the time for the NASS (whose own campaign was, wisely, for 100% debt cancellation and not this murky “debt relief” scam) to step in and clarify matters and act in the interest, and to the satisfaction, of the Nigerian people. Some other aspects that need to be looked into are: (a) What could happen to a country addicted to imports if it lost its reserves? Wouldn’t it be forced to go a-borrowing once again to finance urgent imports, and promptly find itself back in the debt trap from which it tried, rather incompetently, to escape? If you gave your entire month’s paycheck to pay off your debt to some shylock, wouldn’t you have to rush out and borrow again to feed and pay health and other bills for the rest of the month—and in your desperation probably accept even worse terms than before? Zimbabwe’s current distress should be a warning to Nigerians against giving away their reserves. If the President goes ahead with this non-transparent debt deal, and exhausts the reserves, wouldn’t the already distressed Nigerian economy simply collapse? (b) But how likely is it that, on losing its reserves, Nigeria would quickly exit  the debt trap? Not bloody likely! It should be noted that the proffered exit treatment requires a PSI with the IMF, plus IMF tracking of performance under that PSI. And therein lies the catch. This requirement allows prolongation of the exit process, through repeatedly moving the proverbial goal post, thereby denying the tantalizing exit. So, exit from the debt trap is not even assured, not being automatic upon paying the $12bn upfront. Like any victim of 419, Nigeria, after losing the $12bn advance fee, could be waiting forever for the promised bonanza to arrive! (c) The overall result of (a) and (b) would be that Nigeria, upon losing its reserves, would have to go desperately borrowing anew to stay alive, without even getting rid of its present virtual debt burden of $36bn. (d) An international transaction of this magnitude, which is fraught with dire consequences for the people — one capable, by wiping out Nigeria’s reserves, of devastating the economy, of perpetuating our debt peonage  and jeopardizing the society and populace for the indefinite future—does it not require prior legislative approval? Shouldn’t it?Let me end by exploring, however briefly, this issue and some preventive measures. Preventive measures If implementation of this scam that smacks of treason is to be prevented, what is to be done? Even if it is deemed legal to proceed without legislative backing, would that be prudent? Would it be prudent of the NASS to turn a blind eye and not investigate what looks, prima facie, like a monumental and devastating scam? The NASS, it seems to me, has two duties to discharge:(a) Uncover the facts and make them public so as to educate the people about this dubious “debt relief”; and(b) Act promptly to prevent any possible looting of Nigeria under cover of “debt relief.”If the NASS feels itself unequal to the task, it could, at least, do two things:(1) Create a Special Prosecutor, such as Gani Fawehinmi, the people’s tested lawyer, to investigate this “debt relief” deal, and to prosecute those responsible for any impropriety or fraud found in this whole debt business. The Special Prosecutor’s office should be independent, and thoroughly insulated from the influence, of the executive branch, and should be mandated to investigate the procurement of each and every loan in the original $17bn debt stock, as well as the execution of the projects for which it was ostensibly borrowed. It should also investigate and prosecute any impropriety or illegality associated with the debt repayment process thus far.(2) Urgently pass a law forbidding the FGN to pay even one cent to the Paris Club or any other foreign creditors, before the Special Prosecutor’s work is satisfactorily completed. ChinweizuP. O. Box 988, Festac Town, Lagos, Nigeria.sundoor777@hyperia.comChinweizu is an occidentalist and the author of The West and the Rest of Us.