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LG funds: FG pays N10bn to Lagos

Posted by Yusuf Alli and Semiu Okanlawon on 2005/08/08 | Views: 638 |

LG funds: FG pays N10bn to Lagos


The deadlock over the release of Lagos State council funds may soon be over as the Federal Government has paid N10billion out of the N34billion being withheld.

The deadlock over the release of Lagos State council funds may soon be over as the Federal Government has paid N10billion out of the N34billion being withheld.

But the Lagos State Government said it accepted the offer to avoid being branded as a recalcitrant administration.

Findings by our correspondents showed that the decision to pay one-third of the funds followed a meeting between President Olusegun Obasanjo and the Governor of Lagos State, Asiwaju Bola Tinubu.

Although the talks between the two leaders, a fortnight ago, were inconclusive, a source in Aso Rock said on Sunday that the N10billion was mutually agreed upon by both parties.

The source said, "The President offered to pay one-third of the funds to demonstrate his commitment to resolving the impasse. And the gesture was appreciated by the governor.

"I think on Friday, the Lagos State Government received its cheque. A greater part of last week was used to process the release of the N10billion."

He added, "The President further asked Tinubu to conduct fresh poll into the 20 local councils in line with the conciliation by Prince Bola Ajibola Committee."

When contacted, the Lagos State Commissioner for Information and Strategy, Mr. Dele Alake, confirmed the offer.

He said, "I can confirm to you that we got confirmation from the Federal Ministry of Finance that one-third of the fund has been approved for payment. This is N10billion, which is a little short of one-third of the money."

Asked why the state accepted instalmental payment, the commissioner said, "We accepted the offer so as not to appear recalcitrant, especially in view of the efforts the Ajibola Committee had made.

"Since we had allowed the committee to wade in in the first place, we did not want to appear to be recalcitrant, hoping that the Federal Government would stand by its word to pay the rest of the money."

On the remaining N24billion, Alake said, "That has not been stated but we do hope that it will be paid shortly."

There was a strong indication on Sunday that a fresh poll into the 20 councils may be a precondition for the release of the N24billion.

According to the source, the legality of the election into the 20 Local Government Area is still a grey area being considered by the two leaders.

He said the President had advised Tinubu to consider a fresh election into the 20 councils, adding, 'It might be a precondition for the release of the N24billion balance."

Responding to a question, the source however said, "The President was not imposing his will on the governor, but he wanted due process, because the present chairmen of the 20 Local Government Areas really were not elected into those councils.

"Some of the local governments were split into three or four and it will be difficult to return to the status quo ante without a fresh local government poll.

"He who comes to equity must do so with clean hands."

When contacted, the Special Assistant to the President on Public Affairs, Chief Femi Fani-Kayode, refused to confirm either the offer or payment of the N10billion to Lagos State.

He said, "I am not prepared to comment on the details of the negotiation between the Federal Government and Lagos State at all."

But he said the issue of Lagos council funds was a complex matter and a dilemma for the Federal Government.

He, however, admitted that those calling for fresh election into the 20 Local Government Areas had a point.

Fani-Kayode said, "The matter is far more complex than you think. If you ask who the chairman of Lagos Island Local Government is today, I will be surprised if you can get an answer.

"If funds are released today for the administration of 20 local governments, who will administer those funds considering that there is no democratically elected local government for each of these councils.

"Tinubu split most of the LGAs. Now he said he had reverted, which is good, but the real question is who are the LG chairmen for these 20 LGs?

"It is something that we are all looking at to see whether there is a way around it, other than to have a fresh election there.

'And for those that are insisting on a fresh election into the old LGAs, it is a very logical step and it is a very compelling argument.

'And if Lagos State and Bola Tinubu have nothing to fear and that they are so popular as they always tell us, then why shy away from a fresh election in order to make everything straightforward and simple and easy for everybody."

Asked if The Presidency wanted a fresh poll in Lagos State, Fani-Kayode said, "I'm not saying and I have not said that it (fresh election) is a condition. What I am saying is that this presents a very real dilemma for us. And it is not our making, it is rather the making of the Lagos State government.

"Whatever is the case, Mr. President will make our position known to the public at the appropriate time."

THE PUNCH, August 08, 2005

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