The immediate past Chairman of the Financial Crimes Committee in the House of Representatives and former member representing Yewa North/Imeko-Afon Federal Constituency, Kayode Oladele, has shed light on the scope of the Appropriation Act by saying the National Assembly has the power to pass any law or amend an existing legislation pursuant to Section 4 of the 1999 Constitution and powers of the purse in accordance with Section 80 of the Constitution.
However, according to the former former lawmaker, the National Assembly cannot grant the Economic and Financial Crimes Commission or any federal Agency the power to retain a percentage of any funds recovered for administrative purposes through the Appropriation Act (annual budget) without first amending the Establishment Act of that Agency, in this case that of the EFCC.
The former lawmaker made this statement on Friday while responding to reporters questions on a report credited to the House Committee on Financial Crimes at its 2021 Budget public hearing with the management of the EFCC earlier this week.
The committee had said the 2020 Appropriation Act granted five per cent of all monies collected by the Commission from recoveries for administrative purposes though the acting Chairman of the EFCC, Mohammed Umar had denied knowledge of such provision in the 2020 Appropriation Act.
According to Oladele, an amendment to the EFCC Act is the necessary first step towards granting the Commission the powers to retain any percentage of the recovered assets for administrative purposes.
He further stated that the Appropriation Act, though an Act of Parliament, provides the Ministries, Departments and Agencies with budget authority for a specific fiscal year, and is available for financial obligations during that particular fiscal year, in this case, and pursuant to the 1999 Constitution, from January to December.
He said: “Sections 80 and 81 of the 1999 Constitution is very clear on the purpose and intent of the Appropriation Act.
“Funds are appropriated to the Agencies as are necessary to efficiently discharge their functions and responsibilities as enumerated in their various establishment Acts.
“Therefore, the National Assembly cannot donate powers or amend an establishment Act of any agency through the general provision of any particular appropriation Act.
“The power to retain any percentage of the EFCC recovery must be specifically granted through an amendment to the EFCC establishment Act, not through the appropriation Act.
“There is a similar provision in the NAFDAC Act and that is the way to go.”
Responding further to the issue of over funding of the EFCC by the current administration, Oladele, while dismissing the perception, explained that prior to the inauguration of the administration of President Muhammadu Buhari in 2015, the Commission was greatly handicapped by paucity of funds as a result of lack of political will to fight corruption by the previous administration, which adversely affected the ability of the Commission to perform efficiently and further eroded its independence.
He said: “Financial and economic crimes are antithetical to development.
“They are means through which a country can economically become an outcast in the global marketplace.
“They provide disincentives for foreign direct investments and local productivity.
“They increase the risk of capital flights and profit diversion.
“They perpetuate a culture of laziness and dishonesty and rob the country of maximising its human and natural resources potentials.
“To this effect, it is expedient that the National Assembly continues to partner with the Federal Government in its efforts to adequately fund all the anti-corruption agencies and guarantee their integrity and independence.”
