News Politics

PIB: South-South governors demand 10% as host community trust fund

.. Want NDDC funds kept in escrow account

Governors of the South-South States have demanded an upward review of the provision of 2.5 percent as Host Community  Trust Fund in the Petroleum Industry Bill (PIB) to 10 percent in the best interest  of oil

communities and the nation.

The governors have also advised  President  Mohammadu  Buhari that  in the absence of the board of the Niger Delta Development Commission

(NDDC), funds for the commission beyond the payment of salaries should be put in an escrow account until he constitutes the board.

Chairman of the South-South Governors Forum and Governor of Delta State, Senator Ifeanyi Okowa made this assertion at the end of the forum’s meeting which held at the Government House, Port Harcourt on Monday night.

“We took up the issue of the PIB, the Petroleum Industry Bill which is

already  before the House and having compared notes with ourselves, we

are of the view that while we welcome the Host Community Trust Fund, we do believe that the 2.5 percent that is appropriated in that bill for

the purpose of host community fund is inadequate .

“We have discussed with our people and collectively as leaders of the

people  in our various States and as leaders standing in on behalf of

our people, we urge that the National Assembly should increase the

provision in the host community fund from 2.5 percent to 10 percent in

the best interest  of our communities, in the best interest of our

nation.”

The governors maintained that the communities have a role to play in the surveillance of the nation’s oil facilities and pipeline network. They

expressed the belief that if the communities feel satisfied with

provision of funds for them in the PIB, they are more likely going to be

watchdog  on behalf of  the federal government, the States and oil

companies.

“And the peaceful environment that would be seen in the various oil

communities would enable us to have greater production and a seamless

production in which we do not have any form disruption in our oil

productions going into the future.”

Governor Okowa described as worrisome the running of the NDDC in over a year by an Interim Caretaker Committee, and now, an interim

administrator. According to him, this situation does not augur well for

the people of the Niger Delta as opportunity for all States to be

represented as they ought to be represented in the board of the NDDC

does not exist ” So, it means that the NDDC is actually run in such a  matter that it is actually not truly beneficial to our people, because there is no stakeholders input in the running of the affairs of the NDDC. We do know that there is a forensic audit taking place and if that reason the board has not been constituted, our advise is that monies being sent to the NDDC should be put in an escrow account until a board is constituted and then proper processes are followed in the expenditure of the money in a such a way it will be visibly accountable in the best interest of the peoples of the Niger Delta.”

The governors demanded that whenever the board of the NDDC is

constituted, the advisory council  must be called upon to place its role

to ensure there is check and balance in such a matter that the States

will truly  have value for money expended by the NDDC.

“A situation where we begin to have emergency projects that possibly

will not last three to six months is not right, we don’t feel happy

about it and we are urging Mr President to ensure that if the board is

not going to be immediately constituted, then funds for the NDDC beyond the payment of salaries should be put on hold until he constitutes the board and the board can now run the finances of the NDDC as per the law creating the NDDC.

“We feel already short changed  as a people in the Niger Delta and we

believe that we do not wish to see this kind of situation continue going

forward into the future ,because our people feel the pains, we do not

want  a situation where there is an abuse of processes, neither should

we have a situation where we have abuse of funds.

“We believe that it is best for both the country, for the states of the

Niger Delta and for the people of the Niger Delta when the due process

is followed by the reconstitution of the board and also in

reconstituting the board, that the reconstituted funds should come in

and have funds to spend as per the law.”

He stressed that the demands of the governors have been made based on

the interest of Nigeria, the States and more importantly in the interest

of various communities of the Niger Delta.

Present at the meeting were Governor of Rivers State, Nyesom Ezenwo

Wike; the Governor of Edo State, Godwin Obaseki; Governor of Bayelsa State, Senator Douye Diri and the Deputy Governor of Akwa-Ibom State, Mr Moses Ekpo, who represented Governor Udom Emmanuel.

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