Sanwo-Olu moves against pensions for ex-Lagos Gov Tinubu, others
The battle to stop what has often been described as bogus pensions for ex-governors shifted to Lagos state with Governor Babajide Sanwo-Olu hinting on plans to stop payment of some N2billion pension to all his predecessors in office as well as their deputies.
The governor, who dropped the hint Tuesday while presenting the 2021 budget to state House of Assembly, said he would send an Executive Bill to that effect to the state legislature.
Former elected governors in Lagos state include National Leader of the All Progressives Congress (APC), Asiwaju Bola Ahmed Tinubu, current works and Housing Minister, Mr. Babatunde Raji Fashola (SAN) and the immediate past Governor, Mr. Akinwunmi Ambode, who unlike his predecessors had tenure in office.
Although the governor did not state the cost, the civil society however put it at the range of N2billion annually.
If it eventually sails through, the state would be joining Zamfara which repealed similar law November last year, as well as Imo state which struck it out May this year.
For instance, prior to the repeal of the law, Zamfara, the state that has produced three former governors since 1999, provided N700million for their upkeep annually.
Tehe law
With just few weeks to the end of his second tenure, the then Lagos governor, Senator Tinubu signed into law life pensions for ex-governors and their deputies.
The law titled “The Public Office Holder (Payment of Pension) Law No 11 Official Gazette of Lagos State, 2007” states that former governors of the state are entitled to a house each in any location of their choice in Lagos and Abuja.
Section 2 of the law states that, “One residential house each for the governor and the deputy governor at any location of their choice in Lagos State and one residential house in the Federal Capital Territory for the governor on two consecutive terms.”
The law also provides for six new cars every three years, 100 percent of the basic salary of the serving governor (N7.7m per annum), as well as free health care for himself and members of his family.
The law also states that former governors will be entitled to furniture allowance, which is 300 per cent of their annual basic salary (N23.3m); house maintenance allowance, which is 10 percent of basic salary (N778, 296); utility allowance, which is 20 percent of the salary (N1.5m) and car maintenance allowance, which is 30 percent of the annual basic salary (N2.3m).
Other benefits include entertainment allowance, which is 10 percent of the basic salary (N778, 296) and a personal assistant, who will earn 25 per cent of the governor’s annual basic salary (N1.9m).
Similarly, a former governor of the state is also entitled to eight police officers and two officials of the Department of State Services (DSS) for as long as he lives.
Gov explains
Providing some insights into the planned stoppage of the former governors’ benefits, Governor Sanwo-Olu said the decision was to cut the cost of governance while engendering a spirit of selflessness in public service.
He said: “In light of keeping the costs of governance low and to signal selflessness in public service, we will be sending a draft executive bill to the House imminently for the repeal of the Public Office Holder (Payment of Pension Law 2007), which provides for payment of pension and other entitlements to former Governors and their Deputies.”
The governor further said: “It is our firm belief that with dwindling revenues and the appurtenant inflationary growth rates, that we need to come up with innovative ways of keeping the costs of governance at a minimum while engendering a spirit of selflessness in public service.”
Sanwo-Olu said youth employment and human capital development would top the government’s priorities in the next fiscal year.
He tagged the proposed N1, 155 trillion appropriation bill as “Budget of Rekindling Hope” meant to restore economic balance.
He said the budget would be funded from a projected Internally-Generated Revenue (IGR) of N962 billion, and the N192.495 billion deficit to be financed through bond issuance, internal and external loans.
Sanwo-Olu said: “About N704 billion, representing 61 per cent of the total budget, is earmarked for capital expenditure in the proposed 2021spending: an estimate of N451.75 billion, representing 39 per cent, will go for recurrent expenditure, which includes personnel cost and other staff-related expenses.
“The year 2021 is one of Rekindled Hope, in accordance with recent events of global and national proportions, especially the coronavirus pandemic, the EndSARS protests, the general feeling of disenchantment in the polity and the socio-economic yearnings of Lagosians for good governance. This budget reflects our desire to rebuild the trust of the people in this Government, even as we commit significant human and financial resources to the rebuilding of Lagos while doing all we can to move on from the destruction and vandalism recently witnessed in the State, barely three weeks ago.
“The COVID-19 pandemic and EndSARS protests have only heightened the need to urgently implement various programmes under the T.H.E.M.E.S. agenda. The 2021 budget will, among other things, provide for youth employment, security, and youth engagement and social works.
“We are set to improve the economic conditions and social safety needed for our youth to flourish. We are committing resources to sectors that need to grow for our people to become self-reliant and economically empowered. In the Agricultural sector, our food security plan has a cumulative budget of N22.21billion while we are committing a cumulative budget of N311.43billion to provide infrastructure.”
The governor also said his administration was ready to support entrepreneurship and expand the opportunity of Micro, Small, and Medium Enterprises (MSMEs) to facilitate socio-economic advancement through the Lagos State Employment Trust Fund (LSETF).
On security, the governor said: “As we work on reviving the growth of our economy, we must commit resources to our state-wide security architecture, especially in the areas of intelligence gathering and the motivation of all security personnel in the Neighbourhood Watch.
“We will be increasing the size of the Neighbourhood Watch personnel across the state and ensure their training, including community engagement, de-escalation techniques, and proactive information gathering within communities. We believe that as the population of Lagos State increases and become more sophisticated, so should the training of our security personnel to cope with emerging challenges.”
On the education sector, he said the government would train 9,000 teachers in modern teaching techniques to boost learning outcomes and provided complementary textbooks and other ancillary teaching aids for over 350,000 students.
He further said: “We have audacious governance goals, which we cannot achieve without the concerted efforts of all our people. We should not allow the events of the past few months to obliterate our consistent cycles of socio-economic progress. Let us begin to rebuild our State with determination and optimism, even as we advance the interests of the electorate and restore their confidence in this Government.”
SERAP, others laud move
Commending the governor’s move, the Socio-Economic Rights and Accountability Project (SERAP), an advocacy group that has consistently being at the forefront of the fight against pension for former governors, described it as a welcome development.
At different times, SERAP had gone to court to challenge the bogus pensions, the latest of which was the suit asking former governors either in the Senate or serving ministers to refund pension paid to them.
In a landmark judgement, a Federal High Court sitting in Lagos, ordered the federal government to “recover pensions collected by former governors now serving as ministers and members of the National Assembly, and directed the Attorney General of the Federation and Minister of Justice Mr Abubakar Malami, SAN to challenge the legality of states’ pension laws permitting former governors and other ex-public officials to collect such pensions.”
In the judgment, Justice Oluremi Oguntoyinbo said: “The Attorney General has argued that the states’ laws duly passed cannot be challenged. With respect, I do not agree with this line of argument by the Attorney General that he cannot challenge the states’ pension laws for former governors.”
Other CSOs
In another reaction, Director Praxis Centre; Convener Take Back Nigeria Movement; and Co-convener Say No Campaign, Jaye Gaskia, also lauded the move.
He said that had been one of the long outstanding demands of civil society “to put an end to this daylight robbery of citizens through the payment of so-called pension (which is actually often more than 100% of their normal salaries and emoluments) to ex governors and other ex political office holders.”
He said: “It is the right thing to do and it should be welcomed. Former political office holders have other means of earning income – through their businesses etc.
“The aim of pension is to ensure that workers get security of income after their retirement, when they are no longer capable of working at their optimum.
“Paying so-called pension to former governors defeats this aim and in some cases even amounts to double payments from the public treasury in cases where these former governors are serving in other political offices like Senate or as ministers and advisers.”
“And yes, there are numerous other challenges facing the country and Lagos state, but governance should not be put in abeyance because of that. Governance is a continuum. In fact, we can be sure that this bill is a product of the #EndSARS protests, because it is being done to assuage public anger. It is however the right thing to do, even if it ought to have been done way back.
“Additionally, stopping these bogus pensions will leave more resources to attend to delivery of better public services. For instance the so-called pension scheme in Lagos, with three ex governors, four ex-deputy governors will be costing the government about N2bn annually – enough to build low cost housing for public servants or citizens.”
Similarly, Executive Director Peering Advocacy and Advancement Center/Convener Say No Campaign Nigeria, Ezenwa Nwagwu, said this may not constitute a major problem but it is a drain on the resources of the state against the background of lean inflow occasioned by the undeniable effect the pandemic.
“We think it is a step in the right direction to plug leakages and waste. Recall that the issue of pension for public office holders has been of a subject of hot conversation since Lagos initiated it, it’s proper that it takes the lead in its abrogation.”
Source: blueprint.ng
