Following the alleged N585 Million corruption scandal rocking the Ministry of Humanitarian Affairs and Poverty Alleviation under Dr. Betta Edu, International governance, public finance management and development expert, Barr. Tagbo Agbazue has called for immediate reforms to reposition key government ministries, departments and agencies for effective service delivery....CONTINUE READING THE FULL ARTICLE>>>

Barr. Agbazue who condemned the latest corruption scandal that has engulfed the humanitarian ministry, said the crisis underscores the urgency for a critical review of governance structures and processes within government institutions to strengthen transparency and accountability.

Addressing newsmen in Abuja on the state of the nation, the expert lamented that the Humanitarian Affairs Ministry, conceived as a lifeline for the vulnerable, has turned into a breeding ground for corruption and gross mismanagement, where funds intended for the most disadvantaged citizens are diverted, eroding public trust in government institutions.

“Such a ministry with its parastatals is very important to the long-term growth and development of Nigeria. The humanitarian ministry should not have issues of corruption associated with it. Because this is a ministry that is tasked with looking after the poor of the poorest in Nigeria, and it is absolutely important that funds that are earmarked for welfare purposes actually reach the intended beneficiaries.

“When you go to Europe and America – the Western countries, nobody touches money that is earmarked for education, healthcare, basic infrastructure like roads, water, electricity, and social welfare. These areas are sacred grounds; they are not supposed to be marred by issues of corruption, so that development can get to the grassroots, to the common man in the country. So, it is indeed a shame to hear of the sort of corruption happening,” he said.

While commending President Bola Ahmed Tinubu’s commitment to fighting corruption and his decision to suspend the Minister of Humanitarian Affairs, Betta Edu, pending an investigation, Barr. Agbazue however, raised questions as to the extent of Nigeria’s ability to cleanse itself of deeply ingrained corruption, emphasizing the need for proactive systemic reforms and stringent enforcement of existing regulations to tackle the menace.

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Addressing the allegations against the Minister over the disbursement of N585 Million to a personal account, Barr. Agbazue wondered how funds could be easily moved around into personal accounts in this era of stringent financial regulations guiding such disbursements. This, according to him, signals a disregard for governance processes and delegation of authorities within the Ministry.

“It is quite frightening to hear the ease with which government functionaries are moving money all around to private accounts. When you look at our tender and procurement processes, you begin to ask some questions: When were tenders issued for these amounts? When were these companies selected? How were they selected? What is the transparency about their selection and the process for the selection? Do we have delegation of authority frameworks that are effective in these ministries, departments and agencies?

“Isn’t there a due process for disbursement and procurement? How are we managing this due process? I know there’s the Bureau of Public Procurement and a whole range of other institutions that are involved in this whole value chain around accountability, transparency and stewardship of public funds. So, I’m wondering, what’s happened to these systems? Is it that these systems don’t operate anymore, or are we neglecting them?

“We need proper delegation of authority frameworks to increase efficiency, accountability and transparency in the allocation of funds. We need to restructure and reposition institutions within the value chain tasked with ensuring probity and discipline around public funds,” he maintained.

Amidst the unfolding events and public sentiments that the Edu scandal is a microcosm of broader corruption challenges facing Nigeria’s Ministry of Humanitarian Affairs and Poverty Alleviation, Barr. Agbazue called for a collective introspection into the systemic failures of government institutions.

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He tasked governments at all levels to do more to strengthen institutions of governance, as they are critical to the design, implementation and sustainability of development goals.

He said, “The President and his team need to start focusing on fighting corruption by strengthening our public institutions, vis-à-vis ministries, departments, agencies, state-owned companies and enterprises. We must start thinking about how we can stop impunity to avoid a situation where we tackle corruption with the humanitarian ministry and then it raises its head in other ministries, departments, and agencies.

“A lot of attention is focused on the credibility, or lack thereof, of individuals rather than institutions. So, for instance, there’s a strong hope that if Engr. Dave Umahi, the current minister for works, is a good man who has demonstrated his integrity with the kind of development he brought to Ebonyi State and the capital Abakaliki during his tenure, that by making him a minister for works, Nigeria might then have better roads in this administration.

What happens if the cabinet is reshuffled at some point and Dave Umahi moves to another ministry? What does that mean in terms of our hopes for good roads as part of the dividends that Nigerians should enjoy from this current administration? Does it mean that our hope will be completely dashed and thrown out the window?

“So, what I’m trying to say is that we must look beyond individuals and try to build stronger institutions. And when we talk about building strong institutions, we need to strengthen the chain around responsibility (which includes supervisory and oversight functions), transparency, accountability and fairness to stakeholders. We need to strengthen the system, the processes and the structures that enable good governance across board within Nigeria.

“The EFCC’s efforts should extend beyond reclaiming stolen money to ensuring that justice is served, establishing a deterrent for potential wrongdoers within and outside the ministry. The banking regulators too have to get involved; this is not an EFCC thing alone. The banking regulators need to get involved. They must provide very strong fines and punitive measures against complicit banks and financial institutions. The banking sector must enforce our anti-money laundering regimes vigorously, including know-your-customer and customer due diligence frameworks,” Barr. Agbazue emphasized.

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Barr. Agbazue is internationally recognized as an expert resource person in the field of economic and corporate governance. His expertise includes: public finance management, anti-money laundering; compliance; anti-corruption; illicit financial flows; international trade; corporate citizenship; and gender, business and human rights. Barr. Agbazue, whose work covers about 70 countries globally, has influenced the development of several ground breaking global, pan-African and national programs and initiatives that presently support the enabling governance and business climate in Africa.

He is a Senior Expert Adviser to The African Union, several regional initiatives, inter-governmental organisations and development finance institutions, including The World Bank, International Finance Corporation (IFC), The African Development Bank and The African Import Export Bank (Afreximbank).

He has advised national governments (e.g., Cameroon, Lesotho, Nigeria, Mozambique, South Africa, Germany and The United Kingdom), as well as several major public and private sector corporations in Africa. Notably, he was appointed by the Nigerian Presidency to restructure the governance of the tax sector in Nigeria (2010 to 2015).

He is a Visiting Scholar at Harvard Law School in Cambridge, MA. USA. In 2004, he was recognized by the EU Presidency as the African Champion of Corporate Citizenship. In 2007, he was honored as a scholar of the International Corporate Governance Network (ICGN), while in 2008, Barr. Agbazue was named as a recipient of the inaugural “Millstein Rising Star of Corporate Governance Award” by Yale University…CONTINUE READING>>

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