Tuesday, 17 November 2015

NERC and excessive public office perks

THE uproar over an alleged N2.7 billion severance pay for outgoing chiefs of the electricity regulator is a rude-reminder of a perverse public service system that enriches a few at the expense of the overwhelming majority. That a handful of short-tenured officials are able to approve elephantine sums of money for themselves sits oddly with a contemporaneous presidential declaration that the country is broke. President Muhammadu Buhari’s change promise must start with ending the rent-seeking culture of legitimised plunder of public funds.

According to the initial report, the seven-member board of the Nigerian Electricity Regulatory Commission approved a severance package that will see each of its six commissioners receiving N380 million and its Chairman, Sam Amadi, N400 million. Though Amadi has taken out two-page advertorials in the press to declare emphatically that “the commission has not approved N400 million for the chairman and N380 million for the commissioners…,” he however justifies their being generously rewarded on the grounds of law and precedent. It is significant that the House of Representatives has passed a resolution calling for a halt to the planned pay-off. The two chambers of the National Assembly should realise that others are simply taking a leaf out of their book of opulence and legalised plunder with nary a care for the rest of the populace, 61 per cent of who live in poverty.

Anayo Nnebe, a member from Anambra State, rightly observed that it was a common practice for officials of federal agencies to allocate to themselves huge public funds “that cannot be defended.” Amadi’s elaborate prose fits into this pattern. His justification for the generous pay-offs for a five-year assignment on the grounds that the previous board prepared the template is self-serving. The self-enriching resolutions of a previous board are not binding statutes on a new team for whom selfless public service is paramount.
 
That the board cherry-picks actions based on what is convenient to its members is revealed in his clever-by-half argument that the “commissioners reasoned, rightly, that it is not bound by the Act to accept recommendations of the National Salaries, Incomes and Wages Commission, but rather consider the views of the NSIWC before approving the salaries and allowances of the commissioners.” NERC was “not bound” by the recommendations of a constitutional body, but felt bound by those of previous directors who were sacked by the government on a similar allegation of self-enrichment. That the matter was resolved by an out-of-court deal and members paid their salaries does not obviate the inappropriateness of using public office for self-aggrandisement. The previous government was notorious for unorthodox resolutions of corruption cases that allowed accused persons off the hook but left the public poorer and bewildered.

But the most egregious of the payoffs is the two-year upfront payment of salaries and allowances for each board member. Amadi premised this hefty severance pay cheque on the Electric Power Sector Reform Act that bars a board member from taking up appointment in the power sector for the first two years after leaving NERC, hence the need to “compensate” them. This is unacceptable. As Mohammed Gololo, a House of Representatives member from Bauchi State, observed, the lives of the commissioners are not inexorably tied to the sector as they are free to work anywhere else. It is only in Nigeria that a statute put in place to avoid a clash of interests will be used as an excuse for jumbo pay-out by grasping officials. Most of the current seven commissioners were not engaged full time in the power sector prior to their appointments. Amadi was known as a lawyer in the civil society circuit; not as a career power sector executive.
But this practice is widespread in our public service and it is Buhari’s sacred duty to stop it. It is particularly galling that agencies like NERC that fail to deliver quality service end up making their executives rich. The clean-up should start at the top: ministers and other public officials should not live like medieval potentates, but be mindful of the 40 per cent reduction in oil revenues accruing to the Federation Account. It is ridiculous that a country confessing tight finances spends far more than what the world’s richest countries spend on officials. We expect Buhari to quickly sell off at least eight of the 10 aircraft of the Presidential Air Fleet that his selfish, insensitive predecessors amassed. The ministries, departments and agencies should be stopped from approving generous perks for themselves.

Operating by example, ministers should impress it on board appointees and executives that public office is a call to national service, not a sure route to wealth for life. NERC commissioners are not the only officials literally going home with bagfuls of cash after only five years of service. For many, a mere two years in public office can guarantee a lifetime of opulence thereafter. Pay and severance packages should henceforth reflect our fiscal realities.

The government has an opportunity to reform public accounts and revoke all statutes that offer legal loopholes for officials to vote over-generous pay for themselves. With per capita income of just $3,000 and minimum wage of N18,000, it is, as Nnebe thundered, “ungodly, wicked and unbelievable” for a few officials to be taking away so much while the country suffers severe infrastructure deficit. Of the N4.49 trillion 2015 budget, only about N556.99 billion was earmarked for capital projects and most has not been released. The rest is for recurrent in addition to N1.02 trillion deficit that mostly goes to servicing the pampered bureaucracy.

The National Assembly should also give up their multibillion naira perks and together with the Executive usher in a new era of responsible, selfless service.

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