There seems to be no end to the muscle-flexing between the legislature and  executive on the 2013 budget as the House of Representatives, yesterday moved to  enforce its zero budget resolution on the Securities and Exchange Commission (SEC).

In what could be described as a foreclosure of President Goodluck Jonathan’s  request for an amendment of the budget and review of some of its clauses, the  lower chamber of the National Assembly said not even the president could save  SEC from the parliament’s hammer, insisting that it would not waiver on its  zero budget  resolution on the agency.

The House Committee on Legislative Compliance, in a letter addressed to the  Director, Finance and Administration of  SEC , warned that it would be “ultra  vires for any authority or person (Mr. President inclusive) to finance the  operations of SEC from public coffers or even private sources.”

The letter, which was also  sent to the Coordinating Minister for the Economy and  Minister of Finance, Dr. Ngozi Okonjo-Iweala, the Board of SEC as well as the  Secretary to the Government of the Federation (SGF),  advised SEC to refrain from making any expenditure until  a budget has been approved by the National Assembly.

The letter tagged Re: House of Representatives Resolution on Securities and  Exchange Commission was  signed by the Chairman, House Committee on Legislative Compliance, Hon. Moruf Akinderu-Fatai,  and dated March 27.

It  read as follows: “I write in the above regard to put the board and management of SEC on formal notice of the fact of the House of Representatives resolution on Securities and Exchange Commission.

“You will recall that SEC had submitted its  budgetary proposal for 2013 to the House. You will recall that no approval was  passed back to the SEC.
“Further to this and most importantly, the National Assembly had vide the 2013  Appropriation Act, Item 9 Part E, Clause 10 stated thus: All revenue, however, described including all fees received, fines, grants,  budgetary provisions and all internally and externally  generated revenue shall  not be spent by SEC for recurrent, capital  purposes or for any other matters, nor liabilities thereon incurred except with  prior Appropriation by the National Assembly.

“The net effect of the National Assembly’s resolution Item 9, Part E, Clause 10 of 2013 Appropriation Act, is that it is ultra vires for any authority or person (Mr. President inclusive) to finance the operations of SEC from public coffers or even private sources.

“SEC is advised to refrain from making any  expenditure until a budget has been approved by the National Assembly for that purpose. You may also not source and spend any monies  whatsoever as this will be a clear infringement of the Constitution of the Federal Republic of Nigeria  and shall be viewed as such.”

The National Assembly had in December last year passed the 2013 Appropriation Act with a clause that: “All revenue however described including all fees  received, fines, grants, budgetary provisions and all internally and externally generated revenue shall  not be spent by SEC for recurrent or capital purposes or  for any other matters, nor liabilities thereon incurred except with prior appropriation and  approval by the National Assembly.”
But while returning the budget for amendment about a week ago,  Jonathan faulted this caveat and  requested the parliament to  review it.
He  stressed  that such a clause  ought not to have been included in the  budget in the first place  because of its grave implications to the operations  of SEC and the Nigeria Capital Market.

“Considering  the fact that the budget of SEC does not form part of the core 2013 Federal Budget as presented to  the National Assembly, I believe that this clause ought not to have been inserted in the 2013 Appropriation Act in the first place. Secondly, the import of the clause is tantamount to shutting down the business of the commission with a potential  negative impact on the capital market,” Jonathan said.

Two days after the presidential request, the House passed a resolution  reaffirming its stand on  shutting  out  SEC  from the budget until the president sacked the Director General of the commission, Ms Arunma Oteh, whom  the lawmakers claimed was not qualified to lead the organisation. 

The House also  directed its relevant  committee  to monitor the executive  compliance with the  resolution.

Source: Thisday (By Onwuka Nzeshi)