Ex-Senate President, Wabara knocks Tinubu over directive to abolish TSA * Says new policy, panacea for corruption

Ex-Senate President, Wabara knocks Tinubu over directive to abolish TSA

* Says new policy, panacea for corruption

By Steve Oko

Former Senate President and the Chairman, Board of Trustees (BoT) of the main opposition Peoples Democratic Party, PDP, Dr Adolphus Wabara, has criticised President Bola Ahmed Tinubu, for the recent directive by the Federal Government for the abolition of Treasury Single Account (TSA), and introduction of Sub-Recurrent Account.

The Federal Ministry of Finance, had on December 28, 2023, directed that all Ministries, Departments and Agencies (MDAs), fully funded by the Federal Government should remit 100 per cent of their revenues into a Sub-Recurrent Account, a sub-component of the Consolidated Revenue Fund (CRF), where the Federal Government will now receive and consolidate its revenue earnings.

According to the new policy, agencies not funded by the federal government are expected to remit 50 per cent of their generated revenues.

The directive effectively closes TSA conceived by former President Goodluck Jonathan but operated under the immediate-past administration of ex-President Muhammadu Buhari.

The new policy, according to the Federal Government, is aimed at preventing waste and improving revenue generation, fiscal discipline, accountability and transparency.

“All Ministries, Departments and Agencies (MDAS) that are fully funded through the annual federal government budget (receiving personnel, overhead and capital allocation) and on the schedule of Fiscal Responsibility Act, 2007 and any addition by the Federal Ministry of Finance should remit one hundred per cent of their Internally Generated Revenue (IGR) to the Sub-Recurrent Account, which is a Sub-component of the Consolidated Revenue Fund (CRF),” the directive had read.

But in a swift reaction, Senator Wabara who holds a doctorate degree in Human Resource Management, disagreed with the Federal Government that the new policy was aimed at preventing corruption , rather, he described it as “a panacea for corruption”.

Senator Wabara strongly argued that the new policy would rather encourage financial malpractices and further syphoning of public funds.

Expressing disappointment in President Tinubu for approving the new policy, Wabara said the action had portrayed his administration as unserious with the anti-graft war.

Speaking with Wawa News Global, the former Senate President said:”I obtained my Ph.D defending my dissertation on Treasury Single Account. I am extremely disappointed with this decision of Tinubu.

“The only policy that attempted to showcase or portray the corrupt administration of Buhari as fighting corruption was his TSA policy.

” This Tinubu’s partial TSA policy is a panacea for corruption. It gives the unfortunate impression that the Tinubu administration is not cut out to fight corruption but unwittingly creating channels to siphon money. There are no two ways about it.

“As a scholar on this subject, I challenge the Tinubu administration to give Nigerians one good reason for this policy change other than to encourage corruption”.

Wabara who called for a return to the TSA era, advocated financial transparency and prudent management of scarce resources “if Nigeria wants early exit from its current economic malady”.

The directive by the Finance Ministry had further read:”Agencies and departments that are partly funded by the federal government – having budgetary allocations for capital or overhead expenditures – are expected to remit 50 per cent of their gross revenue while statutory revenue like “tender fees, contractor’s registration, sales of government assets, etc should be remitted one 100 per cent to the sub-recurrent account,” it added.

“For the avoidance of doubt, the Office of the Accountant-General of the Federation shall open new TSA Sub-Accounts for all Federal Government Agencies/Parastatals listed on the schedule of Fiscal Responsibility Act, 2007 and any additions by the Federal Ministry of Finance, except where expressly exempted.

“The new account opened for Agencies/Parastatal shall be credited with inflows in the old revenue-collecting accounts based on the new policy implementation of 50 per cent auto deduction in line with Finance Act, 2020 and Finance Circular, 2021, 50per cent cost to revenue ratio,” it added.

“All ministries and agencies concerned are expected to fully comply with the directive except when expressly permitted to act differently.”

Steve Oko, Publisher/C.E.O, WaWa News Global. For more information on advert placement and news coverage, contact us on: 08038725600, or via email stevemanofgod2000@yahoo.com; wawanewsglobal@gmail.com Always read WaWa News Global - Your most dependable online news platform for the latest breaking news in Nigeria.

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