WHEN President Muhammadu Buhari rejected a N400 million plan to purchase five new limousines for his use recently, he drew attention to the prevalent culture of monumental waste that pervades governance in Nigeria. So widespread is the financial recklessness that public office has become an opportunity for a few to luxuriate at public expense. Buhari’s action should be the starting point for drastic cost-cutting at all levels of governance. Government new public finance model should focus on boosting productivity, bridging infrastructure deficit, job creation and poverty reduction.

The departing government of Goodluck Jonathan that hatched the purchase plan saw no reason to moderate the magnificent living standard of public officers despite a drastic reduction in revenues, a budget deficit plan of N755 billion and debt servicing provision of N943 billion in its N4.4 trillion 2015 budget proposal. But for Buhari’s rejection, the Presidency, which is not short of vehicles, would be richer by five new Mercedes Benz S-600 V-222 limousines, while over 70 per cent of Nigerians live in poverty. By opting to use the vehicles he inherited, Buhari is sending another message that the days of waste, impunity and insensitivity of public office holders are over. “I don’t need new cars, the ones I am using now are just fine,” he was quoted to have told the State House bureaucrat who had sought his approval to proceed with the purchase.

Knocking public finances and best practices back to shape will, however, require more than these symbolic actions. There is the need to dig deeper. Many items in the budget are outright fraud. The President and his team should scrutinise all public expenditure plans with a microscope. The place to start is the national budget where waste combines with massive theft.

Investigators and auditors need to unravel where waste and fraud apply in certain expenditures of ministries, departments and agencies. For instance, in 2013, details on the website of the Budget Office of the Federation show that in 2014, under the votes for State House Headquarters, N131.75 million was earmarked for the “purchase of canteen/kitchen equipment” and N105.73 million for the “purchase of health/medical equipment.” The same sub-heads were back in 2015 with appropriations of N237.36 million and N137.96 million respectively. Which person or organisation purchases kitchen equipment every year and for how much?

In 2012, line items under votes for the Office of the Secretary to the Government of the Federation included N750 million for the “purchase of office furniture and fittings,” N150 million for the “purchase of motor vehicles” and a curious provision of N150 million for the “purchase of library books and equipment.” The same office has been allotted N107.58 million in this year’s budget for the purchase of motor vehicles and N316.42 million for “security equipment.”

There is something terribly wrong with our budgeting and the system needs to be overhauled to plug obvious leakages and fraud. The system encourages fraud by making ridiculous provisions that enable civil servants, politicians and contractors to enrich themselves at public expense. When every year, you allocate huge funds for the acquisition of computers, furniture and gates, you only create room for fraud as these items have a lifespan of several years. For instance, the office of the Chief Economic Adviser to the President in 2014 had votes of N2 million each for computers, printers and photocopying machines! These same items keep bouncing back to back each year in the MDAs.

A report in the influential magazine, The Economist, said up to one quarter of Nigeria’s annual budget is creamed off by officials at the point of preparation. We restate our earlier advice that Buhari should appoint only reform-minded ministers with the zeal to scrutinise line by line, every expenditure and revenue item in MDAs. If a substantial portion of the about N30 trillion in annual revenue that observers say is not remitted to government coffers is retrieved, and expenditure leakages are blocked, the Federal Government need not be cash-strapped. This applies also to the 36 states and 774 local government councils, most of which have been unable to meet their wage bills in months.

Buhari, Vice-President Yemi Osinbajo, some state governors like Nasir el-Rufai (Kaduna), Abdullahi Ganduje (Kano) and Okezie Ikpeazu (Abia) have shown the way by taking pay cuts and other symbolic gestures of prudence. They should go further. Governor Samuel Ortom of Benue State admitted using part of a N10 billion loan to purchase cars for commissioners and advisers. This is absurd. Occupying public office does not entitle anybody to live like a medieval potentate. Some notable world leaders travel by commercial airlines, while several state governors commute in private jets. Buhari should drastically reduce the 11-plane Presidential Air Fleet, while state governments that own jets should sell them immediately. Where poverty, illiteracy, lack of access to basic health care and potable water are prevalent, junketing around in private planes, custom-built limousines by public officials is obscene. The British Prime Minister, David Cameron, rides in Jaguar XJ Sentinel supplied in 2010 when he first took office. Our own insensate rulers buy new cars every year.

The new approach to public finance must be extended to our overpaid and over-pampered lawmakers. Our legislators are still the world’s most highly paid. Nigerians are not impressed by the reduction in the National Assembly’s budget from N150 billion to N120 billion.

Buhari should go all the way in cutting costs and pruning the size of government. Success will be assured when he builds a cabinet of genuine reformers, brings sanity to public finance and empowers the anti-graft agencies with funds and the vital political backing to fulfil their mandate.

source: http://www.punchng.com/editorials/n400m-cars-and-curbing-government-waste/

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OkoyeA1:
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Thunder fire devil.

It a good thing that he is cutting wastage, but if the masses don feel the impact whats d point? I hope the 400 milla n co dosent fly into other private accounts.

all these masturbating masturbators, what shall it profit una if una spent d entire four yrs congratulating n appreciating pmb's rejection of 400million naira cars when fufu is costly in d open market, naira is now on the lowest low against dollar, economy dey regress, nigerians r going to bed hungry?
Get to work n stop Masturbating.

tempo37:
all these masturbating masturbators, what shall it profit una if una spent d entire four yrs congratulating n appreciating pmb's rejection of 400million naira cars when fufu is costly in d open market, naira is now on the lowest low against dollar, economy dey regress, nigerians r going to bed hungry?
Get to work n stop Masturbating.

Unfortunately, I have to agree with you on this. Buhari has to get down to work. Even me, I am getting impatience. However, he said that he is doing some underground work. Let us be a little more patient. I am a Buari supporter. I think Buhari, I talk Buhari, I eat Buhari, I sleep Buhari and I dream Buhari. However, Buhari has limited time. We want results. As for me, Buhari has 24 months to prove himself. We want to feel the change we voted for. We want new refineries under construction, we want dollar to be not more than 50 naira. How he does it, we don't care. We want looters in maximum security prisons. We want Boko Haram members hanged in the public. We want 24 hours light. If he needs the god of thunder to help him on this, he can consult the god. We just want light, how he does it, we dont care. ' Anything that he cannot do within 24 months, he wont be able to do it in 24 years. If after 24 months, Buhari comes out with Goatluck Jonascam type of cock and bull story, we shall hit the streets, from Lagos to Port Harcourt, from Sokoto to Bornu, from Owerri and Benue, we shall force him to leave through mass protest. We do not have 4 years to waste, the way the Otuoke drunk fisherman wasted our 6 years, just as Obasanjo wasted our 8 years. This time around we shall not be taken for fools again.