Revenue Commission Sues Obj Administration

ABUJA — THE Revenue Mobilisation and Fiscal Commission (RMFAC) yesterday told a Federal High Court, Abuja that the President Olusegun Obasanjo-led Federal Government illegally deducted N2.2 trillion from the Federation Account, in two years, contrary to the provisions of the 1999 constitution.

The commission armed  with volumes of documentary evidence to back up its claim wants an order of the court declaring that the deductions were not only illegal and unconstitutional but that the entire sum deducted be refunded into the Federation Account with immediate effect.

Part of the money allegedly deducted by the Federal Government from the Federation Account was said to have been spent on such projects and agencies as the National Integrated Power Plants, the Nigerian Railways Corporation project, the Nigerian Customs Service, the Federal Inland Revenue Service and the Paris and London Clubs debt percentage commission and payments.

RMFAC is of the opinion that agencies like the Customs Service and the Federal Inland Revenue Service are not entitled to direct allocations from the Federation Account being not a federal, state or local council which can statutorily benefit from the account.
Named as defendants in the suit are the Attorney-General of the Federation, the Federal Ministry of Finance, the Nigerian Customs Service and the Federal Inland Revenue Service.

The commission said it approached the court because it had made fruitless efforts to draw the attention of President Obasanjo’s government to the anomaly but that nothing was done about it.

The commission’s claim before the court is being prosecuted by the Chambers of Chief Chris Uche (SAN).
RMFAC through its counsel, Chief Uche (SAN), invoked the jurisdiction of the High Court vide an originating summons.
It is the contention of the commission that the constitutional issues raised in the suit were non-contentious and could be summarily determined without calling any oral evidence.

The commission formulated eight questions for the court to determine in the originating summons.
Explaining the circumstances surrounding the strange suit, RMFAC in a 30-point affidavit in support of the originating summons said it was a body set up by Section 153(1 )(n) of the Constitution of the Federal Republic of Nigeria 1999 with powers under Part 1 of the Third Schedule of the said Constitution, and also under the Revenue Mobilisation, Allocation and Fiscal Commission Act No. 49 of 1989, to inter alia, monitor the accruals to and disbursement of revenue from the Federation Account, review from time to time the revenue formulae and principles and advise the federal and state governments on fiscal efficiency.
It said the suit was brought in the discharge of its constitutional responsibilities as the monitor and umpire of the Federation Account




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