Why Senate should reverse itself on TSA – CACOL

The Coalition Against Corrupt Leaders (CACOL) has picked holes in the decision of the Senate over the recommendations of the committee on The Single Treasury Account (TSA) saying it is at variance with body of the report.

In a letter it sent to the Senate President, Dr. Bukola Saraki, CACOL said it is concerned that the TSA initiative, which has recently made it possible for Nigeria to significantly improve the management of her cash assets and finances especially in the face of dwindling crude oil prices, must not be mismanaged under any guise.

According to the letter signed by its President, Debo Adeniran and copied President Muhammadu Buhari, Ministers and the Economic and Financial Crimes Commission (EFCC), the group expressed surprise that the plenary did not subject the report to the required legislative scrutiny “which has been the usual practice under your leadership”, before it was wholesomely adopted.

According to the group, the recommendations, if implemented as adopted, would represent:

• A deadly attack on the FGN TSA project with a view to killing it and reversing all the gains recorded within the short time of its implementation
• A flagrant disrespect for the rule of law and disregard for all known tenets of settling commercial disputes
• A derision of the much talked about “Patronize Made-in-Nigeria” campaign being championed by some notable Senators and your distinguished self, and
• A virulent attack on innovation and entrepreneurship in Nigeria.

“To avoid the unintended consequences of its recommendation, which may not have been considered before now, we hereby present for your consideration major reasons why the Senate under your leadership must review and rescind the recommendations of the Committee”, it said.

According to the group, considering that contractual agreements between two or more entities typically become subject of termination mainly due to under-performance, why is the Senate’s recommendation not a review of the contractual commercial terms rather than an outright the termination of contract?

The group wondered whether it could then be safe to conclude that there is a move within the Senate to use the termination of the contract which will naturally frustrate the TSA project, still at its infancy, as an excuse to exempt the Senate from compliance with TSA to which President Muhammadu Buhari has consistently pledged commitment?

CACOL asked whether the Senate had considered possible implications of forcing the CBN to IMMEDIATELY terminate the contract?

• What measures if any has the Senate proposed to manage the consequences on the economy of immediate disruption of the already settled nationwide TSA payment and revenue collection processes?
• How will the about 900 MDAs already operating on TSA continue their payment and revenue generation operations the next morning after the CBN is forced to cancel the Remita contract?
• What should happen to the investment in infrastructure, processes and people already put in place on account of the FGN TSA by the 18 commercial banks, over 400 micro-finance banks and other players in the electronic financial ecosystem?
• How are the millions of Nigerians who now pay for critical health services and students who pay tuition and other fees through TSA supposed to undertake such transactions the morning after the CBN would have been railroaded to cancel the Remita contract?
• What would immediately happen to CBN’s own internal control and operational processes in respect of management of the TSA which is now at the heart of the government’s cash assets and financial management?
• Are there other standby platforms immediately available to the CBN and OAGF to continue TSA operations without causing regrettable hitches to government operations and severe pain to citizens?
• If it has taken TSA collection operations about four (4) years to see the light of day, and the country is just beginning to reap dividends, which one would serve the larger interest of our country better at this time – contract termination or a review of commercial terms?

“As far as CACOL is concerned, the Senate’s recommendation for termination of the contract is provocative, retrogressive, insensitive and suspicious to say the least”, it said.

According to the group, many people are beginning to question the worth of any agreement with the government and other public sector institutions in Nigeria. “This is surely not good for our national image, neither is it a good perfume that will attract foreign direct investment. It is at best one of the major reasons why many people do not want to do business in Nigeria or with Nigerian Government, if the rules will simply be changed in the middle of the game without warning or reason”, it asserted.

“Our conviction is that it is grossly unfair, unethical, unjust, grossly punishing and extremely evil to attempt to change the game in the middle of the road in stark disregard for contractual terms. Unilaterally changing the agreed terms and mandating the CBN to reduce earned fees by over ten-fold and then terminate the contract without recourse to the contracting party especially after value has been consumed is uncivilised and callous and such suggestion should never have emanated from the hallowed chambers in the first place.

“The Senate under your leadership should only do what will make it a hallowed chamber that promotes peaceful and fair resolution of issues rather than anything that can project it as the source of caustic contention”, CACOL said.

“We do not want to believe that the Senate by choosing to ignore the testimony of the CBN at the public seating that Remita was selected after the evaluation of various options which included the foreign developed RTGS platform. If for once indigenous software has been selected to play such a significant role in our national life and it has not been found wanting, where on earth could the inspiration have come from to the Senate to recommend that it be replaced with a foreign solution?

“Your Excellency, this is a time when all well-meaning Nigerians should not sacrifice patriotism on the altar of petty politics but join President Buhari to build up local capacity in diverse areas that have potentials of helping the nation become less dependent on foreign sourced input to become a net exporter of value-added goods and services thereby harnessing foreign earning potentials.

“The committee obviously confused itself by assuming e-transfers and e-collections mean the same thing. Would a simple check with CBN not have confirmed that electronic transfers and e-collection schemes are not the same thing and cannot be used as synonyms?”, it queried.

“The least expected of the distinguished Senate would have been to urge the CBN and OAGF to review and renegotiate the contract’s commercial terms especially as we learnt during the Senate sittings that the contract provides for such reviews.

“Your Excellency, as one from a reputable entrepreneurial lineage, you would undoubtedly have been exposed to the sacrifice and pains that go into building and nurturing any successful business especially in a hostile environment as ours.

“The memories of the circumstances that led to the demise of one of such enterprises over which you superintended as the CEO may still also be fresh in your mind as you relive the pain of being subjected to the vagaries of a hostile environment.

“With this background in mind, dear Senate President, we expect that you will be the last person who will wish to unleash the same kind of pain inflicted on you on other entrepreneurs. In fact, you should be their champions”, it advised.

“While Nigerians have built many successful businesses in different areas, software business is an area where we have huge potentials but are yet to make a strong impact in over 55 years of our existence as a nation.

“If the Senate’s recommendation eventually leads to the collapse of such a well-regarded indigenous company, what signals would the Senate be passing across to budding entrepreneurs and other Nigerians about investing their passion in remaining in Nigeria to build businesses that provide employment, feed families and contribute to national development? Are these encouraging signals or outright suffocation of innovation and suppression of dreams of greatness which lie in the heart of every Nigerian?

“CACOL condemns in very strong terms any action emanating from the Senate that stifles the development and actualisation of the entrepreneurship drive which Nigerians are known for. We will not be a part of continuing to send our best talents outside the country as input to the wealth and economic development of other nations who now package the products for re-sale to us”, it said.

The group then submitted that the Senate should be active partners with the Executive to consolidate on the gains of the TSA, and not be seen to be undermining it under any guise, adding that it wholeheartedly believe the recommendation of the Senate in this instance will do more harm than good and strongly request the Senate to review and rescind its recommendations.