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Fri, Mar

Local Govt Joint-Account: FG Set New Rules To Checkmate Governors

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Triggered by unabated embezzlement of cash allocated to the local govt councils across the federation by the state governors through the statutory Joint Local Gov. Accounts, the federal government today has moved against the intrusive of the states into the council allocation.

 

The decision was contained in a guideline released by newly inaugurated Nigerian Financial Intelligence Unit, NFIU, after a lengthy meeting with officials of some commercial banks in Abuja.

 

Accordingly, the federal government through the NFIU which was carved out from the Economic and Financial Crime Commission (EFCC), has pegged June 1, 2019, as the takeoff date for the new order, by extension making it binding for all LGAs to receive their allocation direct into their respective bank accounts.

 

The notice as entitled: Guidelines to Reduce Vulnerabilities Created by Cash Withdrawals from LG Funds throughout Nigeria, Effective 1st June 2019, this might have been prompted by threats from the International Financial Watchdogs to sanction Nigeria over financial abuse.

 

The NFIU stressed to the commercial Bank that they either comply or face sanction.

 

The agency said: “The NFIU by this guideline direct all financial institutions, other relevant stakeholders, public servants, and the entire citizenry to ensure full compliance with the provisions as has already been submitted to financial institutions and relevant enforcement agencies including full enforcement of corresponding sanctions against violations from 1st June 2019

 

“Having realized that cash withdrawal and transactions of the State, Joint Local Government Accounts (SJLGA), has been identified as the biggest corruption, money laundering and security threats at the grassroots levels and to the entire financial system and the country as a whole, the agency has decided to uphold the full provisions of section 162 (6) (8)of the 1999 Nigerian Constitution as amended which stated that “ State Joint Local Government Account into which shall be paid allocations to the local government councils of the state from the federation account and from the government of the state”

 

“Accordingly, with effect from 1st June any bank that aids any transaction from any local government account without the monies to first land in a particular local government account will be dealt with squarely, both locally and internationally.

 

“More so, a provision is also made to the effect that there shall be no cash withdrawal from any local government for a cumulative amount exceeding N500,000:00 per day. Any other transaction must be done through valid cheques or electronic funds transfer.

 

“Any state government that want more clarification should seek expert economic advice if in the doubtful of these guidelines constituting a problem to the management of the state can work with the NFIU and /or CBN,” the NFIU stated.

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