EFCC Set to Recruit More Staff, Increase Salaries as Magu Demands N22Billion Funding

Segun Atanda/

Fresh recruitments and salary increments are coming from the Economic and Financial Crimes Commission (EFCC).

The hint was dropped today by the acting Chairman, Mr Ibrahim Magu who was defending the agency’s N22.071billion 2019 Budget before the Senate Committee on Anti-Corruption and Financial Crimes.

Magu spoke about a 14 per cent increase in the Personnel Cost Proposal from N12.717 billion in 2018 to N14.491billion in 2019. 

He said, “The increase accommodates the salaries and allowances of 970 additional staff approved for recruitment, who are expected to be fully enrolled on the personnel cost platform in 2019. This comprises 332 Assistant Detective Superintendents, 293 Assistant Detective Inspectors currently undergoing training at NDA Kaduna and 95 support staff that recently joined the services of the Commission.

“The Commission had made proposal for an upward review of salaries and allowances of its staff to Salaries, Income and Wages Commission. This has been forwarded to the Presidency and, if approved, will be covered by Supplementary Appropriation.”

Magu commended the National Assembly and other stakeholders for ensuring that the agency is well funded for optimal performance.   

He said, “Permit me to state that the Commission’s performance as evident in the convictions return and the huge assets recovery portfolio, shows an agency that is fully motivated to break new grounds. With all modesty, the record is unprecedented. But it would not have been possible without the support of stakeholders like the National Assembly.

“I therefore wish to express the Commission’s gratitude to this distinguished Committee for its invaluable support in the performance of our duties and the modest successes we have achieved over the years.”

Here is the full text of Magu’s presentation at the National Assembly:

The 2019 Budget Defence By The Acting Chairman, Economic And Financial Crimes Commission (Efcc), Ibrahim Magu, Before The Senate Committee On Anti-Corruption And Financial Crimes

Protocols.

It is my pleasure to present to this distinguished Committee details of the 2019 Budget of the Economic and Financial Crimes Commission (EFCC).

A. 2018 Budget Performance

1. 2018 APPROPRIATIONS     

Appropriation      Releases                 %

        N                      N

Personnel cost                    12.717billion         8.584billion            67.50

Overhead cost                       3.600billion         1.950billion            54.17

Capital                              10.074billion          4.036billion            40.06

                                                26.392billion         14.571billion          55.21

   2. 2018 Appropriations Implementation

Out of the total sum of Twenty Six Billion, Three Hundred and Ninety Two Million, Three Hundred and Ninety Six Thousand, Two Hundred and Seventy Nine Naira (N26, 392,396,279.00) appropriated for the Commission in 2018; Fourteen Billion, Five Hundred and Seventy One Million, Two Thousand, Five Hundred and Seventy Seven Naira, Nineteen Kobo (N14, 571,002,577.19) representing 55.21% of total, was fully funded (Released). 

The disaggregated percentage of releases was:

                                                  %

• Personnel Cost           67.50     
• Overhead Cost            54.17
• Capital Cost               40.06

The Commission however achieved over 89.72% utilization in all the categories of monies appropriated for the Commission as indicated in the table below:

   3. 2018 Budget Performance

   Major Highlights Of 2018 Budget Performance

1. Personnel Cost

In March 2018, the Commission was fully integrated into the IPPIS platform. The year also witnessed an increase in the personnel cost from N7.6 billion in 2017 to N8.5 billion. This increase is attributable to the following:

1. Full enrolment of 314 Assistant Detective Superintendents following completion of their training programme at the NDA in May 2018.
2.  Full enrolment of 183 Assistant Detective Inspectors following completion of their training programme in January 2018.

• Overhead

The sum of N1.95 billion out of the approved estimate of N3.6 billion was released for Overhead purposes which represents 54.17% of total. Out of the amount released, the sum of N0.657billion (representing 33% of total) was spent on Local Travels and Transports due largely, to increase in scope of the Commission’s activities in the year under review.

Other areas in which Overhead funds were expended include Legal Services, N110 million; Plant and Generator fuel cost, N147 million; Publicity and Advert, N83 million.

Inadequate releases prevented the implementation of critical programmes such as Local and International Training and payment of Staff Group Life Insurance Premium.

C. Capital

The Capital releases to date is N4.036 billion, representing 40.06% of the N10.074 billion appropriated for the Commission in 2018 financial year. It should be noted however that the capital budget is expected to run till early June 2019.

    The released amount has been partly utilized for the following:

a. Purchase of Motor vehicles                              =   N428 million

b. Purchase of Generators                                  =   N470 million

c. Settlement of outstanding liabilities to

   Julius Berger (Construction of New Head Office) = N1.175billion

     Procurement processes are ongoing to utilize the balance of capital funds released to date.

D. Other Notable Achievements

a. Movement to New Head Office Complex

On May 15^th, 2018, the Commission’s New Head Office Complex within the Jabi District was commissioned by His Excellency, Muhammadu Buhari, President of the Federal Republic of Nigeria. This has gone a long way in easing the office accommodation challenges faced by the Commission in the past. We wish to appreciate this distinguished Committee for appropriating the required funds toward the successful completion of the edifice.

b. New Zonal Offices

In line with the Commission’s strategic focus of bringing the anti corruption fight closer to the grassroots; three new zonal offices were conceptualized in 2018. They are located in Makurdi, Sokoto and Ilorin. I am happy to report that these zonal offices became fully operational in January 2019.

• Heads of Anti Corruption Agencies in Commonwealth Africa (HACA)

In May 2018, the Commission successfully hosted the Heads of Anti Corruption Agencies in Commonwealth Africa (HACA) in Abuja. This well attended event culminated into my election as the head of the organization for the next one year.

• EFCC Radio

The Commission’s vision to own a radio station as a vehicle to deepen its prevention mandate began to crystallize during the year with the approval of a provisional license by the National Broadcasting Commission (NBC). The Commission has since secured the operating license and incorporated a company, EFCC Media Communication Ltd, to drive the process of getting the station off the ground.

What is left for the take off of the station is the procurement of the relevant equipment.

I therefore appeal to this distinguished Committee to accommodate this radio project in the 2019 capital appropriation for the Commission.

While we await the take off of the station, the EFCC currently has public enlightenment programmes running on a number of private radio stations across the zones where we have offices.

• Anti- Corruption Outreach

The Commission in the year under review took its corruption prevention mandate to new heights with the execution of several advocacy and enlightenment programmmes. Among these were the anti-corruption concerts which held in Abuja, Kano, Lagos and Enugu. In December 2018, the Commission inspired the first ever anti-corruption marathon that featured hundreds of

marathoners from across the country, with many Civil Society Organizations, and sports celebrities participating.

• Partnership With INEC

The Commission, in line with its statutory mandate to prevent corruption, embarked on rigorous campaign against vote buying during the last general election. Beyond sensitization, all operatives of the Commission across the country were mobilized to police polling units and collation centres to check incidences of vote buying. Some cash seizures and arrests were made.

While the culprits will have their days in court, I like to report that my men conducted themselves most professionally with no incidence of molestation or interference with the electoral process recorded.

I believe that EFCC’s intervention in the election had some deterrence effect on vote buying.

• EFCC Academy

The Commission in November 2018 took over vast expanse of land acquired in Lafia, Nasarawa State for the construction of the permanent site of the EFCC Academy. The development of the site is expected to commence this year.

• Forensic Laboratory

The Forensic Laboratory Building located in the new Head Office Complex of the Commission is being equipped with state of the art equipment through donor support. However, we will need the kind intervention of this distinguished committee for relevant appropriation to get the laboratory fully equipped to satisfy the requirements for full accreditation.

1. International Partnerships

The reputation of the EFCC as one of the most effective anti-corruption agencies in the world has turned it into a destination of choice for other agencies in search of best practices. Consequently, we continue to mentor officers from other anti-graft agencies in Africa and beyond.  Last week the Commission played host to a team from Zimbabwe anti-corruption agency, who had come to understudy the EFCC.

Before them, we had the privilege of mentoring anti-graft officials from Liberia, Cameroun, South Sudan, Kenya, Tanzania, Sierra Leone, Ghana and Niger.

Before the commencement of the just concluded general election, I led a team from the EFCC to Niger Republic where we signed a Memorandum of Understanding (MoU) for cooperation with the High Authority Against Corruption and Relating Crimes, HALCIA.

We were equally in Ghana where we met with and held fruitful discussions with officials of the Economic and Organized Crime Office (EOCO) with emphasis on collaboration to combat money laundering.

• Convictions

In the course of 2018 financial year, the Commission obtained 313 convictions across its offices as shown below:

It is instructive to note that the Commission has also obtained 160 convictions from January 2019 to date.

 Recoveries

   In the course of the 2018 Financial Year, the Commission made substantial      

   recoveries.  These include:

1. Final Forfeiture (Cash & Accounts)- N11.5b
2. Non forfeiture Recoveries            – N133.8b
3. Direct Deposits                           – N8.92b
4. Tax Recoveries                           – N38.12b
5. Subsidy Recoveries                      – N1.82b
6. Banks (Third Party)                     – N42b

 N236.16b

These are in addition to recoveries of various sums in other currencies, other assets, jewelries (Gold) and recoveries for major government agencies including NNPC and AMCON. Other details are in the appendix on recoveries.

In the first quarter 2019 Financial Year, the Commission made recoveries which included:

1. Cash                                  -N140.7million
2. Direct Deposits                   -N2.021billion
3. Tax Recoveries                   -N7.20billion
4. Subsidy Recoveries              -N3.06billion
5. USD                                   -$0.292billion

B. The 2019 Budget Proposals

Nb: See Appendix 2 For The Breakdown.

In the executive submission of the 2019 proposal, there is a 16.38% decrease in the total proposed budget of the Commission from Twenty Six Billion, Three Hundred and Ninety Two Million, Three Hundred and Ninety Six Thousand, Two Hundred and Seventy Nine Naira (N26, 392,396,279.00) in 2018 to Twenty Two Billion, Seventy Million, Five Hundred and Fourteen Thousand, Four Hundred and Thirty One Naira (N22, 070,514,431.00) in 2019. As indicated in the above table and the attached relevant appendix, the Commission’s submission to Budget Office for 2019 was Thirty Eight Billion, Nine Hundred and Eight Million, Nine Hundred and Ninety Eight Thousand, Nine Hundred and Eighteen Naira (N38, 908,998,918). 

1. Personnel Cost

There is a 14% increase in the Personnel Cost Proposal from 12.717 billion in 2018 to 14.491billion in 2019.  The increase accommodates the salaries and allowances of 970 additional staff approved for recruitment, who are expected to be fully enrolled on the personnel cost platform in 2019.  This comprises 332 Assistant Detective Superintendents, 293 Assistant Detective Inspectors currently undergoing training at NDA Kaduna and 95 support staff that recently joined the services of the Commission.

The Commission had made proposal for an upward review of salaries and allowances of its staff to Salaries, Income and Wages Commission.  This has been forwarded to the Presidency and, if approved, will be covered by Supplementary Appropriation.

• Overhead Cost

In the executive submission to the NASS, the Commission’s overhead cost estimate is maintained at the 2018 level of N3.6billion.  This is a far cry from N7.3b the Commission proposed in its own submission to the Budget Office.  We appeal to this distinguished committee to consider an upward review of the overhead cost proposal.  This is pertinent in view of the following:

1. Running cost of 3 New Zonal Offices in Ilorin, Makurdi and Sokoto.
2. Proposed group staff life insurance of N650m
3. Unstable public power supply resulting in continuous outlays on generator fuel cost
4. Increase in airfares.
5. Proposed 60% increase in the rates of duty tour allowance (DTA) payable to staff on official assignment.

• Capital

The Commission’s Capital Expenditure Proposal was drastically reduced from N15.196billion to N3.978billion in the executive submission to NASS. This represents a 74.82% reduction from the approved estimate of N10.07billion in 2018.  We again wish to crave the indulgence of this distinguished committee to consider an upward review in the Commission capital expenditure proposal for 2019 in view of the following:

1. Outstanding liabilities to Julius Berger arising from

  Certificate Nos. 28, 29 & 30                                 N2.02billion

1. Cost over runs on New Head Office Complex                N1.5billion
2. Liabilities for Consultancy (New Head Office)               N0.299billion
3. Purchase of Security Equipment (ammunitions)    N0.47billion
4. Furnishing of Head Office Building                              N1.1billion
5. Development of the permanent site of the EFCC Academy, Lafia
6. Renovation of the old EFCC Head office Building, Wuse 2, Abuja
7. Renovation of the Lagos Zonal Offices (10 Okotie Eboh and 15 Awolowo

  Road)

Challenges

Among the challenges faced by the Commission are budget constraints arising from incomplete releases of both approved overhead and capital estimates. This has negatively impacted the ability of the Commission to meet pressing needs and obligations.

For instance only 54.17% was released in 2018 while 40.06% of capital has been released so far with only two and half months to go to the end of extended 2018 capital budget year.

As a direct consequence, the Commission is challenged in the following areas:

1.  Huge maintenance cost of New Head Office Building. 
2. Inadequate resources to manage a huge and growing fixed asset forfeiture base.
3. Inadequate ICT infrastructure-There is presently the complete absence of internet services at the New Head Office and zonal offices, including other related ICT service deliveries.  The Commission requires a minimum of N800m to upgrade its present state of ICT infrastructure.
4. Poor detention facilities particularly in the zones.
5. Inadequate Office Equipment e.g. absence of Health and Fitness facilities in the Head Office and Zones and equipments for clinics.
6. Inadequate Office Accommodation in the Zones.  Currently the Commission’s Zonal offices in Ilorin, Makurdi, Uyo and Benin are rented.  It is the desire of Commission to develop permanent structure in these zones to meet their office accommodation needs.
7. Inadequate operational vehicles in the head office and across the zonal offices.
8. Lack of office furniture in new head office building and across the zonal offices.

Conclusion

Permit me to state that the Commission’s performance as evident in the convictions return and the huge assets recovery portfolio, shows an agency that is fully motivated to break new grounds. With all modestly, the record is unprecedented. But it would not have been possible without the support of stakeholders like the National Assembly.

I therefore wish to express the Commission’s gratitude to this distinguished Committee for its invaluable support in the performance of our duties and the modest successes we have achieved over the years.

Once again, I thank you for your attention.