Indications that the planned restructuring of the Delta State Oil Producing Areas Development Commission may not be easy appeared after Governor Arthur Okowa presented an executive bill to the House of Assembly for amendment of its law. Okowa’s predecessor, Dr Emmanuel Uduaghan, also failed with a similar attempt.
DESOPADEC is very dear to the people of oil-bearing communities in the state, despite its shortcomings and turbulent eight-year existence, they see it as a half bread that is better than none.
•Protesting Ijaw host communities
It was against this background that Ijaw youths threatened to shut down oil facilities in Warri, Ogulagha, Egbema, Odidi, Batan, Ogbe-Ijoh and other parts of the state over disagreements with part of the new law that they view as being against their interests.
DESOPADEC came into existence in 2006, pursuant to Section 162(2) of the Nigerian Constitution, which deals with revenue paid into the Federation Account, which provided for the development of oil producing communities. Former President Olusegun Obasanjo had directed states receiving the 13 per cent derivation fund to establish agencies, similar to NDDC, to cater for the communities.
Yet, the commission was not constituted until the last weeks of ex- Governor Ibori administration in 2007. Uduaghan, who succeed him, incessantly complained of financial shortfall resulting from giving half of oil revenue to the commission.
Chief Wellington Okirika, a founding member of the Host Communities Oil and Gas of Nigeria (HOSTCOM), which fought for the creation of the commission, was made the chairman, while Andi Osawota, lawyer, was appointed secretary.
In 2009, Uduaghan appointed a commissioner to oversee the activities of the commission due to infighting between board members, allegations of administrative ineptitude, financial recklessness and corruption. Yet, reports of mind-boggling expenditures on hotel and medical bills continued. Uduaghan once cried out over a bill of over N10million presented to the commission for the treatment of malaria which was beautifully wrapped in the medical term Plasmodiasis.
It was not only such scandal that dogged the commission under the Okirika-led board.
Due to the huge fund accruing to it, top official of the state government and House of Assembly members inundated chairman and other members with financial requests.
A member of the Assembly abandoned his legislative duties and ‘decamped’ to the commission headquarters in Warri as soon as he became chairman of the House Committee on DESOPADEC.
Allegation of underpayment
Allegation of underpayment
It was against this backdrop that at the expiration of the three-year tenure of Chief Okirika board in July 2010, a caretaker committee headed by Mr Reginald Bayoko, was set up to clear its mess.
After cleaning the Augean stable, a new board-led by Oritsua Kpogho, was inaugurated, with Henry Offa, Joseph Ogeh, Michael Diden, Johnson Boro, Rev.Chukwudi Eke, Benedicta Osakunih Izuegbu, Mr. Kingsley Otuaro (now Deputy Governor) and Dr. Peter Egedegbe representing the various nationalities.
Through all these processes, the leaders of oil-bearing communities had constantly checkmated the government and commission; they raised alarm when they felt the government was taking step detrimental to the commission and their interests.
In spite of their close watch, rumours of underpayment to the coffers of the commission were rife; there were also allegations of government ‘releasing funds with the right hand and taking it back with the left hand’. Various sources say the past administrations underfunded it by N300billion.
It was against the backdrop that Uduaghan’s amendment bill faced stiff opposition from the oil-producing communities. While some accused Uduaghan of attempting to cover up alleged misappropriation of its fund, contractors who had executed jobs for the commission feared sinister plot to avoid payment for jobs they did.
However, the resistance against the Uduaghan amendment bill has been a child’s play when compared to the vituperations and reactions toward Okowa’s. The incumbent governor hails from the non-oil
producing Ika area of the state and it was against this backdrop that some parts of his bill were viewed with intense scrutiny and suspicion, particularly in the face of rumours that he planned to scrap the commission to free up fund for the development of his area and the state capital.
His bill proposes the scrapping of the office of the executive secretary, while appointing a managing director, with executive powers to carry out day to day running of the commission. The hazy details of how the MD would be appointment led opponents of the bill fearing an ominous plot and agenda. They prefer the old system where communities have a voice in appointees
The amendment recommends: “The MD shall be the Chief Executive and Accounting Officer…responsible for the day to day running of the commission… Executive Director shall be in charge of the three directorates.”
“What this means”, Comrade Sheriff Mulade, spokesperson of the Ijaw Wellhead and Flowstation host communities youths, told Niger Delta Report, “is that management of the oil fund is again shifting back into the hands of the governor and politicians who have being mismanaging the oil revenue over the past decades.”
Also, the replacement of ‘Oil Producing Communities’ with ‘Oil Producing Ethnic Nationalities’ is a contentious issue in the proposed law. Ijaw, Itsekiri and Isoko host communities view it as a move to rob them in favour of the governor’s area.
Documents sourced from the commission indicate that Itsekiri produces about 29 percent of the state’s oil; closely followed by Ijaw and Urhobo with 27 and 23 percent respectively with (12) Isoko and Ndokwa (nine) percent.
In view of the above, the southern part of the state accounts for 68 per cent of the state’s oil revenue, while the central and north have 23 and nine percent. This too explains why the south is against part of the bill which provides for the appointment of directors from across the three senatorial districts on equal basis.
A leader of the Delta Ijaw Oil Producing Communities, Chief Favour O Izoukumor, who spoke with Niger Delta Report when he led a protest to the House of Assembly, explained: “What this means is that although the Ijaw, Itsekiri and Isoko produce the bulk of the oil revenue, we will be at disadvantage in the sharing of position, as it is already being done.
“The bill does not address the present injustice were Urhobos have three commissioners, Ndokwa has two and Ijaw, Itsekiri and Isoko together have one each on DESOPADEC board. What this means is that the people that produce about 70percent of the oil revenue enjoy less than 40percent appointments, employment and contracts while those with will barely 30 enjoy over 60percent.”
The Urhobo ethnic group, on their part, viewed the amendment as a move to rob them of their right to produce the executive chairman of the commission. By the provisions of the existing law, the position is rotated among the oil producing nationalities. With the Ijaw (Okirika) and Itsekiri (Kpogho) having produced chairmen, the next in line is Urhobo.
Public hearing turned public combat
But no arena has produced as much anger towards the amendment as the public hearing, which was dogged by protest, scuffle and violence. Blood literarily flowed at the House of Assembly with various interest groups clashing among themselves and with security operatives.
The Chairman, HOSTCOM Delta Chapter, Benjamin Eweta sustained injuries from attacks by members of a faction of HOSTCOM. Police had hectic times containing stakeholders who insisted on being part of the public hearing. On more than one occasion, the police had to wield the stick and throw punches.
Proceedings suffered incessant disruptions as various interest groups held entrenched positions refusing to budge. Inside the chamber, the Chairman of the ad-hoc committee, Hon Dennis Omovie, threatened to send those who breached the peace to jail.
In a presentation, on behalf of Host Communities Oil and Gas, Ndokwa Chapter, former Speaker, Dr Olise Imegwu, noted that the problem with interventionist body was not its structure, but inadequate funding.
A leader of the Ijaw, Itsekiri and Isoko Elders and Leaders Forum (I3S), Mr Amorighoye Mene, argued that the interventionist body has been unfair to the three ethnic groups, adding that projects and social works to benefitting communities should be based on volume of oil produced by such communities.
Izuokumor, agreed with that position and also reaffirmed his group’s opposition to the bill’s lack of equity in representation on the board of DESOPADEC. He also rejected the overbearing influence of the State government in the affairs of the interventionist agency.
Who produces what, how much?
An underlying grievance brought to light in the latest attempt to amend the DESOPADEC is about the production of each ethnic nationality. Some of those who spoke at the public hearing and others who confided in Niger Delta Report expressed concern that their groups were not credited with their true production value.
For instance, a representative of Ndokwa Elders and Leaders Council, Mr Oyibosochukwu Nwabueze, noted that the current nine percent allocated to the Ndokwa nation is incorrect. He said available data suggested that Ndokwa nation contributes 18 per cent. He urged the legislators to investigate the reduction.
The Ijaw and Itsekiri also expressed suspicions about the 23 per cent allotted to the Urhobo ethnic nationality. An anonymous source hinted that the figure was inflated by former Governor James Ibori to favour his kinsmen, to which he also allotted three (highest) commissioners slots.
An Ijaw further said, “Before Uduaghan became governor (2007), the Ijaw had the highest production; how did the Itsekiri jump from number two to one? Did they discover new oil wells in Itsekiri land?”
An Itsekiri leader insisted that Ijaw are not a close second as records indicate, insisting that oil wells in Jones Creek, Odidi and other parts of Warri South West Local Government Area are owned by the Itsekiri of Omadino.
Okowa’s peace shuttle, suspension of ultimatum
Worried by the avalanche of opposition to the bill, Okowa tried to calm fray nerves by meeting with the various interest groups.
“We are not repealing the old law. It is not a new bill. The amendment we are proposing is to structure DESOPADEC in line with the NDDC (Niger Delta Development Commission) model.
“This is democracy and I am not expecting that the amendment bill will come out exactly as we proposed it. There will be public hearing and people will make their contributions. I don’t believe in forcing the hands of the legislators,” he explained.
Last Friday, two days before the expiration of the Ijaw’s ultimatum, he met with traditional rulers and leaders of the Ijaw Oil Producing Communities.
A reliable source at the Friday meeting disclosed that Okwa expressed shock at opposition from the Ijaws, who passionately supported him during his race to become governor.
“One of the revelations from our meeting with the governor was that some prominent members of the House of Assembly are trying to take advantage of the bill for their selfish interests.”
It was gathered that the Ijaws reaffirmed their opposition to the change of nomenclature of the law to oil producing nationalities, instead of communities and they also insisted on fair representation, overbearing influence of government official and misapplication of fund accruing to each group.
“A situation whereby a member of the board, because of his powers, corners funds for a particularly group to his group would not be tolerated. We have made that absolutely clear.”
Based on the meeting with the traditional rulers, the Ijaw youths agreed to suspend their ultimatum. Confirming the development, Izoukumor told Niger Delta Report, “Due to the intervention of the
traditional rulers and some Ijaw leaders, which culminated in a meeting with the governor, the traditional rulers pleaded with the Ijaw Oil Producing Communities and those that gave the ultimatum to shelve the ultimatum and give room for further dialogue.”
traditional rulers and some Ijaw leaders, which culminated in a meeting with the governor, the traditional rulers pleaded with the Ijaw Oil Producing Communities and those that gave the ultimatum to shelve the ultimatum and give room for further dialogue.”
Mulade also confirmed the development, adding that the group had relaxed its warning to foreign missions and urged oil firms to go about their normal duties.
At the time of going to press, peace had returned to the state, yet many are skeptical that the controversies will continue unabated regardless of the final outcome.
