Law News
Controversial board dissolution at NDDC

Some say the recent dissolution of the Niger Delta Development Commission violates the provisions of section 3 of the NDDC Act, which prescribes a four-year term for the members.

A directive by the Head of Service, Danladi Kifasi, in a circular dated July 16, 2015, dissolving the boards of the parastatals, agencies, institutions and government-owned companies, has become an issue of a legal debate at the Niger Delta Development Commission.

In the circular addressed to a number of such Federal Government bodies, Kifasi, had announced that President Muhammadu Buhari had approved the dissolution “in exercise of his constitutional powers and in the public interest.”

The circular read in part, “The dissolution does not, however, affect boards, commissions, councils listed in the Third Schedule, Part I, established by Section 53(1) of the 1999 Constitution of the Federal Republic of Nigeria as amended.

“In view of the foregoing development and until such a time when new boards are constituted, the Chief Executive Officers of the parastatals, agencies, institutions and government-owned companies are hereby directed to refer matters requiring the attention of their boards to the President, through the Permanent Secretaries of their respective supervising ministries or offices for action.”

Further clarification was however made to exclude governing boards of universities and some other government institutions such as the Economic and Financial Crimes Commission and the Independent Corrupt Practices and other related offences Commission, from the dissolution directive.

But acting on the Head of Service’s directive, the Permanent Secretary (General Services Office), Mohammed Bukar, wrote a letter dated July 23, 2015, on behalf of the Office of the Secretary to the Government of the Federation, to the Managing Director/Chief Executive Officer of NDDC giving notification of the dissolution of the board.

In his letter, Bukar stated that the directive by the Head of Service dissolving the boards of the Federal Government parastatals, institutions, agencies, and government-owned companies took effect from July 16, and further directed that it must be immediately complied with.

He explained further that, in line with Kisali’s directive that Chief Executive Officers of the dissolved parastatals and agencies should refer matters requiring the attention of their respective supervising ministers or offices for action, the Managing Director of the NDDC should be referring such matters affecting NDDC to the President through his office (Permanent Secretary, General Services Office).

His letter with reference number SGF.55/S.2 was entitled, ‘Notification of the dissolution of Federal Government parastatals, agencies, institutions and government-owned companies.’

It read in part, “I am to particularly draw your attention to paragraph 3 of the circular which directed that until such new boards are constituted, the Chief Executive Officers of the parastatals and agencies are to refer matters requiring the attention of their boards to the President, through the Permanent Secretaries of their respective supervising ministries or offices for action.

“Accordingly, you are to refer all matters requiring the attention of the Governing Board of the Niger Delta Development Commission to the President through the Permanent Secretary (General Services Office), for consideration.”

But members of the NDDC board who had been relieved of their duties have faulted the dissolution of the board.

A lawyer, Mr. Ebun-Olu Adegboruwa, in a press release, kicking against the dissolution of the NDDC board, argued that the act violated the provisions of Section 3 of the NDDC Establishment Act, which provides that members except the “ex-officio” ones would hold office for four years.

Adegboruwa said the 4th Governing Board of the NDDC said to have been recently dissolved was inaugurated on December 16, 2013, therefore the members were entitled to remain in office till 2017.

Section 3 of the NDDC Establishment Act reads in part, “a member of the Board, other than an ex-officio member, shall hold office for a term of four years at the first instance and may be re-appointed for a further term of four years and no more.”

The lawyer argued that the NDDC Act made no provision for removal of board members before the expiration of their four-year term except on conditions of unsound mind, or when the said member “is convicted by a court or is disciplined by his professional association or is found guilty of misconduct.”

According to Adegboruwa, none of these conditions was stated in the letter by the Head of Service, adding that the Permanent Secretary, General Services Office, ought not to have extended the directive of dissolution to the NDDC.

The lawyer stated, “The NDDC Establishment Act makes no provision for the removal of the Commission’s Board members before the expiration of the four-year tenure, except the member resigns, is of unsound mind, is convicted by a court or is disciplined by his professional association or is found guilty of misconduct. None of these is applicable in this case.

“Consequently, the dissolution of the NDDC Governing Board is illegal and violates the clear provisions of section 5 of the NDDC Act.”

But Adegboruwa explained that the dissolution of the board and retaining the management committee of the NDDC board would give room for “unbridled arbitrariness and uncontrolled impunity, by the management committee”.

He said, “This is so because the states representatives who have been removed as a result of the dissolution, will no longer be available to safeguard the interests of the states that they represent.

“Furthermore, the President has since the realisation that some of the affected boards are regulated by statue, given due directive, for the re-instatement of these boards, like the EFCC, ICPC and even the Governing Councils of Federal Universities. However, in spite of letters written through the Permanent Secretary (General Services Office) for the rectification of this error, no response has been so far received with regard to the NDDC.”

Adegboruwa said with the partial dissolution of the NDDC board which leaves behind the management committee members who were appointed like other board members, it was clear that the true facts and the position of the law must have been shielded from the President.

The lawyer said, “From all the foregoing therefore, it would seem clear that there is a cabal that is working tirelessly to shield the true facts surrounding the erroneous dissolution of the NDDC Board from the President. More so, that the Board as constituted under section 2 (1) of the NDDC enabling Act, includes the Chairman, the Managing Director and the two Executive Directors, all of whom are appointed at the same time as the other members of the Board and for the same tenure and therefore are required to vacate office and leave the Board at the same time as the others.”

“Consequently, we appeal to the President, to examine the facts as they affect the NDDC and graciously direct the immediate re-instatement of the Commission’s Board, as he has done with the boards of other agencies referred to above.”

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