Welcome to 9jawedey: Sanusi to Jonathan: You can’t suspend the truth

I have no regrets; I have no ill-feelings and with no sadness. I’m happy; I’m proud of what I have done.”

These were the words of Lamido Sanusi as he reacted to his suspension as the Central Bank of Nigeria governor by President Goodluck Jonathan on Thursday.

Although it was learnt that he might challenge his suspension in court, Sanusi reminded the Jonathan administration: “You can suspend an individual but you can’t suspend the truth.”

Sanusi, who added that his suspension did not bother him, said his “biggest concern is for the system .”

He was attending a meeting of the West African Central Bank Governors in Niamey, Niger Republic when the Special Adviser to the President on Media and Publicity, Dr. Reuben Abati, announced his suspension.

Abati, in a statement in Abuja, said Jonathan took the decision because Sanusi’s tenure had been characterised by acts of financial recklessness and misconduct.

The presidential aide ,who claimed that such acts were inconsistent with the vision of the Jonathan administration, said the most senior CBN deputy governor, Dr. Sarah Alade, would act as the governor of the bank.

But the President later sent the name of the Group Managing Director of Zenith Bank, Godwin Emefiele, to the Senate for confirmation as the new CBN governor.

Abati said that Alade would remain in charge until the conclusion of ongoing investigations into breaching of enabling laws, due process and mandate of the CBN levelled against Sanusi.

Abati’s statement reads, “Having taken special notice of reports of the Financial Reporting Council of Nigeria and other investigating bodies, which indicate clearly that Mallam Sanusi’s tenure has been characterised by various acts of financial recklessness and misconduct which are inconsistent with the administration’s vision of a central bank propelled by the core values of focused economic management, prudence, transparency and financial discipline;

“Being also deeply concerned about far-reaching irregularities under Mallam Sanusi’s watch which have distracted the central bank from the pursuit and achievement of its statutory mandate; and

“Being determined to urgently re-position the CBN for greater efficiency, respect for due process and accountability, President Jonathan has ordered the immediate suspension of Mallam Sanusi from the Office of Governor of the CBN.

“President Jonathan has further ordered that Mallam Sanusi should hand over to the most senior Deputy Governor of the CBN, Dr. Alade, who will serve as acting governor until the conclusion of ongoing investigations into breaches of enabling laws, due process and mandate of the CBN.

“The President expects that as acting governor of the CBN she will focus on the core mandate of the bank and conduct its affairs with greater professionalism, prudence and propriety to restore domestic and international confidence in the country’s apex bank.

“The Federal Government reassures all stakeholders in Nigeria’s financial and monetary system that this decision has been taken in absolute good faith, in the overall interest of the Nigerian economy and in accordance with our laws and due process.”

The Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe, also defended Sanusi’s suspension saying it was neither a witchhunt nor a deviation from the anti-corruption drive of the Jonathan administration.

He said that there were several grievous issues bordering on impunity, incompetence, nonchallant attitude, fraud, wastefulness, and gross abuse of and noncompliance with provisions of the Public Procurement Act 2007 by Sanusi.

These, Okupe said, caused the President to issue a 22-paragraph query to the suspended CBN governor on May 4, 2013.

He added that a written explanation by Sanusi was forwarded to the President on May 22, 2013.

He explained that after painstaking analysis and examination, the response was forwarded to the Financial Reporting Council of Nigeria for further scrutiny and professional advice.

The FRCN, according to Okupe, thereafter forwarded a 13-page response to the President with various critical observations and far-reaching recommendations.

One of the recommendations, according to him, states thus: “ Your Excellency (Jonathan) may wish to exercise the powers conferred onyou by Section 11(2) (f) of the CBN Act 2007 or invoke Section 11 (2) (c) of the said Act and cause the governor and deputy governors to cease from holding office in the CBN.”

The section states that “a person shall not remain a Governor, Deputy Governor or Director of the Bank if he is; guilty of a serious misconduct in relation to his duties or is removed by the President,provided that the removal (of the CBN governor) shall be supported by two-thirds majority of the Senate praying that he be so removed.

• I’m not surprised, says Sanusi

But unfazed Sanusi, whose tenure would end in June, said he was surprised that his suspension took too long to come.

He also said he would challenge his suspension (in court).

“Well, I don’t know what they are talking about. … I don’t think there’s any issue that’s being raised that has not been raised before; but you know we all know what this is about. This is about the consequences for the changes that I have made and this (suspension) is something that is long overdue. I’m surprised it took them so long,” he told the CNBC Africa.

“When I come back, I’ll see what those allegations are,” the Kano State-born banker added.

He claimed that the Financial Reporting Council looked through CBN’s audited accounts some time ago and asked a few questions which were sent to the President, who gave no feedback.

Highlighting low inflation, stable exchange rate, a reformed and well governed banking system, robust reserves, financial inclusion and independent central bank as some of his achievements, Sanusi said he hoped the CBN’s integrity would be protected.

He said, “Basically, my biggest concern is for the system and I hope that the Nigerian economy will not be hurt by this. I also hope the integrity of the central bank will be protected … I’ve been fortunate to have had an opportunity to do some good work on the bank on stability. I would not want to see all of that unravelled and no individual is worth it.

“You can suspend an individual, but you can’t suspend the truth. If this is all about the concerns around oil revenues in the oil sector, if this is going to bring back the $20bn unremitted oil money, then that is fine.”

Sanusi, in an interview he later granted an online news portal, Sahara Reporters, said he considered the allegations against him “ridiculous.”

He said,” I have not seen the details of the allegations but some of what I’ve read is very ridiculous . The CBN, as an institution, will respond to all the allegations because we’ve always operated in line with the rule of law.

“A week ago for example, the NNPC(Nigerian National Petroleum Corporation), came out on national television and agreed that they have spent $3.5bn on kerosene subsidy without appropriation. Nobody has called that financial recklessness but the CBN is audited every year.

“In fact, we have just concluded the audit for 2013. We are supposed to submit those accounts within two months of every financial year; we have a board meeting to approve the audited account on February 27, and to submit on February 28. This has been happening since I became CBN governor.

“The NNPC has not been audited since 2005 and yet nobody talks about financial recklessness in the corporation. Since I became CBN governor, I have constantly reduced operating cost and increased operating surplus.

For instance, the year before I became governor in 2008, the CBN contributed N8bn to the federal budget. By 2012, I contributed N80bn.

‘This year, I’m contributing N159bn, that is 20 times what was being contributed. For me, this is not something that comes as a surprise, the President has asked me to resign and I refused. I knew there was going to be a backlash. The important thing is that I don’t want to present myself as the focus. The issue on the ground is that between January 2012 and July 2013, there is $20bn that the NNPC sold crude oil and has not come back. I am questioning the NNPC’s right to keep that. I will challenge my suspension not because I want to go back.

“I have done everything expected of me; I have written letters and I have given all the documents. This is $20bn in 19 months period; we have not even talked about 2011 and 2010. We have to be sure we know what we are saying. I think people should be more angry about theft happening.”

9jawedey