- Category: Politics
- Published on Tuesday, 04 January 2011 09:39
- Written by Admin
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The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has put on hold the special concession granted to Bayelsa State for derivation fund from three oil wells.
According to the Economic Confidential, an online economic journal, the resolve to halt the special allocation followed series of complaints and requests from other stakeholders including oil-producing states.
But the special monthly grant may have raked in over N15 billion into the coffers of Bayelsa State over the last three months. The meeting, presided by the new RMAFC Chairman, Mr. Elias Mbam, with all the 36 commissioners of finance in attendance was held a day before the emergency meeting of the Federation Account Allocation Commission (FAAC) where the sum of $1 billion was shared among the three tiers of government.
The presidential concession granted to Bayelsa had positioned the state to earn derivation fund from oil wells lying beyond the 200-metre isobaths, an action considered to be a breach of the Offshore/Onshore Dichotomy Abrogation Act 2004 in the application of the 13 per cent derivation principle.
The recommendation to President Goodluck Jonathan for the special concession was said to have been facilitated by some agencies of government which include the National Boundary Commission, Office of the Accountant General of the Federation and RMAFC.
Mbam had told journalists recently at the inaugural meeting of members of the commission that the RMAFC would immediately set out to review the existing revenue sharing formula among the three tiers of government.
The special bonus granted Bayelsa has generated bitter complaints from other states which at one time threatened legal action against the Federal Government.
The RMAFC has a constitutional mandate to determine the remuneration packages of public officers as well as revenue allocation to all tiers of government including indices for the disbursement to each states and local councils in the country.
Although THISDAY gathered that a special committee has been set up to consider the problems and complaints from other states before any further actions could be taken, but it appears uncertain if by the latest suspension, the commission will recall all the funds so far accrued to the state.