News

October 26, 2012

Delta House urged to suspend appropriation of 13% derivation fund

By GABRIEL ENOGHOLASE

BENIN—FIVE oil and gas producing ethnic nationalities of Delta State, Ijaw, Isoko, Itsekiri, Urhobo and Ndokwa, have requested the state’s House of Assembly to suspend appropriation of their 13 per cent derivation fund by the state government.

The communities, in a letter to Delta State House of Assembly, jointly signed by Pa J. O. S Ayomike, Senator F. S. Okpozo, Chief W. Okrika CON, Dr. K. O. Nwachukwu, Chief P. E. Asagba and 20 others, insisted that the fund should be paid into an escrow account pending the resolution of some weighty issues.

The ethnic nationalities, in a letter to the Speaker and members of the House and made available to journalists in Benin, yesterday, insisted that, in line with constitutional provisions, the fund was not part of the consolidated revenue of the state.

They argued that the fund was created by the Federal Government as restitution for the loss and injurious impact of oil exploitation on the farmlands, streams and lakes of oil producing communities.

They said: “It is our view that one kobo of the aforesaid fund ought not to be spent outside oil and gas producing communities.

“We are not unmindful of the fact that the Delta State Government established the Delta State Oil Producing Areas Development Commission whose function include the infrastructural development of oil and gas producing communities.

“Our position, however, is that 50 per cent of the 13 percent of the derivation fund allocated to DESOPADEC as well as the remaining 50 per cent which the state government has appropriated for its use amounts to an aberration and improper use.”