Nigeria political

Femi Aderupatan:Nigeria @ 47: A Variegated Political Experience

One hundred years ago, there was no country in the world called Nigeria. Nigeria as one country came into existence in 1914 when the British colonial administrator, Lord Frederick Lugard amalgamated the Northern and Southern protectorates to form the country.
In the political sector, Nigeria has not fared well compared with the position of some of her contemporaries What direction would Nigeria likely go in the years to come? Will the country catapult from its current lowly rating to an enviable position as one of the 20 major powers of the world by 2020.  That is the message of hope from President Umaru Musa Yar’Adua, the Governor of Central Bank, Professor Charles Chukwuma Soludo and other leading members of the present administration for dispirited Nigerians whose hopes have been severally raised and dashed by their successive leaders for the past 47 years. Due to the high level of hypocrisy by their leaders, Nigerians have resigned to fate trusting only in God.
Some countries have even gone to the extent of predicting the imminent demise of Nigeria. For instance, in the heat of the rancorous approach to the April transitional elections, a United States (US) department released a report predicting that Nigeria would soon disintegrate. The report defined Nigeria as a failed creation whose disparate ethno-religious groups cannot just co-exist with one another peacefully and successfully.
But many Nigerians even while acknowledging the country’s problems have disagreed with the US verdict. Despite the fact that the country had been unfortunate to have a succession of leaders that do not inspire trust they still believed that the country will one day get it right.
The new administration of President Umaru Musa Yar’Adua which came to power through a democratic transition last May has come with a promise to make a positive difference in the lives of Nigerians and transform the country’s economy. Notwithstanding the thick fog of cynicism in the air, the new president has pledged servant-leadership that thrives on example and sacrifice. Yar’Adua sings a new song of hope and self belief for his fellow citizens. He says the country will reclaim her manifest destiny.
But is Nigeria really getting better or worse by the day? Some people are of the opinion that despite the multifarious problems confronting Nigeria , the complex country of  150 million people is really making progress in several fronts. It has acquired its own peculiar instincts.
Attempts are being made to surmount some of the country's major obstacles. The war against corruption is still trudging on, the economic reforms anchored on privatization exercise are still in place, the North-South political tension has been diffused through rotational presidency, the telecommunication sector has witnessed a revolution, the power and energy sector are being reformed etc.
  Joe Igbokwe, a Nigerian journalist is one optimist who believes Nigeria can still get it right. He wrote in 2005 on the occasion of Nigeria ’s 45th independence anniversary and posed the following questions: “ Why did the founders of the American nation threw their doors open for people of all colours and even had to pay people to come to America ? Why did Germany unite many years after the Second World War? Why do you think the European Union exists today?...Why do you think Nigeria is popular today? Do you think it is because of her landmass? Is Nigeria the largest in terms of landmass in Africa ? Throughout history, I have found out that the strength of any nation lies with her people. The more people a nation has the better for it.” Here is the political journey so far:

Balewa and the First Republic
Upon Nigeria’s independence in 1960, Alhaji Abubakar Tafawa Balewa of the Northern Peoples Congress (NPC) was chosen as the Prime Minister and head of government. The country was then practicing the Parliamentary system of government. His party, the NPC was in both name and practice a Northern regional political organization. It was not surprising that hardly any effort was made to weld the disparate groups of the young nation into a cohesive unit under the Barewa government.
In 1963, Nigeria became a republic and Dr. Nnamdi Azikiwe, whose National Council of Nigerian Citizens (NCNC) had entered into an alliance with the NPC became the ceremonial president of the country. Although, Nigerian by name, Zik’s party, NCNC had its stronghold in the Eastern region where he hails from. The other major party was Chief Obafemi Awolowo’s  Action Group (AG) which was strong in the Western Region. The other political party, Chief Samuel Ladoke Akintola’s Nigerian National Democratic Party (NNDP) was formed through alliance with the NPC to break AG’s hold on Western Region. Thus all the political parties in the First Republic were either ethnic or regional based. The scenario was to sow the seed for the demise of that republic.

Nzeogwu
Since independence in 1960, Nigeria has had her attempts at democratic governance truncated twice by ambitious military officers. The first experience was on January 15, 1966 when the late Major Chukwuma Kaduna Nzeogwu led some officers to overthrow the First Republic government under the Prime Minister, Alhaji Tafawa Balewa.
Nzeogwu, after the sacking of the Northern Regional government made a broadcast through Radio Nigeria , Kaduna in the afternoon of January 15th, 1966 . He said “ In the name of the Supreme Military Council for the Revolution of the Nigerian Armed Forces, I declare martial law over the Northern provinces of Nigeria. The constitution is suspended and the regional government and elected assembly are hereby dissolved.”
He further declared: “All political, cultural, tribal and trade union activities together with all demonstrations and all unauthorized gatherings…are banned until further notice.
‘Our enemies are the political profiteers, swindlers, the men in the high and low places that seek bribes and demand ten percent; those that seek to keep the country divided permanently…VIPs of waste, the tribalists, the nepotists.”
Incidentally, the same ills of corruption, nepotism, greed and sentiments continued to weigh down the country for decades after independence. Nzeogwu and his group who were believed not to have been inspired by selfish ambition in leading the coup abandoned the nation in quandary after killing notable political leaders such as Balewa, the Premier of Northern region, Sir Ahmadu Bello, his Western region counterpart, Chief Ladoke Akintola and a host of others.

Aguiyi-Ironsi
As things turned out, the leadership of Nigeria fell by happenstance on the shoulders of the most senior military officer at the time, Major-General J.T.U. Aguiyi-Ironsi,
But the first coup had triggered a chain reaction which led to the assassination of the military Head of State, Aguiyi-Ironsi on July 29, 1966. He was killed along with Brigadier Adekunle Fajuyi and several other military officers.

Gowon
  Yakubu Gowon, then a colonel in the Army took over as Head of State. His ascension could not stem the raging ethnic uprising especially in the Northern part of the country leading to the killing of thousands of Nigerians mainly of Igbo origin. One ugly event led to another while efforts of several statesmen among them Ghana’s former President, Dr. Kwame Nkrumah to broker peace between the heavily aggrieved Southeast leaders led by then Colonel Chukwuemeka Odumegwu-Ojukwu floundered.
A bloody civil war ensued between May 1967 and January 15, 1970 in which nearly one million people died, a good number of them from disease, malnutrition and starvation which ravaged the secessionist Biafran area in the defunct Eastern Region of the country.
Gowon ruled Nigeria for nine years from 1966 to 1975. He had promised to return Nigeria to civil democracy by 1976 but later reneged by extending the date. This and some other malfeasance led to his overthrow on 29 July, 1975. Gowon was ousted while attending an Organization of African Unity (now African Union) summit in Addis-Ababa , Ethiopia . From there, he didn’t return to possibly face a court-marshal. He opted for exile in Britain .

Murtala Muhammed
A strong-willed General Murtala Muhammed assumed the mantle of leadership after Gowon’s ouster. He ruled for barely six months from August 1975 to February, 1976 before he wasgruesomely killed in a foiled but bloody coup led by Lt. Col. Suka Dimka. Dimka had gained access into the broadcast room of          Radio Nigeria Lagos from where he claimed that Muhammed was overthrown for running a hypocritical regime. Before his tragic death, Murtala had taken some fundamental measures that were to shape events in Nigeria for several years. Among them were the creation of seven new states to increase the number from 12 to 19. He also announced the selection of Abuja as the new capital of the Federation of Nigeria.

From Gen. Obasanjo to Alhaji Shagari
Murtala’s assassination paved way for the elevation of his deputy, General Olusegun Obasanjo as Head of State. Obasanjo in his three-year tenure from 1976 to 1979 carried on with Murtala’s policies which he added to his own. He successfully handed over power to an elected civilian government headed by President Shehu Shagari. Shagari ruled on the platform of the defunct National Party of Nigeria (NPN).

Buhari
On December 31, 1985 , Major-General Muhammed Buhari emerged Head of State after a coup which snuffed the life out of the Second Republic . Together with late late Brigadier Tunde Idiagbon, Buhari imposed a reign of terror on the country. The iron-clad regime lasted for barely 18 months in power before it was in turn overthrown in a palace coup. The Buhari era was noted for its jack-booth method. Under him the nation’s prisons spilled over as many were herded into jail without proper conviction or even trial.
 
Babangida and the Aborted Republic
General Ibrahim Babangida, after usurping power soon styled himself ‘President’ notwithstanding the undemocratic nature of his coming to power. Babangida ruled Nigeria for eight long years during which period he literarily used the country as the proverbial guinea pig for sundry political and economic experience most of which were designed to sustain him in power. He lifted the ban on politics in 1990 only to disband the parties formed by the politicians a year later. He decreed two political parties, which he christened the National Republican Convention (NRC) and the Social Democratic Party (SDP). He equally gave the two artificial parties ideological positions as “a little to the right (NRC) and a little to the right (SDP). He was presumably trying to copy the United States’ Republican and Democratic parties forgetting that the socio-political and economic environment that gave rise to and sustain those flourishing political institutions were non-existent in Nigeria as at that time. Such shallow assumptions illustrate the mindset of most of the military rulers that foisted themselves on the nation for 28 years out of 47 years of the existence of Nigeria as an independent country.

Shonekan
Having failed to perpetuate himself in office and having annulled the widely acclaimed presidential election of June 12, 1993 , Babangida hurriedly ‘stepped aside’ in October, 1993 and handed over to an interim government headed by one of his loyalists, Chief Ernest Shonekan. The 1993 election was presumably won by late Chief M.K.O Abiola who was later jailed by Gen. Abacha. Abiola died mysteriously on July 8, 1998 while in custody.

Abacha
The Shonekan government which Babangida handed over to in October 1993 had neither the backing of the constitution nor military might. General Sani Abacha, Babangida’s right-hand man only needed to blow a little hot air on his face for him to pack his bag and baggage out of  Aso Rock seat of the Federal Government. Abacha, whose Gestapo regime lasted for nearly five years made a tragic attempt to transmute to a civilian president. He died         interstate in June 1998.

From Gen Abubakar to Chief Obasanjo
General Abdulsalami Abubakar, who  became Head of State following Abacha’s sudden death. He immediately announced a transition to civil rule programme which gave birth to the current Fourth Republic on May 29, 1999. Chief Olusegun Obasanjo who contested the 1999 presidential election on the platform of the Peoples Democratic was elected President. Obasanjo ruled as an elected President for a consecutive two terms totaling eight years.

Umaru Yar’Adua
Obasanjo made history the second time when he became the first democratically elected President to conduct a transitional election and hand over to an elected successor, Alhaji Umaru Musa Yar’Adua on May 29, 2007 .
Now Yar’Adua has a rendezvous with history as he attempts to regenerate a country riddled with all kinds of decay inspite of amazing potentials. Nigeria’s oil mineral resources have largely brought her woes rather than blessings. Instead of democracy thriving in the country what appears to be gaining ascendancy is ‘Lutocracy’, to borrow from the Chairman of Economic and Financial Crimes Commission (EFCC), Mallam Nuhu Ribadu. The next four or eight years will define Yar’Adua’s place in Nigeria ’s political history.

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Femi Aderupatan:Etteh: Panel faults award of N628m contract

The panel raised by the House of Representatives to investigate the award of N628 million contracts to renovate the official residence of the Speaker, Mrs. Patricia Olubunmi Etteh and her deputy, Babangida Nguroje as well as the purchase of vehicles for principal officers of the House, on Wednesday came out with a verdict that due process was not followed in the exercise.

According to the 19-page report signed by all the members of the panel, tabled before the House on Wednesday, while due process was not completely followed, there was also no specific budgetary provision for the renovation and furnishing of the official residence of the Speaker and Deputy Speaker and purchase of vehicles for the principal officers in the 2007 budget.

Besides, the panel said from the facts gathered by the panel through oral and documentary evidence, no in-house Bill of Quantities and drawings- structural, architectural, electrical and mechanical – was given to form basis for arriving at the approved contract sums.

The contract probe panel also concluded, that "the procedure for the award by the Body of Principal Officers on the 12th July 2007 shows major act of omission and disregard for laid down procedure."

It was also discovered that the memoranda for the award of contracts presented at the said meeting were raised before some of the quotations for the jobs were processed, while some of the companies that sent quotations were not registered with the Corporate Affairs Commission, hence, "they lacked capacity to compete for the contracts in question since law does not recognize them as persons."
The panel discovered that "some principal officers were excluded from the meeting of 12th July 2007 by not serving them notice for the meeting, particularly, the minority leadership."

In the course of the investigation, the panel said it discovered that the contract sum of N238,852,152:00, in respect of the renovation and furnishing of the residence of the Speaker was for the main house and not inclusive of the cluster of structures in the compound, just as all quotations relating to the renovation and furnishing contracts directed to the office of the Speaker and those directed to the office of the Clerk to the National Assembly were first acted upon by the Speaker, for the attention of the Clerk to the National Assembly, directing him to process.

Chairman of the probe panel, David Idoko told the press after submitting the report that it was not part of the mandate of the ad-hoc committee to recommend any punishment.
Said he: "We disagree to agree and agreed totally on all issues. Every member of the committee signed the report. We worked within the framework of our mandate to examine facts and laid bare.

"The document has been laid on the table, now it’s a public property and it must go through due process. In an assignment like this, what people should be looking for is the result. Specifically, we didn’t have the mandate to indict, we only examined the contracts.
" From the beginning, we don’t have the mandate to indict anybody, we are making this clarification to educate the public.

Constituted on Wednesday September 5, 2007, the contract probe panel has, apart from Idoko, Hon Rabeh Nasir, Nasiru Mohammed, Sani Saleh Minjibir, Chinedu Eluemunoh, Depo Oyedokun, Yakubu Dogara, Habeeb Fasinro and Peter Umoh as members.

The terms of reference of the panel are: To examine the award of contracts for the upgrading of the official residences of the Speaker and the Deputy Speaker; and to examine the contracts for the purchase of official and utility vehicles for the leadership of the House and to report to the House within two weeks.
Because of the scope of the work, the committee had to exceed the two week grace, but came to the floor to ask for an extension, following a fracas that ensued at the venue of the panel sitting.

 

Femi Aderupatan:Etteh breaches agreement,Integrity Group alleges

Members of Integrity Group in the House of Representatives Monday night reacted to the statement credited the Speaker, Mrs Patricia Olubunmi Etteh alleging a campaign to smear her name as a breach of the agreement reached among members in the wake of the fracas that almost marred the panel set up to probe her. Members of Integrity Group in the House of Representatives Monday night reacted to the statement credited the Speaker, Mrs Patricia Olubunmi Etteh alleging a campaign to smear her name as a breach of the agreement reached among members in the wake of the fracas that almost marred the panel set up to probe her. In a statement on behalf of the group signed by one Blessing Lewis, Madam Speaker was accused of violating the agreement reached at an executive session where members were barred from issuing any press statement or grant press interview on the contracts scandal rocking the House. After a fight that broke out between supporters of the Speaker and members of the Integrity Group at the venue of the panel investigating the award of N628million contracts to renovate the residences of the Speaker and Deputy Speaker, as well as purchase of operational vehicles for principal officers, the House came out of an executive session where the actors were reprimanded after an apology and members agreed to end media war. But on Sunday, a statement from the office of the Speaker signed by her Special Adviser on Media, Mrs Funke Egbemode alleged fresh campaign to smear the name of the Speaker that she used a forged certificate. Integrity Group said that it was disappointed about the statement credited to Madam Speaker on alleged attempt by some people to link her to certificate scandal. "Prior to this, there are public statements credited to the Speaker. All these were a violation of the agreement reached at the executive session of the House advising all parties to the conflict to refrain from issuing press releases and granting interviews on the contract scandal rocking the leadership of the House of Representatives. "It is pertinent to note that the issues on ground and which Nigerians are clamouring for explanations bordering on ethical moral consideration, probity, transparency and accountability. "Nigerians have been asking whether the funds for the N628 million renovation/upgrading, furnishing and purchase of 10 units of cars, have been budgeted for, whether due process was followed, if the amount were not inflated, whether a conflict of interest did not arise? "Revelations at the probe panel have indeed thrown more light on the enormity of the scam as Nigerians are eagerly awaiting the outcome of the investigation." The group noted that despite the weight of public opinion on this matter, Madam Speaker was yet to demonstrate an iota of remorse, before, during, and after her appearance at the panel. " The demand for accountability of public funds by Madam Speaker should not be ignored and brushed aside on the pretext that some members had failed to get so-called choice committees. After all, majority of the committee chairmen are in the vanguard for probity and accountability. "Equally, we demand that Madam Speaker accounts for her actions in this sordid saga. At any rate, the appointment of chairmen of committees had always been the responsibility of the Selection committee which Madam Speaker chairs. If questions are being raised on the exercise, it is the Speaker’s responsibility to address them, instead of polarizing the House. "On the allegation that some members are trying to raise dust over her educational qualifications, it is to be noted that when she was elected the members were fully aware that her highest educational attainment was that of a hairdresser. If indeed there are questions regarding her educational background, Madam Speaker is urged to level up with Nigerians," the statement said. In a statement on behalf of the group signed by one Blessing Lewis, Madam Speaker was accused of violating the agreement reached at an executive session where members were barred from issuing any press statement or grant press interview on the contracts scandal rocking the House. After a fight that broke out between supporters of the Speaker and members of the Integrity Group at the venue of the panel investigating the award of N628million contracts to renovate the residences of the Speaker and Deputy Speaker, as well as purchase of operational vehicles for principal officers, the House came out of an executive session where the actors were reprimanded after an apology and members agreed to end media war. But on Sunday, a statement from the office of the Speaker signed by her Special Adviser on Media, Mrs Funke Egbemode alleged fresh campaign to smear the name of the Speaker that she used a forged certificate. Integrity Group said that it was disappointed about the statement credited to Madam Speaker on alleged attempt by some people to link her to certificate scandal. "Prior to this, there are public statements credited to the Speaker. All these were a violation of the agreement reached at the executive session of the House advising all parties to the conflict to refrain from issuing press releases and granting interviews on the contract scandal rocking the leadership of the House of Representatives. "It is pertinent to note that the issues on ground and which Nigerians are clamouring for explanations bordering on ethical moral consideration, probity, transparency and accountability. "Nigerians have been asking whether the funds for the N628 million renovation/upgrading, furnishing and purchase of 10 units of cars, have been budgeted for, whether due process was followed, if the amount were not inflated, whether a conflict of interest did not arise? "Revelations at the probe panel have indeed thrown more light on the enormity of the scam as Nigerians are eagerly awaiting the outcome of the investigation." The group noted that despite the weight of public opinion on this matter, Madam Speaker was yet to demonstrate an iota of remorse, before, during, and after her appearance at the panel. " The demand for accountability of public funds by Madam Speaker should not be ignored and brushed aside on the pretext that some members had failed to get so-called choice committees. After all, majority of the committee chairmen are in the vanguard for probity and accountability. "Equally, we demand that Madam Speaker accounts for her actions in this sordid saga. At any rate, the appointment of chairmen of committees had always been the responsibility of the Selection committee which Madam Speaker chairs. If questions are being raised on the exercise, it is the Speaker’s responsibility to address them, instead of polarizing the House. "On the allegation that some members are trying to raise dust over her educational qualifications, it is to be noted that when she was elected the members were fully aware that her highest educational attainment was that of a hairdresser. If indeed there are questions regarding her educational background, Madam Speaker is urged to level up with Nigerians," the statement said.

Femi Aderupatan:N628m contract scam: Etteh didn’t say the truth—National Assembly directors

COntroversy over who initiated the N628 million contracts in the House of Representatives deepened weekend as the members of the National Assembly management alleged that the House speaker, Mrs Patricia Olubunmi Etteh, wanted to hang the alleged scam on their necks.

The allegation came just as the minutes of the meeting of the Body of Principal Officers of the House which approved the contracts showed that leaders of the opposition parties in the House did not attend.

The members of the management had claimed in their separate testimonies to the nine-member committee investigating the circumstances surrounding the award of the contracts for the renovation of the official residence of the Speaker and that of her deputy, Hon. Babangida Nguroje, as well as for the purchase of additional units of vehicles that the Body of Principal Officers were responsible for the award.

Mrs. Etteh was apparently angered by the testimonies of the members of the management, which seemed to suggest that she initiated and approved the contract award whereas she believed that contract award was the responsibility of the management as members of the National Assembly Tenders’ Board.

The Speaker had in her statement of defense on Friday  laid the responsibility for the award of the contract at the footsteps of the members of the management who have now dissociated themselves from the Speaker’s position.

Sunday Vanguard learnt weekend that the members of the  management were uncomfortable with the impression created by the widely publicized statement of Mrs Etteh which they believed  portrayed them in bad light.

National Assembly sources quoted them as saying that they acted on the contracts based on the instructions of the Speaker in consonance with their responsibility as loyal civil servants and wondered why Mrs Etteh would turn around to blame them for the action.

The sources revealed that the management had strongly protested the buck passing by the Speaker who they reasoned pressured them into the preparation of the contract documents, which Mrs. Etteh directed them to present at the meeting of the Body of Principal Officers where the contracts were approved.
“If we were not instructed to do what we did, we have no business renovating the Speaker’s house for her,” one of  the management sources volunteered to Sunday Vanguard..

Also a spokesman for the clerk of the National Assembly (CNA), Mr. Monima Daminabo, confirmed that as civil servants in the service of the National Assembly, “we are answerable to the Hon. Speaker.” Mrs. Etteh’s apparent offensive against the management has caused ripples within their ranks as they fear that it was an attempt to make them  scapegoats  in the controversial contract award but they have vowed to do all that was necessary to clear the name of the management in the affair.

The July 12, 2007 meeting of the Body of Principal officers of the House which approved the controversial contracts, according to the minutes, was presided over by the speaker who is chairman of the body.
It was attended by only three other principal officers of the House namely Nguroje, deputy speaker; Hon. Bethel Amadi, chief whip and Hon. Baba Shehu Agaie, deputy majority leader.

Clearly absent at the meeting were leaders of  the opposition parties in the House who by virtue of their appointments are also members of the Body of Principal Officers. The opposition parties leaders had said they were not notified about the meeting, insinuating that they were deliberately left out. Even then, other principal officers of the House who are members of the ruling Peoples Democratic Party, PDP, including the majority leader, Hon. Tunde Akogun, were curiously not at the parley.

Also in attendance  were Hon. Wale Adegoke, Chairman, welfare adhoc committee of the House; Alhaji Nasiru I. Arabi, clerk to the National Assembly, who is secretary of the parley; Mr. O. Ogunyomi, his deputy; Mr. Niyi Ajiboye, House acting clerk, three directors of the National Assembly and two deputy directors, among others.

All present, according to the minutes, participated actively in the meeting leading to the award of six contracts for the renovation and furnishing of the residences of the speaker and her deputy as well as purchase of vehicles.

The contract for the renovation of the speaker’s house went to State Co. Nigeria Ltd, out of the three firms that bidded, for N238,852,192.25 while furnishing contract was secured by Victogenvel Nigeria Ltd for N71,895,000.

Of the three companies that bidded for the contract to renovate the deputy speaker’s house, Lee Development Nig. Ltd was the lucky bidder securing the contract for N90,296,225:25. The company also secured the furnishing contract for N55,200,000.

The contract for the supply of two Toyota Land Cruiser vehicles went to Kymco Motors Co. Ltd for N123,000,000 while that for the supply of two Mercedes Benz car S320 at N49,600,000 was secured by Bras Ventures Ltd. The six contracts, according to the minutes, totalled N579,216,417.50.

Femi Aderupatan:Bernanke Assures Hill on Mortgage Hit

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke told Congress Thursday the credit crisis has created "significant market stress" and offered fresh assurances that regulators would take steps to curb fallout related to the mortgage mess.

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Bernanke made the statement in testimony before the House Financial Services Committee. It came just two days after the Federal Reserve sliced a key interest rate by a bold half-percentage point to prevent the weight of housing and credit problems from sinking the economy. It was the first time in more than four years the Fed cut this rate.

"Global financial losses have far exceeded even the most pessimistic estimates of the credit losses on these loans," the Fed chairman said. The situation, he acknowledged, "has created significant market stress."

The meltdown in the housing and mortgage markets has shaken Wall Street and Main Street, and President Bush was asked at a White House news conference Thursday to assess the chances of a recession. "I say that the fundamentals of our economy are strong," he replied. But the president did acknowledge problems in the housing market.

Bush said he looked forward to working with Congress to solve problems, but also said he would fight any move on Capitol Hill to raise taxes.

For his part, Bernanke promised lawmakers that the Fed will take steps to crack down on abusive or bad lending practices.

"The Federal Reserve takes responsible lending and consumer protection very seriously. Along with other federal and state agencies, we are responding to the subprime problems on a number of fronts," he said. "We are committed to preventing problems from recurring, while still preserving responsible subprime lending." The Fed has taken a number of steps already and other proposals are being considered.

Treasury Secretary Henry Paulson, who also appeared at the hearing, signaled that the administration would consider allowing the big mortgage companies Fannie Mae and Freddie Mac to temporarily buy, bundle and sell as securities any loans exceeding $417,000, known as "jumbo" loans.

The idea, which represents a policy change for the administration, is portrayed as a way to inject liquidity into the stretched mortgage market.

Paulson said the change involving jumbo loans could occur only in tandem with tighter oversight of the two government-sponsored mortgage companies.

Bernanke also weighed in, saying that if Congress were inclined to make let Fannie Mae and Freddie Mac buy jumbo loans, it should be done only on a temporary basis. He didn't specify how long that should be.

In his testimony, Bernanke did not offer new clues about the Fed's next move on interest rates. The Fed chief reiterated the rationale offered Tuesday for cutting rates, acknowledging that the financial turmoil has "increased the uncertainty to the outlook."

Foreclosures are at record highs and late payments are spiking. Lenders have been forced out of business and investors have taken huge financial hits. Lax lending standards during the housing boom came to roost after the housing bust. The carnage has been the most severe in the so-called "subprime" market, where mortgages are held by borrowers with spotty credit or low incomes. Many are at risk of losing their homes.

Analysts estimate that at least 2 million adjustable-rate mortgages will jump from very low initial teaser rates to higher rates this year and next. Steep prepayment penalties have made it difficult for some to get out of their mortgages. Some overstretched homeowners can't afford to refinance or even sell their homes.

Rep. Spencer Bachus, R-Ala., told Bernanke: "There is general agreement that abuses have occurred in the subprime market. There is widespread agreement that these are practices that should not be tolerated."

"Foreclosure isn't good for anyone," said Alphonso Jackson, secretary of Housing and Urban Development, urging lawmakers to move quickly on FHA reform.

Bernanke said he saw "no problem" with government efforts to help squeezed homeowners refinance. "We are trying in particular to make sure the economy is stable and that is the ultimate objective we have," he added.

Paulson said "there are a number of credit markets that are still not functioning as normal. They are operating under strains and stresses," he added. There has been some gradual improvement and officials are monitoring the situation closely, Paulson said.

There's been a big debate in Washington about how Fannie Mae and Freddie Mac could help out. The government on Wednesday nudged up their investment caps, a move aimed at alleviating stress in the mortgage market.

The top executives at mortgage giants Freddie Mac and Fannie Mae testified that they stood ready to help cushion the shocks from a rising flood of mortgage foreclosures.

Daniel Mudd, head of Fannie Mae, said his agency continued to support an increase in its mortgage portfolio of 10 percent, much bigger than the 2 percent bump-up the mortgage giants' regulatory agency approved Wednesday.

"I am confident we could provide more liquidity help to the home finance market today without taking risks we are not capable of managing," Mudd said. "We are not the only answer to the liquidity crunch, but we can play a part in a measured, safe and sound way," he added.

Richard Syron, Freddie Mac's chief said:"We remain very dedicated to helping borrowers avoid foreclosures."

Meanwhile, the Fed is reviewing possible actions to help and Bernanke said the board also is committed to providing more effective disclosures to help consumers defend against improper lending.

Bernanke's predecessor, Alan Greenspan, has been criticized for holding short-term interest rates too low for too long, feeding the housing boom. Asked if he thought that was the case, Bernanke said the "primary factor" was unusually low long-term interest rates seen in the United States and in many other countries at the time.

On another matter, Bernanke said the Fed is still keeping a close eye to make sure that inflation doesn't become a problem. Oil prices hit a new record of $81.93 a barrel on Wednesday.

Associated Press reporters Marcy Gordon and Martin Crutsinger contributed to this story

Femi Aderupatan:How Adisa Akinloye died, by his physician

FOR a man who not only attained the biblical age of three score years and ten, but snatched 21 more years, death was expected to be a pleasant transition.

It was a hope realised as Chief Augustus Meredith Adisa Akinloye passed on.

Aged 91, AMA, as he was fondly called, died on in his sleep at the University College Hospital (UCH), Ibadan at about 10.10 p.m. on Tuesday.

He was the National Chairman of Nigeria's Second Republic ruling National Party of Nigeria (NPN) that produced Alhaji Shehu Shagari, who eventually became Nigeria's president on October 1, 1979. The government was sacked by the military on December 31, 1983.

The politician, who will be remembered for his branded 'AMA Champagne' and his role in the defunct NPN government yesterday, was noted by dignitaries who thronged his Itu-Taba, Oje home in Ibadan, as one who believed in a united Nigeria. The Director of Clinical Services, Research and Training at the UCH, Dr. Adeniyi Adenipekun told The Guardian that Akinloye was admitted six weeks ago and was diagnosed of multiple chronic liver problems and obstructive pulmonary disease.

A Consultant Physician and Gastroenterologist at the hospital, Dr. Abiodun Otegbayo, who treated him, had diagnosed Akinloye as suffering from anaemia, dementia and chronic liver diseases. Otegbayo's diagnoses then had been sobering. He had earlier told The Guardian: "When he was brought from his house, he was vomiting blood. When I saw him he was very pale as a result of the blood loss; we call that anaemia. Subsequent examination revealed that he had had a chronic liver disease, which had been long standing and when liver disease has been prolonged like that, there are some periods of decomposition. There may be abnormality of clotting of the blood system."

The specialist doctor continued: "In addition to that, some individuals with liver diseases may also have ulcer in the stomach from which they can bleed. I think (his own) was a combination of this liver disease and ulceration or some swelling of vessels that we call varysis. That was the cause of the bleeding in him. He also had chest infection, which we were treating and he came in a confused state. This suggests that he had had some sort of dementia, which causes loss of memory; inability to recall events, especially recent events."

He disclosed further: "That is not surprising for a man of 91 years. We all know about a former President of the United States of America who also had a period of dementia."

On Akinloye, he said: "When he came, he was restless, pale, and could not recognise people at all. He had fever at a point and at a time he could not make much urine."

But Otegbayo in a telephone interview yesterday said he saw the deceased last on Monday and his liver was discovered to be failing.

He added that Akinloye died peacefully in his sleep. The remains of the deceased politician have been deposited at the Anatomy Department of the University of Ibadan.

Sympathisers swarmed his Itu Taba family compound at Oje Area of Ibadan, while a condolence register has been opened in his honour.

One of the deceased's daughters, Dr Funmi Akinloye, and niece, Justice Iyabo Yerima in separate interviews said he lived a fulfilled life.

They described him as a loving father and committed Nigerian who believed that politics should be played without bitterness. They also noted that throughout his active political lifetime, Akinloye championed the cause of a united nation.

Funmi Akinloye said: "He played politics without bitterness, he was always emphasising the slogan of the then NPN, 'One nation, one destiny.' We were never afraid for his life, he was a God-fearing person but he fears no man.

She continued: "The only time we were ever afraid was in 1959 during the time of 'operation we tie' in the era of the 'wild wild west' but we thank God nothing happened. Apart from that, there was no time we ever feared for his life." The London- based Funmi Akinloye said that her father died a fulfilled man as he was able to actualise his ambition which he set right from the beginning of his life.

She described the deceased as a great politician who bore no grudge again the opposition while in active politics.

She however expressed regrets that the new crop of politicians has failed to imbibe the philosophy of her father's generation.

She said: "Things have changed. My father held on to the fundamental principles of life during his active politics days. His philosophy then was forgiveness, communication and togetherness. The present day politicians must see this nation as one, learn to forgive and be forward-looking."

On his part, Justice Yerima of the Oyo State High Court described the deceased as a man who cared for everything dear to him.

Justice Yerima said the politician never gave a sign that his time was up as he was active some moments before his eventual death.

"I was shocked because as at Tuesday evening around 9.00pm, we were with him. We sang, joked and shared biscuits.

"In fact, he was supposed to have been discharged on Tuesday or latest today (Wednesday). He was looking very handsome, so fresh and relaxed, he was God-fearing and prayerful."

She seized the opportunity to shed light on the controversial 'AMA Champagne' which made the news after the NPN-led government was sacked by the military. She said that the Champagne was actually given to Akinloye as a Christmas gift during one of his visits to London by an English man while in office as the NPN Chairman and not that he specifically ordered it as widely believed by many Nigerians.

"I think it is high time we cleared this issue of champagne once and for all. I was in the university then in England when he came around. He used to stay in Churchill Hotel. This particular day, we were with him when one Englishman brought a branded carton of champagne, it was only one carton and the person who brought it just decided to personalise it and when some of his friends came and saw it, they started begging him for it. It was through those friends that the thing got back to Nigeria. It was a Christmas gift and not that Akinloye had a factory that was producing these drinks in large quantities. I do not see this as a big deal because you see most of the souvenirs or even drinks served at wedding ceremonies branded with the couple's photographs so I don't know why there was so much fuss about the champagne."

Early callers at the Akinloye family compound included, Second Republic Minister, Chief Richard Akinjide (SAN) and Peoples Democratic Party (PDP) Chieftain, Alhaji Lamidi Adedibu, who were associates of the deceased politician.

Akinjide wrote in the condolence register: "The great man is gone, an illustrious son of Ibadan-land, a great leader of men. The first Chairman of the largest political party in Africa, a great mobiliser of men. You did your best for Nigeria in general, Western Nigerian Region and Oyo State in particular. 'Omo Egunjeimu', you will be greatly missed by both old and young. Farewell, the great chief of Ibadanland, may your soul rest in peace."

Adedibu wrote: "My father, my mentor, my political architect who by the will of God made it possible for me to have recognition in the political history of the country. You promoted me, you lifted me up and gave me what I can never forever forget in my life, you prayed for me and the prayer had shown in me. Surely, you Adisa Olayiwola Akinloye will rest in the side of Almighty God because you have done very well to people with fear of God, God will not leave you."

Akinloye's youngest widow, Yemi, who spoke with The Guardian, described the deceased as a loving and caring husband and father to his children.

Yemi, his wife of 12 years, said the deceased politician lived a fulfilled life worthy of emulation. "He was a loving husband; I thank God for his life. I enjoyed our times together, he was a caring father to his children and a loving husband to me, I will miss him greatly."

Akinloye is survived by his 94-year-old elder sister, Nimota and 87-year-old younger sister, Mrs. Gladys Vaughan.

The relatives refused to disclose the number of his children. But The Guardian learnt that his first daughter, Mrs. Dupe Dolapo is currently based in Canada and is likely to come home for the burial.

Femi Aderupatan:Etteh’s N628m Scandal: Rep’s death may stall panel sitting

THERE were indications on Sunday that the assassination of Honourable Segun Oladimeji from Akinyele/Lagelu Constituency in Oyo State might stall the sitting of the Idoko panel probing the controversial N628 million contract for the renovation of the official quarters of the Speaker of the House of Representatives, Honourable Patricia Etteh, and her deputy, Honourable Babangida Nguroje.

The panel is expected to resume sitting today during which Etteh is to break her silence on her role in the award of the contract. Nigerian Tribune, however, gathered on Sunday that Etteh might not appear as she was expected, as the leader of the House and that of the Southwest caucus of the Peoples Democratic Party, to which the deceased belonged, to pay a condolence visit to Oladimeji’s family and top party and government officials in Oyo State.

A source told the Nigerian Tribune that final decision on the planned trip had not been taken as at press time. The source added that if the panel sat and Etteh did not travel on condolence visit as being planned, she would appear before the panel. It was also gathered that members of the panel had resolved to live above board in its primary assignment having reportedly shunned entreaties to favour any particular interest.

It was learnt that members of the probe panel had advised their leaders not to pander to any particular interest, but to be fair and transparent through the panel’s sittings. The panel members had initially warded off influences by agreeing to subject any of their decisions on the probe to strict voting and had hence prevented anyone of them from lording unpopular decision on the panel.

It was learnt that the Speaker had been working on opposition members of the panel by proxies in order to make them soften their hard stance against the House leadership. Principal officials of the National Assembly management during their testimonies on Friday had faulted the process of awarding the contract.

The Director of Works and Estate, his counterpart in Legal Services, Director of Finance and Supplies and the Clerk of the National Assembly have all appeared before the probe panel, admitting at different times of their sittings that the process of awarding the contract was flawed.

The officials, though attempted to convince the panel that due diligence was followed in the contract award,they absolved themselves of blame, arguing that they acted on the order of the leadership of the House.

Meanwhile, members of the opposition in the House are said to have concluded plans to hire a legal luminary, Mr Festus Keyamo, to assist in circulating the report of the on-going probe panel any time is out.

Findings show that the plan by the opposition was to ensure that as soon as the report is ready, Keyamo will be expected to intimate the international community and all the embassies in the country with such findings and recommendations.

The same report is said to be forwarded to the State Security Service, Presidency, human rights organisations, labour unions and other relevant bodies.

Sources close to the opposition said the decision to employ Mr. Keyamo was sequel to the speaker’s action. Reports had it last week that Etteh had engaged the services of a Senior Advocate of Nigeria (SAN), Alhaji Yusuf Alli, to give a legal assistance when she would be appearing before the panel.

According to sources, the opposition is said not to be taking chances and is bent in ensuring that the speaker is removed no matter how hard she tried. It was gathered that this development became inevitable so that the presidency would have no option than to take a decisive step on the matter

Femi Aderupatan:Mu’azu Under Probe over N22bn Debt, Says Yuguda

Bauchi State governor, Mallam Isa Yuguda , last night said his predecessor, Alhaji Adamu Mu’azu, was being probed by “relevant government agencies in the state” over his administration’s management of the state’s resources during the eight years he was governor.
Speaking at a meeting with journalists in Lagos , Yuguda said the probe was necessitated by what he called the huge debt profile his administration inherited from the immediate-past regime.
“I am assuring you that the contract review committee is doing its job and that whoever is found culpable will be made to account for the monies,” he said 
Displaying a detailed documentary of the performance profiles of the projects initiated by the Muazu administration and their current state of dilapidation, the governor said he  and his officials  were worried that a regime that “received over N300 billion from the federation account in eight years, could not boast  of N100 billion  worth of projects to show for it,” he lamented.
The governor said the “relevant agencies” were also probing the past administration to force it to account for “N8.8 billion that is missing from the local government accounts.”
He vowed that “anybody found culpable will be made to face the music,” and added: “The most disturbing aspect of it is that the N22 billion debt is a short term loan secured from commercial banks.  Five billion naira of this amount fell due in June and we had to do everything humanly possible to reschedule it to give the new administration some breather.
“Bauchi with a population of about 4.7 million, is a state that gets N.5billion internally generated revenue annually with most of her citizens not paying taxes.
We also get about N1.7 billion from the federation account monthly and we are financially strapped. “The people are not paying taxes, not because they liked to evade their social responsibility, but essentially because there was no job for them to do to earn income to pay their taxes,” he explained.
Giving further insight into the state of finances of the administration, Yuguda said it was disturbing that an administration that “spent over N7 billion in the purchase of vehicles, most of which are not presently traceable anywhere in the state, could have ventured into such projects when most of the hospitals and schools in the state had no potable water and millions of employable youths roaming the streets without jobs,” he explained.
On measures already taken by his administration to remedy the situation, the governor said: “We have perfected plans with Dangote Group to construct a dam that will put over 120,000 hectares of farmland into  use.
We have also concluded arrangements with a Korean firm to build another dam that can produce over 800 megawatts of electricity that can light up the state and the remainder transfered to national grid.”
Appealing to the media for support and collaboration, Yuguda disclosed that his administration was perfecting arrangements with non-governmental organisations (NGO) and Small and Medium Scale Enterprises Development Agency (SME-DAN) to train youths of the state on skills acquisition as “practical ways of getting the youths out of the streets.”

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AP sacks MD, names Otedola CEO, to raise N35billion

ZENON Oil President, Mr. Femi Otedola was yesterday named the new chairman and chief executive of African Petroleum (AP) Plc.

He is taking over from Malam Zira Maigadi who was relieved of his position as the managing director.

Also, the firm announced that it had concluded arrangements to now venture into the capital market to raise N35 billion as approved at its yearly general meeting held last month.

Otedola officially took over as the chairman and chief executive of the company at a meeting of the board in Abuja.

Otedola acquired 12.5 per cent shares in AP while his firm, Zenon Oil bought over most of the 28 per cent shares held by the NNPC. He is also said to have formed a strategic alliance with Afribank International Plc for its 21 per cent shares making him a major shareholder in the company.

A member of the board of AP Rev. Layi Bolodeoku, who briefed journalists after its meeting in Abuja added that the change in the management of the company would definitely turn around its fortune.

He said: "We have been witnessing changes upon changes. But what has just happened now is the ultimate consummation of the full take-over of the company by Otedola as the chairman and head of the company, an executive chairman of a kind, to put it that way, and the Managing Director (MD) of the company, Malam Zira Maigadi, has been relieved of his appointment because of these changes.

"With effect from today, he is no longer the MD. The core investors, Zenon or Femi Otedola, and of course, the Afribank Plc the third party which I represent. The core shareholders are Zenon or Femi Otedola and Afribank. So, the board is really being reconstituted now and we are having people joining us from the Zenon Group.

"And then, we have NNPC still retaining its slot as a member of the Board. We are going to the capital market soon to raise substantial sum of money and of course, increase on our working capital," he said.

Bolodeoku added: "We are optimistic that the new structure would propel forward with the policies of the board. We have the strong will to propel the company forward with the strong weight of NNPC and Afribank. We have over 150,000 shareholders throughout the country and they are quite expectant now. So, the phenomenal changes we are witnessing currently are bound to build the company to the prominent position. Of course, we are leading in the aviation sector, which has been due to AP's ability to supply aviation fuel.

"We expect that a number of our stations throughout the country will be well established, renovated and the distribution channels will be coordinated round the entire country. With this infusion of Zenon ability, and Afribank's financial ability and the good will of our shareholders, AP is standing in a most prominent position more than ever before, he added.

The AP chief stressed: "More than other times, this is the best time for AP. We are seeking a capitalisation of N35 billion. We are optimistic that we are going to raise this."

Insisting that there were no court cases standing against the company, he stressed that the company was at liberty to accelerate its expansion drive.

"We have a management consultancy with KPMG and we are hoping that in two to three weeks, they should have somebody in place. A committee is in place right now to take care of things until the new management come in under Otedola's strong leadership," he disclosed.

Femi Aderupatan:AP sacks MD, names Otedola CEO, to raise N35billion

ZENON Oil President, Mr. Femi Otedola was yesterday named the new chairman and chief executive of African Petroleum (AP) Plc.

He is taking over from Malam Zira Maigadi who was relieved of his position as the managing director.

Also, the firm announced that it had concluded arrangements to now venture into the capital market to raise N35 billion as approved at its yearly general meeting held last month.

Otedola officially took over as the chairman and chief executive of the company at a meeting of the board in Abuja.

Otedola acquired 12.5 per cent shares in AP while his firm, Zenon Oil bought over most of the 28 per cent shares held by the NNPC. He is also said to have formed a strategic alliance with Afribank International Plc for its 21 per cent shares making him a major shareholder in the company.

A member of the board of AP Rev. Layi Bolodeoku, who briefed journalists after its meeting in Abuja added that the change in the management of the company would definitely turn around its fortune.

He said: "We have been witnessing changes upon changes. But what has just happened now is the ultimate consummation of the full take-over of the company by Otedola as the chairman and head of the company, an executive chairman of a kind, to put it that way, and the Managing Director (MD) of the company, Malam Zira Maigadi, has been relieved of his appointment because of these changes.

"With effect from today, he is no longer the MD. The core investors, Zenon or Femi Otedola, and of course, the Afribank Plc the third party which I represent. The core shareholders are Zenon or Femi Otedola and Afribank. So, the board is really being reconstituted now and we are having people joining us from the Zenon Group.

"And then, we have NNPC still retaining its slot as a member of the Board. We are going to the capital market soon to raise substantial sum of money and of course, increase on our working capital," he said.

Bolodeoku added: "We are optimistic that the new structure would propel forward with the policies of the board. We have the strong will to propel the company forward with the strong weight of NNPC and Afribank. We have over 150,000 shareholders throughout the country and they are quite expectant now. So, the phenomenal changes we are witnessing currently are bound to build the company to the prominent position. Of course, we are leading in the aviation sector, which has been due to AP's ability to supply aviation fuel.

"We expect that a number of our stations throughout the country will be well established, renovated and the distribution channels will be coordinated round the entire country. With this infusion of Zenon ability, and Afribank's financial ability and the good will of our shareholders, AP is standing in a most prominent position more than ever before, he added.

The AP chief stressed: "More than other times, this is the best time for AP. We are seeking a capitalisation of N35 billion. We are optimistic that we are going to raise this."

Insisting that there were no court cases standing against the company, he stressed that the company was at liberty to accelerate its expansion drive.

"We have a management consultancy with KPMG and we are hoping that in two to three weeks, they should have somebody in place. A committee is in place right now to take care of things until the new management come in under Otedola's strong leadership," he disclosed.