By Ibrahim Garba
Anambra State Governor Prof Charles Soludo has written to the State Assembly proposing to make deductions from the funds allocated to the local government from the federation account citing Section 13(1) of the Constitution.
The proposed legislation is intended to compel local government areas (LGAs) to transfer a share of their federal allocations into a unified account managed by the state.
There are already growing concerns in Anambra State that the local government autonomy, which was recently reaffirmed by the Supreme Court, could encounter challenges due to this new bill introduced by Governor Charles Soludo.
On Tuesday, Hon. Henry Mbachu, who represents the Awka South I constituency Labour Party, voiced his worries and called on the governor to retract the bill that has been presented to the Anambra State House of Assembly.
Mbachu contended that if the bill were to be enacted, it would empower the Governor to access funds designated for local government councils, which could jeopardize their financial autonomy.
Meanwhile Governor Soludo stood his ground insisting on passage of the bill, claiming that it aligns with the Supreme Court’s ruling on local government autonomy.
He affirmed that anyone who disagrees with his stance should pursue legal action.
The Secretary to the Speaker of the Anambra State House of Assembly, Emma Madu, confirmed that the assembly approved the bill known as the Anambra Local Government Administration Law 2024 on Tuesday.
According to the bill, Section 13(1) specifies that the state is required to establish a “State Joint Local Government Account.” All federal allocations intended for Local Government Areas (LGAs) are mandated to be deposited.
According to Section 14(3), every Local Government Area (LGA) must remit a certain percentage, although not made public, as set by the state, to the consolidated account within two business days of obtaining their allocations from the Federation Account.
This requirement applies even if the allocations come directly from the Federation Account.
Section 14(4) specifies that when the state receives the allocation meant for the LGA, it is required to withhold a designated percentage before transferring the remaining amount to the LGA.
In response, Mbachu raised apprehensions regarding the bill’s potential negative impact on local government administration.
He cautioned that the suggested deductions could limit the capacity of Local Government Areas (LGAs) to independently oversee their federally allocated funds.
Mbachu urged President Bola Ahmed Tinubu and the Supreme Court to keep a close watch on governors who could potentially hinder advancements in local government elections by pressuring elected chairpersons to funnel funds to the state government.
