Critical stakholders in Akwa Ibom State have within one week rejected two Executive bills. These were recorded during stakeholders meeting and Public hearing, held at the Akwa Ibom State House of Assembly Complex, on Wednesday December 14, and Friday, December 16, 2022, respectively.
The Executive bills under considerations were: A bill for a Law to amend the Akwa Ibom State Investment Corporation Law, 2012 and for other matters Connected Therewith. And Akwa Ibom State Bonds Notes and other Securities Issuance Bill, 2022.
The stakeholders meeting and public hearing were organised by House committees on; Commerce, Industry, Culture and Tourism, and Appropriations and Finance, Chaired by Hon. KufreAbasi Edidem and Rt. Hon. Uduak Odudoh.
For A bill for a Law to amend the Akwa Ibom State Investment Corporation Law, 2012, and for other Matters Connected Therewith, there was a sharp disagreement among a Legislator, Ministry of Justice, other major critical stakeholders during the stakeholders meeting.
Critical stakeholders at the meeting vehemently rejected the bill they perceived is seeking to propose a merger between Akwa Ibom Investment Corporation AKICOP and Ibom Air, while the member representing Eket State Constituency in the House, Rt. Hon. David Lawrence querried the benefits, and interests of the proposed bill to Akwa Ibom people. But the State Arttoney General, Hon. Justice Uko Udom, insisted that there was need for the bill to be considered, passed for the general interest of the State.
In particular, the Chairman Civil Liberty Organisation, Akwa Ibom State Branch, Comrade Franklin Isong strongly opposed the bill and suggested for a new bill to repeal AKICOP Law rather than merging the two entities in an amendment bill.
In his opening remarks, the Speaker, Akwa Ibom State House of Assembly, Rt. Hon. Aniekan Bassey said it is the culture of the House to engage critical stakeholders in the law making process of the State to strike a balance on a common ground.
Represented by the Member, representing Oron/Udung Uko State Constituency, Rt. Hon. Effiong Bassey, at the meeting, the Speaker described the bill as a critical one, and reaffirmed that Akwa Ibom Stakeholders will always play a critical role in the making of any Law as their inputs will be given maximum consideration in the final draft of the bill.
Earlier on, in his welcome address, the Chairman House Committee on Commerce, Industry, Culture and Tourism, Hon. KufreAbasi Edidem, said the meeting was pertinent to avail stakeholders the opportunity to make their inputs into the bill under consideration.
Hon. Edidem said engagement of stakeholders in the process of every legal framework promotes legislative transparency and accountability, as well as enhance legitimacy of the legislative process and engender public satisfaction.
He assured that the proposed amendment bill, which seeks to amend certain provisions of the Akwa Ibom Investment Cooperation Law, 2012, as well as widening the scope of the legal and institutional framework of investment in the State is in line with global best practice.
In their various presentations, the Commissioner for Trade and Investment, Hon. Caminus Umoh, State Arttoney General/ Commissioner for Justice, Hon. Justice Uko Udom, Chairman AKICOP, Dr. Elijah Akpan and Chairman, Ibom Air, Pastor ImoAbasi Jacob, all spoke in support of the bill, and outlined its merits to include; to keep abreast with global best practice in the international market.
The Arttoney General of the State, specifically said; given the critical nature of Ibom Air Company, it becomes expedient to give it a legal framework and and strong base for operation.
He said while AKICOP is the investment vehicle of the State, Akwa Ibom has gone beyond the legal, framework of AKICOP of 2012.
Hon. Justice Udom opined that with Akwa Ibom expanding its scope to the international scene, its prone to international scrutiny, hence the need for a strong and updated legal framework.
In his reaction, Rt. Hon. David Lawrence while disagreeing with the views of executive arm of government, inquired why preference is given to Ibom Air while other Akwa Ibom Investments in the likes of Flour Mill, Champion Breweries and others are not captured in the proposed ammendment bill.
Further in his enquiries, Hon. Lawrence said: “I have an idea about the old law and the one you are proposing some Changes.
“I wish for you to be very very clear, to Akwa Ibom people, because looking at the new clauses, it has smacks of what I can describe as perpetuity clauses.
“Perpetuity clause involves when you sit, for example; an Executive Director without a tenure in office, and also without a recourse to House of Assembly. Because when this comes under the scrutiny of the House, issues will come out in the public.
“Also, there has to be a very clear explanation: You talked about Ibom Air. Ibom Air, for example is Limited Liability Company, which is regulated under the law and in the last Appropriations Committee we had, I was here when we invited Ibom Air, they didn’t turn up.
“We want to know organogram of Ibom Air, the Modus Operandi of Ibom Air and also the financial standing of Ibom Air.
“Because Ibom Air, like you said is a legal entity. It has its legal governance and I don’t know why, if you want to do a second regime of governance like you said and to embed it under another law of AKICOP.
“What is the extant operation of the first operational laws which as a legal entity has its modus operandi. What is the need for the second regime of governance that you want to introduce?
He went further to ask; “so, you have to take time and explain to Akwa Ibom people, why you are not applying the same principles to all other investments of Akwa Ibom State.
“Again, it looks to us in this law, we have not really seen clearly what is the relationship between Ibom Air and the AKICOP, and why you want to bring it under that regime.
“Owing to the fact that Ibom Air is legal entity, and if you look at the terms and the legal terms of what a legal entity is, it should operate on its own. And it has directors; they can source for funds and whatever that entails.
“And finally, AG, you are trying to preempt by some of these clauses, the action of future government, and I don’t think it is proper for you to do that, because every government has its own peculiarities and you cannot decide what will happen in 2050 now, whereby you try to manacle or restrict the incoming government and subsequent governments.
“If they did that, maybe you wouldn’t have met Akwa Ibom State. If Previous regimes, have made a policy, laws, and such laws that foreclose any chance of adjustment, amendment and introduction of new ideas…. so, it also has smach of interest when you are dealing only on Ibom Air.
“We have flour mill, we have Champion Breweries and other investments in the State but you are not also trying to introduce the second governance regime for that.
“So, you have to take time and tell Akwa Ibom people because the public is here. What is really the advantage, what is really the interest? You mentioned Ibom Deep Seaport and others, you didn’t bring them under this. You know the dynamics of huge investment for the State and they can survive on their own.
“Personally, I don’t understand, until you make me understand the benefits of creating the second governance regime for Ibom Air under AKICOP, until you clearly state that and what is the advantage.
“And, why you need to preempt future administrations. Are you not feeling that they will be responsible? Are you not feeling they also have the interest of Akwa Ibom people at heart?
“Lastly, I will say there’s no link at all. Even as a House, we don’t understand as well. Since you said Ibom Air is a limited liability Company, the Modus operandi of Ibom Air, the Organogram of Ibom Air and even the financial, we have not seen.
“So, please let us understand this clearly, thank you”
In his response, the State Arttoney General said: “The issue of creating situations that bind succeeding government, I have no doubt at all that whosoever wants to be the Governor of Akwa Ibom State, has the interest of Akwa Ibom at heart. I have no doubt about that.
“Now, the thing is that globally, financial institutions don’t want to deal directly with political institutions. When it comes to funding, raising funds and investing.
“They don’t want to deal with government. That is why, if for instance, Akwa Ibom State goes to Esteem bank or any of these multilateral Agencies to raise funds, they will tell you, unless you get a severance guarantee of the Federal State itself, they cannot deal with you.
For instance, Akwa Ibom, Imo, Delta, they will insist on the Federal guarantee of the Federal State before they deal with you in business.
He said currently, the Federal government isn’t ready to grant severance guarantee to States anymore. “So if you want to deal with international organisations to raise funds for very large projects, like we are beginning to do now, you must create a vehicle that transcends the political structure itself and that is why, in our state, we have AKICOP that is the Vehicle that drives Akwa Ibom investments.
“Now, these people wants to see the governmence structures in that type of vehicle, whether it is insulated from the political structure of the State.
“That is why, if you see some of the clauses that are proposed for amendments, you will see that we try to ensure that the Governor of a state, for instance, cannot unilaterally make certain changes without making references to the House.”
Feeling unsatisfied with the response, Hon. Lawrence interrupted and further asked: “We are inquiring why you want or infuse Ibom Air into AKICOP Law?
“If you want to follow international practices like you said, which we all know, for instance, if Ibom Air wants to go and get a loan, it has a right as legal entity to source for funds. When it comes to a point that they need a guarantee, they can come to government for guarantee.
“So, you will not need to bring it under a second governance regime. That is what I’m trying to say. If that is true like you said, you are going to be contradicting yourself by saying that you have to bring it under AKICOP.
“Of course, AKICOP is a government Parastatal, even if it is set up in a more investment pattern, the Chairman and members are appointed by the Governor and its known to be a government appendages. So, you can’t bring that together except you want to contradict the situation”?
Responding further, the AG insisted that; “this is why those amendments are proposed. Because the way AKICOP is today, it is just an appendage of government and international organisations don’t want to do business with Political Organisations.
“We are trying to structure it in a way that it owns governance structure that can run independent of government and can succeed governments”.
The Eket Lawmaker went further to posit that: “The States domicile laws from the federal government law, embedded in the constitution will not try to direct in general perspectives, the operation of the next government.
For Instance, if the State House of Assembly approves any bill or loan for any institution it stands. The next regime will respect that but you cannot come to the body law and say, we want to do this, because we want to affect the behaviour of the next regime and the next coming regime.
“I don’t think that is going to be a good law. It is not done in the Federal, it shouldn’t be done at the local. You look at your situation and make laws to support your policy and programmes.
“The law allows you the liberty to do that. There are specific clauses and provisions that will sustain whatever policy you make at that time and until that transaction is finished.
“But it is not going to be like perpetuity clauses. Perpetuity clauses are not allowed in the law. And if you tell me you want to appoint executive director without a time frame and recourse to the House for an Instance, we see it as perpetuity.
“But by your standing, you could assume that the next Governor can change the person whenever he wants to.
“These are not perpetuity clauses to us the Legislators” he explained.
On his part, a representative from Policy Alert, Mr. Mfon Gabrial, spoke against the bill and expressed shock that the proposed amendment isn’t coming from APICO.
He proposed that the House should stand down the bill, while considering a fresh bill to that effect.
Also, from the organised Private Sector, Mr. Slyvester Akaiso said Ibom Air is operating solo and shouldn’t merged with APICO to function optimally.
Mr. Akaiso, suggested adequate government funding as a propelling force for AKICOP to draw funds from outside the State.
Again, from Mr. Ntiedo Umoren, still from the organised Private Sector, he said it is wrong to say the supervisory Agency lacks the capacity to attract funds, until Ibom Air merges in perpetuity with AKICOP.
Mr. Umoren stated that Ibom Air can conveniently operate without a merger and suggested a further public hearing on the Bill for an enlarged deliberations from stakeholders.
At the end of the day, the meeting couldn’t reach a common ground.
Similarly, the case was not different with the “Akwa Ibom State Bonds, Notes and Other Securities Issuance Bill 2022”.
Giving an insight into the Bill, “Akwa Ibom State Bonds, Notes and Other Securities Issuance Bill 2022”, the Attorney General and Commissioner for Justice, Uko Udom (SAN), Commissioner for Finance, Mr Linus Nkan and the Chairman, Akwa Ibom State House of Assembly Service Commission, Barr Godwill Umoh all posited that the bill is beneficial.
That the Bill when passed into Law will provide the enabling environment for the incoming government and subsequent governments of Akwa Ibom State to always have the legal backing to handle certain transactions that has to do with money.
They observed that of recent Akwa Ibom State has witnessed significant development, especially, in the areas of infrastructural renaissance, amenities and institution, as such the State has climbed to another level of development that will attract the presence of foreign Investors intending to invest in the State.
They stated that when International Investors show up in an environment, the first thing that they will want to know is the regulatory impetus that the State has within the system to assure them that their monies are safe, hence the need to pass the Bill into Law to address that need..
Also, that the Bill when passed into Law will not be targeted at any particular loan or facility, but is only an established regulatory framework that will create and make Akwa Ibom State an investment friendly environment.
That it is a clear idea of International requirement for foreign transactions and that it has still been operational in other States in Nigeria, with Lagos State as typical example.
However, dissentive reactions were recorded as  the representives of the Civil Liberty Organization (CLO), Mr Franklyn Isong and that of Policy Alert, Mr Mfon Gabriel spoke against the Bill and demanded that it be stood down for obvious reasons.
