Okonjo-Iweala’s dollar salary generates debate in U.S.


EVEN when her name is yet to be announced officially as a ministerial nominee, the denomination to be paid to the Managing Director of World Bank, Dr. Ngozi Okonjo-Iweala, is already causing ripples in the United States (U.S.).

It is believed that President Goodluck Jonathan has already included her name and other U.S.-based Nigerian professionals in the ministerial list.

Dr. Okonjo-Iweala occupied the Finance portfolio and later Foreign under the Chief Olusegun Obasanjo presidency.

It was gathered yesterday that the presidency is concerned about the legal pitfalls involved in paying dollar-denominated salaries as being requested by some of the proposed ministers.

One of the proposed ministers has been able to explain the need to be paid in dollars or a different Naira pay structure, considering family financial commitments in the U.S., including university tuition fees for children and wards.

But a ruling in 2007 by the Court of Appeal in Abuja declared illegal the previous dollar-denominated salary paid to two former ministers by the Obasanjo administration starting in 2003. The two ministers are Okonjo-Iweala and Chief Olu Adeniji who was in charge of Foreign Affairs.

In that ruling, the Court of Appeal said such a dollar salary was an illegality even if the salary differential is paid by an organisation such as the United Nations Development Programme (UNDP), which was then being involved in the payment of the controversial dollar salary.

Official U.S. sources confirmed yesterday that Jonathan had always shown keen interest in, at least, two top Nigerians at the World Bank, including Dr Okonjo-Iweala and Dr. Oby Ezekwesili, seeking their return to government as ministers in charge of some strategic portfolios.

Both played prominent roles in the reform team of the Obasanjo administration.

Those who oppose the request for dollar-salary for any minister said other Nigerians based abroad had been appointed after them and they were paid in Naira.

They point to Mr Segun Aganga, the Finance Minister until the recent dissolution of the cabinet by Jonathan. Aganga, it was learnt yesterday, did not ask for nor receive any dollar differential in salary.

Before his appointment as Finance Minister by Jonathan, Aganga was Managing Director of Goldman Sachs in London.

Also, Ms. Ezekwesili was working with Prof. Jeff Sachs, then at the Kennedy School of Government in Harvard, U.S., before Obasanjo named her a Senior Special Assistant to manage the Due Process Unit of the presidency.

She later became a minister in charge of Solid Minerals and Education.

Commenting on the dollar salary controversy, chairman of the defunct US-PRONACO, Dr Baba Adam, who is also a U.S.-based university administrator and public commentator, said: “Any one in the Diaspora deserve what they are earning in their current positions outside Nigeria. We understand the skill-set many of us in the Diaspora can bring to Nigeria. However, it is very bad for anyone in the Diaspora to knowingly request the President, who swore to defend the Nigerian Constitution, to violate the Nigerian Constitution and / or disrespect a court ruling by paying their salary in dollars or any other currency.”

In a statement yesterday, Adam notes that “we strongly urge Nigerians in the Diaspora, who are willing to go back to serve in any position, to accept the Nigerian salary remunerations prescribed by law - after all minister’s salary and allowance is thousand times the earning of an average Nigerian. After their service, Nigerians in the Diaspora, if they may wish, can return to their jobs and earn their Diaspora jumbo salary.”

Based on a legal suit filed by the late Chief Gani Fawehinmi (SAN), the Court of Appeal in Abuja in July, 2007 granted the reliefs he sought in the case including:

*A declaration that the purported authorisation by the President to the effect that the salaries of Finance Minister, Dr Ngozi Okonjo-Iweala, and External Affairs Minister, Mr Olufemi Adeniji, be paid in foreign currencies was unconstitutional and amounted to an abuse of office;

*A declaration that the yearly salary of $247,000 (about N36 million) being paid to the 3rd defendant, Dr Ngozi Okonjo-Iweala, the Federal Minister of Finance, is a flagrant violation of Certain Political, Public and Judicial Office Holders (Salaries and Allowances , etc) Act No 6 of 2002 which prescribes a yearly salary of N794,085.00 for every Minister of the Federal Republic of Nigeria;

*A declaration that the yearly salary of $120,000 (about N17 million) being paid to the 4th defendant, Ambassador Olufemi Adeniji, Federal Minister for External Affairs, is a flagrant violation of Certain Political, Public and Judicial Office Holders (Salaries and Allowances, etc) Act No. 6 of 2002 which prescribes a yearly salary of N794,085.00 for every Minister of the Federal Republic of Nigeria; and

*An order compelling the 3rd and 4th defendants to stop the Federal Government of Nigeria, its agents, servants, privies or howsoever called, particularly the 1st defendant from paying Ministers or any other public officers covered by certain political, public and judicial office holders’ salaries and allowances etc Act No 6 of 2002 outside the salaries prescribed in the said Act.

Also, Fawehinmi contended then that besides the jumbo salaries and allowances being paid in foreign currency, the illegality also involved the fact that they were also paid into their foreign accounts, contradicting the provision of the Code of Conduct for public officers which frowns against maintenance of foreign accounts while holding public office.

It was also contended that the approval of different salary scale for the two former ministers also offends an Act of the National Assembly tagged “Certain Political, Public and Judicial Office Holders (Salaries and Allowances, etc) Act No 6 of 2002 which prescribes a yearly salary of N794,085.00 for every Minister of the Federal Republic of Nigeria.

The court then asked the former ministers to refund the money paid.




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Paying the Federal Minister of FINANCE of the country NIGERIA in American DOLLARS?

Sicherheit:

Paying the Federal Minister of FINANCE of the country NIGERIA in American DOLLARS?

Who cares? Dollars are the international standard.

It just shows that she's no fool.  The value of the naira is controlled by the CBN & not the Finance Minister.

naija

mhm

Seun:

It just shows that she's no fool.  The value of the naira is controlled by the CBN & not the Finance Minister.

It's unpatriotic.

EzeUche!:

Who cares? Dollars are the international standard.

Nigerians care!

It's disgraceful and absolutely shameful!. . .How do we tell our story to the rest of the world without looking like ediots?  The head of our Economics and Finance does not have faith in the Naira?

Seun:

It just shows that she's no fool.  The value of the naira is controlled by the CBN & not the Finance Minister.

seun c'mon

EzeUche!:

Who cares? Dollars are the international standard.

if it was anyother group in nigeria, u will be shouting

rubbish

EzeUche!:

Who cares? Dollars are the international standard.

what happened to principles, people in certain position or people that have reached certain positions shouldn't be chasing money any more to be honest, if okorocha can forego his salary why cant many other people whos expenses are on the govt

Seun:

It just shows that she's no fool.  The value of the naira is controlled by the CBN & not the Finance Minister.

*scratch head*