Well, it is now
open secret that members of the NMA which
includes those who are private practitioners and
those who are in the employment of Edo and
Federal Governments had embarked on a total
strike in protest against what they call
unacceptable level of taxes imposed by
government on the proprietors or managements of
private clinics. If you allow me, I will like to
divide this dialogue into two segments: The
first part is to explain why as government we
have to take this decision.
Generally, first
to reverse or improve on our local revenue, but
beyond that in the case of the health sector and
the educational sector we are consciously
working to revive the privatization of our
health delivery system in our State; I will
speak on that, and then allow you to speak on
the issue of our own attitude towards the
reaction of members of NMA to the extend that I
understand that people are also concerned about
pay as you earn.
I would also want
to speak on the matter. As I said, we will talk
to you as employees of government. All of us
hear are employees of government. We are
employed by the government of Edo State . That
is to say that we are employed by the people of
Edo State . myself, yourself, all of us, and
hoping that in the near future, probably by
Friday, we will have opportunity to speak in a
larger forum toward the development of in the
State; whether they are in our employment or
not.
First, is to
explain that it is no secret to any Nigerian
adult that the situation in Nigeria as regards
to revenue at all levels of government that
these have declined considerably. In Edo State
the average revenue for last year was about
N3.4billion a month. There were some months that
the government got about N4billion, some other
time N5billion. Some other time they have what
they called excess crude wind fall, they had
some special releases arising from debt
forgiveness.
For this year, more
or less as we were coming in, the depression in
the oil market trigger by the now much talked
about world economic meltdown resulted in sharp
decline in revenue accruing to Nigeria, and of
course our state is being part of it. So our
revenue drops from an average of N3.4billion to
N1.6billion. Our fixed cost, fixed to the extend
that as long as I am here, it is not for me to
attempt to do what some of my predecessors did:
namely downsizing the service as regards salary,
wage, pension, gratuity which are sacrosanct,
because they affect the overall family plans,
family well being of all those who work for
government and coming from my background
regardless of our financial challenges, my first
instinct is not to inflict cost.
And therefore I
regard our personnel cost, our pension
liability, our gratuity obligation and other
welfare payment as sacrosanct. Now putting
together, we need about N1.8billion monthly just
to make these cost a modest level of overhead.
Now with N1.6billion, there is no way and the
number simply doesn’t add up. The other
alternative is to then look inward, what to do
we earn locally and what we earned over the
years locally is about N350million. Sometimes it
is as I think 75. One or two months we went up
to N400million, but some other times it dropped
to N300million then N320million.
So we are talking
of an average of probably N350million. If you
add N350million to N1.6million you get
N1.95billion and you have to draw out
N1.8billion, and that leaves you with about a
hundred million and from that N100million. We
made a commitment to invest at the Central
Hospital , renewal and equipping the
infrastructure at the Central Hospital Benin
with about N750million at the rate of a hundred
million extra for us to spend. We would need
about seven and half months to raise N750
million just to refurbish the Central Hospital !
That would mean
that we would do nothing during the period in
the educational sector. We would do nothing
during the period in Ambrose Alli University ,
AAU; we would do nothing during the period about
erosion devastating the state, we would do
nothing during the period about flooding, Benin
roads, rural roads, agriculture and other things
have to wait. In the face of this decline, we
wouldn’t even be able to sustain the free
medical facilities that we are committed to
providing for antenatal care, and such other
provisions that we thought are necessary for a
government to be able to provide in the 21
century and in a third continent.
If on the other
hand we decide to set the hospital aside and we
just choose to deal with the problem of Queen
Ede erosion site which has already destroyed the
Secondary School and is about destroying the
church building and a whole community is in
danger, we need about 2 to 3 billion naira to
fix it; just Queen Ede erosion crisis at a
monthly savings or surplus of N100 million or
N150 million, we would need about 2 years of
doing nothing else just to be able to fix that,
if we do not travel, buy diesel, pay for fuel
and if we do not invite meetings like this and
provide biscuits. I hope that is not the reason
we are not having biscuits. Probably government
is also on strike.
So you could see
that the revenue situation in Edo State is
serious and precarious, but for me, the
responsibility of government is not to lament
before the citizens. It is like a doctor in a
hospital, you know, an accident victim being
rush in and the doctor just says, oh My God,
this one is very serious! If the doctor shouts
like that the patient may even die before help
comes. I see doctors even in the face of such
challenges with bold face and insisted that the
patient can be managed and they manage, and I
think most of the time, successfully and the
patient regains life.
And so, as the
governor, it is not for me to raise alarm to Edo
people that because of the fact that the people
can see the sharp fall in government revenue
that we are not going to be able to do things
that we must do to make life meaningful for the
vast majority of our people. We have a duty that
we must deliver. I can’t stay here for four
years and the published of my book of accounting
shows that, although nobody stole money, but
however there was not enough money available to
do what we are hired to do.
So the point I’m
trying to make my comrade doctors for you to
know is that more than anyone else, I’m paid by
the fact that having benefited from the public
good will without which I will not be here and
people having sacrifice so much to support me
financially, morally and even spiritually.
People prayed for us to overcome the forces that
have hijacked my mandate and in 18 months they
were on their knees before I got there. There is
no joy in my heart that I will have to seat down
and will be the one who is going to take
decisions that will not put a smile on the face
of anyone.
I told someone this
morning that I know that during the
electioneering, during the voting day on April
14, there was a battle in front of UNIBEN by
forces that were determined to snatch the ballot
boxes and volunteer army on my side that was
just fighting against those forces, even as they
were armed and among these volunteers were
medical doctors who stick out their neck for me
to get elected to this position. So how can I
possibly gone against people like that.
But the issue I am
trying to put across to you is that there is not
one painless option available. Alright business
as usual, don’t collect taxes, don’t change
anything, even if you must change, change
minimally in such that it wouldn’t make no pain
on anybody, in the end after four years those
who did battle for me to come here would still
regret their roles in that battle because they
would have seen that nothing has change in Edo
State and that would be very sad. So I made up
my mind that I do not have the option of even
thinking for a second how not to fulfill the
promises that we made with or without oil money.
We must find the
will, and with the will we will find the way to
do what has to be done. Even if that means in
the morning having to offend good people you who
play their parts in our journey to this place,
believing and trusting that even as they
misunderstand me at the beginning, in the end,
God willing we are able to begin to do what we
have to do, because we will find the resources
and the will to do it and we will do it
efficiently and effectively well many of them
will then begin to change their minds and that
is why right now, virtually in every sector
there are aggrieved people.
But I know that it
is better they are aggrieved in the morning than
to defer because it will still come if I do not
find the resource to do what has to be done.
Now, for the immediate question, I said we have
two reasons for intervening in the manner that
we have done. The first it is deliberate and it
is calculated to achieve specific result,
namely: that this government is opposed to
privatization of Health Care Delivery System in
our State, because that is what has just
happened over the years. For about 10 years,
there have been not one new investment at the
Central Hospital in Benin , and that Hospital is
our flagship.
The last time I
visited it, from the ward, you could see the sky
and the place is completely down and almost out,
except for the courage of those workers there,
doctors, nurses and other paramedical staff. I
saw opticians who are using their private
equipment, which are not necessarily of the best
quality to try to attend to patients who are
going blind. Reason: Governments have no budget
for that over the years. And I saw dentists,
whom through their own ingenuity have devise
other ways other than those known to modern
practitioners in trying to attend to people and
other ailments.
But I left there
with the feeling that, here we have dogged and
courageous and determined workers who are
willing to work but lacking the soul to do so
and in the process inventing things that even
Mr. Obama will be impressed that we have
credible investors. We are very blessed with
that in Edo State because last time he was
talking about it. But I had promised to
management and employees at the Central Hospital
that we will have to reverse that and by the
grace of God we will. Now, I also believe I have
myself be treated by private clinics that you
will agree that there are many of these private
clinics that should not even be in existence in
the 21 century.
They do not qualify
to be so ratified. And as we speak, about 90
percent of doctors in government employment are
all having private clinics and it seems to me
that because about 90 percent have private
clinics, nobody bothers about the condition of
government hospitals. In fact, the worst
condition the government hospitals are the
better for everyone, because when the public
loose confidence, as they have lost in public
hospitals, their remedy is to go to private
clinics.
But I am convinced
from the bottom of my heart that privatization
of health care system in Nigeria constitutes a
grave danger to the future of our country.
Because if advanced economy like America have
identify Health Care as a major national crisis
area, as advanced as their own private sector
is, there is no question that we at our own
relatively primitive level that privatizing
Health Care Delivery is to postpone the evil
day.
Therefore, for me
part of my responsibilities is to reverse the
trend towards growing privatization of Health
Care by neglecting public Hospitals. And
therefore, if policy on taxation must meant it
in part; let me confess, to make it less
attractive for every young doctor to go
immediately after housemanship to go and set up
a private clinic, I do not think this is helpful
in the long run. I do not believe that
proliferation of private hospitals and clinics
would help in the long run. Therefore there was
the need to put them in check. The policy is not
all about government revenue, because it goes
beyond that.
However revenue
that will accrue from this process can be
creatively deployed to Public Health Care
Delivery System. However, after my discussion
with the NMA last week, I reflected and say, no.
I listened to their explanations, beautiful but
my only complain is that through the five-six
page presentation, so eloquently argued by Dr.
Enabulele, the NMA Chairman, not one paragraph,
not one sentence, not one word was focused on
the deplorable state of Government Hospital and
yet he is an employee, employed to work in
Government Hospital..
The entire
presentation was about Private Hospital as if
everything in the Health Care Delivery System
has been completely privatized. I thought that
it was not a balanced presentation; because for
the vast majority of our people, government
hospital will remain the last bus stop. And even
as doctors, we know that there are equipment
that are likely to be far beyond the resources
of the average private practitioner.
Where system works,
where government is responsive and responsible
it ought to be able to find resources to provide
those equipment that are beyond individual
reach, an individual practitioners that do take
advantage of those equipment in term of
referrals. You know, I don’t know the technical
jargon for this, such that even the private
practitioners can benefit from the existence of
those facilities in Government Hospitals. But
right now, you know that those things are not
there. I am a union man and very proud to say
that without organized labour and the privilege
I had to serve at the level it is almost certain
that I wouldn’t have been here. Because
everything I earned by way of reputation was as
result of my stewardship there.
But I know for a
fact that when employee or workers including
doctors NMA – because I have struggled on the
side of NMA over the year not once, not twice,
several times. When you are aggrieved on a
matter arising from government decisions as they
affect you, whatever this may be, the first
response is to articulate your grievances,
forward them to the government or employer and
request for a meeting with a view to finding
solutions. But I was shock that the first
response of NMA in the new tax policy was a
threat and ultimatum, the very letter – 21 days
we will go on strike.
I know that doctors
are not exactly like blue collar workers, even
with the blue collar workers, the issue of
procedures are important, particularly if what
you want is resolved, not just destruction. But
it is more so when by your training and your
brief you have taken oath to save life first and
foremost, then money secondary. So, how and why
will you then find so attractive the act of
resorting to strike at the least of
provocations? I had concerns about that and I
wonder whether this was error of the head or
whether this was error of the heart
I do not come from
the tradition of politicians that seem to
explain away those who oppose Government
Policies as people who are politically
motivated. Even though it is a fact that your
chairman, Dr. Enabulele was also a candidate in
the election that I won and he lost. But I don’t
believe that this is all there is to it, but it
is the fact of our recent political history. I
still wonder why there was not even request for
a meeting for dialogue; it was just a warned
notice: I am going on strike 21 days strike
time.
I was convinced
that two wrongs don’t make a right, which
explains why we spoke with them at length. We
went through the issues they raise one after the
other, some of the relief we thought we could
grant immediately, we granted them on the spot,
the one that in our judgment require further
reflection, we promised we would reflect and
convey back the out come to them within 28
hours. One of the requests they made for example
was that all kind of people they referred to as
quack doctors should checked. As they say, some
were using government electronic media and other
media to advertise such that confused the
average member of the public about who is a
genuine or qualified medical practitioners and,
who is not and their efforts over the years to
get the government to intervene against quack
has not been successful.
There message was
very clear to me, after all I had the privilege
of working in government with two senior medical
doctors who are consultants in their own right.
And there and then we decided to grant the
request and to order EBS – to use the word
ordered – we directed EBS that they should use
the material from NMA against quack and they
should do so graphic, that is they will pay
nothing for it because it is in the interest of
the public that they know that people who
advertising are not qualify to do what they
claim they are doing. So the member of the
public can be well guided.
At the end of the
meeting we said in 24 hours we will reconvene
back and we reflected on all the issues and over
all, I think about 80 or 90 percent of the items
were reduced; ranging from 30 and in some cases
to about 50 percent of the new rate that we had
imposed and, we ensured that this was convey to
them. Off course, I do appreciate that they may
not be satisfied with our judgment even as we
think we have bend backwards to accommodate them
because they were many in government who rightly
felt that one should begin to grant downward
review for NMA, that every other group is going
to come to ask for the same.
But some of us said
it is also dangerous to give the impression that
if you made a decision and there is evidence
that, you know, there are unintended or
unforeseen consequences and people have had the
opportunities and even the patient to bring them
to your attention, you should demonstrate that
you are willing to reverse yourself. That is the
only way we can encourage and reward dialogue
and it is not a mark of witness. On the basics
from which we make this reviews and again as you
can see, NMA response was to say okay, we know
the review are not enough and we are resuming
strike immediately. They did not even say okay,
now that you shown that we are willing to
review, we give you more time, but we still do
not accept the present level and they went ahead
and execute their ultimatum as if nothing has
happened.
Now, my problem:
Edo State government is not aware of any dispute
between the government and government employees
who are medical doctors. There is no dispute
between us. I have not been challenged on
anything that has to do with terms and
conditions of service as they affect doctors in
the employment of the State Government. No one
has complaint about the conditions in the
Government Hospitals, nothing of the sort. The
complaint is that those who own private clinics
have been asked to pay some various levels of
taxes.
For example I know
that when you pay for registration, you do not
register twice. What you then do subsequently is
renewal and we have reviewed all those things.
For example to run a clinic has been reduced to
I believe about a hundred thousand naira a year
and that translate to about N8, 000 a month.
N8.000 a month translates to abut N285 a day,
and I know that just to see the doctor for the
poorest of the poor the fee is N500. So from one
consultation you have enough just for one
person. I mean we can go on and on and on. I am
not even saying that we could increase on
review, but this about a private clinics,
private own clinics.
It has nothing to
do with government, the doctors are not
complaining about the terms and conditions of
service. Now I would have been very clear if in
the first instance the private health care
provider if they were to do us a letter and
decide to go on strike and they are on strike
for one, two, three, four days and government is
not listening to them, because government is not
listening to them, they now call for solidarity.
That is the way it works. I have never heard,
whether by reference to NMA own tradition that
when one segment of NMA is in dispute, it is the
parent body that is in the first instance
intervened. I have never heard that. This is the
first time that this is happening, because there
are people who have political grievances to
settle with us.
I have seen in the
past where resident doctors are on strike, but
the consultants are working. Not once, not
twice. Again, this is the only time that
everybody is coming in because there are people
with political grievances. I have seen in the
past in Edo State and across the country where
NMA is on strike but members of NMA who are
private clinic owners are running their private
clinics why government doctors are on strike. It
is not a fact that when one person is affected
the tradition has been that everybody abstains
from working. This is the first time that this
is happening because some people have political
grievances to settle.
I just thought that
whatever grievances you people have, we ought to
put the life of ordinary man first, that none of
us can find comfort in watching a patient die
when we can help on account of the fact that
someone was asked to pay about N285 a day; to be
able to run his clinic with N285 a day. The
people who run Oba market, what they pay to some
touts before we came in were almost as much.
This N8, 000 a month translates to about N285 a
day, if I do the proper calculation, when the
month is 31 days it might even be less than
that. So what is this fight about?
And because of N285
a day we are ready to watch human being die,
reason – we are protesting the payment of N285,
not by ourselves but some colleagues who own
private clinics, because there is a saying that
he who must wield so much powers, prays that he
has so much wisdom, otherwise he will use the
powers to wreck havoc on society. The doctors
have the power to save life and you are
withdrawing that power, believing that when we
see people die, we can then submit to the
blackmail, which is unfair.
But as government
we are not absolutely powerless, either. There
are many options open to us, but I’m not about
to try to invoke those powers. But just to say
that if we finds ourselves in a situation where
people derive pleasure in abusing their
privilege positions in the system, and anybody
then decide to try its own power, in order words
no one can have a monopoly of madness.
I think it is just
unfair, it is unreasonable and it is completely
indefensible that doctors in government
employment, doctors in the employment of federal
government, in UBTH, they are going on strike
because some people who own private clinics are
asked to pay about N8, 000 a month, because if
we refuse to treat people, we know they will die
and the society will be worried and we are ready
to invoke that power. I thought I should talk to
you as reasonable men and women, to reflect
again that if we have these powers to save life
and we choose to watch people die, that we are
all accountable thereafter.
I will resist the
temptation as governor to invoke my own power, I
also have power. I do. I am not powerless. I
just want to plead that let us have the interest
of our people and the oath we took into
consideration. I am guided by my own oath, and I
think you should be guided by yours as well. So
as government doctors, government doctors in the
State Government employment, we thought we
should share these issues with you. You have not
told us of anything we have done wrong against
you as employees of government, so why are you
on strike against innocent members of the public
that hired you and hired me, through the
institutions of government, why, why.
And you know even
the issue of the private practice, that I
believe is at the heart of this – because I was
asking somebody why the rush, that NMA is the
first spokesman; they are the one beating the
drums of war, not private medical practitioners,
and I am told the leadership of NMA, even though
they are employee, they are also into private
practice, but the constitution of Nigeria is
very clear that the only private practice any
government employee can be involved in is
farming and I know that medical practice and
farming cannot possibly mean one and the same
thing.
So these practices
are clearly illegal, not by laws made by Edo
State , law of the federal, the Supreme law of
our country. A young doctor who is doing his
residency of call duty, why in government record
he is earning his call duty allowance, that same
time he is on duty in his private clinic. We
haven’t raise questions on those, we have not
raise the issues on this extra income, because I
guest they get taxed on the ones they do for
government and the one they earned in private
from private clinic, that one is apparently tax
free for now. But you know, they say “when
trouble de sleep, yangan go wake am up”.
If we begin to ask
all the question that we can ask and take
advantage of the laws of Nigeria – because at
the end of the day, we are all under the law,
you would find that those beating the war drums
– they will be the first one to run when we
invoke the letter and the spirit of the law. I
am just trying to push it through. Now the
reason I raise this is that everybody talks
about his right, we also have obligations. Let
me conclude that I have invited you to reflect
further on these issues; yes you have powers to
inflict pains on society by refusing to attend
to those who can possibly die by reason of your
reason to attend to them.
But ask yourself
the question if this is fair use of power and if
really you have a dispute with the government
and, if you have a dispute with the government,
you have to be in the fault line state; being on
the fault line in the battle to prevent private
medical practitioners of clinic owners from
paying something as fee for running their
clinics? These are the issues I want to raise
with you.
Now, if anybody
feels that the tax laws have been implemented in
a way that has been wrongly interpreted, you can
raise those specific concerns. But I think the
assumption we meant is that each one of us
wanted to interpret the law to suite our
individual positions. The tax law talks about
income, if the income arose because you were on
call, because you were on the call, you earned;
you earned and you were taxed. I am sure some of
you probably had training or do your residency
out Nigeria . If you did, you would know that,
whether as a resident doctor or even as a
medical student, if you work, even during
vacation, and you earn 5 or 6 Dollars that you
pay tax out of it.. It is a universal thing.
From Moscow to Washington , to New York to Tokyo
, from Paris to London , that is it. That is why
everywhere in the world, everybody talks about
tax payers’ money, tax payers’ money, because
that is all that government spends.
So the
interpretation of the law is not my making and
we have not changed the laws. We do not have the
powers to change the laws. All we have said to
the revenue board is that all those who have not
been paying taxes should begin to pay the taxes
according to law. Not law made by me. If the
other 35 states of the Federation, if doctors in
Abuja are paying their taxes, they are paying
their taxes on call duties. Doctors in Lagos are
paying their taxes, paying taxes on all those
allowances, how can we make a special case for
doctors in Edo State, we just can’t.
We just can’t the
law is universal and I know that this issue of
call duty allowance, you are in a position to
contact the federal revenue board. Incidentally
the chairman of the federal revenue board is an
indigene of Edo State , and she will tell you.
And NMA wrote to find out and they have been
told the tax laws have federal application and
it doesn’t vary from state to state, so why
should we change it from Edo state. When I say
pass salary, if I were to make the law, I will
make it more progressive because at the moment
the higher bracket, I think is 25 percent. I was
telling some people yesterday that in a
progressive tax policy, they may be very few
people who earn 1, 2, 3 million naira a month.
There is. There are people who earn more than
that 2, 3, 4, 5 a month. Unfortunately they have
to pay 25 percent of that.
But in some
countries you saw CNN last week under this
economic recession and Obama was saying he
designs an executive bill where a certain level
of income people were going to pay as much as 90
percent of their earnings as status after
certain brackets as to every one Dollar you earn
government takes 9 percent. Now, that is a far
more progressive taxation. This one terminates
at 25 percent, so those who earn 2, 3, 4 million
somehow, somehow, there liabilities are limited
to 25 percent after the initial allowances.
I think there has
been reform of the tax laws, maybe the Revenue
Board people should communicate better. There
are allowances for the first 10 thousand, 20
thousand, 30, 50, 100 thousand and I think
because doctors earn all sorts of allowances
they also have to pay taxes on all those
allowances, unfortunately not by me. I think the
revenue board who are civil servants can explain
it better. But let me also say that I think the
Head of Service who himself was in revenue board
can explain some of these things, let me explain
to you that if we do not pay our own taxes or as
employees the correct tax we would not have the
moral bases to enforce tax laws in Edo state.
You know for
example in UNIBEN they decided to be paying 5
percent of their basic salaries.. We have in
this government a commissioner who was associate
professor until two months ago in the University
of Lagos , who herself is a dogged and herself
is a member of ASUU. They are paying their taxes
according to this federal law, so, why will Edo
state be different. How are we going to build
that future that secures our children if we
don’t pay taxes? We will just depend on money
from Niger Delta and we can see the problems
that come with it now. So we can’t run away from
taxation. We cannot..
We can’t run good
governance, transparency, provision of
infrastructures, all of the things we need to do
to make life meaningful for the vast majority of
our people and yet we wouldn’t pay tax. So where
would we find the money? So the issue of pay as
you earn is not my making at all. All I have
said is that those laws if they apply in other
states, they should also apply in Edo State . We
can’t negotiate it. And what has come out is
very revealing. Now, by the time the tax board
work out the tax schedule, according to law,
again not law make by me, we discovered that
workers from level 1 and 7 , before now were
being over taxed. Where they would have paid a
tax of N100 a month some of them were paying as
much as six to seven hundred naira a month.
Under the proper
interpretation of the law as prescribed by
Federal Government, these categories of workers
are to pay far less, from six to seven hundred
naira. They are to pay no more than N 100 to
N120 naira. They have been over taxed in the
past, and the revenue board has been directed to
discontinue with such excess tax. So what simply
happened was that because what they have been
paying was not based on law, it was just based
on arbitrariness, and since level 1 and 7 are
not high up, they put more tax burden on them;
contrary to the provision of the law. Now, the
law has rescued them trough proper
interpretation, not through any amendment.
We don’t have the
power to amend the law. So, it just happened
that while the junior workers will pay less, the
Permanent Secretary, Heads of Service, the
Commissioners, they just have to pay more.
Because that is what the law says. And if it is
good for Lagos , it cannot be bad for Edo State
. If doctors in Lagos are paying it, doctor in
Edo State can’t say they wouldn’t pay. Editors
of newspapers are paying taxes according to
Federal law, regardless of their vocation, so
who is exempted? How can we exempt ourselves? Or
devise an Edo version as we have done before?
But let me also
explain that if we do not collect the correct
taxes; I go back to the word – and our revenue
even drops further, we would be back to what
happened in Edo State in 2003 when for months
salaries were not paid, and sometimes when they
were paid, they were paid without allowances;
where allowances were paid, leave bonuses were
withheld. Promotion was frozen and when it came,
it was notional. We can easily return to those
days, but as I said, my background doesn’t
recommend that to me.
As we speak, you
know that we need more doctors. Edo State
government over the past eight years froze the
employment of doctors. Is that not true? Now you
don’t have enough doctors and nurses, even
though we have many young people seeking
employment, many young qualified doctors are
available, doctors of Edo State indigenes, but
we can’t employ them because government froze
employment. Why because government want to keep
that cost. I think that is a negative way of
fighting poverty.
For me, the more
positive response is to bring the doctors that
we need to employ in government hospital, employ
more numbers, but look for the resources to pay
them rather than close your eyes on taxes; build
hospitals without doctors, build hospitals
without nurses, you have schools without
teachers. In Agenebode area there are many
schools there where you have two teachers in a
whole Secondary school. In Imiegbai we have
schools where you have only a teacher and two
security guides.
In Edo Central, in
Ishan land the traditional rulers, five of them
came last month to complain that in many of
their schools they don’t have more than two to
three teacher, and I have to tell them that even
the governor’s own village there are no
teachers. The school in my village we use to
have two teachers but the Commissioner assisted
us recently. Now, we have five and I’m still
asking her that we need more teachers and she
keeps promising. I now have to give ultimatum as
well.
Now, there are so
many people who are qualified, qualified trained
graduates who are looking for employment, but
Edo State did not employ because we want to keep
down our wage bill, because if at the present
level we are having difficulty sustaining it
government does not want to increase its cost.
Again, I think this is wrong. That is why last
month we gave approval for the employment of
1000 more teachers. I don’t think it is right
for government to keep its own cutting cost to
also deny services. Where will the future of our
state be if because we have no resources and we
are not ready to look for resources we keep our
schools without teachers; we keep our hospitals
without doctors.
I was at the
Central hospital; at 1pm the women complained
that they have not been able to see a doctor.
When we asked the Chief Medical Director he said
look, in the whole of this place we have only
one doctor on duty because we don’t have enough
doctors. Can we continue like that? I believe it
is better we collect the correct tax; employ the
right number of doctors, the right number of
nurses and the right number of teachers. That is
not something we should do because we are
wealthy, it is something we must do to secure
the future.
That is why I said
if you like throw stone at me in the morning, in
the evening if those schools are better
equipped, if those schools have more teachers,
so that the poor can have children who become
doctors, because as it is today you know the
Soviet Union wouldn’t give us scholarship
anymore. In the cold War we benefited but they
shot the door in the Unipolar World.
How will the son of
a farmer now at Ibienafen who is dumped in a
school with only two teachers, one of them, NYSC
teacher cope in a modern World? How will he be
able to pass mathematics, physics, English,
Chemistry to able to gain admission to read
medicine? That means that poor can never produce
doctors again. We must reverse that, we must
reverse that. Otherwise we are going to crease a
dynasty of the poor, where the poor procreates
another poor, another poor, and another poor
and, only the rich can send their children to
private schools and then the doctor give birth
to another doctor and the engineer give birth to
another engineer.
When a society
denied the vast majority of its citizens the
possibilities of upward mobility, that society
is doomed. If I had any doubt about this, when I
listened to Mr. Obama yesterday my conviction
was reinforced. Because he said the mistake we
can make is to say that because we are in crisis
now we cannot invest more in education, and we
will not invest in health care. That history
shows that when you invest more in this sector
that is when you produce the best inventors and
scientists.
So when we try to
manage our poverty by deny the poor access to
education we deepened poverty because among the
poor there are many gifted children. It is my
headache, having accepted to be a governor to
create opportunity for those that have been
forgotten because they come from my own
background and those of us who the system has
produced just must paid the taxes so that those
ones can have the ladder restored for them to
climb. So there are no painless options. Let me
explain finally to you that there is a new
amendment, it is beyond the competent of Edo
State to amend the tax law; it is a Federal law,
and if it is good for Lagos it cannot be bad for
Edo State .
So please
understand that the Comrade is not and cannot
and has no intension to amend the tax law. It is
beyond me. The only thing is that the
interpretation in Edo State must be the same as
in other states of the Federal. No more, no
less.
Questions (1)
I’m Dr. Mrs.
Osemen, a director in the Ministry of Health. I
want to appreciate the Comrade Governor for the
effort and the interaction we have so far. On
this tax issue for those of us in the service I
just want to make an appeal sir. I know that tax
laws are Federal and even with our colleagues
who are in other places. My husband is a medical
doctor in the Ministry of Defence. We are in the
same grade level. Even though he earns twice
exactly what I earn – about N50, 000 extra, yet
I’m paying more tax than he is paying.
I will appeal that
the interpretation should be looked at. I have
been opportune to have travelled around the
world, I know what taxes are. I know that you
have to contribute whatever thing you have to
the society. And as civil servants whatever
thing we have been told we have been paying. But
if now we are being told we have not been paying
enough, all right sir, but I think you should
look at these issues. Our colleagues who are in
Federal establishment cannot put up for this
change. My husband for example we are in the
same house, we are the same Director, the same
grade level, he earns double what I earn but I
pay more than he is paying and his taxes are
cleared from the Federal tax office. So sir, I
think they still have to do some in-depth
analysis of how these things were done. Thank
you, sir.
Question (2)estion (2)
Comrade Governor
Sir, my name is Dr. Onaiwu.. I want to
appreciate the privilege to be at this meeting.
I do not wish to speak as a doctor or civil
servant. I want to speak as a citizen. I want to
express my mind over my reservation. First, want
to say I have listened to all the argument, but
for certain things I’m not too persuaded as a
citizen. Why am I not persuaded? Sir, you made
reference to the boom years, eight years of oil
wind fall, oil selling as much as 95 Dollars per
barrel, so much money coming in, oil boom being
declared, money being given for erosion, and so
on and so on. As a civil servant and as a
citizen I did not benefit, I did not buy a car,
the wind fall did not help me to build a house,
there was no salary increase, I did not feel it
and my level remains what it was.
By God’s grace I
was able to complete a building when an
opportunity was created for me to get a loan
from the bank, and I have committed my whole
earnings as salary for the next three years to
the repayment of that loan. Now, a meltdown came
just three months, and I’m being asked to make
sacrifice when I did not benefit the boom. The
little money I’m earning is running against
inflation, it cannot keep my family, it can’t
keep my home. Sometimes I’m unable to pay my
children’s school fee, as a medical doctor, I
have to run round.
Now, why should the
government persuade me to make sacrifice at a
period when we had just a meltdown for three
months, while for eight years of boom I did not
have anything to show for it as a citizen, that
is number one. Number two; I’m also not
persuaded because I have not seen a change in
the trend of governance, the only change I had
seen is that yes, a popularly elected governor
is in position. But other antics or whatever
goes with our politicians have not changed.
Those things that deprive the citizens of the
dividend and the benefit of democracy have not
also changed.
So, how am I even
sure that after making these sacrifices I will
benefit that dividend when we still place so
much emphases tax, buy a vehicle for about N150
million that can be taken to a village to build
a school and build quarter, build a clinic and
build a quarter for doctors and nurses, why we
spend so much money on allowances, estacode and
extravagance lifestyle that deprive the citizens
of the benefit of democracy. I was thinking that
the first thing we were going to have was
confidence-building measures, looking at those
things that had deprive us of the benefit of
good governance, looking at those things that
have made it difficult and probably impossible
that have made the average man to send his child
to school, for the average or the common man to
build a house and to survive, the basic
necessity of life, why we honest people who
don’t have the opportunity of few years or few
months to become billionaire overnight at our
own expense.
If things were
being put in place to check those excesses, that
extravagance, profligacy and all that, I would
be persuaded by any argument. So, I just felt
that the timing as a citizen is wrong, I just
felt that what should have been going on now is
that whatever we have let should be used, then
when it is been used judiciously, and we have
seen a change in the trend, character and the
behaviours of our politicians, and then someone
comes out to say, my citizen you have now seen
that there is a different in the trend and
governance. Now see what I have done with the
little I have, now give me more, and I will do
more, and I will be persuaded. That is my reason
sir. Thank you.
Answers
Now, I think two
issues have been raised. The first is my sister
for who believe that there are some problems
with the implementations of the tax laws here.
But let me ask you few question just for
clarification. Is your husband working in Lagos
, Abuja or Benin ? Where is he based? Benin City
here, sir. All right. Do you know why I told her
to stand up and answer the question? Now, part
of the problems is that everybody in Edo State
has been cheating on the Government, including
Federal agencies and this may have unfortunately
included your husband. I just gave you an
example.
The other day I
invited the Vice Chancellor of University of
Benin, and he told me it was as a result of fear
of protest that he decided to deduct 5% of basic
salary as tax. So, if you work in the University
of Benin and you help yourself with only 5% as
tax and tax the rest, someone will notice that
Federal Institution in Benin or in Edo State is
not paying the same thing as any other person.
Now, part of the problems I have – I have spoken
to that – is that because every other person was
cheating, everybody was competing to cheat the
more. I know for a fact that with N600 you
cannot pay N20, 000 or N30, 000 as tax. What
percentage would that been? 10% of N60, 000, 000
is N600.
I’m very certain
that your husband is not paying correct tax, and
by the time we are done, he will pay. We will
find out. The chairperson of Federal Inland
Revenue Board is an indigene of Edo State .
Interpretation is not like miracle that can’t be
explained. So, if there is dispute about what
the application should be, I have no problem
with that. I have not told anybody to pay N1.00
more than the law provide for. If the law says
call duty should be excluded, of course, no one
can take it. But if the law didn’t say so, then
it must be taken, not by me.
Where is the DG of
the tax Revenue board? Now, can you explain to
us the instructions you are given by Federal
government with regards to pay as you earn and
what you are doing and the bases of the taxes
that you have deducted, so that people will
understand, because as Governor I’m not a Clark
in the Revenue board, and I have not given any
instruction for anyone to pay N1.00 outside what
the Federal laws provide. Please explain.
The people’s
Governor, in short the instruction is that we
implement this tax 2004 as amended. The spirit
is that you pay as you earn. Paying as you
earned, the principle is that all your earnings,
all your allowances are taxable. That is clear,
and there is no one that is not to be taxed.
Once we grossed it all, by giving all your
relief. And a relief is from you if you have
life insurance, it will be given to you.
Then your
dependants that are your four children, the
amount is spelt in law and is given to you. Then
your own mother and father are given to you.
Those are the relief that must be given to you
in law. Then after that, what is left is taxable
income. And we have pride the bar; the first
N30, 000 is 5k per naira, that is 5%, and the
next N30, 000 is again N10 per naira, which is
10%. The main 50% as we are talking we are
subtracting the next 50 falls within 50k a
naira, which is 50%. Then the next 50 is 20k a
naira, which is 20%. Here, the people’s
Governor, from 140 and above is 25%.
That is where the
issue is affecting everybody. Like we are saying
before you remove 30, 30 the junior ones would
have been up, up the taxable bar, and as you
move up now back they are to bund to pay more.
For instance, when the old principle was
applied, not in law, 5% was applied so between
level 1 to 7 where the ones paying the more tax.
But now, with the applications of the new law,
even the Permanent Secretaries, let me use
myself as example, formerly we were paying N21,
000, in the old system. The least now is paying
N72, 000; that is fixed and that is what the law
says.
There is no where
the law says call duty allowances is not taxable
and we are applying the same principle
throughout the country. We were equally in touch
with the chairman of Federal Inland Revenue
recently and all the chairmen of Board Internal
Revenue had been told and instructed that call
duty allowance is taxable, and we should not do
anything less than that, and that is what we are
doing.
So, madam, you
heard it from the DG’s mouth, since he is not
the horse, though he is aggressive like a horse.
Now, I think listening to him, one problem I
know that women use to have, I don’t know
whether that is still the case – the DG may wish
to speak to it, is that unfortunately, very
unfortunately the man gets the allowances for
the children, the relief for the four children,
the man file form for it, so if your own form
shows that you are married, then it is assumed
that your husband is also working, they will not
grand the relief of the children to you. They
will grant it to your husband.
The DG injected
thus: ‘‘the People’s Governor, that scenario
has since changed, ‘‘the new law is that we
grant both to the man and the woman irrespective
of the fact that they are together. So, both of
them have it. Both of them have it in order to
make it uniform. Now many of the civil servants
have not completed the necessary form with which
you are supposed to look at the relief’’. In the
absence of that how did you implement the
relief?
What we did was
that we know what relieves are across the board.
Once you are entitled to four children, the
woman is entitled to four. Then, she is also
entitled to that of father and mother; the
relives are all worked out. What we now did is
that when they refused to fill the form, we move
in right into their payment vouchers and
extracted our information from it and give them
all the relief because they are the same, use it
because they are the same and the tables are
uniform.
The Governor: are
you saying that you granted the relief to
everybody, ‘to everybody sir’, you had assumed
that everybody had four children, everybody had
father and mother, ‘yes sir, that is what we
have been told to assumed to make it uniform’..
Let me say this,
immediately after this meeting I will find out
if call duty is exempted from taxation. I will
make phone calls after this meeting and I know
I’m meeting with other persons tomorrow,
including governors and I will talk to the
Chairman of Federal Inland Revenue Service FIRS,
Mrs. Ifueko Omogui to find out what the law says
and/or what the practice is. I assure you as
much as I do not want Edo State to be different
– it means different either ways – if in truth
some other states are not deducting call duty,
there is no reason for Edo State to deduct it.
If that is the
case we wouldn’t, because I don’t have any
intention to impose additional pains on the
people. Like I said earlier if I have my way the
young man whom I’m yet to persuade said it all.
The fact of being popularly elected is that
about 80% to 90% of the people you are dealing
with are people who went to vote for you with
all the pains and trouble that went with, so why
will I repay them with a hardship that is
avoidable?
We will find out
that and I guest within 48 hours this is
something that can be established what is done
elsewhere and what the law says, and if it is in
your favour will reverse it and any money that
has been taken in respect of call can easily be
refunded. For God sake if we find out that your
husband is simply benefiting from neighbourhood
defence we will penetrate the military zone and
collect our tax, even if it means blackmailing
the armed forces.
So, we will
discreetly find out how we can get the balance
from him, and then refund to you if the case is
in your favour. My brother, I listened to you
and you made all the points. There isn’t much to
disagree with, except to say that whether you
believe it or not even the fact of holding this
meeting represent a change.
I have not briefed
of many Governor before me who seat at a mass
meeting and allow people who have not be
pre-arranged to speak to the camera, knowing
that it will be used or it can be used to speak
your mind and to talk the way we have done. I
think we are trying to be different.. It may not
be important, but you went at some length and I
will like to also go at some length because
there is this Nigeria elder Statesman late Ahmadu Bello who said people always say don’t
blow your trumpet, you can’t blow your trumpet.
He said but in a society where people are too
busy helping themselves nobody will remember to
blow your trumpet if you don’t blow it yourself.
So, on occasion you
may have to blow your trumpet. And in other to
answer your question I have to blow some
trumpets. Number one I’m sure right now we are
saving money on batteries. This might be very
trivial. The cost of procuring batteries for
government siren vehicles is enormous. I will
not use siren, so we save small money and the
batteries last a little longer, we reduced the
noise level. If you don’t place value on noise
pollution, but if you place value on that as
doctors I don’t know what decibel you can put
some monetary value, but what we are trying to
do is that the Governor should go through the
traffic and not raise alarm because he is
passing.
It may not mean
much but is an attempt to re-identify; yes you
have security challenges but also worried about
the safety of the road users and also the
conveniences of members of the public. Second,
we have not bought the kind of vehicle you are
talking about. No. maybe you are mistaking us
for the National Assembly where we heard of N2.6
billion for vehicles. Right now many of our
Permanent Secretaries don’t even have official
cars.
Erasmus Ikhide is a
Senior Special
Assistant
Media Affairs to
Comrade
Adams Oshiomhole.
Published
May 9th, 2009