Friday, 25 March 2016

Buhari apologises for dissolving universities’ governing councils

Buhari in France
President Muhammadu Buhari has apologised for dissolving governing councils of universities along with the boards of parastatal agencies.
Mr. Buhari offered the apology during the National Executive Council meeting of the All Progressives Congress in Abuja on Thursday.
He said: ”We gave a blanket order which we had to rescind when we said all boards are suspended or dissolved.
”We had to go back and lick our vomit in terms of universities councils because we found out that according to their laws, they cannot choose vice chancellors unless the councils sit and interview candidates who want to be VCs.
”So, there is nothing wrong in saying sorry and going back on your decision. So, we said sorry and allow all the universities to continue with their councils.
“So, please, try to bear with us as we reflect on where we found ourselves.”
Mr. Buhari said the government had made progress in security as 14 out of the 774 local governments seized by insurgents had been recaptured.
He said his government had been able to recover more than three trillion naira by insisting on the Treasury Single Account (TSA).
”The policy we are trying to implement is TSA when we insist that we have to know what comes in and what goes out for us to make a comprehensive amendment to the economy.
”If you go and see the Central Bank Governor, he will tell you that in the TSA, we have more than N3 trillion. Where would this money have been if TSA was not in vogue?
”I was made to understand that vouchers would have quickly been raised towards the end of the financial year and checks made whether they are going into projects or private pockets, nobody can prove it to you.
”But that money is there, it is identified, if is quantified and when the budget comes back eventually, the Ministry of Finance will see how to allocate it to the rest of the country”, he said.
Buhari also said that he had tried to ensure that the Nigerian National Petroleum Corporation be reorganised, so as to know how much of crude is taken, sold and to which account the money was going.
”I tell you that up to the time we came, if anybody told you that he knows how much of crude exchanges hands either on the high sea or reaching their destination and the accounts the money goes into, that person is not telling you the truth.
”We are getting the cooperation of countries that had received this crude. But we have to be sure of the facts in our hands before we start prosecution so that Nigerians will believe what we have been telling them.
”I was telling a British team that came to supervise the training team they sent, that when I was in uniform, we took the perceived corrupt ones and put them in safe custody and quietly told them they were guilty until they can prove themselves innocent.
”But now, under multiparty democratic system, I see some of them ride Rolls Royce, some of them have built estates here, but they are innocent until we can prove them guilty.
“This situation is true and you don’t need to stretch your imagination to find out.
“If you can find out, you discover that a level eight officer has five houses, while you, as a Permanent Secretary or Commissioner is still living in a rented house.
“That is the credible thing to do now. We have to get credible evidence to carry our successful prosecution and get judgment from the judiciary.
”Effort is being made to give a list of recoveries in whatever currencies so far so that Nigerians will know that it is not all about long stories”, he said.
He urged APC members to continue to make sacrifices, adding that when he came on board, he had to cut down on cost by reducing the 42 ministries to 24. (NAN)

Petrol scarcity: Kachikwu’s comment fuels hoarding, panic buying

 by 
Emmanuel Ibe Kachikwu Emmanuel Ibe Kachikwu
The current fuel scarcity in the country took a turn for the worse on Thursday as motorists and other petrol consumers flocked filling stations in major towns nationwide in what industry stakeholders described as panic buying fuelled by the statement made by the Minister of State for Petroleum Resources, Dr.Ibe Kachikwu, the previous day.
Kachikwu, who is also the Group Managing Director of the Nigerian National Petroleum Corporation, had on Wednesday said despite the efforts being made by the Federal Government, fuel queues would not completely disappear until May.
The statement was said to have also raised the prospect of hoarding of petrol by some marketers who would want to profiteer from the current situation.
On the Otedola Estate and Berger ends of the Lagos-Ibadan Expressway, the Mobil, Capital Oil and Oando filling stations had long queues of desperate motorists and other customers, which spilled onto the road and caused gridlock, while there was no activity at the Conoil and the other Oando station on the axis as of the time one of our correspondents checked.
The minister’s statement also worsened the already bad fuel supply situation in Abuja, Kaduna and Nasarawa states, as hundreds of motorists armed themselves with jerry-cans and besieged the few stations dispensing petrol on Thursday.
Most of them were of the view that since the scarcity would persist for the next two months, it would be wise to fill up their vehicle tanks and stockpile petrol in jerry-cans pending when the situation would improve.
A former President of the Trade Union Congress of Nigeria, Mr. Peter Esele, said, “I think that statement is very unfortunate. If you look at it on the surface, probably the minister just wanted to tell Nigerians the way it is. But again, that is what is on the ground. There is no need for us to colour the challenges that we are facing.”
Esele, however, noted that the comment had created a lot of panic buying in the system, saying, “That is where I actually have an issue with the minister’s statement. He wanted to be upfront. But being upfront means that you can also now unsettle and unbalance the system.
“Right now, what we have is that the system is unsettled based on the minister’s comment. What I would have expected is that he informs his principal, who is the President and Minister of Petroleum, then the principal will now know how to deal with it and communicate to Nigerians effectively.
“Now, we are going to have those (marketers) who even have products who want to hoard and sell at very expensive prices.”
The Chairman, Nigeria Union of Petroleum and Natural Gas Workers, Lagos Zone, Alhaji Tokunbo Korodo, said, “The statement was a little bit blunt. Instead of deceiving Nigerians, he (Kachikwu) made it known to them that there is no magic he can do. It may not be up to that two months because it is not that he is not doing anything; they are doing something tangible.
“The panic buying, which the statement has created, is not good for the system, and it is even portraying this government in bad light. But at the same time, it is a plus to us as Nigerians so that we will prepare very well and be efficient in using fuel.
“The pronouncement is going to create a lot of maximisation of profit by the marketers. Some of them will be hoarding. Can the Department of Petroleum Resources go for any enforcement with this pronouncement? It is not possible because the marketers, if they cannot get it at the controlled price, they will comfortably be selling above the pump price. So, it is a very bad signal.”
However, the Deputy Manager, Public Affairs, DPR, Mr. George Ene-Ita, said the agency would clamp down on any marketer found to be hoarding products.
“For us, it is a routine thing. Our people go out daily and whatever we see there, we take action as appropriate,” he added.
On the Kubwa Expressway, the two NNPC mega stations located on opposite sides of the road had long queues and motorists were determined to buy petrol even in their jerry-cans, despite the fact that the outlets had prohibited the sale of fuel in jerry-cans.
“What do you expect from us after the minister has announced that the scarcity will last till May?” Ogbonnaya Kalu, who armed himself with two 40-litre jerry-cans in front of one of the NNPC mega stations, said.
Queues were also heavy in front of other filling stations like AA Rano, MRS, Conoil and Mobil along the expressway.
Similar situations were observed in the Abuja city centre and in neighbouring states of Nasarawa and Kaduna, as attendants in some of the filling stations were openly collecting N500 from each customer who wished to fill their jerry-cans.
The NNPC on Thursday said it was doing everything possible to end the noticeable fuel queues in most parts of the country in the weeks ahead.
It also stressed that Kachikwu was misquoted on the issue of petrol scarcity dragging on till May.

Saraki’s trial splits APC; senior member blasts party leaders for ‘keeping quiet’

Bukola Saraki
The deputy National Publicity Secretary of the All Progressives Congress, APC, Timi Frank, has described the continued trial of the Senate President, Bukola Saraki, at the Code of Conduct Tribunal, CCT, as “worrisome”, saying there were flaws in the processes leading to the arraignment.
Mr. Frank said in a statement on Friday that it was dangerous that the leadership of the APC “chose to sit on the fence and watch Mr. Saraki swim or sink in his trial”.
“I sincerely hold that the current trial of Saraki is not only underserved, but amounts to paying a good man with evil. I also want to say that the leaders of our great party have unfortunately remained quiet in the face of evil.
“I don’t believe we have forgotten that the victory of the APC during the last general elections could not have been possible without courageous strategists like Saraki who lent their political weight in favour of the APC at the risk of their own lives and personal survival,” Mr. Frank said.
“I don’t think we have forgotten how Saraki as a Senator in the 7th Senate brought the attention of Nigerians to the fraud perpetrated by the the last administration in the name of fuel subsidy.
“I don’t think we have forgotten so soon how Saraki led five other governors of the Peoples Democratic Party (PDP) into the APC – a development that successfully turned the political tide against the PDP and eventually tipped the electoral scale against them during the 2015 general elections.
“I don’t think we have forgotten how Saraki led scores of Senators to cross over to the APC on the floor of the Senate.
“I don’t think we have also forgotten what he gave of his time, personal resources and energy to ensure that the APC emerged victorious both at the National, State and Local Government level,” he said.
Mr. Saraki is facing a 13-count charge of alleged false declaration of assets.
On Thursday, the Code of Conduct Tribunal rejected Mr. Saraki’s argument that the case against him was flawed, and ordered the trial to continue.
Mr. Frank wondered how the case of Mr. Saraki was being treated differently at the CCT, which in 2011 struck out the case against one of the national leaders of the party “because he was not given the opportunity to deny or admit the alleged discrepancies in his asset declaration forms in line with Section 3(d) of the CCB/CCT Act unlike 11 other ex-governors who had similar cases of irregularities whose cases were dropped by the CCB after they were invited by the agency”.
“For the avoidance of doubt, Section 3(d) of the CCB/CCT Act which has been so undermined by the CCT in its Thursday ruling states that the CCB shall: ‘Receive complaints about non-compliance with or breach of this Act and where the Bureau (not the AGF or EFCC) considers it necessary to do so, refer such complaints to the Code of Conduct Tribunal established by Section 20 of this Act in accordance with the provisions of Sections 20 to 25 of this Act: provided that where the concerned makes a written admission of such breach or non-compliance, no reference to the Tribunal shall be necessary'”.
Mr. Frank said it was pertinent to mention that when the particular section of the Act was pleaded in the defence of one of the leaders of the defunct Action Congress of Nigeria in 2011, the same chairman of the tribunal, Justice Danlandi Umar struck out the case for lack of jurisdiction to entertain the suit when he ruled that “…On Section 3(d), I feel compelled by the argument of the learned SAN for the accused. It is a condition precedent for referring a charge to this Tribunal that the Accused ought to have been invited to either deny or admit the allegations against him. This is missing in this case as the Complainant has no such evidence of a prior invitation. It would be proper for me at this stage to simply decline further exercise of jurisdiction having held that the co diction precedent to the instituting of charges against the Accused has not been complied with. I hereby resolve this issue in favour of the Accused…”
He added: “It is based on the above precedent that I want to ask why Saraki’s case is different? Why is the judiciary suddenly giving in to apparent blackmail from a section of the media by refusing to do their job as required by law?
“Already the Senate President has told the world that the trial has nothing to do with corruption but that he is being persecuted for emerging as the Senate President. To me the ominous silence of our leaders since the day he was arraigned uphill now serves to validate the claims of the Senate President that he is being persecuted.
“Or where else in the world will the number three citizen of a country be hurled before a tribunal over alleged irregularities in his asset declaration forms 13 years ago, and the hierarchy of the ruling to which he is a bonafide member will not come out to show solidarity or defend him?
“If it is true that the trial of the Senate President is not borne out of genuine desire yo fight corruption but is being carried out for selfish political ends, then who is next?
“I think the party need to be courageous enough to speak out against this unwholesome trend whose outcome will definitely not augur well for the overall development of our party and by extension the country at this hour.
“Even the holy scriptures admonish us not to muzzle the (ox) that thresh the corn. Saraki has paid his dues at a time it was suicidal for anybody to stand up against to the then ruling PDP. I believe it is time for all of us to act to save our party. It is time to rally round our generals who have fought valiantly and led us to victory. To abandon Saraki is to abandon a worthy comrade,” he said.
PremiumTimes

Nigeria’s reform of its state oil company will be cosmetic without cutting corrupt ties

Quartz africa
For decades, Nigeria’s state oil company, the Nigerian National Petroleum Corporation (NNPC) has been the leading symbol of official corruption and a seemingly boundless source of political patronage. Faced with plummeting global oil prices and dwindling state coffers, president Muhammadu Buhari cannot afford to allow the NNPC, under a veneer of reform, to operate much as it did before. Yet nine months into his term, NNPC continues to do business with several disreputable, politically-connected companies.
Last August, Buhari tasked Emmanuel Ibe Kachikwu, a Harvard-trained lawyer and former general counsel for ExxonMobil Africa, with fixing a broken NNPC. A few months later, Buhari dual-hatted Kachikwu as minister of state (deputy minister) for petroleum, giving him enormous power over Nigeria’s oil industry. While Buhari kept the position of petroleum minister for himself, he is unlikely to be able to concentrate on the role given his many other responsibilities.
 Besides producing crude oil, NNPC makes petroleum policy, generates its own budget, and regulates the industry: all clear conflicts of interest. 
In a surprise announcement last week, Kachikwu rolled out a plan to restructure NNPC into seven independent business units. Though the business rationale behind this move is unclear, Kachikwu’s previous decisions, such as shaking up the senior management of NNPC and its subsidiaries and cutting the number of short-term crude marketing contract recipients, have received widespread praise. Under Kachikwu, fewer featherweight front companies are being allowed to market NNPC crude. He has also promised to replace corruption-prone crude oil swaps and offshore processing agreements with more transparent and cost-effective arrangements. While laudable, these changes only partially address NNPC’s biggest flaws as outlined in a comprehensive report by the Natural Resource Governance Institute (NRGI) published last year. They also disguise that NNPC maintains relationships with many of the same companies and individuals accused of corruption under the 2012 Fuel Subsidy scandal and similar schemes.

Same old perennial contracts

The two most significant contract decisions made by Kachikwu thus far suggest that it is business as usual at the NNPC—at least for now. Looking at the list of companies he awarded crude oil lifting contracts or granted permission to import refined petroleum products (e.g. gasoline and jet fuel), many have clear links to political power brokers or have been connected to fraud cases: They include:
  • Matrix Energy. A 2012 investigation identified Matrix as one of several oil traders who fraudulently charged the government up to 23.1 billion naira ($11.5 million) in refined petroleum products it never delivered. The company’s CEO Abdulkabir Aliu was arrested for fraud, though the status of his case is unclear. In late 2015, Matrix nevertheless received a license to import refined products.
  • Northwest Petroleum. Northwest CEO Winifred Akpani once served as comptroller and later executive director of Flame Petroleum, an oil trading company that Kachikwu operated from 1992 to 2001. One of Northwest’s three shareholders is Maria Katrina Investment Company, a mysterious corporate vehicle. Akpani, meanwhile, also serves on the board of a company controlled by Jide Omokore, an oil tycoon under investigation by the Economic and Financial Crimes Commission (EFCC). In December it received an NNPC contract for crude oil lifting.
  • Eterna Oil and Gas. In 2012, Eterna was charged by the EFCC with cheating the government out of 1.8 billion naira ($9 million) in fuel subsidies. Eterna is run by Mahmud Tukur, son of Bamanga Tukur, chairman of the People’s Democratic Party under president Jonathan. Even as Eterna and Tukur’s trial was still ongoing, the NNPC in December granted Eterna a crude oil lifting contract.
  • Emo Oil. Emo Oil belongs to Emmanuel Ojei, a veritable éminence grise whose entrepreneurial skills are matched only by his ability to cultivate contacts with Nigeria’s top elites. Insiders credit Ojei with helping many former heads of state and other senior officials manage their finances for more than three decades. Emo received many crude oil lifting contracts over the years, in some cases without a formal contract. Other Ojei-owned companies, meanwhile, control stakes in multiple oil blocks. In December Emo also received an NNPC contract for crude oil lifting.
  • Shorelink Oil and Gas. Shorelink is managed by Obamarije Stanley, allegedly the cousin of Reginald Stanley, a longtime NNPC official who was head of the NNPC’s downstream regulatory body, the Petroleum Products Pricing and Regulatory Agency (PPPRA), from 2011 to 2014. On Kachikwu’s watch, PPPRA renewed a lucrative importation license Shorelink may have received due to nepotism.
 Breaking up NNPC will not necessarily make it more profitable and could instead increase operational costs and make oversight difficult. 
Another toxic legacy inherited by the NNPC is the Strategic Alliance Agreement its exploration arm, the Nigerian Petroleum Development Company, concluded with Atlantic Energy Drilling Concept Limited, a company allegedly linked to former petroleum minister Diezani Allison-Madueke. Under the agreement, Atlantic helps fund the operating costs of eight oil blocks in exchange for rights to lift a portion of the oil they produce. Kachikwu could terminate this agreement, which reportedly disadvantages NNPC. He recently said that NNPC soon expected to conclude a deal in which a new partner will pay up to $1.3 billion to take over the Atlantic agreement. With oil prices low relative to operating costs, however, Kachikwu may fail to find a reputable buyer willing to renegotiate this deal on his terms.

Buhari’s Bigger Challenge

Nigerian Oil Minister Emmanuel Ibe Kachiwku(Reuters/Afolabi Sotunde)
Although Buhari undoubtedly wants to overhaul the country’s oil sector, NNPC appears to be dragging its feet. With global oil prices low and government finances under pressure, Buhari needs to carefully scrutinize NNPC decision making, including the latest unbundling plan. He should also ask his officials tough questions about shady arrangements inherited from his predecessor, such as the Atlantic Energy agreement and an opaque crude oil transportation contract criticized by industry experts.
But Buhari has a task greater than just stopping NNPC from falling back into bad habits: transforming Nigeria’s national oil company into a cost-effective, profit-driven, transparent institution. Creating 30 separate companies out of NNPC will not necessarily make them more profitable and could instead increase operational costs and make oversight more difficult. As it stands, NNPC receives far less government oversight than its global peers.
Besides producing crude oil, NNPC also makes national petroleum policy, generates its own budget, and regulates the petroleum industry: all clear conflicts of interest and practices unheard of elsewhere in the world. Buhari must take these important oversight roles away from NNPC (or its successor companies) and address the their deeper ills before time, inertia, and powerful elites long pampered by patronage conspire against him.

Buhari May Sack Rotimi Amaechi, Here’s Why (DETAILS)


Nigeria's Minister of Transportation, Rotimi Amaechi
Strong indications emerged over the weekend that President Muhammadu Buhari might consider sacking his Minister of Transportation, Rotimi Amaechi, following serious pressure from foreign diplomats over his indictment for corruption by the Rivers State Judicial Commission of Inquiry.
The commission led by Justice George Omeregi was set up to investigate the sale of state assets and the consequent Whitepaper issued by the state government during his tenure as the governor.
The indications of Amaechi’s possible sack was informed by the supposed anti-corruption stance of the Buhari-led Federal Government which the foreign diplomats presume has been greatly compromised.
Also, Buhari was said to be reportedly disposed to easing out of office the current Secretary to the Government of the Federation, SGF, Lawal Babachir and his Chief of Staff, Alhaji Abba Kyari following the reports about their disposition of corruption.
A Western diplomat said: “There is now increased and general erosion of confidence in the president’s ability to prosecute his administration’s anti-graft war.
“About five senior diplomats have had reason to pass similar observations to the presidency after the Rivers State government Whitepaper that indicted the Minister of Aviation, Amaechi over alleged corruption during his years as governor.
“If I can recall very vividly, they told the president that until people like Amaechi in his government are excused from government to defend the telling allegations against him, the corruption fight will not be taken seriously.”
The declaration by the diplomats he said was buoyed by a letter written by Governor Nyesom Wike to foreign missions and Embassies detailing findings and related documentary evidences including the government Whitepaper of the Justice George Omeregi commission probe report on the state’s finances during the Amaechi years as governor, according to reports.
Speaking to newsmen on behalf of Governor Nyesome Wike, the Rivers state’s Commissioner of Housing, Emma Okah, had last year disclosed that the state’s Attorney-General had been mandated to start all legal processes against Amaechi; a former military administrator of Rivers State, Brigadier Anthony Ukpo (Rtd) and some other former political office holders to refund over N97 billion allegedly misappropriated in the sale of the state’s valued assets.
A foreign diplomat who was privy to the matter said: “The president being a leader desirous of returning Nigeria to the path of sanity and prosperity contracted the consultants recommended by former President Olusegun Obasanjo.
“But the president gave them his own terms of reference which were not envisaged by his earlier understanding with Obasanjo.”
He said that the report concluded that the Buhari administration was better off when the President was working with permanent secretaries adding that he should have retained some of the “good and patriotic hands among them” instead of the almost clean sweep that sent all of them away leaving a wide vacuum in positive governance.
“They were effective either because they understood the workings of government very well given their experiences or they dreaded any tendency to act outside the directives of President Buhari.
“The president contracted a firm from the U.S. to assess the performance of his government and officials. The result is far from complimentary in respect to some officials, number one of which is the SGF, Engr. Lawal.
“The SGF’s supervisory role over the MDAs was also brought to question in the report; but it is surprising that the president has allowed him to stay this long after that report. I am aware too that somebody is being considered for that position.”
One of the instances mentioned in the consultant’s report is the sacking of heads of MDAs recently whereby other political appointees in such MDAs were left out of the action.
The source said: “Some departments and agencies’ staffers have expressed the worry that executive directors were left in office while chief executives of some agencies have been sacked by the present regime.
“The aggrieved staff argued that executive directors ought to have gone with the chief executives since they are all political appointees, stressing that the executive directors could not be excused from any impropriety that may have happened in such departments and agencies.
“The affected staff appealed to the president to as a matter of urgency sack the executive directors and probe their time in office.”
He said the case of the Chief of Staff is not different as his effectiveness as the bridge between the president and his aides alongside other federal, states and foreign governments’ officials has long been in doubt.
The source allegedly accused the ineffectiveness of the duo has contributed largely to the steep nose-dive of government in the past months.

My office not under threat, says Oyegun



Fresh facts have emerged on what the leaders of the All Progressives Congress (APC) discussed at their national caucus meeting on Tuesday. The meeting, which held at the new Banquet Hall of the Presidential Villa, had President Muhammadu Buhari, his vice, Prof. Yemi Osinbajo, National Chairman, Chief John Odigie-Oyegun, National Leader, Asiwaju Bola Tinubu, former Vice-President Atiku Abubakar, leadership of the National Assembly, serving and past governors, among others, in attendance.

New Telegraph gathered that the leaders discussed the issue of appointments of party members into positions, party’s finances and the review of the party’s constitution to accommodate the Board of Trustees (BoT) of the party.

The state of the economy, the national budget and the crises in some state chapters of the party were among issues the party leaders discussed. A source stated that discussions focused on the appointment of members of the party into some positions by the Federal Government in a bid to reduce tension within the party. According to the source, it was agreed that more appointments would help the party settle down better as a political machine.

He said: “What happened was that we reviewed the performance of the party and also looked at the 2014 expenditure and also the budget of the party. “We also hammered on the issue of appointments.

If there are appointments, there would be less tension in the party.” State chapters of the party had submitted list of 50 members each for consideration for appointments into boards of federal agencies, commissions and parastatals.

The president is yet to constitute the boards and delay in appointing party members has heightened tension in APC. It was gathered that the caucus members agreed that the party’s constitution was a little bit defective on its BoT.

The members suggested the need to amend its constitution. A member of the caucus, who spoke with New Telegraph, stated that the caucus could not set up constitution review committee because it has no such mandate.

According to him, only the National Working Committee (NWC) or the National Executive Committee (NEC) can set up such. It was further learnt that the NEC, which holds today, would set up the constitution review committee.

The last time APC reviewed its constitution was 2014 to accommodate new entrants into the party and to allow them stand for elections. As previously reported by this newspaper, the party leaders were concerned by its finances.

The national chairman briefed the national caucus on the state of finance of the party, which is not encouraging. He, however, stated that the issue of replacement of the national chairman was not raised at the meeting. He rather said that the leaders agreed to go back to the spirit that made them to win elections last year. He said:

“I never heard anything like that. No! No!! No!!! What has the national chairman done for anybody to remove him? If the party loses election, was it the fault of the national chairman?” The security at the party’s national secretariat has been tightened ahead of today’s NEC meeting. Security men from the Presidential Villa were at the secretariat to assess the security situation and reorganise some. Meanwhile, Oyegun has denied reports that his position in the party was currently being threatened.

The APC chairman stated this in an interview with State House Correspondents after a meeting of the national caucus of the party with Buhari on Tuesday night at the presidential villa, Abuja. He said having led the NWC to such an important meeting, it was clear that he is still in charge of the party affairs. Oyegun said: “I am not aware that my office is under threat. I led the party to the State House. It amazes me, occasionally it annoys me.

“That is one of the things you have to endure when you are in a position like mine.” The party chairman explained that holding public office in Nigeria required a lot of patience. He told reporters that the national caucus of the party discussed all the challenges that have occurred since the elections. He said: “We did decide on the way forward. It was a very serious meeting that discussed serious issues that have to do with the progress of the party. Basically, we are expecting the budget to be out, and once that is done, implementation of our policies will start.

“That is what we will use to deliver on our promises to the people. So, we are waiting. “Skirmishes among party members are normal. We have set up a committee that is looking into all those issues and will resolve those issues.

“We don’t just recover money and spend it. We recover money and it will go into revenue, it will be deployed appropriately with the normal legislative approach.” On the performance of the party, he stressed that: “Don’t say one year into the present administration, count this year because this is the year we are presenting our budget and implementation will start.”

Asia’s city-statesman - Lee Kuan Yew’s memoirs

Asia’s city-statesman

The founder of Singapore, who died on March 23rd, turned the island into an economic success story while curbing democratic freedoms.


THERE was no vainglory in the title of the first volume of Lee Kuan Yew’s memoirs: “The Singapore Story”. Few leaders have so embodied and dominated their countries: Fidel Castro, perhaps, and Kim Il Sung, in their day. But both of those signally failed to match Mr Lee’s achievement in propelling Singapore “From Third World to First” (as the second volume is called). Moreover, he managed it against far worse odds: no space, beyond a crowded little island; no natural resources; and, as an island of polyglot immigrants, not much shared history. The search for a common heritage may have been why, in the 1990s, Mr Lee’s Singapore championed “Asian values”. By then, Singapore was the most Westernised place in Asia.
Mr Lee himself, whose anglophile grandfather had added “Harry” to his Chinese name, was once called by George Brown, a British foreign secretary, “the best bloody Englishman east of Suez”. He was proud of his success in colonial society. He was a star student in pre-war Singapore, and, after an interlude during the Japanese occupation of 1942-45, again at the London School of Economics (LSE) and Cambridge. He and his wife, Kwa Geok Choo, both got firsts in law.
When Geok Choo first appears in “The Singapore Story” it is as a student who, horror of horrors, beats young Harry in economics and English exams. Mr Lee always excelled at co-option as well as coercion. When he returned to Singapore in 1950, he was confident in the knowledge that she “could be a sole breadwinner and bring up the children”, giving him an “insurance policy” that would let him enter politics. He remained devoted to her. Before her death, when she lay bedridden and mute for two years, he maintained a spreadsheet listing the books he read to her: Lewis Carroll, Jane Austen, Shakespeare’s sonnets.

In his political life he gave few hints of such inner tenderness. Influenced by Harold Laski, a British academic whom he had met at the LSE, he was in the anti-colonial movement of the 1950s, and in Britain had campaigned for the Labour Party. But for him ideology always took second place to a pragmatic appreciation of how power works. He also boasted of his streetfighting prowess: “Nobody doubts that if you take me on, I will put on knuckle-dusters and catch you in a cul-de-sac.” He was a ruthless operator, manoeuvring himself into a position at the head of the People’s Action Party (PAP) to become Singapore’s first prime minister when self-governance arrived in 1959. He remained so for 31 years.
Just once in that time the steely mask slipped. Having led Singapore into a federation with Malaysia in 1963, Mr Lee led it out again when it was expelled in August 1965, with Malaysia’s prime minister accusing him of leading a state government “that showed no measure of loyalty to its central government”. For his part, he had become convinced that Chinese-majority Singapore would always be at a disadvantage in a Malay-dominated polity. Still he had believed in and worked for the merger all his life. Announcing its dissolution, he wept.
In compensation, he turned Singapore into a hugely admired economic success story. As he and his government would often note, this seemed far from the likeliest outcome in the dark days of the 1960s. Among the many resources that Singapore lacked was an adequate water supply, which left it alarmingly dependent on a pipeline from peninsular Malaysia, from which it had just divorced. It was beholden to America’s goodwill and the crumbling might of the former colonial power, Britain, for its defence. The regional giant, Indonesia, had been engaged in a policy of Konfrontasi—hostility to the Malaysian federation just short of open warfare—to stress that it was only an accident of colonial history that had left British-ruled Malaya and its offshoots separate from the Dutch-ruled East Indies, which became Indonesia.
Singapore as a country did not exist. “How were we to create a nation out of a polyglot collection of migrants from China, India, Malaysia, Indonesia and several other parts of Asia?” asked Mr Lee in retrospect. Race riots in the 1960s, in Singapore itself as well as in Malaysia, coloured Mr Lee’s thinking for the rest of his life. Even when Singapore appeared to outsiders a peaceful, harmonious, indeed rather boringly stable place, its government often behaved as if it were dancing on the edge of an abyss of ethnic animosity. Public housing, one of the government’s greatest successes, remains subject to ethnic quotas to prevent the minority Malays and Indians from coalescing into ghettoes.
That sense of external weakness and internal fragility was central to Mr Lee’s policies for the young country. Abandoned by Britain in 1971 when it withdrew from “east of Suez”, Singapore has always made national defence a high priority, although direct threats to its security have eased. Relations with Malaysia have frequently been fraught, but never to the point when a military conflict seemed likely. And Indonesia ended Konfrontasi in the mid-1960s. The formation in 1967 of the Association of South-East Asian Nations, with Mr Lee as one of the founding fathers, helped unite the region. Yet Singaporean men still perform nearly two years of national service in the armed forces. Defence spending, in a country of 5.3m, is more than in Indonesia, with nearly 250m; in 2014 it soaked up over one-fifth of the budget.
Singapore’s vulnerability also justified, for Mr Lee, some curtailment of democratic freedoms. In the early days this involved strong-arm methods—locking up suspected communists, for example. But it became more subtle: a combination of economic success, gerrymandering, stifling press controls and the legal hounding of opposition politicians and critics, including the foreign press. Singapore has had regular, free and fair elections. Indeed, voting is compulsory, though Mr Lee said in 1994 that he was “not intellectually convinced that one-man, one-vote is the best”. He said Singapore practised it because the British had left it behind. So he designed a system where clean elections are held, but it has also been almost inconceivable for the PAP to lose power.
The biggest reason for that has been its economic success: growth has averaged nearly 7% a year for four decades. But Mr Lee’s party has left nothing to chance. The traditional media are toothless; opposition politicians have been hounded into bankruptcy by defamation laws inherited from Britain; voters have faced the threat that, if they elect opposition candidates, their constituencies will get less money; constituency boundaries have been manipulated by the government. The advantage of Mr Lee’s system, proponents say, is that it introduced just enough electoral competition to keep the government honest, but not so much that it risks losing power. So it can look round corners on behalf of its people, plan for the long term and resist the temptation to pander to populist pressures.
Mr Lee was a firm believer in “meritocracy”, or government by the most able, defined in large part by scholastic success. “We decide what is right. Never mind what the people think,” as he put it in 1987. His government’s ministers were the world’s best-paid, to attract talent from the private sector and curb corruption. Corruption did indeed become rare in Singapore. Like other crime, it was deterred in part by harsh punishments, ranging from brutal caning for vandalism to hanging for murder or drug-smuggling. As Mr Lee also said: “Between being loved and feared, I have always believed Machiavelli was right. If nobody is afraid of me, I’m meaningless.” As a police state, however, Singapore is such a success that you rarely see a cop.
A cool guy
In some ways, Mr Lee was a bit of a crank. Among a number of 20th-century luminaries asked by the Wall Street Journal in 1999 to pick the most influential invention of the millennium, he alone shunned the printing press, the internal combustion engine and the internet and chose the air-conditioner. He explained that, before A/C, people living in the tropics were at a disadvantage because the heat and humidity damaged the quality of their work. Now, they “need no longer lag behind”. Cherian George, a journalist and scholar, spotted in this a metaphor for Mr Lee’s style of government, and wrote one of the best books about it: “The air-conditioned nation: Essays on the politics of comfort and control”. Mr Lee made Singapore comfortable, but was careful to control the thermostat.
Singaporeans, seeing their island transform itself and modernise, seemed to accept this. But in 2011 the PAP did worse than ever in a general election (just 60% of the vote but 93% of the elected seats). Many thought change would have to come, and that the structure Mr Lee had built was unsuitable for the age of Facebook and the burgeoning of unbiddable networks. They began to chafe at the restrictions on their lives, no longer so convinced of Singapore’s fragility, and less afraid of the consequences of criticising the government.
They resented above all that many people, despite a much-vaunted compulsory savings scheme, did not have enough money for their retirement. And they blamed high levels of immigration for keeping their wages down and living costs up. This was a consequence of a unique failure among Mr Lee’s many campaigns to make Singaporeans change their ways. He succeeded in creating a nation of Mandarin speakers who are politer than they used to be and neither jaywalk nor chew gum; but he could not make them have more children. In the early 1980s he dropped his “stop at two” policy and started to encourage larger families among the better-educated. But, three decades later, Singaporean women have as low a fertility rate as any in the world.
The hereditary principle
The “setback” of the 2011 election led Mr Lee into the final stage of retirement. In 1990 he had moved from prime minister to “senior minister”, and in 2004 to “minister mentor”. Now he left the cabinet, but remained in parliament. By then, Singapore’s prime minister for seven years had been Lee Hsien Loong, his son. The Lee family would sue anyone who hinted at nepotism. And for the elder Mr Lee, talent was obviously inherited. “Occasionally two grey horses produce a white horse, but very few. If you have two white horses, the chances are you breed white horses.”
Such ideas, applied ethnically, veer close to racism. The stream of distinguished Western visitors who trooped to see Mr Lee in Singapore would steer clear of such touchy areas. They preferred to seek his views on the rise of China or America’s decline. They also admired the comfort and the economic success of Singapore, and sought his advice on how to replicate it. Meanwhile, the control and good “social order” there attracted admirers, too, including Chinese leaders, notably Deng Xiaoping, who was, like Mr Lee, a member of the Hakka Chinese minority. Thus a man who was both a scourge of communists at home and a critic of Western decadence and its wishy-washy idealism was revered as a geopolitical sage in China and the West alike. What, he must have wondered, if fate had allotted him a superpower instead of a city-state?

The Economist.