House resolves to conduct a public hearing on the actions of FRCN


Hon Leo Ogor

No section of the Act sets tenure for non-profit organizations in Nigeria”.-Hon. Leo Ogor, Minority Leader of House

The House of Representatives has passed a resolution mandating its Committee on Delegated Legislations to conduct a comprehensive Public Hearing on the activities of the Financial Reporting Council of Nigeria (FRCN). The resolution which was passed during plenary session on Wednesday 11, 2017, came on the heels of a motion on the urgent need to stem the controversy occasioned by the interpretation and misapplication of the FRCN Codes, moved by the Minority Leader of House, Hon. Leo Ogor. He argued that the FRCN Act, 2011 was enacted by the National Assembly to ensure transparency, probity and accountability for corporate governance. Adding “that no section of the Act sets tenure for non-profit organizations in Nigeria”.

The Delta born Lawmaker further clarified that the FRCN may have abused its regulatory powers by stepping outside its statutory mandate to stipulate tenures for non-profit organizations.” This could only be done by an overzealous Chief Executive Officer”, he stated. He informed that the primary concern of the Council should be the protection of investors and stakeholders interest and to ensure healthy corporate governance practices in both the public and private sectors of the economy. But Hon. Ogor noted that rather the Council seemed to have usurped the powers of the National Assembly as enshrined in section 4 of the 1999 Constitution of the Federal Republic of Nigeria, when it chose to formulate its own code as it relates to Heads of non-profit making organizations.

He implored the Chamber to treat the matter as urgent as well as seize the opportunity to ensure that the power of delegated legislations donated to some government institutions by the law are checked and not abused under whatever guise. Many Members contributed to the debate condemning the arbitrary misinterpretation or misapplication of the codes of corporate governance. They charged that Chief Executive of these government agencies, must at all times ensure that the application of their regulatory powers follow due process and are consistent with the Laws that granted such powers in the first instance.

In another development during Wednesday sitting, the House through a resolution implored the Federal Government to provide sufficient funds for the nation’s Fire fighting Agency and to extend the presence of the Fire Service in all the Local Government Areas and communities across the country. The resolution which also mandated the Committee on Interior to ensure implementation was at the instance of a motion moved on the floor of the House by Hon. Joseph E. Edionwele. He informed that poor funding plus structural and operational modalities of the Federal Fire Service have greatly hampered its efficiency and effectiveness thereby resulting in colossal losses in the event of fire outbreak. 

Picture: Hon. Leo Ogor, Minority Leader of House of Representative