Should Local Governments in Nigeria be Scrapped?

Precisely 774 Local Governments exists today in Nigeria but it doubtful indeed if these local governments have lived up to expectations in the development of our country Nigeria. Three tier of government as inherited from the British have come under heavy criticisms from the citizens of Nigeria some of who are now angrily suggesting that the three tier of government be expunged from the nation’s system of government.

                                                                                                                           

A new and sad dimension in the elections of officers into the third tier have just begun, and it would seem that this government at the local levels have inherited from its sisterly federal arm of government the art of selection of candidates and political officers into positions. What happened in Lagos State clearly points to the fact that who should rule in the grass root government was absolutely a decision to be determined by the ruling party or reigning state government. Firstly, the road to the said election of officers for the Local Government began with the handpicking of candidates with absence of any known criteria in the party membership of Action Congress (AC) Action Congress became a model in this business.

No primaries were held, yet party representatives emerged from the blues and honourably defeated all other contestants. Sadly again, we the electorates did not who the candidates whom we had the option of voting for but suddenly began to see posters all around the walls of Lagos, funnily after first sets of posters of campaigners have been seen. We therefore began to wonder who the legitimate candidates of Action Congress were. It amount to the 8th wonder of the modern world if the results of the elections held is pointing to the fact that every of the candidates of Action Congress were acceptable to the generality of Lagosians and in all the localities not minding whether these candidates were known or not.

In the end announcements were made that Action Congress had swept councillorship and chairmanship positions available in the state. The pressmen who were at the event to cover this report and probably the Attorney General of the Federation can tell us more on the event. What this portends for democracy at the grass roots is better imagined than explained here for we all know perfectly well that Lagos serves as a model for all the states of the federation and an idea of emergence of candidates without primaries and candidates of any particular political party winning every available positions could be emulated much to our chagrin.

This brings us to the question of the relevance of the Local Government in Nigeria, time may not permit to delve into its functions as provided for by the constitution of the nation but the sincere ones among us can definitely tell that not one of any Local Government in existence in the country today can boast of making wholesome achievements in this regard. At best, the best vibrant Local Government Area in Lagos is set at seeking every means of extracting the residents of the state in the name of taxation without ever giving back to them.

Once caught on any road as a motorist in the state, what the very first information issued to you is go pay this form of tax for three years and come back for discussions pertaining to your vehicle, the main reason you have been nabbed right or wrong. One is also expected to pay tax even for the air he breaths in Lagos but the question is what do we get back from the Local Governments?

The status of certain settlements in the state are even confusing, for Festac and Satellite town made to sit under two different Local Governments in the state, analysts have the time have wondered whether Festac town posses Federal, State or Local Government status such that should warrant the payment of tenement rates, market rates and other forms of taxes. There are no cemeteries to repair or take care in the town to take care of, no provision of drinkable water, lights are not provided by either the state or the Local Governments yet the people are forcefully put under the oath of tax payment. No single court exists at the local level in the town. The maintenance of the Estate is not carried out by either the federal, state or Local Government yet the headquarters of the Amuwo Odofin Local Government is located in the town.

The Estate has some of the most deplorable roads in Lagos which now cannot be accessed during rainy seasons yet we are told we are under local government and need to pay our tenement rates and ground rents. This situation is very appalling to the residents of the Estate.

Local Governments have been described as money sharing ventures with no feasible purpose to carry out with nothing to show as there are lapses in administration worsened by lack of checks and balances. Many people in the country do not even know the counselors and chairpersons representing them, which is terrible.

The Federal Government should begin to take closer looks on this government at the grass roots and ensure that people at the rural areas benefit immensely with water, roads and other facilities, stringent efforts should also be made to articulate new and better means of carrying out elections at this level to effectively distribute fairness and equity to all the parties involved. Only these will answer whether the operation of Local Governments should be retained in the country. 

   

The Basics of Government Grants

Government grants are used by many people who are looking to get assistance with their businesses. While they can be helpful government grants aren’t given to everyone. Here’s a more in depth look at government grants.

A person who receives government grants for business will need to meet all of the obligations that the government poses to the person. Progress reports should be submitted often so that the government knows that it gave government grants to the right person.

The amount of money receive in government grants should be meeting the criteria that the government has. Even people who have declared bankruptcy can get government grants. As long as the person is over eighteen, pays taxes and is an American citizen that person can get government grants for business.

There are two main types of government grants. First, there are operating support grants that work to help operate and pay off general expenses with running a business. This is given when the government supports the goal of the organization. Second, there are program support government grants that are used to support both the procedures and processes that the business follows.

Here’s a look at some of the more specific types of government grants. First, there are planning grants that involving funding research and starting up new plans that the business will have.

Start-up grants are also popular government grants. These grants work to assist a business that is just opening up. A grant is generally given for a little over a year and will decrease in value every year after that because the government expects the business to grow over that time. The government will ask for progress on the start-up work, of course.

Equipment and facility grants are also used as government grants. These grants help to financing the physical space and materials needed for the business. The applicant for these government grants will need to explain how the materials will be necessary for the business. Progress reports will need to be sent over time.

Endowment grants are government grants for non-profit businesses. These grants help to raise funds for the work and services that the non-profit group provides. The interest of the endowment’s principal sum should stay the same so there will not be a need for the endowment grant to meet operating costs the business will have to handle.

Program related investments are the last of the government grants that are offered. These are loans at low interest given to non-profit groups that can be useful but will need to be paid back over time.

There are some government grants for individuals too. Scholarship grants are used to pay for a student’s college education without the student having to pay anything back, for instance.

No matter what government grant a person applies for that person will need to give progress reports regarding the work that the person is doing. This includes information every time the government asks for it involving how well the business is going with the money that was used in the government grants.

The Best Bachelor Degree Program To Get Into Government Contract Related Jobs

A job in any Government related sector is a dream for many people out there. However, getting into a Government related job was an uphill task in the earlier days. Things have changed a lot today. With the introduction of some Bachelor Degrees, getting into a Government job is very easy. The Government Contract Management is one such Bachelor Degree program to offer these best jobs in the Government related sectors.

What is taught in the Government Contract Management Program?

If you are interested in knowing how the Government operates, then the Government management degree programs are made for you. As the name indicates, the jobs will be basically managing different contracts done by the Government. For managing the different contracts, you should be well aware of the rules and regulations, complicated laws and different procedures laid by the Government and this will be taught in the Bachelor Degree programs for the Government Contract management. The Government contract degree programs cover in depth topics like contract standards and contract execution. On completion of this Bachelor degree program, the candidates will be able to implement Government Contracts in private and public companies. This career is almost equal to the management career opportunities and the candidates will be updated with the management skills too.

The Career Scope

The demand for Government Contract management professionals is never ending. Well trained candidates in Government contract management can seek job opportunities in private and public companies, city and county Governments, and nonprofit organizations. The positions available for well trained Government Contract Management professionals are high ranked and are termed as “Contract officers”. The process of writing proposals and Government contracts is a never ending process. It will be continued as long as there are new projects. Moreover, the management is considered as the backbone of success of any business or organization. For this reason the career scope in Government contract management is unlimited.

Where to study?

Selecting the best training school for studying Government Contract management will be a tough task. There are many training schools out there who offer the Government Contract management degree programs. However, when it comes to getting the best quality education the training schools in Virginia are the ones to look for. As already said, the jobs in Government Contract management require utmost knowledge about the rules and regulations and the Government procedures, which can be only taught by the well experienced faculty. The training schools in Virginia are well known to have some of the best faculty for the Government Contract management degree program.

There are many good reasons for options the training schools of Virginia to get trained in Government contract management. Just visit a Virginia training school today and explore the kick start your career in Government contract management.

Government Policies and International Voluntary Sector

There is an urgent need to put an end to distortions in social development and evolving institutionalised mechanisms of collaboration between the government and the NGOs and the people’s institutions.
CJ: SADAKET MALIK , 14 Oct 2008 Views:482 Comments:0
VOLUNTARY SOCIAL work, voluntarism, voluntary organisations, non governmental organisations (NGOs) not profit making organizations, religion based social development organisations, individual donors, philanthropy and corporate social development organisations have grown tremendously in the 21st century.

Similarly international developmental organisation like the World Bank, United Nations Development Programme (UNDP), United Nations International Children Education Fund (UNICEF), United Nations Environment Programme (UNEP), United Nations Industrial Development Organisation (UNIDO), World Trade Organisation (WTO), Food and Agriculture Organisation (FAO), Asian Development Bank (ADB), Japan International Cooperation Agency (JAICA), Department Fund for International Development (DFID), Canadian International Development Agency (CIDA), Swedish International Development Agency (SIDA), United Nations Economic, Social Commission for Asia and Pacific (UNESCAP) and many other organisations are relentlessly campaigning for the cause of the social development.

Under United Nations systems several international conventions are being held, several laws are being promoted, several policies are being evolved and several projects are being implemented in various areas like the human rights, education, health, natural resources, development and environment.

The government of India and many governments of various nations of the world like South Africa, China, Pakistan, Bangladesh, Indonesia, Malaysia, Thailand, Philippines, Uganda, Zambia and Mexico have enacted several laws, established various government departments, evolved policies, and created schemes for the cause of social development.

Though social development has emerged as a very important sector in 21st century there are no institutionalised mechanisms of collaboration of the government and the NGOs. The need of the hour is to evolve long term, sustainable and institutionalised collaboration between the government and NGOs.

The government of India has prepared and released a draft national policy on NGOs, incorporating the areas of collaboration of the government and NGOs. The Planning Commission of India and various ministries of the government of India are working on the modalities of collaboration between the government and the NGOs.

Similarly the government of Andhra Pradesh on an inn
ovative approach given by us has formed a state level coordination committee of government officials and NGOs headed by the chief minister for promoting the coordination between the government and the NGOs. On the same lines district level coordination cells have been formed headed by the district in-charge ministers with collectors, officials and NGOs as members. Government orders are issued for frequent meeting of the committees and evolving the mechanisms of collaboration between the government and the NGOs. (GOMS No 28 of government of AP enclosed)

There is imminent need for the government of India and various state governments to release the national policy as well as the state policies for institutionalised mechanisms of collaboration between the government and the NGOs, on the lines of the National Policy of the government of India.

The government of India is promoting the work, projects and involvement of NGOs in a big way. The Union Ministry of Rural Development has established Council for Advancement of Peoples Action and Rural Technology (CAPART) and is promoting the NGO sector in a big way.

Rural Development Department in many schemes like the Integrated Rural Development Programme (IRDP). Drought Prone Areas Programme (DPAP), Development of Women and Children in Rural Areas (DWCRA), Swarna Jayanti Swarajgor Yojana (SJSGY) National Rural Employment Guarantee Scheme (NREGS), Watershed Development and in many other schemes has elaborately issued guidelines, with specific reference to involvement of the NGOs in implementation of various schemes.

Rural development department through National Waste Lands Development Board have issued guidelines, focusing on the importance of participation of the people and involvement of NGOs in implementation of the schemes.

Similarly, several Ministries like Ministry of Human Resources Development, Ministry of Environment and Forest, Ministry of Social Justice and Empowerment, Ministry of Women and Child Welfare, Ministry of Tourism, Ministry of Labour, Ministry of Agriculture among others have issued guidelines for implementation of the schemes, with focus on peoples participation and participation of NGOs in implementation of thousands of schemes of the government of India.

On the same lines, various state governments have issued government orders and guidelines for people’s participation and participation of NGOs in implementation of various schemes.

The government of India through various ministries has been funding the NGOs to a tune of Rs. 10,000 corers per annum for implementation of various schemes. CAPART and various ministries have evolved schemes to be funded to the NGOs for implementation in various areas concerning human and social development of people. Similarly several schemes are also being funded in natural resources development and environment.

Various ministries of the government of India have evolved formats, prescribed procedures, and evolved inspection and monitoring mechanisms for effective implementation of the schemes being funded in the NGOs sector. All the details of grants in aid being sanctioned to the project of the NGOs are being made available on the websites of the respective ministries of the government of India.

Similarly World Bank, DFID and various funding agencies have also evolved mechanisms, procedures for inspection, assessment, sanction, monitoring and evaluation of grant in aid projects to the NGOs.

In addition to the above, International Development Agencies like Action Aid, Plan International, Oxfam, CCF, Leonard Chesire, CARE and several other international donor agencies have also evolved mechanisms and guidelines for assessment, sanction, implementation, monitoring and evaluation of projects which require grants in aid. They have also prescribed formats for donor service reporting and displaying on websites.

While the international scenario, and national scenarios are very encouraging all is not well in collaboration of the government and the NGOs in social development.

Some of the distortions and recent trends in a few states of India are to implement the projects of social development with-out any collaboration between the government and the NGOs. People’s participation and participatory development is a distant dream which is yet to be realized.

There is an urgent need to put an end to distortions in social development and evolving the institutionalised mechanisms of collaboration between the government and the NGOs and the people’s institutions. There is the malaise among some organisations to be excessively dependent on foreign aid. This can be somewhat offset if our business houses start contributing more to the voluntary sector than they do now. Some voluntary organisations also tend to be individual-centric with little internal democracy and sometimes transparency. Such organisations find it difficult to outlast their founder. There is also a need for greater cooperation among NGOs themselves. Together, they can achieve much more than if they choose to operate in their own small autonomous area.

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Corporate Governance

Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.

Corporate governance is a multi-faceted subject.[1] An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focus on the impact of a corporate governance system in economic efficiency, with a strong emphasis on shareholders welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world (see section 9 below).

There has been renewed interest in the corporate governance practices of modern corporations since 2001, particularly due to the high-profile collapses of a number of large U.S. firms such as Enron Corporation and Worldcom. In 2002, the US federal government passed the Sarbanes-Oxley Act, intending to restore public confidence in corporate governance.

In A Board Culture of Corporate Governance business author Gabrielle O’Donovan defines corporate governance as ‘an internal system encompassing policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity and integrity. Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards policies and processes’.

O’Donovan goes on to say that ‘the perceived quality of a company’s corporate governance can influence its share price as well as the cost of raising capital. Quality is determined by the financial markets, legislation and other external market forces plus the international organisational environment; how policies and processes are implemented and how people are led. External forces are, to a large extent, outside the circle of control of any board. The internal environment is quite a different matter, and offers companies the opportunity to differentiate from competitors through their board culture. To date, too much of corporate governance debate has centred on legislative policy, to deter fraudulent activities and transparency policy which misleads executives to treat the symptoms and not the cause.’[2]

It is a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, and complying with the legal and regulatory requirements, apart from meeting environmental and local community needs.

Report of SEBI committee (India) on Corporate Governance defines corporate governance as the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company.” The definition is drawn from the Gandhian principle of trusteeship and the Directive Principles of the Indian Constitution. Corporate Governance is viewed as ethics and a moral duty.

Impact of Corporate Governance

The positive effect of good corporate governance on different stakeholders ultimately is a strengthened economy, and hence good corporate governance is a tool for socio-economic development.[4] After East Asian economies collapsed in the late 20th century, the World Bank’s president warned those countries, that for sustainable development, corporate governance has to be good. Economic health of a nation depends substantially on how sound and ethical businesses are.

Parties to corporate governance

Parties involved in corporate governance include the regulatory body (e.g. the Chief Executive Officer, the board of directors, management and shareholders). Other stakeholders who take part include suppliers, employees, creditors, customers and the community at large.

In corporations, the shareholder delegates decision rights to the manager to act in the principal’s best interests. This separation of ownership from control implies a loss of effective control by shareholders over managerial decisions. Partly as a result of this separation between the two parties, a system of corporate governance controls is implemented to assist in aligning the incentives of managers with those of shareholders. With the significant increase in equity holdings of investors, there has been an opportunity for a reversal of the separation of ownership and control problems because ownership is not so diffuse.

A board of directors often plays a key role in corporate governance. It is their responsibility to endorse the organisation’s strategy, develop directional policy, appoint, supervise and remunerate senior executives and to ensure accountability of the organisation to its owners and authorities.

The Company Secretary, known as a Corporate Secretary in the US and often referred to as a Chartered Secretary if qualified by the Institute of Chartered Secretaries and Administrators (ICSA), is a high ranking professional who is trained to uphold the highest standards of corporate governance, effective operations, compliance and administration.

All parties to corporate governance have an interest, whether direct or indirect, in the effective performance of the organisation. Directors, workers and management receive salaries, benefits and reputation, while shareholders receive capital return. Customers receive goods and services; suppliers receive compensation for their goods or services. In return these individuals provide value in the form of natural, human, social and other forms of capital.

A key factor in an individual’s decision to participate in an organisation e.g. through providing financial capital and trust that they will receive a fair share of the organisational returns. If some parties are receiving more than their fair return then participants may choose to not continue participating leading to organizational collapse.

Internal corporate governance controls

Internal corporate governance controls monitor activities and then take corrective action to accomplish organisational goals. Examples include:

Monitoring by the board of directors: The board of directors, with its legal authority to hire, fire and compensate top management, safeguards invested capital. Regular board meetings allow potential problems to be identified, discussed and avoided. Whilst non-executive directors are thought to be more independent, they may not always result in more effective corporate governance and may not increase performance.[5] Different board structures are optimal for different firms. Moreover, the ability of the board to monitor the firm’s executives is a function of its access to information. Executive directors possess superior knowledge of the decision-making process and therefore evaluate top management on the basis of the quality of its decisions that lead to financial performance outcomes, ex ante. It could be argued, therefore, that executive directors look beyond the financial criteria.

Remuneration: Performance-based remuneration is designed to relate some proportion of salary to individual performance. It may be in the form of cash or non-cash payments such as shares and share options, superannuation or other benefits. Such incentive schemes, however, are reactive in the sense that they provide no mechanism for preventing mistakes or opportunistic behaviour, and can elicit myopic behaviour.

External corporate governance controls

External corporate governance controls encompass the controls external stakeholders exercise over the organisation. Examples include:

demand for and assessment of performance information (especially financial statements)

debt covenants

government regulations

media pressure

takeovers

competition

managerial labour market

telephone tapping

 

Codes and guidelines

Corporate governance principles and codes have been developed in different countries and issued from stock exchanges, corporations, institutional investors, or associations (institutes) of directors and managers with the support of governments and international organizations. As a rule, compliance with these governance recommendations is not mandated by law, although the codes linked to stock exchange listing requirements may have a coercive effect.

For example, companies quoted on the London and Toronto Stock Exchanges formally need not follow the recommendations of their respective national codes. However, they must disclose whether they follow the recommendations in those documents and, where not, they should provide explanations concerning divergent practices. Such disclosure requirements exert a significant pressure on listed companies for compliance.

In the United States, companies are primarily regulated by the state in which they incorporate though they are also regulated by the federal government and, if they are public, by their stock exchange. The highest number of companies are incorporated in Delaware, including more than half of the Fortune 500. This is due to Delaware’s generally business-friendly corporate legal environment and the existence of a state court dedicated solely to business issues (Delaware Court of Chancery).

Most states’ corporate law generally follow the American Bar Association’s Model Business Corporation Act. While Delaware does not follow the Act, it still considers its provisions and several prominent Delaware justices, including former Delaware Supreme Court Chief Justice E. Norman Veasey, participate on ABA committees.