Corporate Social Responsibility: July 2020

Tuesday, July 21, 2020

Corporate Social Responsibility: CRISIS OF CSR IN NDDC

Corporate Social Responsibility: CRISIS OF CSR IN NDDC: CRISIS OF CSR IN NDDC The Niger Delta Development Commission (NDDC) Act of 2000 came into existence with much row after the then Presid...

CRISIS OF CSR IN NDDC

CRISIS OF CSR IN NDDC

The Niger Delta Development Commission (NDDC) Act of 2000 came into existence with much row after the then President Obasanjo declined assent as the legislators vetoed him and passed the bill after 30 days, through s.58(2) of the 1999 Constitution.

The purpose of the Act is Corporate Social Responsibility (CSR) with funding for replenishment of values devastated by the activities of oil exploration in the entire area, and the development of their human and material resources. It was borne out of years of agitation by victims and moral guilt on the part of governments, after many including the Ogoni nine had paid the supreme price. The bone of contention was the reckless neglect of the goose that laid the golden eggs versus federal governments that earned $32.6 billion (2018) annual revenue from oil and taxes, accounting for about 65% of the nation’s GDP.

Interpreting the purposes/causes of NDDC has become controversial as that depends on who you ask to interpret it. Recently the detailed interpretation has become more important than how the huge sums budgeted annually have gone to the realisation of the lofty ideals of development of the area. The other arm of the controversy is how evenly has the commission distributed the resources across the area?

To find answers to these numerous issues many different parameters have been applied i.e size of annual budget against the percentage of implementation; Contracts awarded and awardees; what formula for distribution of palliatives and disbursements? All these criteria and more could only be appreciated through the framework of accountability and transparency of operations.

The recent forensic audit called for by the presidency perhaps was induced by the need for accountability and transparency. The Niger Delta Minister, Senator Godswill Akpabio fired the first shot when he dropped the acting managing director, Joy Nunieh. The allegations and counter allegations are not for discussion here, but it triggered off serious eye-brows and publicity on NDDC which has operated several years without , audit of such dimension.

CSR is a management creation. It is human idea of preserving the economy environment and the vulnerable. The total budget of the commission since its inception in 2000 according to the presidency sources is ‘at least N15 trillion’. What have the leaders in the commission achieved in those years with that sum? Are they commensurate with the fund endowed with the institution? These questions are not only on the lips of the President and his minister, NDDC Committee Members but also on the lips of concerned Nigerians who voted for their leaders to better their lots.

CSR is not perfect just as its human creator. But it is a device that has become indispensable part of modern economy, wielding power and influence across the globe. Accountability and transparency are critical to its survival. Therefore the role of civil society in order to sustain it and avoid crisis is among other things, to ensure that disbursements go to avowed causes/purposes.

Iyke Ozemena Esq

Corporate Attorney/Consultant

IKECHUKWU O. ODOEMELAM & CO

#corporateleaders

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Saturday, July 18, 2020

Corporate Social Responsibility: FEDERAL GOVT’S ECONOMIC SUSTAINABILITY PLAN

Corporate Social Responsibility: FEDERAL GOVT’S ECONOMIC SUSTAINABILITY PLAN: FEDERAL GOVT’S ECONOMIC SUSTAINABILITY PLAN - Iyke Ozemena Esq Corporate Attorney/Consultant IKECHUKWU O. ODOEMELAM & CO #cor...

Wednesday, July 1, 2020

Corporate Social Responsibility: FOUNDATION REGISTRATION PROCEDURES

Corporate Social Responsibility: FOUNDATION REGISTRATION PROCEDURES: FOUNDATION REGISTRATION PROCEDURES Registering a foundation starts with the decision of the owner as to what cause(s) to pursue: civil r...

FOUNDATION REGISTRATION PROCEDURES

Registering a foundation starts with the decision of the owner as to what cause(s) to pursue: civil rights, health, poverty/hunger eradication, education etc. This decision would be part of the description of the foundation in its constitution.

When the Swedish Alfred Nobel formed his ‘’Nobel Peace Foundation’’ he made that firm decision in his will that, never again should the world encourage the development of destructive weapon like dynamite which he invented at the detriment of the accidental death of his son in his laboratory.

So global peace is the cause for which Nobel Foundation was established. We are also aware that a few Africans have qualified for this award, including Nigeria’s Prof. Wole Soyinka.

Another critical decision after cause is whether to go for Incorporated trustees by Guaranty or trustees selected/appointed by the owner. These should be in the constitution, produced in several copies. Copies of resolutions extracted from a meeting(s) where such resolutions were passed should be made in several copies.

An example of cause(s) is that of Alhaji Aliko Dangote Foundation which states: ‘’The Dangote Foundation is dedicated to adding value to people’s lives across Africa by facilitating health, education, and empowerment initiatives.’’ The use of this example is because the causes are many and large, an indication that the resources of the foundation would be very large too. The size of the foundation in terms of cause(s) and resources is determined by the size of the pocket of the owner. Although not necessarily in all cases.

Then the legal processes. You need to collect Incorporation Forms to be completed and signed by the owner and trustees with passport photographs etc. When in doubt it is recommended that Legal Practitioner should be consulted for these services which can be complex in accordance with s.673 Part C, of the Companies and Allied Matters Act 1990 as amended.

Iyke Ozemena Esq

Corporate Attorney/Consultant

IKECHUKWU O. ODOEMELAM & CO

#corporateleaders