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Local government

CHRAN Warns Against Financial Profligacy in Management of Host Community Development Trust Funds

Strategic Insights

— 1 min read

The Center for Human Rights and Accountability Network (CHRAN) has cautioned the Board of Trustees (BoT) managing the Host Community Development Trust Funds (HCDTF) in Akwa Ibom State against financial profligacy and corruption. The warning follows an assessment tour of ongoing projects in Mkpat Enin Local Government Area (LGA), where CHRAN found evidence of responsible spending by the EMOIMEE trust fund, established under the Petroleum Industry Act (PIA) in 2021. The trust fund, managed by Seplat Energy, has been executing life-enhancing projects in education, rural electrification, health, social, and empowerment programs in line with the PIA mandate. However, CHRAN emphasized the need for continued transparency and accountability in the distribution of funds and selection of contractors to ensure effective utilization of the allocated resources.

Key Takeaways:

  • CHRAN has warned the Board of Trustees (BoT) managing the Host Community Development Trust Funds (HCDTF) in Akwa Ibom State against financial profligacy and corruption.
  • The EMOIMEE trust fund, established under the Petroleum Industry Act (PIA) in 2021, has been executing life-enhancing projects in education, rural electrification, health, social, and empowerment programs.
  • CHRAN has given the BoT a pass mark for exhibiting transparency and accountability in project distribution, contractor selection, and execution.
  • The trust fund has built toilet facilities in line with the WASH policy of the state government, promoting standard sanitation and hygiene.
  • The goal is to achieve an Open Defecation Free (ODF) environment by 2030.
  • CHRAN has emphasized the need for continued transparency and accountability in the distribution of funds and selection of contractors.
  • EMOIMEE is a public institution used by Seplat Energy to execute projects for its oil-bearing host community.
  • REV. Obot Ekanem, on behalf of the management committee of EMOIMEE, has assured of timely completion of all projects and delivery to affected communities.

Statistics:

  • Three percent derivation funds allocated to the HCDTF under the PIA.
  • 2021 - the year the Petroleum Industry Act was enacted.
  • 2030 - the target year for achieving an Open Defecation Free (ODF) environment.

Sources:

  • The Center for Human Rights and Accountability Network (CHRAN).
  • The Petroleum Industry Act (PIA).
  • Seplat Energy.
  • Ministry of Environment, Akwa Ibom State.

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