§ 3.48 p.m.
LORD LLOYDMy Lords, yesterday, in response to a question by the noble Lord, Lord Ogmore, I promised him that I would make a statement this afternoon. With your Lordships' permission, I should now like to make that statement, which is similar to one being made by my right honourable friend in another place at this moment. The statement is as follows:
§ A dispute has arisen in the Eastern Region of Nigeria about the relationship between the Premier, Dr. Azikiwe, and the African Continental Bank Limited. 116 This Bank was founded by Dr. Azikiwe. On assuming office the Premier informed the Governor that he had resigned his directorship of the Bank. He and enterprises with which he has been associated are still shown as large shareholders in it. My right honourable friend has been informed that during 1955, £877,000 of public money was invested in the Bank (and other large sums deposited with it) out of funds made available from Marketing Board reserves to the Finance Corporation, which the Eastern Region Government had established. My right honourable friend has also been informed that following this investment the Bank was a party to certain documents contemplating that the Premier should be life Chairman of the Bank and purporting to give him the right to nominate certain other directors.
§ As long ago as last November, my right honourable friend took the matter up with the Premier in London and they have been in correspondence since. In April of this year, Mr. Eyo, a member of the Regional House of Assembly, who had until then been the Government's Chief Whip in that House and Deputy Speaker and Chairman of the Regional Development Corporation, tabled a motion in the House relating to the association of the Premier with the Bank. He subsequently called for the appointment of an independent Commission of inquiry. Dr. Azikiwe has now instituted libel actions against Mr. Eyo and certain newspapers. On the 14th July, after receiving a report from the Governor, my right honourable friend sent a personal message through him inviting Dr. Azikiwe to agree to his appointing a Commission of Inquiry.
§ My right honourable friend considered it essential that these matters should be fully cleared up before the next Nigerian constitutional Conference. This Conference will consider further constitutional advance for Nigeria, and in particular the grant of regional self-government to those Regions that desire it, in accordance with the undertaking given by Her Majesty's Government in 1953 as recorded in paragraph 28 of the London Conference Report. My right honourable friend pointed out that such a Commission was appointed in the United Kingdom when last the conduct of a Minister was called in question. My right honourable friend 117 suggested that he should appoint the Commission, as at least one of the matters to be inquired into is reserved to the Federal Government arid the Governor of the Region is not competent to appoint a Commission to inquire into federal matters.
§ On July 16 my right honourable friend received from the Premier a message couched in terms which I must confess disappointed him. The Premier's message, which has been quoted extensively in the Press, implied a rejection of my right honourable friend's invitation. Shortly afterwards my right honourable friend was informed that the Premier and his colleagues, after considering his message, advised the Governor of the Region to appoint a Commission with a sole Commissioner of their own choosing. Such a Commission could not inquire into matters reserved to the Federal Government, of which banking is one. On July 18 my right honourable friend made a further approach to Dr. Azikiwe explaining this again. He also said that, although it would riot he proper for the Premier to suggest the full membership of the Commission, since he would be personally involved in its proceedings, he (that is, my right honourable friend) would nevertheless be prepared to invite the person whom the Premier had proposed as sole Commissioner to he a member of it. My right honourable friend said this as he was satisfied that the person proposed was suitable for appointment.
§ I regret to say that the Premier rejected this second approach also. Instead, he and his colleagues now advised the Governor to appoint a Committee of Inquiry and nominated three persons to serve on it. Such a committee would have no powers. It could not compel the attendance of witnesses or hear evidence on oath, and its investigations of matters reserved to the Federal Government would be of doubtful propriety. The Governor did not consider that to proceed in this way was, in the words of his Royal Instructions "in the interests of public faith" and informed the Ministers that he felt unable to act on their advice. This decision of the Governor, who has a most difficult and invidious task, has my right honourable friend's unqualified support.
§ In these circumstances my right honourable friend has decided that in order 118 to secure a speedy, impartial and full investigation as to the investments made in the Bank, and the grave allegations that have been made—matters closely affecting the conduct of Government—it is necessary that he should now appoint a Commission of Inquiry. He has invited Sir Stafford Foster-Sutton, the Chief Justice of the Federation of Nigeria, to he Chairman. The Chief Justice has accepted the invitation. The names of the other members and the terms of reference will be announced as soon as possible. I earnestly hope that the Premier and his colleagues will accept the decision my right honourable friend has reached as in their own best interests and in the best interests of public life in Nigeria as a whole. f need hardly say that there is no question of any attempt on the part of Her Majesty's Government to impose a British banking monopoly in Nigeria, or to dictate financial policy.
§ The Commission will, I am sure, complete its work and report with all possible speed, but I am afraid that its appointment must almost inevitably mean some delay in convening the Constitutional Conference which was to have met on September 19. I hope that this will not be long, and my right honourable friend has asked the other Nigerian Governments to accept this delay, regrettable though it is to all of us, because in the interests of the territory as a whole these serious allegations must first be fully investigated. At the same time my right honourable friend has made it clear to them that Her Majesty's Government stand by the undertaking given in 1953 about the grant of regional self-government to those Regions that desire it. I trust that after the Commission has reported we shall be able to resume our work together.
§ LORD OGMOREMy Lords, in view of the long and important statement that the noble Lord, Lord Lloyd, has made, perhaps I may be permitted to ask a few questions arising out of it in order to throw more light on this difficult matter. In the first place, may I ask the noble Lord whether it is not a fact that the Governor approved—indeed, suggested—the deposit of public funds in the African Federal Bank Limited, and after consulting the Federal Financial Secretary's Office at Lagos? Secondly, did not Dr. Azikiwe declare his interest in this Bank—which is the bank in question—before 119 being appointed a Minister in 1954? Thirdly, was not the original motion to deposit the first sum of public money in this Bank—namely, £30,000 —made by Mr. Eyo, the man who is now the objector to this practice? Fourthly, has not the Governor overruled the Speaker of the Eastern Region in constituting a Commission of inquiry whilst the case involving Dr. Azikiwe and Mr. Eyo is sub judice? Lastly, was not the suggestion of Dr. Azikiwe and his Eastern Regional Government at a certain stage that they should appoint a Commission of Inquiry consisting of a High Court Judge (a suggestion which was turned down by the Secretary of State) perfectly in order, as this was a Regional matter and the Regional Attorney General had so advised?
LORD REAMy Lords, before the noble Lord replies, may I add one more question? What is the present position of the Premier during the investigation of these serious allegations?
LORD LLOYDMy Lords, I have been asked a number of questions and I will do my best to reply to them, though noble Lords will appreciate that since the whole of this matter is sub judice I must exercise a certain caution over all I say. First of all, with regard to the noble Lord's allegations that the Governor approved of the investment of a sum of money in this Bank, it is perfectly true that he approved the principle. That confirms what I have already said—that it is not the policy, and never has been the policy, of Her Majesty's Government to try to set up a British banking monopoly in West Africa. But to say that the Governor approved in the circumstances of what has been done here is certainly not true. In so far as the Governor did or did not approve —in so far as the Governor's conduct in this matter is concerned—that is clearly a matter which falls under the general terms of reference of the Commission of Inquiry. That will all be gone into. He approved the principle, but that does not mean to say that he approved everything that was done. That is the first answer to the first question.
The second point was that the noble Lord suggested that Dr. Azikiwe had declared his interest. That is perfectly true, but the noble Lord will be aware of what 120 I said in the statement. if I may quote again the words that I used in the statement, may I remind the noble Lord of this:
My right honourable friend has also been informed that following this investment the Bank was a party to certain documents contemplating that the Premier should be life Chairman of the Bank and purporting to give him the right to nominate certain other directors.That is a matter which, so far as I know, was not declared at the time.Thirdly, the noble Lord has questioned the actions of Mr. Eyo. Whether Mr. Eyo did what the noble Lord alleges or not is something which will come out during the Commission. But the point is that Mr. Eyo has made grave allegations on which, as recent Chief Whip of the Party and close confidant of the Premier, he may be presumed to be in some position to comment. It is the view of my right honourable friend that grave allegations of this kind should not be made against any Minister without investigation, and I cannot see what harm there is that they should be investigated—on the contrary, it seems essential, for the sake of everybody, that they should be disposed of one way or the other.
Finally, the noble Lord suggested that the Governor acted improperly, overruling the Speaker. With great respect, I think the noble Lord is wrong. The Speaker ruled that the matter might not be discussed in the Legislative Assembly because of a libel action. That, of course, is a matter purely for the Speaker. My right honourable friend is advised that he has every power to appoint such a Commission of Inquiry as he thinks is desirable. That is not overriding the Speaker; that is a parallel action and has nothing to do with it. I think those were all the points raised by the noble Lord.
Dealing with the point raised by the noble Lord, Lord Rea, I may say that the last thing that my right honourable friend desires is that any Minister should resign or that he should not carry on as usual pending this Inquiry. Nothing has been proved one way or the other. This is an Inquiry to ascertain the truth or otherwise of some allegations that have been made. It is the proper thing to do—something which was done the last time such a situation arose in this country. That is why my right honourable friend has decided that, in the 121 interests of everybody, this Inquiry should be called.
§ LORD OGMOREMy Lords, is it not the fact that in the Report on Banking and Finance in Eastern Nigeria (Sessional Paper No. 4, 1956), most of these matters, the subject of my question, were raised and fully discussed? Is it not a fact that it would have been more appropriate if some of the matters which have come out as a result of my question had been included in the noble Lord's original statement?
LORD LLOYDMy Lords, I am sorry, but I am afraid I cannot quite agree with the noble Lord. I consider my original statement a fair, honest and straightforward statement of fact. I make no apology for it. I have nothing more to say on that.