Thursday, 31 August 2017

Ondo. State Former governor reply the speech made by the current governor

WE LEFT N20B- MIMIKO

Our attention has been drawn to the speech made by the Governor of

Ondo State, Mr. Rotimi Akeredolu on the state of finances inherited on

February 24, 2017. We are concerned by the figures in the speech and

feel obliged to put the records straight.

For the avoidance of any doubt, our administration left about

N20Billion in the coffers of the State at its exit on February 2017.

This include: N7.37.Billion in the Current Account; N7.53Billion as

Fixed Deposit; N1.2Billion in the MDG Account; $346,000 and

443,000Euro in the Domiciliary Account, including the N825million

Sure-P fund at the Local Government Account!

The above amount, most of which came late into our tenure was to be

used to offset a chunk of owed salaries before the then Accountant

General made a curious disappearance.

On figures listed as External Debt, it is necessary to state the

following. Our administration did not incur any foreign debt in all

its 8 years! Also, the External debt stock as at February 2017 was

US49,958,268.49, which (if translated at 1 US $ = N305) is

N15.23billion. All of these external debt stock was inherited from

previous administrations. Again, we did not contract any external loan

for all of our 8 years! Well aware of the fact that government is a

continuum, we continued to service the debts, some of which spanned

over twenty years.

Internal debt profile, we aver, stood at N53.159 billion comprising

mainly of salary bail out loan of N13.76billion, Excess Crude Account

loan N9.79 billion, CBN restructuring FGN Bond N4.13billion, CBN

budget support N7.5billion and Ondo State 7-Year bond of N17.6billion.

Of all the above listed indebtedness, only the Ondo State 7-Year Bond

was directly incurred by our government to build major infrastructure

across the State.

Yes, we experienced the sad reality of salaries arrears like almost

all the States of the federation. That is why unpaid salaries for the

period  August 2016 to Jan 2017 was N32.40billion, with N20.93 billion

owed State Government Workers and N11.469billion owed Local government

workers, including political appointees.

Even at that, it must also be clear that we left office on the 24th

February, 2017 while Federal Allocation for February 2017 salaries was

received by the incumbent Government on the 28th of February, 2017. We

could not have paid February salaries when we did not receive February

allocation before exit.

On Pensions, a sum of N4.8billion was said to be owed by the State

Government and N25.237billion by the local governments. We wonder

where these figures came from. At inception, our administration paid

N1.5billion out of outstanding pensions and gratuities. All the years

of our administration, monthly obligations to pensioners were

considered and paid as part of salaries! The N32.40billion salary

areas is therefore inclusive of obligations to pensioners, except

gratuity, which is owed both at the State and Local Government levels.

While we note that gratuities are outstanding, we state for the

benefit of all, that this is one sad development that was not peculiar

to Ondo State alone. Almost all States of the federation have

defaulted on gratuities in the last ten years or more.

On yet another point raised in the speech, we are interested in

knowing what N39.740 billion, said to be contractors liability means,

if outstanding requests at the Accountant Generals office is

N5.45billion. We assume this may represent contracts awarded by

previous governments which were yet to be completely executed since no

clear information was offered in the speech on this figure. What we

know is that if this were so, such figures can not be considered as

debts until such contracts are executed at specified milestones,

stages before which payments are not due. There can only be debts upon

performance. What can be considered a debt, in all good conscience,

are the outstanding requests at the Accountant Generals Office.

We urge the government and interested citizens of our state to avail

themselves of the true state of our indebtedness from the Debt

Management Office and the Nigeria Extractive Industries Transparency

Initiative (NEITI). The reports are clear and unambiguous about the

fact that Ondo State remained the least borrowed of the Six South

Western States and of the 9 Oil Producing States as at our

administrations exit in February, 2017. This, in all modesty, must say

a lot about our debt management record.

We have a duty to set the records straight for posterity. And this we

have done with no malice and or ill-feelings.

Signed

Hon. Kayode Akinmade

Former Commissioner of Information

On Thu, 31 Aug 2017 at 15:23, akinmade kayode

<kayode_akinmade@yahoo.com> wrote:

WE LEFT N20B-

MIMIKO

Our attention has been drawn to the speech made by the Governor of

Ondo State, Mr. Rotimi Akeredolu on the state of finances inherited on

February 24, 2017. We are concerned by the figures in the speech and

feel obliged to put the records straight.

For the avoidance of any doubt, our administration left about

N20Billion in the coffers of the State at its exit on February 2017.

This include: N7.37.Billion in the Current Account; N7.53Billion as

Fixed Deposit; N1.2Billion in the MDG Account; $346,000 and

443,000Euro in the Domiciliary Account, including the N825million

Sure-P fund at the Local Government Account!

The above amount, most of which came late into our tenure was to be

used to offset a chunk of owed salaries before the then Accountant

General made a curious disappearance.

On figures listed as External Debt, it is necessary to state the

following. Our administration did not incur any foreign debt in all

its 8 years! Also, the External debt stock as at February 2017 was

US49,958,268.49, which (if translated at 1 US $ = N305) is

N15.23billion. All of these external debt stock was inherited from

previous administrations. Again, we did not contract any external loan

for all of our 8 years! Well aware of the fact that government is a

continuum, we continued to service the debts, some of which spanned

over twenty years.

Internal debt profile, we aver, stood at N53.159 billion comprising

mainly of salary bail out loan of N13.76billion, Excess Crude Account

loan N9.79 billion, CBN restructuring FGN Bond N4.13billion, CBN

budget support N7.5billion and Ondo State 7-Year bond of N17.6billion.

Of all the above listed indebtedness, only the Ondo State 7-Year Bond

was directly incurred by our government to build major infrastructure

across the State.

Yes, we experienced the sad reality of salaries arrears like almost

all the States of the federation. That is why unpaid salaries for the

period  August 2016 to Jan 2017 was N32.40billion, with N20.93 billion

owed State Government Workers and N11.469billion owed Local government

workers, including political appointees.

Even at that, it must also be clear that we left office on the 24th

February, 2017 while Federal Allocation for February 2017 salaries was

received by the incumbent Government on the 28th of February, 2017. We

could not have paid February salaries when we did not receive February

allocation before exit.

On Pensions, a sum of N4.8billion was said to be owed by the State

Government and N25.237billion by the local governments. We wonder

where these figures came from. At inception, our administration paid

N1.5billion out of outstanding pensions and gratuities. All the years

of our administration, monthly obligations to pensioners were

considered and paid as part of salaries! The N32.40billion salary

areas is therefore inclusive of obligations to pensioners, except

gratuity, which is owed both at the State and Local Government levels.

While we note that gratuities are outstanding, we state for the

benefit of all, that this is one sad development that was not peculiar

to Ondo State alone. Almost all States of the federation have

defaulted on gratuities in the last ten years or more.

On yet another point raised in the speech, we are interested in

knowing what N39.740 billion, said to be contractors liability means,

if outstanding requests at the Accountant Generals office is

N5.45billion. We assume this may represent contracts awarded by

previous governments which were yet to be completely executed since no

clear information was offered in the speech on this figure. What we

know is that if this were so, such figures can not be considered as

debts until such contracts are executed at specified milestones,

stages before which payments are not due. There can only be debts upon

performance. What can be considered a debt, in all good conscience,

are the outstanding requests at the Accountant Generals Office.

We urge the government and interested citizens of our state to avail

themselves of the true state of our indebtedness from the Debt

Management Office and the Nigeria Extractive Industries Transparency

Initiative (NEITI). The reports are clear and unambiguous about the

fact that Ondo State remained the least borrowed of the Six South

Western States and of the 9 Oil Producing States as at our

administrations exit in February, 2017. This, in all modesty, must say

a lot about our debt management record.

We have a duty to set the records straight for posterity. And this we

have done with no malice and or ill-feelings.

Signed

Hon. Kayode Akinmade

Former Commissioner of Information