Fayemi got N163.3bn federal allocation, borrowed N49.5bn in four years, witness tells probe panel
...N18.7bn FAAC deductions not remitted
The Judicial Commission of Inquiry set up by the Ekiti State government to look into the state’s finances from October 2010 to September 2014 commenced its proceedings today at the Magistrate Court 1, Ado-Ekiti, with the first witness disclosing that a total sum of N163, 267,220,048.07 was received from the federation account while N49, 483, 156,394.80 was borrowed by the Fayemi’s government.
The first witness, Mr. Kehinde Odunayo, who is from the Accountant General’s office read to the commission month by month statutory allocation received by the government during the tenure of Dr. Kayode Fayemi and tendered necessary documents to back up his claims.
Mr Odunayo, who was led in evidence by counsel to the Commission, Mr Sunday Bamise listed the banks from which the 20 different loans were obtained.
Another witness, Mr. Arogundade Victor, who is the Director of State and Finances, of the Ministry of Finance gave details of loans in the state between 2010-2014 which was tally with the one tendered by the witness from the office of Accountant General.
The witnesses also alleged that a total of N18billion deductions were not remitted by the government in the period under review.
Victor tendered various documents to support his claims and the documents were admitted by the panel as exhibits.
The witnesses , in their testimonies, urged the commission to admit as evidence their statements on oath deposed to on July 26, 2017 as the financial position of the state between October, 2010 and September, 2014,
when Fayemi was in charge.
The foregoing documents were admitted as Exhibits A 1 and B1 respectively.
Kehinde, Deputy Director, Fund management in AG’s office tendered a document entitled: “Total Deductions from FAAC allocations in the time under review, where it was revealed that a total of N18, 684, 785, 314,
75 was allegedly deducted in 48 months under the last administration and this was tendered and admitted as exhibit A2.
The witness revealed that the state indebtedness under Fayemi in terms of loans and bond was a sum N49 billion, with N25b taken as bond from the capital market and N24 billion as commercial loans from 10 banks .
A document that was admitted as Exhibit A 13 revealed that the level of loan repayment when Fayemi left the office was N 42, 691, 410,210, 37.
He said “as at the time Fayemi left office in 2014, that debt incurred from outstanding workers’ emoluments , comprising pensions, subventions to schools, among others was N13, 819,928,727,92.”
Shedding lights on how the money was expended, Arogundade tendered a document that indicated how the N25 billion bond was expended.
The breakdown of the N20b first tranch of the bond indicated that a sum of N468 million was to be spent on Ero Dam, Ureje Dam, N500m, building of the school of Agriculture, N750m, Road Construction, N2.6billion, building
of Lagos Liaison office, N500m, building of modern market in Ado Ekiti, N2b, building of new government house, N633 million new governor’s office, N400m, Ikogosi Warm Spring, N1.5b, Civic Centre, N1 billion, totaling N19.3
“The N5b second tranch of the bond was broken down thus: construction of Ilawe-Igbara Odo-Ibuji road, N894m, Ikole-Ijesa Isu road, N1.34billion, Ewu Bridge, N20m, State Pavilion, N1.553b and Ire Resuscitation of Ire Burnt Brick, N966m , totaling N4.84b,” the documented said.
The judicial commission of inquiry has adjourned till Wednesday, August 30, 2017 to continue with its proceedings.