By Rotimi Ojomoyela
Ado-Ekiti—Ekiti State government has denied dragging the state into N117 billion debt as alleged by the Governor-elect, Dr Kayode Fayemi.
It said the administration of Governor Ayodele Fayose did not commit the state to any financial institution in form of bonds and commercial loans, pointing out that “no loan can be granted without the approval of Debt Management Office, DMO, and Federal Ministry of Finance and that these two offices should publish details of any loan taken by the Fayose administration, including the banks that granted such loans.”
The governor-elect had quoted DMO as saying their latest report revealed that the debt profile of the state had increased from N18 billion Fayose inherited in 2014 to N117 billion.
The government, which said the state Governor-elect, Dr. Kayode Fayemi, was already preparing excuses for his impending failure, declared that “unlike him (Fayemi) who was not courageous enough to answer questions on his administration before a duly constituted probe panel, Governor Fayose is not afraid of being probed either by the state or Federal Government.”
Special Assistant to the Governor on Public Communications and New Media, Lere Olayinka, said, yesterday, in a reaction to claim by Fayemi on the state’s debt that “Ekiti State indebtedness stands at N59.5 billion that was either directly inherited from the Fayemi’s administration or incurred as a result of the loans restructuring done at the instance of the Federal Government and the Federal Economic Council.”
He gave the breakdown as follows: Commercial bank loan, N2,087,788,065.28; CBN grant for water project, N163,450,000; Excess Crude Account-backed loan, N9,545,173,472.78; Bailout, N9,083,761,215.40; FGN Bonds, N18,226,699,707.18; state bonds, N3,484,469,345.51 and budget support, N16,869,000,000.
“Particularly, the N10 billion grant released from the Excess Crude Account for capital projects was fund that should normally accrue to all states.
“Most importantly, we admit that the state workers are being owed four months’ salary and this was occasioned by the monthly deductions from the state allocation as a result of huge debt incurred by the Fayemi administration. Even the N9.5 billion bailout fund was for the payment of the arrears of salaries and deduction left unpaid by the Fayemi’s government.”