Fw: [EKITIPANUPO] Re: [EKITI PEOPLE'S VOICE] Star Info! Fayemi’s Alleged N40 Billion Debt: Facts vs Fiction - Reaction from Big Ben

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  From: Mobolaji ALUKO [alukome@gmail.com]
  Sent: 12/06/2010 11:19 AM EST
  To: EKITIPEOPLESVOICE@yahoogroups.com; momidiran@yahoo.com
  Cc: ekiti ekitigroups <ekitipanupo@yahoogroups.com>
  Subject: [EKITIPANUPO] Re: [EKITI PEOPLE'S VOICE] Star Info! Fayemi's Alleged N40 Billion Debt: Facts vs Fiction - Reaction from Big Ben

 

 

Goke Omidiran:

 

I am bitterly disappointed at your pedestrian response to the point-counterpoint over this debt issue, because your political slips are showing.

 

What do you mean by that the "new government should settle down, leave politics aside", even if indeed it should "take a closer looker at the accounts of the past government to know the veracity of the points highlighted here"?  Why don't you leave your editorializing to the last point and quit the insinuation about settling down and politics? 

 

Are we not in  a political milieu?  Does a new government just jump into governance within two months without clearing the debris of a government that was famously un-stable, in and out of court and re-run elections over a 42-month period? 

 

And, for goodness sakes,  what does the debt issue have to do with Irewolede Estate along Ilawe Road?  Those who spoke to you glowingly about it, did they tell you - or did you care to ask:

 

1.  how many units there are there?

2.  how much they all cost - and how was it paid for?

3.  how many people are presently inhabiting the estate?

4.  what is the plan for those inhabiting the estate to pay or repay?

5.  did you ask about the relationship between the Irewolede Estate along Ilawe Road and Fayose's Estate along Ado-Ikere road?  How many people are inhabiting both of them?

etc.

 

Is that not what you should be asking rather than the pedestrian re-gurgitation of some rumors?

 

Let us quickly go to the report proper....

 

Firstly, what do you have to say about these two insinuations:

 

QUOTE....

 

(Have they started the Lagos Arithmetic so soon?)........ On the other hand, we know that all the alarm over  so called State indebtedness is a grand ploy to justify the need for the Fayemi Administration to borrow heavily to enable it satisfy some hidden and extraneous interests, especially the servicing of the over N10 billion indebtedness to his Lagos masters!

 

UNQUOTE

 

Do those references to "Lagos" - by  some more provincial hicks, apparently - belong in a serious retort, and did you see nothing wrong in those references?

 

Secondly, the only DENIAL of the total amount of N40 billion  is a lack of awareness of a debt is the N532 million owed to Intercontinental Bank.  Yes, the original State Financial Staus report lacks the terminal date of that particular loan, but its interest rate (18%) and tenor (12 months) are clearly there, and I wonder why the new government would MANUFACTURE such a loan - N0.532 billion out of N40 billion.

 

The attempt to make a distinction between state and local government funds is a spurious one, because ALL the money comes to Ekiti State anyway, and Ekiti citizens expect them to be used for Ekiti benefit, and could care less who the funds actually came to.  In any case, I don't see any or how much of the N40 billion being assigned to the Local Government, so what is the problem with this particular identification.

 

What I read from the retort by Mr. Ben Oguntuase (former DG, Bureau of Strategy and Statistics, Ekiti State), who is not an accountant himself, who is not a former Finance Commissioner, nor former Auditor-General nor Accountant-General, etc., is NOT a denial of the amount, but an OUTLINE of how to deal with the debt, in terms of PROSPECTIVE revenue up until December 2011, or even maybe January 2013 - the last month in the report that the UBA Plc loan's terminal date.

 

The present administration should be grateful and happy for that advice, but does it mean that N40 billion is NOT OWED simply because you can PAY for much of it in the future?  Because I can PAY for what I owe IN THE FUTURE, does that mean that I don't OWE it now?

 

I don't think so.

 

Be properly guided, Goke.

 

 

 

Bolaji Aluko

 

 

On Mon, Dec 6, 2010 at 10:31 AM, michael omidiran <momidiran@yahoo.com> wrote:

 

Dear all,

 

Looking at the analysis below from Big Ben, I believe it is necessary for (and I implore) the new government to settle down, leave politics aside, and take a closer look at the accounts of the past government to know the veracity of the points highlighted here.  I was in Ekiti past two weekends ago and the impression I got from those who I exchanged ideas with in Ado-Ekiti and elsewhere is that Governor Oni was too prudent to get involved in frivolous borrowing to the point of making Ekiti owe to the tune of N40billion.  I heard words such as "Governor Oni so igbo d'ilu, won ni ko se nkan kan" - that is, Governor Oni turned a whole forest into a town, in reference to some housing estate on the way to Ilawe.  They talked glowingly of his eye clinic project run by some Cuban ophthalmologists where many people have benefited from.  In deed, some expressed their shock at how Oni chose not to publicize most of his work in Ekiti.   

 

Unfortunately for many of us, what we know of governance in Ekiti is based mostly on what we read on this forum and perhaps other very limited interaction with those whom we believe should know.  It is therefore important that as we on this forum desire to work together for the progress of Ekiti, we be mindful of the need for us also to know the whole facts of any matter, especially when such matters have to do with our future and that of those coming behind us.

 

I wish the new government God's speed in bringing the dividends of democracy to our people.  God bless Ekiti and all of us on this forum.

 

I remain,

 

'Goke Omidiran

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From: Lere Olayinka <ekitipcb2@yahoo.com>
To: EKITI PEOPLES VOICE <ekitipeoplesvoice@yahoogroups.com>; Ekitikete <Ekitikete@yahoogroups.com>; Isokan <isokanekiti@yahoogroups.com>
Sent: Mon, December 6, 2010 3:45:47 PM
Subject: [EKITI PEOPLE'S VOICE] Star Info! Fayemi's Alleged N40 Billion Debt: Facts vs Fiction

 

Fayemi's Alleged N40 Billion Debt: Facts vs Fiction   1          Our attention is drawn to a publication in the centre spread of the Tribune and The Nation newspapers of Monday, November 29, 2010 by the Ekiti State Government that the Chief Olusegun Oni-led administration left a whopping N40 billion debt as at October 15, 2010.  The publication is a funny document which was not signed or authenticated by either the State's Accountant – General or the Auditor –General, the two statutorily recognized officials of the state on accounting matters.   Making a mess of this publication and  to show that the two-page publication was the handiwork of  self-styled ''geniuses'' newly hired by the government for the purpose of running down their predecessor, the Accountant General and the Auditor General of the State released the Mid-Year Audited Account of Ekiti –State Government as at June 30, 2010 published on page 8 of the Nigerian Compass Newspaper of the same Monday (November 29), and later page 9 Nigerian Tribune November 30 duly signed by the two  officers.   Noteworthy is the fact that the Mid –Year Audited Account of Ekiti  State shows no correlation with the  publication in the centre-spread of the Nigerian Tribune and The Nation said to have emanated from  anonymous sources in the offices of the Accountant General and Auditor General.   It is clear that the Government was up to a mischief when they lumped the Local Government Accounts with that of the State Government, notwithstanding that the State keeps a distinct and different account from the Local Government system. The Oni Administration is on record to have faithfully published the Audited Accounts of the State at Mid Year and Year end throughout the tenure of the administration.   2.      The figures presented in the said publication are untidy and crude. Below are our reaction to the facts and fiction therein.   (a) Cash and Bank Borrowings as at October 15, 2010   Total Bank Borrowing                                                                                    N7.0 billion   We cannot remember the loan of N532 million from Intercontinental Bank. A cursory look shows that its details are not completed in the publication as others. (Have they started the Lagos Arithmetic so soon?) We want the public to note that with Outstanding Staff Loan (deductible monthly from Salaries)                         N3.4 billion and Cash Balances in Counterpart Project Funding Accounts (SUBEB, MDG, ETF, etc of approximately                                                  N5.0 billion Clearly there is no negative net Cash/Bank exposure!    (b) Foreign Debts   This is unclear to us and we ask: Who borrowed? When was the Debt incurred? For what purpose? It might be necessary to state categorically that the Ophthalmological Centre, Ado-Ekiti project was executed completely without any foreign or domestic borrowing! (c)  Contract Awards   Total contract award does not translate into debt.  Until a contract is satisfactorily executed, it cannot become a liability!  Of course its expected delivery will form part of Cash flow projections, but does not become an Accounts Payable until valid certificates are issued based on completion timelines.  Government is not required to make down-payment on total contract sums on the day a contract is awarded!  Debt occurs only when the contract is executed in part or whole and demand for payment is made.   All contracts outstanding as at October 15, 2010 were planned to be completed between October 2010 and December 2011 with contract awards based on a very conservative estimate of cash inflow up to December 2011. We state the projections hereunder:   Statutory Allocation @ N2.5 billion per month (15 months)                         N37.5 billion Excess Crude allocation (25% of statutory allocation)                                   N9.4 billion Internally Generated Revenue (N300 million/month)                                    N4.5 billion DMO (approved, awaiting payment = $18million)                                        N2.7 billion DMO under processing by Consultant ($170 million with worst case scenario success projection of 50% or $85 million)                      N12.75 billion Refund from Federal Ministry of Works on Road Projects                           N4.0 billion   Total Cash Inflow projection                                                               N70.85 billion   Note: This does not take into account inflow expected from UBEC, MDG, ETF and other Grants.   Cash Outflow Estimate (October 2010 to December 2011)   Average Recurrent Expenditure 2009 N1.7 billion per month  (assuming N2.0 billion per month)                                                                 N30.0 billion   This would have left opportunity for Capital Expenditure of at least N40.85 billion for the period! Assuming all existing contracts will be executed as awarded over the period, and all payments made, and amount required to service all contracts according to Government is  N27.0 billion, this would still leave N13 billion for additional Capital projects between now and December, 2011.   In other words, the State, as is, would not need any further borrowing to meet existing and projected obligations and remain in solid blue.   3   Conclusion Government and Governance is a continuum. In May 2007, the Oni Administration inherited amongst others:        (i)            Outstanding due to Contractors on projects (some dating back to Adebayo Administration) of over N10 billion. Most of these were settled before October 15, 2010.      (ii)            Gratuity and Pension Arrears dating back to 1993 of over N2 billion.(settled completely by December 31, 2007)    (iii)            Inherited Judgment Debts of over N200 million  settled    (iv)            Promotion arrears of Staff for the period 2004 – 2006  settled.   Plus lots more!   We are bold to say that we managed the State Treasury prudently, without any frivolities and undue exposure to risk. On the other hand, we know that all the alarm over  so called State indebtedness is a grand ploy to justify the need for the Fayemi Administration to borrow heavily to enable it satisfy some hidden and extraneous interests, especially the servicing of the over N10 billion indebtedness to his Lagos masters!  In this regard, we ask Ekiti people to be on the alert.     Sgd Ben Oguntuase Former DG, Bureau of Strategy and Statistics, Ekiti State

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