Tag: FRC

  • Intercontinental Bank’s acquisition: FRC appeals court’s judgment

    Intercontinental Bank’s acquisition: FRC appeals court’s judgment

    THE last might not have been heard about the acquisition of Intercontinental Bank by Access Bank, as the Financial Reporting Council of Nigeria (FRC) has decided to appeal the judgment of a Federal High Court sitting in Lagos, which declared that the FRC lacked the powers to investigate the takeover . In its notice of appeal made available  by the council’s Spokesman, Mack Ogbamosa, while addressing the reporters at the weekend, the FRC contended, among others, that the judgment in the case was against the weight of evidence.

    The financial regulator also faulted the court for dismissing the preliminary objection filed by the council, challenging the jurisdiction of the lower court to entertain the case pursuant to relevant provisions of the FRC Act.

    It further claimed in its appeal that the principle of presumption of regularity laid down by section 168 of the Evidence Act was not observed.

    The FRC challenged the judgment on the ground that the judge erred in law when he held that exhibit AA6B was admissible in law and further erred by placing reliance on the erroneously admitted document in awarding judgment in favour of the respondents.

    Another ground of appeal by the council  was the contention that the learned trial judge erred in law when he held that the appellant did not have the vires to investigate the respondents.

    The FRC also stated  that the learned trial judge erred in law when he equated the use of the words “fraudulent sale” in the Akingbola petition dated  March 25, 2014, with the commission of a crime and thereby came to the erroneous conclusion that an administrative panel such as that set up by the appellant had no powers  to investigate criminal allegations.

    It argued that since the acquisition of the defunct Intercontinental Bank Plc by Access Bank Plc breached sections 11 (a), (b) & (c) of the FRC Act, the FRC had the powers to investigate the said acquisition.

     

  • FRC indicts NAFDAC for non-remmitance of N1.439b to Federation Account

    FRC indicts NAFDAC for non-remmitance of N1.439b to Federation Account

    The Fiscal Responsibility Commission (FRC) has indicted the National Food and Drugs Administration and Control (NAFDAC), for failing to remit N1.439 billion operational surplus to the Federal Account as required by Law.

    Speaking on issues relating to NAFDACs Audited Financial Statements  in Abuja, yesterday, the Head, Policy and Standard of FRC, Mohammed Ola Tijani, said the body has reviewed NAFDAC’s accounts from 2007 to 2009 and has “discovered that you have to pay N1.439 billion to the federation accounts as demanded by law.”

    Tijani said a close look at NAFDAC’s account indicated that the agency generated N491,252 million surplus in 2007, N857,132 in 2008 and N607,680 in 2009, but paid N64, 048 million to the federation account in 2007, N93 million in 2008 and N105,000 respectively.

    He said NAFDAC’s account books also indicated that the 2007outstanding stood at N427,204 million, N763,565 in 2008 and N502,680 millions in 2009.

    In his speech, the Acting Chairman of FRC, Barrister Victor Chinemeren Muruako, said that NAFDAC would be sanctioned if it delays the payments.

    ”I would have appreciated it if the D-G of NAFDAC himself was here, I will only appeal to your management to hurriedly pay this money to government’s purse, failure of which will make us to write damaging reports on your agency,” he warned.

    He said: “The Federal Government needs this monies to build infrastructure and create employment for our youths. We will not relent in our efforts to assist government to recover all monies outside.”

    NAFDAC was however given the grace to come up with a date the money would be paid.

    The representative of NAFDAC and Director of Finance and Accounts, Ademola Mogbojumi, said his entourage will take the message back to the Director-General, Paul Ohi for prompt action on the matter.

    The Fiscal Responsibility Act of 2007, Section 2, makes it mandatory that government agencies, such as NAFDAC should  remit certain percentage of their operational surplus to the Federation Account.

  • Financial council to quiz Sanusi, Alade, Lemo, Moghalu, Akingbola, 10 others

    Financial council to quiz Sanusi, Alade, Lemo, Moghalu, Akingbola, 10 others

    The Financial Reporting Council of Nigeria (FRC) will tomorrow and Thursday question the suspended Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi; CBN Acting Governor, Dr. Sarah Alade; former CBN Deputy Governor, Operations, Tunde Lemo; CBN Deputy Governor, Operations, Dr. Kingsley Moghalu; and former Managing Director/CEO of the defunct Intercontinental Bank Plc, Mr. Erastus Akingbola.

    Also to be questioned are the Managing Director of the Bank of Industry (BoI), Ms Evelyn Oputu; CBN Deputy Governor, Corporate Services, Alhaji Suleiman Barau; Mr. Babatunde Dayo; Mr. Gabriel Okpeh and Mr. Ezekiel Ejedele.

    Also to appear before the FRC hearing panel are the former Chief Executive Officer of the Nigerian Security, Printing and Minting Company (NSPMC), Mr. Ehi’ E Okoyomon; Alhaji Ahmed Barmali; Mr. Igho Dafinone; the immediate past Chief Executive Officer of Access Bank, Mr. Aigboje Aig-Imokhuede; and his successor, Mr. Herbert Wigwe.

    While Sanusi, Aalde, Lemo and six others are expected to appear at the interrogation to be held at the FRC head office in Lagos on Thursday at 11 am, Akingbola, Aig-Imoukuede, Wigwe and three others are to appear at the same time tomorrow.

    The FRC said in a newspaper advert published yesterday that it is investigating the activities of the CBN for financial years ended December 31, 2011 and 2012. The investigation, the council said, includes related matters arising from transactions and events, which impacted on the 2011 and 2012 from earlier years and have implications for later periods.

    “We wish to inform the under-listed persons that the FRC is investigating the activities of the CBN for financial years ended December 31, 2011 and 2012. This investigation includes related matters arising from transactions and events, which impacted on 2011 and 2012 from earlier years and have implications for later periods,” the report said.

    The FRC management said letters had been sent to the concerned persons before the current invitation to hearing.

    Sanusi was suspended on February 20 by President Goodluck Jonathan for alleged financial recklessness. That was after he said the Nigerian National Petroleum Corporation (NNPC) had failed to remit $20 billion oil revenue to the Federation Account. He has denied any wrongdoing.

     

  • Taxation Institute, EFCC, FRC, others to fight corruption

    Taxation Institute, EFCC, FRC, others to fight corruption

    The Chartered Institute of Taxation of Nigeria (CITN) is working out modalities with the Economic and Financial Crimes Commission (EFCC), National Financial Intelligence Unit and Financial Reporting Council (FRC) to tackle corruption and economic crimes in the country.

    In a statement, the institute said it has taken proactive steps to educate stakeholders, particularly tax practitioners, on various statutory requirements stipulated in the Money Laundering (Prohibition) Act, 2011 (as amended), the Financial Reporting Council Act of 2011, the EFCC Act of 2004, and the Terrorism (Prevention) Act, 2011 (as amended).

    CITN’s Acting Registrar/Chief Executive of the Institute, Mr. Adefisayo Awogbade, the steps are in line with the institute’s strict compliance to the statutory requirements of the regulatory bodies designated, by the Money Laundering (Prohibition) Act 2011 (as amended), as Non-Financial Institutions for the purpose of registration, reporting and conduct of customer due diligence.

    Awogbade described the rate of corruption in the country as alarming, adding that more often than not, many of the acts of corruption were facilitated by professionals for culprits. That is why the institute, in conjunction with these anti-corruption agencies, is facilitating an avenue to inculcate in its rank and file the various statutory provisions that are obligatory on them in the process of performing their professional callings.

    According to Awogbade, “The taxman plays a dual role, to the government, on one hand, and to the taxpayer on the other. It is, therefore, expedient to ensure that tax practitioners perform their duties professionally within the ambit and dictates of the laws of the land. We need to ensure that whatever we do as professionals are in tandem with the Charter of our Institute, as well as other statutory provisions.”

    He explained further that the Council of CITN was now better positioned than before to monitor all practitioners carrying the practising licence of the Institute.

    He said: “It is not enough for members to have practising licence to practice once and for all.

    “The Institute will continue to monitor each practitioner to the extent that re-certification would be done as regularly as practicable.”

  • Financial council to quiz Sanusi, Alade, Lemo, Moghalu, Akingbola, 10 others

    Financial council to quiz Sanusi, Alade, Lemo, Moghalu, Akingbola, 10 others

    The Financial Reporting Council of Nigeria (FRC) will tomorrow and Thursday question the suspended Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi; CBN Acting Governor, Dr. Sarah Alade; former CBN Deputy Governor, Operations, Tunde Lemo; CBN Deputy Governor, Operations, Dr. Kingsley Moghalu; and former Managing Director/CEO of the defunct Intercontinental Bank Plc, Mr. Erastus Akingbola.

    Also to be questioned are the Managing Director of the Bank of Industry (BoI), Ms Evelyn Oputu; CBN Deputy Governor, Corporate Services, Alhaji Suleiman Barau; Mr. Babatunde Dayo; Mr. Gabriel Okpeh and Mr. Ezekiel Ejedele.

    Also to appear before the FRC hearing panel are the former Chief Executive Officer of the Nigerian Security, Printing and Minting Company (NSPMC), Mr. Ehi’ E Okoyomon; Alhaji Ahmed Barmali; Mr. Igho Dafinone; the immediate past Chief Executive Officer of Access Bank, Mr. Aigboje Aig-Imokhuede; and his successor, Mr. Herbert Wigwe.

    While Sanusi, Aalde, Lemo and six others are expected to appear at the interrogation to be held at the FRC head office in Lagos on Thursday at 11 am, Akingbola, Aig-Imoukuede, Wigwe and three others are to appear at the same time tomorrow.

    The FRC said in a newspaper advert published yesterday that it is investigating the activities of the CBN for financial years ended December 31, 2011 and 2012. The investigation, the council said, includes related matters arising from transactions and events, which impacted on the 2011 and 2012 from earlier years and have implications for later periods.

    “We wish to inform the under-listed persons that the FRC is investigating the activities of the CBN for financial years ended December 31, 2011 and 2012. This investigation includes related matters arising from transactions and events, which impacted on 2011 and 2012 from earlier years and have implications for later periods,” the report said.

    The FRC management said letters had been sent to the concerned persons before the current invitation to hearing.

    Sanusi was suspended on February 20 by President Goodluck Jonathan for alleged financial recklessness. That was after he said the Nigerian National Petroleum Corporation (NNPC) had failed to remit $20 billion oil revenue to the Federation Account. He has denied any wrongdoing.

     

  • FRC: Auditors will be liable for banks’ indiscretions

    Internal auditors will, henceforth, be held accountable for discrepancies in banks’ books after being examined by the Financial Reporting Council of Nigeria (FRC), The Nation has learnt.

    To this end, FRC will begin audit quality inspection of banks before the end of this month.

    In a report titled: “The role of FRC in promoting investors’ confidence in Nigeria,” FRC Chief Executive Officer Jim Obazee said there was need to check what the auditors were doing always.

    “We are to look at who is checking the checker (internal auditors). This will be done through the external auditors, but there are international audit control rules that must be followed,” he said.

    Auditors, who sign-off their jobs, he said, were expected to put their FRC numbers and the names of their firms instead of the current tradition of just writing the names of their audit firms in small letters.

    Obazee urged auditors to be more circumspect in doing their jobs, as they risk personal liability for misbehaviour.

    Audit quality inspections, he said, were in line with its desire to become a member “of the International Forum of Independent Audit Regulators (IFIAR), adding that this will be a booster to the capacity of the Council to monitor audit quality.”

    He said the “first phase of the adoption of International Financial Reporting Standards (IFRS)in Nigeria has started producing enhanced perception for Nigeria, adding that the FRC is currently carrying out IFRS readiness test for entities in the second phase- (Other Public Interest entities, including Not-for-Profit Organisations).”

    He said FRC was convinced that the national Code of Corporate governance would be operational in the first quarter of the year.

    This, he said, would strengthen compliance with Section 44 (3) of the FRC Act and enhance the inflow of Foreign Direct Investment and stir greater interest from local investors.

    The body, he said, is also to address current institutional weaknesses in regulation, compliance and enforcement of standards and the development of robust arrangements for monitoring and enforcing compliance with financial reporting standards in the country.

    He said the implementation of the FRC Act is expected to lead to increased management credibility, more long-term investments, lower cost of capital, improved access to new capital and higher share values. “For investors and lenders, better disclosure provides more relevant information for making sound investment decisions and risk assessment. This is especially so because merchants do not have a country,” he said.

    Obazee said the FRC is carrying out International Financial Reporting Standards’ readiness test for entities now in the second phase for other public interest entities including not-for-profit organisation.

     

  • Jonathan’s impunity

    Jonathan’s impunity

    For the duration of his hyperactive and fairly controversial tenure, Sanusi Lamido Sanusi never quite won my unalloyed support for some of his critical policies as Central Bank of Nigeria governor. Under him, for instance, the CBN’s acts of charity rankled in many regards. His banking reform measures were also implemented with a flamboyance and uppityness that left me wondering whether his unduly feisty approach to banks and banking regulations was not more appropriate for tinseltown than for apex banking. Then he often talked nineteen to the dozen, when restraint and reticence would do, and projected himself as the ultimate Nigerian iconoclast, a sort of business and class egalitarian indifferent to the accoutrements of the wealthy as he was not incommoded by the lowliness of the classless.

    Indeed, as some elements of the report prepared against him by the Financial Reporting Council (FRC) indicated, Mallam Sanusi, who was brusquely suspended a few days ago by President Goodluck Jonathan, might be inadequate in some respects and needed to painstakingly convince his traducers his integrity was not sullied by any identifiable form of financial and regulatory brashness. Perhaps he still will. But whatever might be said of the suspended CBN governor, no one could accuse of him of a lack of dignity and character. I had reservations about some of his policies as CBN governor, but I never stopped respecting him for what he stood for and how pluckily he fought for what he believed. He called his soul his own and displayed a robustness of principles seldom seen in public office in these parts.

    In contrast to the dour integrity shown by Mallam Sanusi in public office, Dr Jonathan has handled power most obliquely and impiously, if not with the irritating absolutism of a monarch. The president claims to have suspended Mallam Sanusi and describes the process as innocuously routine, but everything surrounding the suspension indicated the dismissive finality of a sack. Not only was the former CBN boss removed, his temporary and permanent replacements were hastily named with a temerity that reeked of political insensitivity and unconstitutionality, and with such absolute lack of grace and class that leaves one wondering how it was possible for Dr Jonathan to demean the Nigerian presidency to such level of pettiness.

    Again, in contrast to his dithering over the proven allegations against former Minister of Aviation, Stella Oduah, and in consonance with the subterfuge evident in the suspension of former President of the Court of Appeal, Justice Ayo Salami, Dr Jonathan has choked and undermined the constitution by removing Mallam Sanusi in contemptuous disregard for the law. The excuse he gave for sacking the former CBN boss is that he breached some financial rules. But in reality, the removal was probably due to the president’s exasperation with Mallam Sanusi’s volubility and irreverence. The suspended CBN boss had complained bitterly at least twice about the NNPC’s unorthodox bookkeeping methods and financial malfeasance. And the complaints had elicited intense controversies and triggered insinuations that the Jonathan presidency condoned corruption, body language and all. But the snag is that the oil agency reports to the Minister of Petroleum, Diezani Alison-Madueke, one of Dr Jonathan’s favourite cabinet members, if not the most favoured minister. Two attempts to reconcile the books of the NNPC merely reduced the gaps, not eliminated them, and gave impression the agency was nothing but a sinkhole and a conduit for funding the politics of the ruling party.

    By peremptorily sacking Mallam Sanusi, Dr Jonathan has finally given indication he will henceforth not be distracted by the constitution in the pursuit of his ambition to govern Nigeria along absolutist lines. Though he was careful not to cite any constitutional provision in sacking Mallam Sanusi, perhaps knowing full well that no such provisions existed to back him, it was nonetheless clear that he gave indication his action was lawful. But there is no conceivable way of reading or interpreting the CBN Act, as amended, particularly the applicable Section 11, to back the president’s action. It is intriguing that any lawyer, not to talk of any rational person, could suggest that the said provision could be construed any other way. Section 11 is not only clear and direct; it is not ambiguous at all. The president himself knew this.

    The CBN Act doubtless empowers the president to remove a CBN governor if necessary, but that power is circumscribed by and contingent upon the approval of two-thirds of the members of the Senate. The president completely discountenanced this provision and went ahead to do the unthinkable. We may not like Mallam Sanusi, but if executive, legislative and judicial actions are to be based on whom we like or dislike, we would have complete chaos. Dr Jonathan, it is clear, is besotted to some of his ministers. Anyone that challenges his favourites pokes a finger in his eyes. When Dr Jonathan suspended Justice Salami and we failed to get him to reverse himself, we unwittingly approved the president’s resort to self-help. If we fail in checking this new impeachable breach of the constitution, we should ready ourselves for more flagrant breaches of the constitution in a tension-soaked election year.

    The sacking of Mallam Sanusi is not just a case of the president getting rid of a headache; it is an indication of the underlying methodology of the Jonathan presidency and an example of his dreadful unease and impatience with the restraining and civilising leashes of the constitution. Dr Jonathan, I have said repeatedly, lacks the depth and idiosyncratic understanding to appreciate the kind of democracy Nigeria should run, and the kind of country we should have, one that should serve as example and provide leadership to the rest of Africa, and one that should challenge even the most democratic country in the world. Lacking such understanding and discipline, Dr Jonathan has constituted himself and his government into a tyranny run by a camorra of friends, avaricious aides and petulant family members. We are in far worse trouble than we imagine, especially in an election year, for the president has more dangerous concoctions on tap.

    If we look forward to any salvation, it will certainly not come from the presidency. Those characters in the presidency are too far gone to be redeemable. If we look to the legislature, we would have to ponder which direction to go: is it to the House of Representatives or to the Senate? If it is to the House, it is satisfying to note that that assembly of men is fairly radical and of some use. But the constitution does not give them the kind of powers that would make them tame the president in the face of a grovelling and ingratiating Senate. And if it is to the Senate we look, we would be seeing nothing but a chimera. The Nigerian Senate is a party to the conspiracy to undermine the constitution, blissfully unaware that they are in effect undermining their own very existence. They see themselves more like an arm of the ruling party, nay, a department in the Jonathan presidency. They will do nothing radical or altruistic; and they will not lift a finger in the defence of the people or the constitution.

    Might the judiciary be of any help? Mallam Sanusi has already indicated he would be seeking help in its hallowed precincts. But litigation produces its own paradoxes. By going to court, Mallam Sanusi will be denying us a confirmation of the Senate’s infamy and conspiracy with the Jonathan presidency. The Senate will cite the case in court and decline discussions on the unlawful act of suspending the CBN governor. And since there is already an acting CBN governor, as it were, it would not matter whether the Senate declined to confirm the president’s nominee, Godwin Emefiele. The president can afford to wait it out. So, too, disingenuously, can the conniving Senate. In June, after Mallam Sanusi’s natural tenure expires, Emefiele’s confirmation will be done, and it will seem natural and unimpeachable.

    I restate once again that the problem is not Mallam Sanusi’s competence or style. The problem is that he raised fundamental and disquieting concerns about financial disparities in that most disturbing of arcana, the NNPC, and the fact that the president in sacking Sanusi acted most precipitately and brutishly by assaulting the constitution. If we condone these infringements, we will not only be exhibiting our powerlessness in the face of intense financial impropriety on the part of government agencies, we would also be signalling to Dr Jonathan that his monarchical tendencies, his contempt for the constitution, his demeaning attachment to a few of his cabinet members and his lawless predilections will be winked at. Dr Jonathan has taken the first awful steps in the direction of Somalia, Central African Republic, Sudan/South Sudan and Democratic Republic of Congo. It is no exaggeration to say he has thus taken us closer to the precipice than at any other time in our anguished and chequered history, including the civil war era. Should we indeed be compelled to endure four more years of Dr Jonathan and his lawlessness, as some pundits are projecting, there is no telling what horrifying fate the country would meet.

  • Unified Code of Good Corporate Governance coming, says FRC

    Unified Code of Good Corporate Governance coming, says FRC

    Nigeria will soon have a unified Code of Good Corporate Governance, The Chairman of Financial Reporting Council (FRC), Hajia Maryam Ladi Ibrahim has said.

    Hajia Ibrahim, who made this known in Lagos over the weekend, said the Committee put in place by the Minister of Trade and Investment, OlusegunAganga, on the issue, is already working on the process of harmonising the various codes of corporate governance, assuring that by the end of the year, the final draft of the document would be ready.

    She said a stakeholders meeting would be held to consider its provisions before it would be presented to the Federal Executive Council for approval. “And when that is approved, Nigeria would have arrived by having a singular Code of Conduct for Good Corporate Governance in this country,” she added.

    The FRC chair, who was on her maiden outing in Lagos, said the Council is working towards increasing the flow of Foreign Direct Investment into the country, through adherence to reporting professionally.

    The FRC is making sure that the reporting standards are complied with in accordance with the International Financial Reporting Standards (IFRS). She said the body would embark on enlightenment, as well ensure that professionals are well trained as much as possible.

    She praised the Executive Secretary, Jim Obazeeforthe manner he has sustained the FRC’s drive to uphold the tenets of the accounting profession, assuring that the Board will give the necessary support to ensure effective administration of the body.

    Dismissing any insinuation about her qualification for the job, she said as a professional, she is qualified to work anywhere in any capacity, whether in the public, or private sector, “so whichever way, I think I fit in. If you are trained as a professional accountant, you can work anywhere, and with the wealth of experience from the public sector, yes, but I have equally, a wealth of experience from the private sector in my years of service.”

    Hajia Ibrahim, said the delay in the take-off of the FRC Academy, was due to some infrastructural deficit, which she said have been met. “We have issues of infrastructure, that is what is responsible for the delay in the effective take-off of our operations. Although we have started, but the pace of our operations is being slowed by lack of adequate infrastructure. We are hoping that as we enter into the new year, we would move in the pace that everybody wants us to move and in the level that we want to move, so that everybody and stakeholders will be happy with the Financial Reporting Council’s Board.

  • FRC holds summit on credible financial reporting

    TO promote credible financial reporting and good corporate governance system in Nigeria, experts and users of financial reports will brainstorm on the theme of financial reporting framework and governance at the 10th annual corporate financial reporting summit and dinner of the Financial Reporting Council of Nigeria (FRC).

    In a statement by the Executive Secretary and Chief Executive, Financial Reporting Council of Nigeria, Mr. Jim Obazee, the council indicated that the major objective of the summit, scheduled for December in Lagos, is to provide a opportunity for preparers, users and all stakeholders of published financial statements to meet annually and exchange views on issues affecting credible and reliable financial reporting.

    It noted that the summit will also create awareness on international best practices that will impact positively on corporate financial reporting in Nigeria.

    Major presentations at this year’s summit would include Conceptual Framework for Financial Reporting: Asset & Liability Definitions and Recognitions; Financial Reporting for Rate Regulated Activities; Financial Reporting & Valuation Standards in Nigeria: An Expository Analysis; National Code of Corporate Governance: A New Regulatory Benchmark for Nigeria; and Conceptual Framework for Financial Reporting: Measurements and other Comprehensive Income.

    FRC reiterated its commitment to strengthen financial reporting in Nigeria, noting that it had initiated series of programmes aimed at enhancing compliance with the Accounting and Financial Reporting Standards as stipulated in the FRC Act 2011.

    The guest speakers at the event include Obazee, Mr Ayo Othihiwa, chairman, Association of Reporting Accountants in the Capital Market; Mr. Atalor Abel, Partner, Muhtari Dangana & Co; Mr. Bode Adediji, President, Nigerian Institution of Estate Surveyors and Valuers and Mr. Victor Odiase, Chairman, Steering Committee, National Code of Corporate Governance.

    Discussants include Mr Uwadiae Oduware, Partner, Deloitte; Mr. Henry Egbiki, Regional Managing Partner, Ernst & Young (West Africa); Mr. Igho Dafinone, Senior Partner, Horwath Dafinone; Mr. Uyi Akpata, Partner, PriceWaterhouseCoopers and Dr. Fabian Ajogwu, Principal, Kenna Partners; while some distinguished business leaders, including Chief Olusegun Osunkeye, President, Society for Good Corporate Governance Nigeria, would chair the business sessions.

  • Ekiti disowns FRC’s debt claims

    The Ekiti State government has condemned a publication by the Fiscal Responsibility Commission (FRC), which put the state’s debt profile at N35.4 billion.

    It described its financial status as “very healthy” and under the control of a “prudent and efficient administration”.

    Speaking with reporters, Commissioner for Finance Dapo Kolawole and the State FRC Chairman, Mr. Bayo Aina, said the publication was “twisted, misleading and intended to bring the current administration to disrepute”.

    They said it was unfortunate that the publication on the debt profile of some states was not up-to -date, adding that Ekiti’s indebtedness stood at “only N14.5 billion as at last December”.

    Kolawole said the N20 billion taken by the Governor Kayode Fayemi administration from the Capital Market went through “clearances and was certified by the Federal Ministry of Finance (FMF), the Debt Management Office (DMO) and FRC in Abuja”.

    He said N12 billion had been repaid.

    The commissioner said the publication of the 2011 debt profile, when the 2012 figures had been presented before it, “revealed not only the FRC’s inefficiency but a complicity with politicians who cry foul needlessly and ceaselessly.”

    He said: “Ekiti is one of the few states that have domesticated the Fiscal Responsibility and Freedom of Information Laws, so we have nothing to hide.

    “FRC and DMO have set certain limits for borrowing and Ekiti has not gone beyond that. So, the borrowing by this government was done in consonance with international best practices.

    “The Gross Domestic Product (GDP) is the best instrument to regulate borrowing, but when it seems difficult to compute, the percentage of expenditure and revenue are considered. As at last December, Ekiti’s debt was N14.5 billion.

    “The N20 billion loan was spent on capital projects that were regenerative in nature and not spent on recurrent expenditure.

    “The moribund Ire Burnt Brick Factory that would employ about 300 people was resuscitated. The once bushy Ikogosi Warm is now worth over N3 billion in the Capital Market. It is not borrowing that is the issue, but how the government could use it to boost the economy.”