THE Trade Union Congress of Nigeria (TUC) has asked the Federal Government to tie the release of the Paris Club refund to specific projects to stop state governments from embarking on wasteful spending.
The Congress said unless the money is tied to specific projects, what happened when the first tranche of N388 billion was released in December will repeat itself.
A statement signed by its President, Comrade Bobboi Kaigama and Secretary General Comrade Musa-Lawal Ozidi said if necessary things were not put in place, the governors might come cap-in-hand for another round in no distant time.
President Muhammadu Buhari had ordered the Minister of Finance and the Central Bank Governor to release N500 billion Paris Club refund to the 36 states. But the labour body said if the governors had judiciously utilised resources available to them, life would have been better for the average Nigerian.
The statement said: “One could infer from the foregoing that the President to some extent profoundly means well but some people are determined to frustrate his effort. One would have expected that when the first tranche of money was released, salaries and pensioners would have been paid.
“We had expected that some meaningful projects would have been embarked upon. Instead, (they) the governors rolled out their drums to receive the billions for personal aggrandisement. This is not the way to go in an era of change.
“We need not bore you with the numerous cases of suicides and suicide attempts so far recorded this year alone. Workers have become unable to feed their families, pay rents and school fees, let alone provide clothing.
“A countless times, the President assured us that his government has the welfare of Nigerians at heart. But in reality, it appears not to be so. If governors make judicious use of the monies at their disposal, we can be rest assured that recession will soon be of mere historical significance only.
“It is therefore expedient that the President recognises the absolute fact that the citizens of this country voted for him because of his pedigree. They voted because they trusted and believed that his administration would be just, prudent, accountable and lead with the fear of God.”
“The cooperation we anticipated is not there as the centre appears to be going one way while the lawmakers and the judiciary are also going separate ways. As it stands, our fate appears to be hanging on a balance.
“We are not against government disbursing any money; what we are rather saying is that the federal government should attach the money to projects. Salaries and pensions must be paid till date and in full. We will be disappointed again if we do otherwise. This time we must get our acts right.”
Tag: Paris Club refund
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TUC to Fed Govt: tie N500b Paris Club refund to specific projects
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Umar to Buhari: Suspend release of Paris Club refund to states
A former Military Governor of Kaduna State, Col Abubakar Dangiwa Umar (retd), on Monday asked President Muhammadu Umar to suspend London-Paris Club loan refund to states and the Federal Capital Territory(FCT).
He said some state governors contracted consultants with fees ranging from 10 to 30 per cent to secure refund.
Umar gave the advice in a statement issued in Abuja against the backdrop of the controversy over loan refund to states.
States are actually demanding about $6.9billion unaccounted deductions from the Federal Government.
He said: “It is now revealed that some state governors contracted consultants with fees ranging from 10 to 30 per cent to secure refund from the Federal Government of Nigeria
“With this shocking revelation, President Muhammadu Buhari should suspend his order to the Federal Ministry of Finance and the Central Bank of Nigeria (CBN) for the release of the second tranche of the refund.
“It is also evident now that most of the earlier released funds were deployed for other purposes than payment of salaries and pension arrears as directed by Mr. President. This impunity has got to stop.”
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TUC to FG: Use Paris Club refund for specific projects
The Trade Union Congress of Nigeria (TUC) on Monday asked the Federal Government to tie the release of the Paris Club refund to specific projects by the states.
This, TUC said is to avoid a situation where state governments will embark on wasteful spending once the money is received.
The Congress said unless the money is tied to specific projects, what happened when the first tranche of N388 billion was released in December 2016 will repeat itself.
In a statement signed by its President, Comrade Bobboi Kaigama and Secretary General, Comrade Musa-Lawal Ozidi, TUC said if necessary things were not put in place, the governors would come cap-in-hand for another financial support in no distant time.
President Muhammadu Buhari last week ordered the Minister of Finance and the Central Bank Governor to release N500 billion Paris Club refund to the 36 states, but the labour body said if the governors had judiciously utilize resources available to them, life would have been better for average Nigerian.
The statement said: “One could infer from the foregoing that the President to some extent profoundly means well but some people are determined to frustrate his efforts. One would have expected that when the first tranche of money was released salaries and pensioners would have been paid.
“We had expected that some meaningful projects would have been embarked upon; instead (they) the governors rolled out their drums to receive the billions for personal aggrandizement. This is not the way to go in an era of change.
“We need not bore you with the numerous cases of suicides and suicide attempts so far recorded this year alone. Workers have become unable to feed their families, pay rents and school fees, let alone provide clothing.
“A countless times the President assured us that his government has the welfare of Nigerians at heart but in reality it appears not to be so. If governors make judicious use of the monies at their disposal, we can be rest assured that recession will soon be of mere historical significance only.
“It is therefore expedient that the President recognizes the absolute fact that the citizens of this country voted for him because of his pedigree. They voted because they trusted and believed that his administration would be just, prudent, accountable and lead with the fear of God.
“The cooperation we anticipated is not there as the centre appears to be going one way while the lawmakers and the judiciary are also going separate ways. As it stands, our fate appears to be hanging on a balance.”
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Governors must account for Paris Club refund, says lawmaker
The lawmaker representing Ikpoba-Okha/Egor Federal Constituency, Hon Ehiozuwa Agbonayinma, has called on President Mohammadu Buhari to ensure that state governors were made to account for the first tranche of Paris Club refund they collected.
Hon Agbonayinma said it was wrong for the state governors to collect the money with carrying local government along in the disbursement.
In a chat with newsmen in Benin City, Hon Agbonayinma, said it was local government under the auspices of Association of Local Government of Nigeria (ALGON) that engaged lawyers for the refund of the money.
Agbonayinma said it was proper for President Buhari to know how the first tranche was expended before any new disbursement of the loan refund.
According to him, “This money belongs to Nigerians but the local governments have not been carried along. The governors have decided to take local government for a ride. It is constitutional right for local government to exist.
“It was the ALGON who engaged lawyers to see how the money can be refunded back to the Federal government. Having done that, the right thing was to involve those that made it possible for the money to be refunded and rather the money was paid to Governors Forum.
Governors Forum is another parallel government. The governors should how back to their various states and provide governance. Some governors don’t have the interest of the people at heart. Some of the money paid in the first tranche went to voice mail. Some have gotten to private pockets. Some states have not paid salaries or pensioners from the loan refund.
“Those who fought for the money to return to Nigeria should benefit from the Paris Club refund. This action of the governors is totally wrong.”
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‘We’re waiting for EFCC probe of Paris Club refund’
The Nigeria Governors Forum (NGF) is waiting for the Economic and Financial Crimes Commission (EFCC)’s investigation into a possible diversion of the Paris Club refund to states
Chairman of the NGF and Zamfara State Governor Abdulaziz Yari, spoke with State House correspondents at the end of the Forum’s meeting at the Presidential Villa, Abuja.
It was reported last week that the NGF might have used fictitious consultants to divert some of the money from Paris Club which had attracted the attention of the EFCC.
The Presidency had also reportedly ordered a full-scale investigation into the disbursement of the funds.
Insisting that the governors were ready for the EFCC probe, Yari expressed governors’ support for the administration’s war against corruption, noting that they would wait for the outcome of the EFCC’s investigation.
He said: “We discussed the issue of Paris Club and London Club. We observed that EFCC said it is doing investigations. Yeah, we support the federal government for fighting corruption.
“We are waiting for the EFCC to come up with what they say is the investigation and come up with the result.”
Some of the reports also suggested that the governors were spoiling for war with acting EFCC Chairman Ibrahim Magu over the decision of the EFCC to investigate alleged diversion of the money.
The reports suggested that the EFCC might have questioned the Director General of the Nigeria Governors Forum (NGF), Asishana Okauru, over the matter.
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Fayose in fresh trouble for alleged diversion of N8.877bn Paris Club refund
Ekiti State governor, Ayodele Fayose, may have run into fresh trouble with the Federal Government after it was found that he collected the sum of N8.877 billion from the N388.304 billion released to 35 states as refunds from over-deductions on London-Paris Club loans but only paid one out of the eight-month salary arrears he owed workers in the state.
Fayose was also said to have paid a curious 13th month salary as bonus while the arrears of seven-month salaries owed the workers were left unpaid.
A reliable source in the Presidency, who spoke in confidence with one of our correspondents yesterday, said President Muhammadu Buhari has lived up to his pledge to ease salary crises in all the states by releasing N388.304 billion to 35 states but many of the states failed to abide by the agreement they had with the President that they would give preference to settling arrears of workers’ salaries.
The Presidency source said: “The agreement between the Federal Government and the state governors was very clear.
“While 50 per cent of the amount released was to be used to offset outstanding salary and pension arrears, the remaining 50 per cent would be used for the payment of other obligations.
“Some governors have however reneged on this agreement.
“Security reports available to the Presidency showed that Governor Ayodele Fayose paid only one month out of eight-month salary arrears.
“The same governor went ahead to pay a curious 13-month salary to Ekiti workers. Yet, he got N8.877 billion refund.
“Instead of accounting for what he used the loan refund for, he has the temerity to attack the Federal Government on hardship in the country.
“The relevant agencies are monitoring development in Ekiti and some states.”
Reacting to the allegation on the telephone yesterday, Ekiti State Commissioner for Finance, Toyin Ojo, admitted that the state got N8.8 billion from the Paris Club refunds.
But he said that the state’s share of the money was only N5.3 billion, which he said could barely pay one month out of the arrears of salaries owed the civil servants in the state.
According to him, the wage bill for a month stands at N5.2 billion.
He also said that workers in the local government sector could only get one month from the arrears of salaries owed them.
The Federal Government had released the sum of N388.304 billion out of N522.74 billion
to 35 states as refunds of over-deductions on London-Paris Club loans.
Topping the list of states with the hugest reimbursements are states controlled by the opposition Peoples Democratic Party (PDP), contrary to their claims that they were being financially oppressed by the administration of President Muhammadu Buhari.
The biggest earners include Akwa Ibom, Bayelsa, Rivers, Delta, Katsina, Kaduna, Lagos, Imo, Jigawa, Borno, Niger, Bauchi and Benue states.
But the reimbursement profile has shown that some governors fed their states with wrong figures of the sums given to them.
Investigation conducted by our correspondent revealed that 35 of the 36 states benefitted from the refunds of N388.304 billion.
Although most of the governors have begged the Minister of Finance, Mrs. Kemi Adeosun, not to make the list of reimbursements public, The Nation was able to source the breakdown of the reimbursements exclusively.
The document indicated that all the 35 states were credited with their shares of the N388.304 billion as at December 27, 2016.
Our correspondent obtained the names of the bank, the account and the account numbers where each state’s share was remitted.
Only Kano State and the FCT have so far not benefitted from the reimbursements.
According to the list, Kwara State got two types of refund totaling more than N9.188 billion.
Kwara’s shares include N5,415,167,236.97 refund to the state government and N3,773,082,953.54 for its 16 local government areas.
Findings also confirmed that Ondo was only paid 50 per cent of its refunds (N6,513,392,932.28) because of leadership change in the state, which will soon lead to the inauguration of Chief Rotimi Akeredolu as the new governor.
A breakdown of the list of top beneficiaries of the refunds is as follows: Akwa Ibom, N14,500,000,000.00; Bayelsa, N14,500,000,000.00; Delta, N14,500,000,000.00; Kastina, N14,500,000,000.00; Lagos, N14,500,000,000.00; Rivers, N14,500,000,000.00; Kaduna, N14,362,416,363.24; Borno, N13,654,138,849.49; Bauchi, N12,792,664,403.93; Benue, N12,749,689,453.61; Sokoto, N11,980,499,096.97; Osun, N11,744,237,793.56; Anambra, N11,386,281,466.35; Edo, N11,329,495,462.04; Cross River, N11,300,139,741.28; Kogi, N11,211,573,328.19 and Kebbi, N11,118,149,054.10.
The document said: “Ondo payment represents 50 per cent of the refund due to transition of leadership in the state. Further instructions are being awaited on balance payment.
“Adamawa, Kwara 22b on the list, Oyo and Taraba payments represent the portions due to the respective local governments.”
But the Presidency was uncomfortable with the attitude of some state governors to the management of the refunds.
Responding to a question, another source in government said: “It is unfortunate that some state governors under-declared the refunds made to them.
“Some of them were also discovered to be giving spurious analysis in order to cover up the actual figures.
“In fact, some states changed the agreement overnight.
“A state said the President asked states to use at least 25 per cent of their London and Paris Club refund to offset salary arrears.”
Investigation showed that about N134.44 billion out of the approved N522.74 billion will soon be paid as refunds to some states.
The top government source added: “Yes, as at December 27, 2016, all the 35 states had received the N388.3 billion refunds. The balance of N134.44 billion will soon be accessed.”
Following protests by states against over-deductions for external debt service between 1995 and 2002, President Muhammed Buhari had on December 2, 2016 approved the release of N522.74 billion to states as refunds pending reconciliation of records.
Each state is entitled to a cap of N14.5 billion being 25 per cent of the amounts claimed.
But the government has raised a team to scrutinise claims by states and reconcile with available records.
These developments were contained in a statement issued in Abuja by the Special Adviser on Media to the Minister of Finance, Mr. Festus Akanbi.
The statement said: “The Federal Government has reached a conditional agreement to pay 25% of the amounts claimed subject to a cap of N14.5 billion to any given state. Balances due thereafter will be revisited when fiscal conditions improve.
“Mr. President’s overriding concern is for the welfare of the Nigerian people, considering the fact that many states are owing salaries and pension, causing considerable hardship.
“Therefore, to ensure compliance with the directive that a minimum of 50% of any amount disbursed is dedicated to this, funds will be credited to an auditable account from which payments to individual creditors would be made. Where possible, such payments would be made to BVN linked accounts and verified.”
But any state paid refunds in excess of its outstanding claims might suffer deduction from its monthly allocations from the Federation Account.
It said: “Due to the fact that reconciliation is still ongoing and the final outcome might show an under or overstatement of claims, an undertaken has been signed by state governors, declaring that in the event the amount already paid exceeds the verified claim, the surplus would be deducted directly from the state’s monthly FAAC allocations.
“The total amount approved by the President is N522.74 billion and is to be paid in batches. The first batch of N153.01 billion is currently being processed for release to 14 state governments.
“The release of these funds is intended to support the fiscal stimulus programme of the President Muhammadu Buhari-led administration to provide direct stimulus through government spending. It is particularly aimed at boosting demand at consumer level and reversing the slowdown in economic activity.”
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I got only 12.5% from Paris Club fund – Mimiko
The outgoing governor of Ondo State, Olusegun Mimiko, on Tuesday said his administration got only 12.5 percent instead of 25 percent from the recently released Paris Club fund.
The governor, who wondered why his state got only 12.5 per cent, said other states got their full money.
Mimiko, whose eight year tenure ends on February 24, spoke at the first day of work prayer meeting held in Akure, the state capital.
Workers, who were being owed seven months salaries, forcefully dragged the then Accountant-General of the state, Mr. Felix Ajibokun, to banks before they were paid a month salary to celebrate the Christmas.
Mimiko blamed the half payment of the Paris Club fund for his administration’s inability to settle its debt.
He vowed to get the balance of the money and judiciously deploy that to pay workers’ salaries and other programmes of government.