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Tag: Paris Club

  • Ekiti workers oppose plan to spend Paris Club refund on projects

    Civil servants in Ekiti State have kicked against an alleged plan by the state government to use part of the Paris Club refund on capital projects.

    A statement yesterday in Ado-Ekiti, the state capital, by Enlightened Workers’ Forum’s (EWF’s) Coordinator Mike Bamidele, said the workers also urged the Federal Government to work out modalities for direct payment to them to prevent any plan to divert part of the state’s N9.6 billion share.

    The workers said the call was necessary because of their experience, when similar bailout cash from the Federal Government was not fully utilised for the payment of salary arrears and retirees’ benefits.

    The statement added: “Our concern is that Ekiti workers are suffering and pensioners are dying in large numbers. For the first time in Ekiti State, a senior civil servant committed suicide due to frustration. Yet, Governor Ayodele Fayose did not see any reason to adjust…”

  • I’m not building hotel in Abuja, says Zamfara governor

    I’m not building hotel in Abuja, says Zamfara governor

    Zamfara state governor and Chairman of the Nigeria Governors Forum, Abdulaziz Abubakar Yari has denied reports that he was building a $3 million dollars hotel in Abuja with money stolen from the state shares of the Paris Club refund.

    The governor who said he neither owns a plot of land in the Abuja, nor is building a hotel in the city, described reports that he embezzled another N2.2 billion from the N19billion set aside illegally to pay “consultants”, as wrong, harmful, libelous and misleading.

    In a statement signed by the Head of Media and Public Affairs of the Nigeria Governors Forum, Abulrazque B. Barkindo, the governor expressed concern about reports by an online media quoting an unnamed source from the Economic and Financial Crimes Commission (EFCC).

    The governor condemned the resort to media trial of people by the commission, stressing that such attitude has led to the commission losing many high profile cases of corruption. 

    He said while the media is entitled to perform its duties as watchdog of society, which is enshrined in the constitution of the Federal Republic of Nigeria, it is not, however, entitled to make unfair attacks, based on unfounded, false and unsubstantiated allegations against responsible public office holders.

    The statement reads: “Reports on Governor Abdulaziz Yari Abubakar of Zamfara State, and Chairman of the Nigeria Governors’ Forum making the rounds in some online media which claimed that the “governor is building a $3m hotel from monies stolen from the Paris-London Club refunds to states” give cause for worry.

    “The reports contain harmful, damaging and libelous insinuations which remain largely unsubstantiated despite the fact that it attributes the leaks to the Economic and Financial Crimes Commission (EFCC), officials in Lagos.

    “Governor Abdulaziz Yari Abubakar has said emphatically that he does not even own a plot of land in Lagos not to talk of a hotel. But the Economic and Financial Crimes Commission officials in Lagos claimed as follows: that “they have found a hotel being constructed by Governor Yari of Zamfara state with $3m he stole from London-Paris Club loan refund to Nigerian states.

    “That “apart from the $3million, Governor Yari also diverted N500 million from the Paris Club refund to pay off a loan”, an Economic and Financial Crimes Commission (EFCC) source revealed to an online medium.

    “The medium also added that EFCC officials in Lagos revealed that “overall the governor embezzled the sum of N2.2 billion from the N19billion set aside illegally to pay “consultants”, all of which are wrong, harmful, libelous and misleading disclosures.

    “Governor Abdulaziz Yari is not building any hotel in Lagos nor were any monies stolen or embezzled from the Paris-London Club refunds to states or from any other source.

     “The online medium quoted the Economic and Financial Crimes Commission (EFCC) extensively as its source and the Nigeria Governors’ Forum is alarmed that the EFCC continues to feed the media fibs at the expense of its hard-earned reputation as the anti- graft agency that Nigerians used to respect.

    “This is perhaps why the EFCC has lost most of the high-profile corruption cases at the law courts after it had unfairly stage-managed media trials and caused their victims personal pain and public umbrage.

    “This report, typical of most of the exclusive leaks that are becoming characteristic of the sources that court some sections of the media, lacks detail and compelling evidence to be fit to print.

    “The sources were courageous enough to mentioned a hotel in Lekki area of Lagos but gave neither a street name nor any specific information on the property to give credibility to the allegations. This does no service to any investigation nor does it help the development of our country Nigeria.

    “The media, we all know, is entitled to perform its duties as watchdog of society, which is enshrined in the constitution of the Federal Republic of Nigeria. It is not, however, entitled to make unfair attacks, based on unfounded, false and unsubstantiated allegations against responsible public office holders.

    “The media should support the EFCC in ensuring that convicting people on the pages of newspapers shouldn’t be the focus of the EFCC in its war against corruption. Instead, EFCC should channel its energies to comprehensive, thorough and credible investigation that can stand the scrutiny of legal examination in court.

    “There can be no claim to any semblance of due process when individuals are convicted on the pages of newspapers before they are arraigned only to be declared innocent at the end, all at the expense of their reputation and that of their immediate family, through such media hype.

    “The newspaper is not an alternative court, as far as our constitution is concerned, and all responsible journalists are obliged by the ethics of their profession to ensure that whatever goes into publication is verified and adjudged to be accurate.

     “I therefore urge, in the spirit of responsible journalism, balance and fairness, that journalists desist from absorbing hook, line and sinker scoops from fifth columnists whose actions are tantamount to dragging the reputation of the EFCC in the mud,” the governor said. 

  • Governor builds hotel with $3m Paris Club refund cash

    Governor builds hotel with $3m Paris Club refund cash

    Cash lodged in Rep’s account through proxy

    EFCC places restriction on NGF’s N8b, $80m

    Detectives have traced $3million of the controversial London-Paris Club loan refund to a governor, The Nation learnt on Thursday.

    The cash is believed to be part of the N19billion illegally deducted from the refund by the Nigeria Governors Forum (NGF), according to Economic and Financial Crimes Commission (EFCC) sources.

    The cash has been found in the account of a member of the House of Representatives who got it through a  proxy, the lawmaker’s brother. Both were not available for comments. The  $3million is being spent on building a 100-room hotel in Lagos, which the governor may forfeit to the Federal Government.

    Also, the EFCC has placed a restriction on N8billion and $80million in the naira and dollar accounts of the NGF.

    The Presidency has released N1. 266.44trillion to the 36 states in the past one year. The cash includes N713.70billion special intervention funds to states.

    Following protests by states against over deduction for external debt service between 1995 and 2002, President Muhammadu Buhari had approved the release of N522.74 billion (first tranche) to states as refund pending reconciliation of records.

    Each state was entitled to a cap of N14.5 billion being 25% of the amounts claimed.

    Finance Minister Mrs. Kemi Adeosun said the payment would enable states to offset outstanding salaries and pension which had been “causing considerable hardship”.

    The governors sought for the refund to states and local governments at a meeting with President Buhari on May 24, last year.

    A source, who spoke in confidence with our correspondent, said: “The EFCC is still investigating the N19billion allegedly diverted from the loan refund. The commission has so far interrogated 15 companies, more than 10 individuals and over eight bureaux de change used to divert the cash.

    “The latest bend of the investigation is the discovery of $3million linked with another governor who benefited from the illegal deduction. The governor had engaged a member of the House of Representatives(who was also a former commissioner) to launder his share.

    The lawmaker was said to have wired the $3million into his brother’s account before moving it into his own. Upon interrogation,  one of the suspects admitted that the cash was for the ongoing construction of a 100-room hotel for the governor.

    “About $500,000 of the $3million has been recovered by the EFCC. It is a scam in which many people benefited and a sizeable number of proxies used to launder the funds,” the source said.

    The $3million was transferred to the lawmaker for the governor from the $86million in the NGF’s domiciliary account.

    “We will do our best to recover the already diverted part of the $3million. We may also apply for the forfeiture of the hotel to the Federal Government,” the source said, pleading not to be named so as not to jeopardise the investigation.

    The $86million is said to be for the payment of consultants who worked for the refund for the 35 states. But none of the consultants has been paid. Some of them have already gone to court.

    The source added:  “The EFCC has placed a Post No Debit restriction on the NGF’s  account with N8billion and domiciliary account with $80million.

    “Out of the $86million, $3million was wired to the governor through a proxy and another $2million shared out.

    “The EFCC is ready to lift the restriction on the two accounts of the NGF on  a condition that the consultants and legal advisers who deserve to be paid will be given what they are entitled to in line with the agreement signed with the NGF.

    “We want the NGF to involve the EFCC in the disbursement to avoid another diversion of the cash. As it is now, consultants and legal advisers are complaining that they are being shortchanged by the governors.”

    The EFCC had earlier traced about N500million, which was meant for a consultant, to the account of a governor.

    The cash has been retrieved.

  • Bayelsa govt. moves to avert primary school teachers strike

    Bayelsa govt. moves to avert primary school teachers strike

    The payment of April salary for primary school teachers in Bayelsa has averted a planned three-day warning strike by teachers in the state.

    The state chapter of Nigeria Union of Teachers (NUT) had planned to proceed on a warning strike to press for payment of up to seven months’ salary arrears.

    Dr Agatha Goma, Bayelsa Commissioner for Local Government Administration, told News Agency of Nigeria (NAN) in Yenagoa on Sunday that the ministry had met with the teachers union to avert the strike.

    Goma commended the primary school teachers for their patience and assured that the state government would implement all agreements reached with their union.

    She attributed the delay in the payment of the salaries to paucity of funds due to dwindling revenue as a result of economic downturn.

    The commissioner explained that the local government share of the Paris Club refunds was deployed to the payment of salaries of primary school teachers.

    According to her, as part of government demonstration of good faith, local council workers are now getting full salary as against half salaries paid last year.

    The commissioner said the state government would continue to work with the local authorities to find permanent solution to the lingering financial crisis in the councils.

    Goma said government was aware of the critical roles of teachers in the ongoing educational revolution in the state and would not toy with their welfare.

    “Teachers welfare is pivotal to Gov. Seriake Dickson’s revolution in the education sector. There is no deliberate effort to undermine teachers’ welfare.

    “The issues of half salary in 2016 and delays in payment arose because of the recession in the Nigerian economy.

    “But the teachers should be assured that government is concerned about their welfare and everything is being done to find a permanent solution to this challenge,” Goma said.

     

  • How LGs shared N1.3bn Paris Club refund in Bayelsa – Commissioner

    Dr Agatha Goma, Commissioner for Local Government Administration, Bayelsa, said the eight local government areas in the state shared N1.3 billion from the N14.5 billion Paris Club refund remitted to the state by the Federal Government.

    She gave the figures in a news conference on Monday, noting that the councils deployed the fund which was the first tranche of the Paris Club fund to clear salary backlogs in the eight local governments.

    She, however, said that the fund was not sufficient to clear the entire backlog as various councils have varying wage bills even as their fund receipts and revenue earnings varied.

    According to her, the breakdown of the sharing shows the following — Brass Local Government; N158.5 million, Ekeremor Local Government; N182.2 million, Kolokuma/Opokuma; N122.6 million and Ogbia; N157.9 million.

    Others are Sagbama; N155.4 million, Nembe; N147.9 million, Southern Ijaw; N209.4 million and Yenagoa; N199.1 million.

    “It is important to restate that what the councils in Bayelsa are facing is as a result of the recession which has taken its toll on the revenue accruable to all tiers of government, nobody tampers with council funds in Bayelsa.

    “Even though we run a unified local government system, the same amount that accrues to the local governments is what is remitted to them and they are financially autonomous.

    “The local government component of both the bailout funds from the Federal Government and the Paris Club refunds were remitted to the eight local governments and they were judiciously used,’’ Goma said.

    President Muhammadu Buhari had on March 23 approved the disbursement of the second tranche of the Paris Club loan refunds to states that had disbursed the first tranche to local governments.

    Accountability of the disbursement of the first tranche is a prerequisite for states to benefit from the second tranche of the disbursement.

    Mr Ebiango Egain, Secretary, Bayelsa chapter of Association of Local Governments of Nigeria said at the news conference that the local governments shared the N1.3 billion and deployed same to clear outstanding salaries.

    He commended Gov. Seriake Dickson of the state for ensuring that council funds were released to the local government as received from the Federal Government.

  • Yobe retirees to get N1.196 billion from Paris club refunds

    Yobe retirees to get N1.196 billion from Paris club refunds

    A total of 651 retirees from Yobe State are to benefit from the share of the Paris Club refunds to the state following the approval of over N1.196 billion by Gov. Ibrahim Gaidam for the payment of their understanding gratuity benefit.

    According to a statement from the Director of Information to Gov. Ibrahim Gaidam, Abdullahi Bego, the payment will cover retirees from Febuary 2015 to October 2015.

    The statement added that another batch of beneficiaries will soon be release as the Bukar Chidami led verification committee is working hard to authentic the list of those affected.

    The state reads: “His Excellency Governor Ibrahim Gaidam has approved N1, 196, 440, 441.00 (one billion, one hundred and ninety-six million, four hundred and fourty thousand, four hundred and fourty one naira) as gratuity payment to another batch of 651 retirees who retired from service or died in service between February 2015 and October 2015.

    “Payments will be made to the affected beneficiaries from the Paris Club refund received from the federal government.

    “The public may recall that five weeks ago, the governor had approved N883, 690, 311.00 to a batch of 443 retired civil servants who retired from service between June 2014 and February 2015.

    “The committee set up by His Excellency the governor to verify retiree claims under Alhaji Bukar Chidami is working to verify all subsequent retirees, whose retirement dates fall between November 2015 to date.

    “The public can expect further announcements as the committee continues with its works”.

     

  • Pensioners state stand on Paris Club refund

    Pensioners state stand on Paris Club refund

    The Nigeria Union of Pensioners (NUP), Southsouth zone, has asked for judicious use of the Paris Club refund given to states to pay salaries and pension arrears.

    Its Zonal Chairman Comrade Benjamin Eta said pensioners were partnering unions to ensure that they were not sidelined.

    He said the National Executive Committee of the union had notified the Nigeria Labour Congress (NLC) of its stand.

    “The national executive committee has sent a letter to the NLC and to the union to monitor the use of that money.

    “This is because it is difficult for pensioners to get close to government,” Eta said.

    According to him, it was necessary for the NLC to be involved in the matter, considering its closeness to the government.

    “What the union will do is to liaise with the NLC, which is closer to the government, to see how that money can be properly put to use,” he said.

    The union called for the appropriate use of the cash.

    According to the Chairman of the union in Rivers State, Mr Festus Abibo, the president should prevail on governors to deploy the funds for the purpose they were meant for and not divert same for their uses.

    He called on state governments to carry out biometric verification of retirees from 2014-2016 to pay up their gratuities and entitle-ments early.

    The Rivers NUP chief lamented that  retirees had been facing financial difficulties since 2004.

    He appealed to the relevant authorities to address the documentation matters of retirees from 2014 to date and ensure the commencement of payments to alleviate the sufferings of these senior citizens.

  • EFCC probes Saraki’s aides over N3.5b Paris Club cash

    EFCC probes Saraki’s aides over N3.5b Paris Club cash

    Cash traced to Dubai jeweller

    Senate President: it’s mudslinging

    The Economic and Financial Crimes Commission( EFCC) has frozen 15 accounts of some individuals and companies for the alleged diversion of N19billion from the London-Paris loan refund.

    Besides, about $183,000 (N71, 370,000) of  the loan refund has been traced to a jeweller’s account in Dubai.

    The anti-graft agency is probing a former  Heritage Bank Executive Director Mr. Robert Mbonu, three aides of Senate President Bukola Saraki and three others on how N3.5billion was wired into some accounts. The cash is said to be part of the  N19billion allegedly diverted from the N522.74 billion initial refund to states.

    The others are Melrose General Services Limited, the Relationship Manager to the Senate President, Kathleen Erhimu, Obiora Amobi, the Deputy Chief of Staff to the Senate President, Hon. Gbenga Peter Makanjuola, Mr. Kolawole Shittu and Oladapo Joseph Idowu.

    Mbonu is said to be one of the consultants engaged by the Nigerian Governors’ Forum (NGF).

    These highlights are contained in a March 10, 2016 report, which has been submitted to President Muhammadu Buhari.

    The report got to the Presidency about five days before the Senate’s rejection of Acting EFCC Chairman  Ibrahim Magu’s second nomination.

    The report may have fuelled Magu’s rejection by the Senate because some of Saraki’s aides were implicated, a source close to the investigation said.

    An EFCC source said: “This agency has frozen more than 15 accounts used to divert the N19billion remitted into the account of the Nigerian Governors Forum(NGF).

    “Some of these accounts include those of Bureau De Change, companies, mortgage firms, and personal types.

    “We have been able to recover some money from these frozen accounts. Also, some bankers have made useful statements to this commission.”

    In a report to the presidency, the EFCC confirmed that it had traced $183,000 into the account of a Dubai jeweler.

    The EFCC report said in part: “Mr. Robert Mbonu is alleged to have received N3.5billion  into his company’s (Melrose General Services Limited’s) account from the NGF through Account 0005892453 domiciled in Access Bank.

    “Investigation revealed that one Kathleen Erhimu is the Relationship Manager to Dr. Bukola Saraki’s account with Access Bank.

    “That Saraki at a meeting introduced one Joseph Oladapo Idowu and Gbenga Peter Makanjuola to her and Hon. Makanjuola thereafter introduced Mr. Robert Mbonu to Ms Kathleen Erhimu.

    “That Mbonu operates an account , Melrose General Services with Access Bank Plc 0005892453 and 0005653500 which was up till 13th December a business account.

    “That Halima Kyari , the Head of Private Banking Group stated in a letter dated 13th December , 2016 , Mr. Robert Mbonu requested a transfer of Melrose General Services Company account from Business Account to a Private Banking Group Platform as he was expecting huge funds into the account.

    “Subsequently, on the 14th December , the sum of N3.5billion was lodged into Melrose General Services Company account number 0005892453 domiciled in Access Bank from the Nigerian Governors Forum(NGF).

    “That thereafter Mr. Obiora Amobi and Hon. Gbenga Makanjuola were introduced to Access Bank as representatives of Melrose General Services Limited by Robert Mbonu to enable them cash withdrawals from the account.

    “That one Oluyemi Braithwaite, the MD/ CEO of Reinex Bureau de Change, Caddington Capital Limited and Westgate Limited also manages a BDC stated to have known Mbonu as a client and he requested for dollars in exchange for the Naira equivalent which were to be handed over to one Mr. Gbenga in Abuja.

    “That Ms Oluyemi Braithwaite contacted one Hassan Dantani Abubakar, the owner of Hamma Procurement Limited, Ashrab Nigeria Limited and Insoire Solar Application to make available  the dollars based on the Naira equivalent  as transferred from Robert Mbonu who she had introduced via phone to Hassan Dantani.

    “That on 16th December 2016, Melrose General Services transferred the sum of N246million to Hamma Procurement First Bank Accouny No. 2030756168 in exchange for the sum of $500,000 which was handed to one Mr. Gbenga in Abuja who acknowledged receipt of the same amount.

    “That on the 21st Dec 2016, Ms Oluyemi Braithwaite contacted Hassan Dantani Abubakar, requesting for another transaction of $370,000. Melrose General Services Company transferred the sum of N181m to Inspire Solar Application. The $370,000 was handed over to one Mr. Dapo in Abuja.

    “That on the 4th of January 2017, Mbonu through Melrose General Services Company transferred the sum of N248, 500,000 to Caddington Capital Limited belonging to Ms Oluyemi Braithwaite who transferred same to Hassan Dantani Abubakar’s FCMB account, Ashrab Nigeria Limited for the sum of $500,000. The dollar equivalent was handed over to Mr. Kolawole Shittu in Abuja

    “That on the 10th of January 2017, Mr. Robert Mbonu through Melrose General Services Company transferred the sum of N99,820,000 to Caddington Capital Limited belonging to Ms. Oluyemi Braithwaite who transferred same to Hassan Dantani Abubakar’s FCMB Ashrab Nigeria Limited  for the sum of $200,000. The dollar equivalent was handed over to one Mr. Peter in Abuja.

    “That on the 19th December, there was a cash withdrawal of the sum of N50million from Melrose General Services account via cheque by Hon. Gbenga Peter Makanjuola.

    “Also, the sum of $1,570,000 was received by the trio of Mr. Gbenga Peter Makanjuola, Mr. Kolawole Shittu and Mr. Oladapo Joseph Idowu at various times and locations at Abuja FCT.

    “That on the 29th December, 2016, Mr. Robert Mbonu called Mrs. Kathleen Erhimu of Access Bank requesting her to source for a customer that would have the sum of $500,000 in exchange for the Naira equivalent. She introduced Mr. Robert Mbonu to Acarast Commercial Limited and Capital Field Investment to help him source for dollars.

    “That on the 21st December 2016, GCA Energy Limited paid the sum of $25,000 to Asterio Energy Services Limited which subsequently transferred the sum of $23,200 to Cactus Communication Limited account with Access Bank.

    “The MD of Sought-After  International Synergy Limited, Julius Okedele stated that Mr. Kelechi Edomobi of Acarast Commercial Enterprises contacted him and requested to purchase dollars after the transfer of N73,950,000 to Sought-After  International Synergy Limited. Mr. Edomobi gave him the account number of Cactus Communication Limited Access Bank as the nominated account to receive the dollar equivalent of the sum of $149,000.

    “Investigation further confirmed that Cactus Communication Limited  is owned and operated by Joseph Oladapo Idowu, an aide to Bukola Saraki.

    “That Mr. Kelechi Edomobi also transferred the sum of N1m on the 15th of January, 2017, to Joseph Oladapo Idowu’s personal account number 0001679877 with Access Bank Plc.

    “That Asterio Energy Services Limited on 21st and 22nd December, 2016, transferred $100,000 and $85,000 to Bhaskar Devji Jewellers LLC  in Dubai respectively the same company that Dr. Bukola Saraki repeatedly made transfer to from his Black Card Account.

    “That Cactus Communication Limited on 30th December, 2016, paid the sum of $59,,660.67 to Bhaskar Devji Jewellers LLC  in Dubai.

    “That Asterio Energy Services Limited on 20/1/2917, 30/1/2017 and 31/1/2017 transferred $46,000, $39,000 and $37,620 to Cactus Communication Limited.”

    “That Mr. Obiora Amobi and Gbenga Makanjuola made cash withdrawals of various tranches of N5 million and N10 million.

    “Based on the foregoing findings, it is clear that Robert Mbonu, the Managing Director of Melrose General Services Company and his company were used to help divert proceeds of unlawful activities under the guise of payment for contractual obligations with the Nigerian Governors’ Forum ( NGF).

    “Suffice to apprise that all payments received by Melrose General Services Company from the NGF have hitherto been diverted directly via cash withdrawals and indirectly through transfers by Hon. Gbenga Peter Makanjuola, Kolawole Shittu and Oladapo Joseph Idowu who are principal aides of the Senate President.

    “Furthermore, other payments from Melrose General Services Company has also been linked to companies that Dr. Bukola Saraki has interest in and carry out transactions with.

    “This includes the sum of $183,000 which was transferred to Bhaska Devji Jewellers, Dubai, a company Dr. Bukola Saraki had repeatedly made payments to.

    “Also, the sum of N200 million was transferred to Wasp Networks Limited that subsequently transferred the sum of N170 million to Xtract Energy Services Limited, a company that routinely made deposits into Dr. Bukola ‘s Access Bank United States Domicilliary Account.

    “A prima facie case of conspiracy to retain the proceeds of unlawful activities  and money laundering contrary to Sections 15(3) and 18(9) of the Money Laundering Prohibition Act 2004 can be established against the aforementioned suspects.

    “Additionally, investigation into their personal accounts is ongoing.”

    From the initial tranche of ofN522.74 billion, about N19 billion was remitted by states into two accounts of the Nigeria Governors Forum (NGF) as commission to consultants.

    But the commission was found out to have ended up in the accounts of some of the seven governors, some public officers and some individuals who had no business with the refunds.

    It was also learnt that some consultants engaged by the NGF and some states have not been paid by the governors.

    Besides locating the two accounts where the N19 billion was allegedly remitted into, the EFCC has interrogated more than four people involved in hiring of consultants and payment.

    Some states remitted as much as N600 million into NGF’s emergency accounts for the commission.

    It was learnt that the two NGF accounts were hurriedly opened in defiance of the agreement.

    According to findings, reports made available to presidency by the EFCC and other security agencies showed that the governors did not keep to the terms for the refund.

  • 36 states, FCT demand $6.9b Paris Club refund

    36 states, FCT demand $6.9b Paris Club refund

    Fed Govt to return excess deductions in five to 10 years

    States are demanding about $6.9billion Paris Club loan deductions from the Federal Government.

    The government has raised a verification and reconciliation team on the claims by states to end over deduction of loans which have crippled many states.

    It was also learnt that the government has set guidelines for accessing the refund.

    The Federal Government may— no thanks to the recession— issue long tenored instruments of between five and 10 years to states with valid claims to refund the money.

    President Muhammadu Buhari has ordered the release of about N522.74 billion in the first tranche to enable states offset outstanding salaries and pensions.

    The initial payment was greeted with controversy following the remittance of about N19billion from the N522.74 billion into two accounts of the Nigeria Governors Forum (NGF) as commission to consultants.

    According to a document obtained by The Nation, states are demanding US$6, 923,722,131.81 refund from the Federal Government.

    The states based their requests on unaccounted deductions on “Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Report of the Reconciliation of State Governments’ External Debts, Vol. 1 (May 2007)”.

    The breakdown is  as follows: Abia ($151, 410, 816.39); Adamawa($161, 968, 221.27); Akwa Ibom($344, 122,584.90); Anambra($162, 163, 091.98); Bauchi  ($182, 192, 756.59); Bayelsa($329, 744, 322.49); Benue($81, 580, 708.60); Borno($194, 461, 850.74); Cross River ($160, 936, 263.51); Delta ($365, 655, 143.86); Ebonyi($119, 419,427.28); and Edo( $161, 354, 346, .83).Others are  Ekiti($126, 432, 758.86); Enugu($142, 034, 156.54); Gombe ($118,486,826.45); Imo($185, 451, 792. 92); Jigawa ($188, 282, 561.77); Kaduna($204, 549, 118.60); Kano( $287, 952, 190.23); Katsina($217, 274, 991.01); Kebbi($158,344,357.37); Kogi($159, 674,903.18); Kwara($135, 646, 207 .33); Lagos($223, 773, 195.58);

    The list includes Nasarawa($120, 557, 593.92); Niger($191, 014, 388.20); Ogun($152, 036, 415.75); Ondo ($ 185, 527, 107.67); Osun(4167, 261, 095.11); Oyo(4209, 314, 168.61); Plateau($149, 512, 027.96); Rivers ($462, 593, 183.07); Sokoto($170, 625, 921.77); Taraba(4148, 662,635.52);  Yobe($143, 393,460.04); Zamfara($144, 169, 154. 81); and FCT($18, 142, 185).

    Some states sought refund from 1982 to 2006, others put their timeline at 1995 to 2006.

    In one of their letters to Vice President Yemi Osinbajo through a consultancy firm, the states indicated that the demand for refund began during the tenure of a former Minister of Finance, Dr. Ngozi Okonjo Iweala.

    The letter gave some insights into efforts at reconciling debt records which the Buhari administration inherited.

    The details are contained in the letter by Mauritz Walton Nigeria Limited, which was engaged by some states for the reconciliation of their loan refunds.

    The letter was signed by Dr. Maurice Ibe (Managing Consultant) and Alh. Sani Anani (Associate Consultant) for the firm.

    The letter states: “The above named company was appointed as consultants by some state governments to carry out reconciliation and recovery of all over deductions on foreign loans (1995 to 2006).

    “Subsequently, the loan records were received and reconciled for all the states under our client list (1982 to 2006). It was discovered that the total deductions from the states’ statutory revenue from June 1995 to March 2006 (period of “first line charge policy”) were completely omitted in the past reconciliation exercises.

    “It is important to kindly inform that Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Debt Management Office (DMO) and FAAC Sub-Committee did not include this period.

    “Therefore, based on our findings, we submitted a demand notice to the then Coordinating Minister of the Economy and Minister of Finance as established over deduction of our clients (states).

    “The purpose of this letter is to seek your kind intervention as the Chairman of Debt Management Office (DMO) to resolve these issues once and for all.”

    A Presidency source said: “We need to put on records that President Buhari is embarking on loan refund due to over-deductions over the years. Some states have overpaid what they borrowed. This became rampant during the ‘First Line Charge’ period of 1992 – 2002 when deductions were made from Revenue Allocation Accounts.

    “Most of the over deductions in dispute occurred before the establishment of the Debt Management Office (DMO). Also, deductions from First Line Charge has been suspended since 2012.

    “Prior to the establishment of DMO, some states were servicing loans that records could not be traced again. The President has decided to clean up the debt management system in a way that some of these states will be off the hook.

    “What he has done is to ask states to come up with their claims which would be verified by the Federal Ministry of Finance, the Debt Management Office (DMO), RMAFC, and Office of the Accountant-General of the Federation (OAGF).

    The President is said to have decided to direct the release of some refund (first and second tranches) to states pending reconciliation of debt records to enable them pay outstanding salaries and pensions.

    He took the decision after getting the report of a Presidential Committee which looked into all liabilities owed to all States of the Federation by the Federal Government of Nigeria (FGN), The Nation learnt.

    Responding to a question, the source added: “A verification/ reconciliation committee is already working on these loans and claims by states.

    “The Nigeria Governors Forum (NGF) has an agreement with the President that any state which gets more refund than it ought to pay back. This is why states ought to use their refund well.”

    Another document has also given insights into the findings of the Presidential Committee and the guidelines which states must follow to get their refund.

    The document said in part: “The Committee met and after deliberating on the issue of States’ claims for refund of the Federal Government’s over-deductions on their Revenue Allocation Accounts in the period prior to the establishment of the DMO, wishes to communicate the following:

    1. The Federal Government is prepared and willing to revisit the issue of States’ claims of over-deductions from States’ Revenue Accounts during the period of First Line Charge, which had been suspended since 2012.
    2. States with genuine claims should make their submissions directly to the Presidential Committee and not through any Consultant, within the timeline given by the Committee.

    iii. Claims by all the States of the Federation would be considered together by the Presidential Committee and no State would be treated separately;

    1. A thorough verification process would be undertaken to sift through the submissions made by the States, with a view to either authenticating or rejecting the claims, based on their veracity or otherwise.

    “You may kindly wish to find below, the Guidelines for the consideration of claims by all States:

    1. All submissions should be addressed to the Presidential Committee on the Verification of States’ Claims of Over-Deductions from Revenue Allocation Account in respect of External Debt Service Payments (1992-2002) and submitted to the Honourable Minister, Federal Ministry of Finance, with a copy to the Director-General, Debt Management Office (DMO);
    2. It is the responsibility of each participating State to establish its case and taking into consideration that the burden of proof rests with the State.

    iii. The use of Consultants by any State is not acceptable. States should forward their submissions directly to the Committee.

    1. Each submission by States should be accompanied by the following documents:
    2. Demand Notices from Creditors on a loan-by-loan basis in respect of loans on which claims are based;
    3. Details of all States’ loans
    4. Loan Agreements;
    5. Evidence of Payments to the Creditors (authorised by the Creditors);
    6. Evidence of deductions from the States’ Revenue Allocation;
    7. Category of debts on which claims are being made;
    8. Evidence of amount outstanding on a year-by-year basis (from 1992- 2002);
    9. Where applicable, for every claim, there should be confirmation of the status of the debt by the creditor; and,
    10. Any other relevant information/document.

    “The Federal Government would issue long tenored instruments of between 5 to 10 years to States with valid claims of over deduction, as a means of refunding the States.”

  • Governors: we didn’t divert Paris Club refund

    Governors: we didn’t divert Paris Club refund

    The Nigeria Governors Forum (NGF) at the weekend denied that it diverted part of the first tranche of the Paris-London Club refund to states.

    The Economic and Financial Crimes Commission (EFCC) is investigating the allegation and  President Muhammadu Buhari last Thursday ordered the release of the second tranche of the refund to states.

    Spokesman of the NGF Abdulrazaque Bello-Barkindo, in a statement said:

    “The Nigeria Governors’ Forum read with utter disgust reports making the rounds in the print, electronic and social media that monies accruing to states from the Paris and London Clubs refunds have found their way into private pockets.

    “Apart from stating that these reports are unfounded and are only a figment of the imagination of the writers, the Nigeria Governors’ Forum wishes to also categorically state that nothing illegal has been committed in the entire process leading to the final disbursement to states of the first tranche Paris-London Clubs repayment of the excess deductions from states’ coffers and the refund of their loans.

    “Following the barrage of innuendoes, untruths and outright falsehoods that have pervaded the media, the Nigeria Governors’ Forum deems it imperative to shed light on the transactions that followed and put the records straight.

    “The Paris London Clubs loan refund has been on the cards since 2005. Successive state governors had tried to get reimbursement for the excess deductions from their states in the past but did not succeed. The failure resulted from a number of reasons, varying from one state to the other. It is therefore to the Nigeria Governors’ Forum’s credit that this set of governors was able to persuade President Muhammadu Buhari to authorize the release of the funds for disbursement to deserving states.

    “President Buhari’s desire to reflate the economy at a time when states were insolvent and unable to pay salaries was why he acceded to the request by the current group of governors that the money be released to the states. It is true that there were conditions attached to the disbursements but these arose from the collective and voluntary resolution of the governors and not any draconian order from any quarters.”

    “And each and every approving authority, including the Federal Ministry of Finance, the office of the Accountant General of the Federation, the Central Bank of Nigeria and the office of the Auditor General of the Federation as well as the National Assembly were duly informed from the beginning to the end of all the transactions.

    “Nothing illegal was done and no monies was paid into the personal account of any Governor, legislator or top officials at any of the levels and arms of government in the country.”he said

    He also noted that President Muhammadu Buhari would not have approved the payment of the second tranche of the refund to the states, if the Federal Government had found anything corrupt, illegal and unpatriotic about the utilization of the first tranche of the Paris-London Clubs Fund.

    He added: “Note also most importantly at this juncture, that every decision that was taken in respect of all the transactions was with the full consent and blessing of the 36 governors.

    “We therefore find the insinuation in the media that monies went into the private accounts of seven unidentified governors as not only preposterous but mischievous.

    “This is more so because none of the reports was able to identify a single governor, not to talk of seven.  The Economic and Financial Crimes Commission (EFCC) itself had issued a release exculpating all the governors, saying it was investigating the matter further.

    “But instead of allowing the EFCC to conclude its investigations, a particular section of the media resorted to this unsavory falsehood which puts the media and its practitioners in bad light.”