Home Latest News Ekiti debt not N170bn, Fayemi preparing grounds for impending failure

Ekiti debt not N170bn, Fayemi preparing grounds for impending failure

Ekiti debt not N170bn, Fayemi preparing grounds for impending failure

Johnson Ojo, Ado Ekiti

The immediate past Governor of Ekiti State, Mr. Ayodele Fayose has insisted that his administration did not commit the State to any financial institution in form of bonds and commercial loans,describing claim by Governor Kayode Fayemi that the State was indebted to the tune of N170 billion as false and “a way of preparing grounds for his impending failure just as he did when he assumed office in 2010.”

Fayose’s Media Aide, Lere Olayinka, said in a statement issued on Wednesday that Ekiti State indebtedness was under N60 billion and that the debt was either directly incurred during Fayemi’s first tenure or as a result of the loans restructuring done at the instance of the federal government and the Federal Economic Council.

He gave the breakdown as follows; Commercial Bank Loan, N2,087,788,065.28; CBN Grant for Water Project, N163,450,000; Excess
Crude Account Backed Loan, N9,545,173,472.78; Bailout,N9,083,761,215.40; FGN Bonds, N18,226,699,707.18; State Bonds, N3,484,469,345.51 and Budget Support, N16,869,000,000.

While challenging Fayemi to name the banks being owed the N170 billion and monthly repayment by the State Government to such banks, Olayinka said; “He should not wait till 100 to cook up false stories of how much debt was left by the Fayose administration. He should rather tell Nigerians how it is possible for a State that is indebted to the tune of N170 billion to be making N1.1 billion repayment monthly.

“Instead of lying so blatantly to cover up his impending failure,Fayemi should publish the Debt Management Office (DMO), Ekiti State Executive Council and House of Assembly approvals for the loans since no loan can be taken without these approvals.”

Describing Fayemi as a “multiple-mouthed” person, Olayinka said; “In September this year, Fayemi claimed that Ekiti debt was N117 billion, one month after, he said the debt is N170 billion. So the debt increased from N117 billion to N170 billion in less than 30 days?

“The reality is that Fayemi is reputed for speaking from both sides of his mouth. In the past, when Fayose assisted him to be governor, he described him (Fayose) as an honourable person whose word is always his bond and today, he goes about denigrating the same Fayose.”

Fayose’s spokesperson, who admonished Fayemi to face the task of governance and stop his usual grandstanding, said; “The federal government deliberately refused to release legitimate funds belonging to Ekiti State to the Fayose administration and for this reason, the arrears of salary could not be cleared as promised.

“We are aware that in a matter days, the withheld fund of over N30 billion is to be released to the State by the federal government as refund on federal roads construction, arrears of Budget Support and Paris Club refund.

“Our plea is that Governor Fayemi should stop making excuses and use the over N30 billion to pay workers salary.

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