I read with sadness the cock and bull story by the Abia State Commissioner for Information, Mr John Okiyi Kalu under the headline – Transparency in Governance: Ikpeazu leads the way, as Abia publishes audited account – wherein he tried to manipulate the psyches of the impressionable Abians with embellished rhetoric of Okezie Ikpeazu’s government financial prudence and transparency.
Afterwards, his self-defeating efforts to eulogize a governor with an unsavoury reputation as an expert in failure, premeditated omnishambles and profligacy, the helpless JOK submitted under the subhead – Budget Support or Bailout Funds?
– thus:
“It is important to recall that in 2015 the Central Bank of Nigeria (CBN) availed Abia state a facility of N14.152bn (bailout) … to clear outstanding salaries, pensions and gratuities inherited from previous administrations dating back to the military administrations of the 90s up to 2015.”
“Upon receipt of the N14.152bn bailout which had a 20-year repayment period, just as with 33 other states of the federation that also received, Governor Ikpeazu decided to inaugurate an organized labour dominated committee to decide on how to allocate the resources to the areas of need in terms of workers’ outstanding emoluments…”
JOK, you lied. You are a Commissioner for Information, not misinformation. It was T.A. Orji’s government and the one you serve under that accumulated salaries, pensions and gratuities. I am glad you were ashamed to own up. Second, what was given to Abia State as a bailout was N14.2 billion converted to bond, not cash. Federal Government used it to offset billions of loans Abia government was owing banks through backchanneling to avert a banking crisis.
What happened was that Abia State government and some other state governments owed banks and underreported it. The banks became strained and reported to CBN. To forestall the banking system from collapsing just like we had in 2009, the government had to step in and converted all the debts the states were owing banks to real assets.
CBN compelled the banks to submit to them how much state governments were owing. Collectively, it was about N300 billion across the board. CBN agreed to pay the banks the debts owed by the states. In other words, the states owe CBN instead of the banks.
CBN gave state governments the loans at concessionary interest rates to ease it off, maybe because of a political arrangement. That was the opportunity Abia State used to renegotiate its liability and collected N14.152 billion loan with 20 years’ interest of nine per cent. The bailout was not in cash. Please stop this deceit. The only cash Abia State government got then was the first and second trenches of Paris Club Refunds (N10.6 billion and N5.7 billion).
The so-called committee set-up to ostensibly work out modalities on how best to put to good use the bailout fund was a prank by the government to borrow time to finalise the N14.15 billion loan with 20 years’ interest of nine per cent it got from the CBN.
I found it laughable that the helpless JOK tried to discombobulate us with “Budget Support” tale. The N14.2 billion was a bailout (not received in cash). The N14.152 billion was a 20-years loan with nine per cent interest rate which the CBN has started deduction since then. Approximately N445.9 million is deducted from the Abia State monthly FAAC allocation to repay the loan and several others accumulated.
In trying to justify his “budget support” story, JOK further wrote, “In November and December 2015, allocations to Abia State were below or about N1.7bn/month with the state monthly wage bill standing around N2.7bn then.”
Haba JOK! It is not true. Abia State received the total net FAAC allocation of N3.753 billion (State=N2.246bn and LGAs = N1.507bn) in November 2015. It also got the total net FAAC allocation of N4.405 billion (State = N2.699bn and LGAs = N1.706bn) in December 2015.
I am also surprised to read you say that Abia State monthly wage bill was about N2.7bn when the governor told us that Abia State wage bill reduced to N2.1bn from N2.7bn after the verification exercise. Anyway, for a government that lies often, there’s always the propensity to contradict itself.
Rather than euphemistically referred to the N17.5bn as budget support, tell us that the federal ministry of finance wants to be repaid, another loan Ikpeazu’s government took.
Unlike other states of the federation that borrowed to invest in income-generating projects, Abia government borrows to meet their overhead cost, that is, the cost of running the government. The cost of running the government in Abia State is high. The governor spends money on mundane and abandoned his responsibilities to the people of the state.
JOK, you cannot tell us that you don’t know that “Let’s go to Sanhedrin is common parlance among the governor and his top kitchen cabinet members. What is gulped during the drinking splurge is Hennessy Paradis Imperial. A bottle sells for $3,000; an equivalent of N1.02 million.10 bottles (N10.2 million) approximately are gulped weekly.
It means that the sum of N40.8 million is spent on drinks every month, N489.6 million annually and N1.958.4 billion in the first four years of Dr Okezie Ikpeazu’s government. So, where are the prudence and transparency you wasted energy preaching? Abians are tired of Ikpeazu’s government tales by moonlight; the reason no one but the E-Idiots comments on your posts.
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