Seven governors have questions to answer in the alleged diversion of
part of the N388.304billion London-Paris Club refunds into two accounts
opened by the Nigeria Governors Forum (NGF), according to report.
The
Economic and Financial Crimes Commission (EFCC) has uncovered
N19billion in one of the accounts. The other is a domiciliary account,
which contains a yet unspecified amount of money.
One of those
invited for interrogation has admitted handing over a huge sum of money
to a principal officer of the National Assembly after changing it into
dollars, according to the preliminary report on the management of the
refunds.
According to a source, who pleaded not to be named
because he is not permitted to talk to the media, EFCC detectives
discovered that while about 2% of the funds was paid to consultants who
allegedly assisted in computing what was due to each state, 3% was
shared by some governors under “curious circumstances”.
The source said: “The detectives have uncovered the two accounts opened in the name of the NGF and the signatories to same.
“We are looking into circumstances behind such huge deposits from London-Paris Club refunds into these accounts.
“The
payment of 2% of the refunds to consultants and 3% to some governors
which was rated as “curious” by investigators have been confirmed. We
also discovered that some of the governors nominated these consultants.”
The
source declined to name the seven governors, stressing that the details
will be released as soon as the investigation is concluded.
Responding
to a question, the source said one of those questioned actually
admitted that he changed some of the funds into dollars and handed it
over to a principal officer of the National Assembly.
Besides, he
insisted that the EFCC had no any agenda against the governors, adding:
“It has no basis to run the NGF down at all, but you should know that
the Presidency is interested in how these London-Paris Club refunds were
spent.
“We know the governors have immunity, but certainly NGF
does not enjoy such constitutional protection. We are looking at what
informed the transfer of such funds into the accounts of the NGF and for
what purposes.
“Once the purposes are in line with statutory
financial regulations and the EFCC is satisfied, the case is closed. But
where there are cases of diversion and stealing of public funds, the
law will take its course.”
The Federal Government released
N388.304billion of the N522.74 billion funds to 35 states as refunds of
overdeductions on London-Paris Club loans.
States on top of the
list with huge reimbursements are those controlled by the opposition
Peoples Democratic Party (PDP) contrary to their claims of being
oppressed by the administration of President Muhammadu Buhari.
The big earners are Akwa Ibom, Bayelsa, Rivers, Delta, Katsina, Kaduna, Lagos, Imo, Jigawa, Borno, Niger, Bauchi, and Benue.
Only Kano State and the FCT did not benefit from the reimbursement.
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 the Governor-elect, Mr Rotimi Akeredolu.
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; Katsina – 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 Federal Government 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,” the government said.
It was reported that the presidency was uncomfortable with the funds management by governors.
A
source in the Presidency, who spoke in confidence, said: “President
Muhammadu Buhari has lived up to his pledge to ease salary crises in all
the states by releasing N388.304billion to 35 states.
“The
agreement between the Federal Government and the governors was very
clear. While 50 per cent of the amount released shall 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 governor went ahead to pay a curious 13-month salary to Ekiti workers. Yet, he got N8.877billion refund.
“Instead
of accounting for what he used the loan refund for, he attacked the
Federal Government on hardship in the country. The relevant agencies are
monitoring development in Ekiti and some states.”
Responding to a
question, another source in government said: “It is however unfortunate
that some governors underdeclared the refunds made to them. Some of
them were also discovered to be giving spurious analysis 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 refuns to offset salary
arrears.”