Fayose Raises The Alarm Over N1bn Loan,Transfer Of N856m

BEVERLY HILLS, October 13, (THEWILL) - Ekiti State Governor-Elect, Mr. Ayo Fayose, has raised the alarm over alleged moves by the outgoing government in the state to secure a fresh N1 billion loan from First City Monument Bank (FCMB) barely four days to the end of its tenure.

In a letter with reference number OGE/EK/ADM/ 094 dated October 10, 2014 and signed by the Chairman, Ekiti State Transition Committee, Chief Dipo Anisulowo, to the Managing Director, FCMB in Lagos, the Fayose team said it had it on good authority that the new loan was being sourced to pay the severance allowances of public office holders.

This is just as the committee also raised the alarm over alleged transfer of over N856 million from SUBEB project account number 0065385894 with Access Bank Plc to another account.

The said money, the Fayose team alleged, was the state's counterpart contributions to the Federal Government Intervention Funds.

“Please be informed that going by UBEC Financial Regulations, it is absolutely unethical to transfer any part of the fund that is available for SUBEB/UBEC project execution in the state without valid instruction.

“This move will definitely wane down the reputation of the state as one of the most performing states in the federation,” the letter with reference number EKSUBEB/PS/400/41 read.

The committee noted that granting loans to an administration which has less than four days to wind down was suspicious.

“Our greatest concern regarding this transaction is that it would be deducted as first line deductions from October 2014 allocations when the incoming administration would have taken over the reins of governance in the state.

“If, however, the first line deduction would not be practicable, the governor-elect, who as a critical stakeholder in the finances of the state as at the period the loan was being negotiated, and who was not part of the deal, would be expected to pay back the loan facility consonant with the agreement signed with the state government,” the letter further read.

The committee stressed that if the appeal to the bank not to grant the loan was not heeded, the incoming government would not honour the deal.

“Besides, we shall not hesitate to explore all administrative and legal means and processes to deal appropriately with the conduct of your bank in this regard,” the committee warned.