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Adeyeye To Fayemi: How Much Debt Is Ekiti State Owing Now?

By TheNigerianVoice-TNV
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Afenifere Chieftain and Peoples Democratic Party (PDP) governorship aspirant in Ekiti State, Prince Dayo Adeyeye has described the State Government's defense of the Fiscal Responsibility Commission (FRC) report, which put the total indebtedness of Ekiti State at N35.98bn as at December 31, 2011, as not only watery but a disservice to the people of the State.

Adeyeye said what the people desire in simple term is a definite answer as to the total amount being owed by Ekiti State and not a "say nothing long essay released by the State government as its response to the FRC report."

Director General of Prince Adedayo Adeyeye Movement (PAAM), Hon. Bisi Kolawole, said in a release issued today that it was laughable that the State Commissioner of Finance, Mr Dapo Kolawole could only say that the "Fayemi-led administration had repaid about half of the N20 billion it raised from the Capital Market."

He said; "If all that the State Finance Commissioner could offer was speculation on how much had been repaid from the N20 billion bond obtained in 2011, then something is missing somewhere."

"We have told Ekiti people that as at October 15, 2010 that Governor Kayode Fayemi assumed office, total Bank Borrowings was N7.5 billion taken against outstanding staff loan of N3.4 billion being deducted monthly from public servants salaries and N5 billion cash balances in counterpart funding accounts of Millennium Development Goals (MDGs) and State Universal Basic Education Board (SUBEB).

"In other words, Ekiti Bank Borrowings as at October 15, 2010 was N7.5 billion and by the time the N3.4 billion being deducted from public servants salaries is removed, it will remain N4.1 billion. Also, when the balance of N3 billion that was left in various accounts of MDGs and SUBEB is deducted, what will be left as debt will be N1.1 billion.

"So we ask Fayemi and his men, how much is the total debt being owed by Ekiti State now and how much is the government planning to borrow before the end of this year because we are aware that the state government is in the process of taking another bond?

"As per the N20 billion bond obtained in 2011, what is the exact amount already repaid, and most importantly, how much of the N20 billion bond got to Ekiti State?

"Above all, what was the purpose for which the N20 billion bond was taken and for which purpose was it expended?

"Above are the questions Ekiti people want Fayemi and his men to provide answers to, not a say nothing long essay that the government released to the press yesterday," Adeyeye said.

While reiterating his call on financial institutions in the country, especially the Central Bank and Security and Exchange Commission to be mindful of how loans are granted to the State, Adeyeye said; "Ekiti does not deserve a governor who runs government on credit by spending in advance, funds that should accrue to the State in 30 years, thereby keeping the present and future generations of Ekiti people in perpetual bondage of debt."