Fayemi to Fayose: “Stop This Comedy of Errors”

Kayode Fayemi, immediate past governor of Ekiti State has described the claim by Ayodele Fayose, incumbent governor of the state that he left the state with a high debt profile as “mischievous and irresponsible.”

This was contained in a statement signed by Olayinka Oyebode, Chief Press Secretary to the former governor while reacting to allegations of financial recklessness and huge indebtedness made by Fayose in his inaugural speech, last week.

“For the avoidance of doubt, the indebtedness of the state as at October 15th, 2014 is N36,316,017,758.93 (Thirty six billion, three hundred and sixteen million, seventeen thousand , seven hundred and fifty six naira, ninety-three kobo).

“Of this amount, the sum of N7,830,636,440.62 (Seven billion, eight hundred and thirty million, six hundred and thirty-six thousand, four hundred and forty naira, sixty-two kobo) represents foreign loans incurred by previous government since the days of the old Ondo State,” the former governor explained.

He added that the remaining sum of N28, 485,381,316.31 represents internal loan. This, he said include inherited loans from previous governments and outstanding balance (debt) of the bond taken from the Capital Market.

Describing Fayose’s claim as fraudulent and capable of misleading the general public, Fayemi said it is a “deliberate distortion of facts and figures in an attempt to invent excuses for imminent poor performance in office.”

The former governor also stated that in spite of the state’s current financial status, the federal government is owing it up to the tune of N17,710,728,299.06. This, he said, include N10,839,493,135.63, amount due from construction of federal roads; N4,012,384,082.60, refund on Paris Club; and N2,858,851,080.83 being amount due on ecological projects to the state.

“If the Federal Government would graciously effect part of this payment, the debt profile of the state would have been greatly reduced,” he explained.

Claiming that Fayose was hasty in making a pronouncement on the status of the state’s finances and other matters without first going through the handing over note that has explicit details, Fayemi said, “the state bank balance as at October 15th stood at N1,930,739,725.84. This comprised N1,463,805,908.56 (state account) and N466,933,817.28 (local government account). Also the Bond Sinking Fund Account balance as at September stood at N3,019,987,424.03.”

The former governor also recalled that about N14 billion has been repaid to the Capital Market from the N25 billion bond the administration took in 2011 to finance some of the projects it executed, while in office.

Again describing Fayose’s statement that the former administration owed two months salaries as “dubious”, Fayemi said, civil servants in the state have been paid up till August this year.

The statement said the reason for not being able to pay the outstanding one month salary was “sequel to the reluctance of banks to give the state facilities following sundry allegations of collaboration levelled against the banks by Fayose.”

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