End of code
loading...

Trending Now

Friday, February 17, 2017

Federal Govt.: Why We Didn't Release Money To Fayose

The Federal Government has clarify that the January allocation from the Budget Support Facility (BSF) to Ekiti State was suspended because the state failed to comply with the basic requirements for participating in the facility.

Governor Ayo Fayose of Ekiti State had accused the Federal Ministry of Finance of withholding the state’s statutory allocation for January for political reasons.


A statement by the Ministry of Finance signed by the Director of Information, Salisu Dambata, said the BSF is a conditional loan programme to state governments introduced to enhance fiscal prudence, transparency, efficiency in public expenditure and payment of salaries.

The ministry said the Ekiti government failed to comply with the required conditions for the payment, and was not the first state to be denied the funds on such grounds.

It denied the claim that the ministry of finance withheld any statutory allocation due to Ekiti State, or any other state in the country.

“This is not the first time of non-compliance by the Ekiti State Government,” the statement read.

“His administration defaulted in meeting the conditions specified and agreed upon by the 35 state governments that are participating in the programme as contained in the Fiscal Sustainability Plan (FSP) and the Ekiti State Government was warned formally of its failure to comply with the full requirements vide a letter on August 5, 2016, with reference number HMF/FMF/ASG/1/2016.

“The failure of Ekiti State Government to comply with the requirements and conditions for the Budget Support Facility (BSF) resulted in a letter sent to the chief of staff to notify him of the suspension of BSF for Ekiti State and it was conveyed to Mr. President before payment to the Ekiti State Government was reinstated.

“The Ekiti State Government and all the other participating states are aware of the consequence of failure to comply with the full conditions and it is not the first time that a state would be stopped from accessing the facility due to non-compliance.

“In the course of its normal duties, the ministry of finance has the right to query, suspend or withhold funds as part of the conditions of the Budget Support Facility.”

Fayose's government reacts
The Ekiti government described the explanation as an afterthought meant to mislead the public.

The Special Assistant to the Governor on Public Communications and New Media, Lere Olayinka, said the state signed up for N14.4 billion and had received funds monthly in the last seven months from the ministry of finance.

So when did they realise that Ekiti State did not meet the conditions? Mr. Olayinka asked. “Or did they send the allocations in the last seven months in error?”

He also argued that there was no warning letter or notification from the ministry of finance before the governor raised the alarm, else there would have been no need for the governor to write a letter to the ministry demanding explanations on the non-release of the funds.

“If they sent any letter, maybe they sent it today, because the governor was there yesterday and before then no one knew the reasons why the funds were not released,” Mr. Olayinka said.

“As I am talking to you, we have not received any letter from the ministry, if they sent any letter, maybe they sent it today. This explanation is an afterthought.”
For Your Business Advert Inquiries Email:portharcourtcityblog@gmail.com Whatsapp on (+234)8061356726

No comments:

Post a Comment

If you like our stories like and Share please

loading...