November 5, 2014 – Ekiti State Government has accused immediate past governor of the State, Dr. Kayode Fayemi of reckless management of state’s resources and massive looting.
Speaking at a press conference in Ado-Ekiti, Special Assistant to the Governor on Public Communication, Mr. Lere Olayinka alleged that the immediate governor ruined Ekiti State economically, putting it in a financial bondage till year 2020 and that the State government was indebted to the tune of N86,013,689,097.
According to him, the Fayemi-led administration used Fountain Holdings Limited, an investment company owned by the Ekiti State Government, saddled with the responsibility of managing and supervising companies owned by the State Government, to borrow N5 billion from EcoBank in May, 2014.
“As I address you today, I can tell you categorically that Ekiti State Government is indebted to the tune of N86, 013,689,097. The debts are broken down as follows: Bank Loans; N15, 831,613,425.62, Bond; N26, 749,796,784.75, Outstanding Warrants; N15, 522,552,900.76, Outstanding to Road Contractors; N21, 286,126,749, Outstanding Remittances to FG; N709, 883,656.75, Outstanding Remittances (State Govt); N592, 995,374.89 and EKSG Public Servants Outstanding Emoluments; N5, 137,888,224.37.”
“As at today, after paying a total sum N15, 221,207,088 (i.e. N14,299,085,088 repaid from the N20bn bond and N922,122,000.09 from the N5bn bond), the State Government is still owing N26.749bn!
“Isn’t it worrisome that after paying N15.5bn out of the N25bn bond taken by Fayemi’s government, Ekiti State Government still owes N26.7bn? That is the situation that we are confronted with.
“Our question is; is it part of the responsibilities of Fountain Holdings Limited to execute capital projects like road construction on behalf of Ekiti State Government?
“Fountain Holdings Limited, for your information is an investment company owned by the Ekiti State Government. The responsibility of Fountain Holdings Limited is to manage and supervise all companies owned by the Ekiti State Government. The Share Capital of the company is N15m, and we wonder how a company with N15m Share Capital could be granted N5bn loan by EcoBank without any recourse to the DMO!
“As at today, there is no single evidence of utilisation of the N5bn, suggesting that the loan was taken to fund Fayemi’s botched re-election bid.”
He said a total some of N499, 654,808.01 was being deducted monthly deducted from the State allocation at Federation Account Allocation Committee (FAAC) as a result of N20 billion bond.
According to him, “Monthly repayment is N397, 196,808 (for N20bn) and N102, 458,000.01 (for N5bn) deducted at Federation Account Allocation Committee (FAAC). Total deduction per month is N499, 654,808.01.
“The first tranche of N20bn will be fully paid in 2018 while the second tranche of N5bn will be fully discharged in 2020.
“The N20bn bond is with period accumulated interest of N13.4bn while the N5bn is with period accumulated interest of N3.6bn.
“As at today, after paying a total sum N15, 221,207,088 (i.e. N14,299,085,088 repaid from the N20bn bond and N922,122,000.09 from the N5bn bond), the State Government is still owing N26.749bn!
“Whereas, Call Deposits in Banks attract not less than 3% interest, during the last administration, government funds were placed in banks in Ibadan and Lagos at abysmally low Interest Rates, some as low as 0.85% and 1.5. These transactions were obviously done to defraud the State while pleasing cronies of the last administration.
“Fixed Deposit for 30 days was made at 2% interest. Whereas, the average rate for Fixed Deposit was 8.5%.”
He said the sum of N604.9 million was used to furnish the new Governor’s Lodge constructed with N3.3 billion borrowed fund, added that; “Unfortunately for Fayemi and his wife, they could only use the N604.9m furniture for 15 days!
“Contract for the furnishing of the new Governor’s Lodge, built with N3.3bn borrowed fund was awarded to Kitwood Nigeria Limited on June 18, 2014, three days to the governorship election that he (Fayemi) lost scandalously.
“Instead of the State Ministry of Works, the contractor was asked to report at the office of Fayemi’s Chief of Staff, Yemi Adaramodu to sign contractual agreement and also obtain detailed specifications of the items to be procured.
“From what we enumerated above, it is clear enough that the previous administration of Kayode Fayemi was a monumental disaster to Ekiti and its people. The government simply hated Ekiti and its people and it demonstrated it by grossly mismanaging the State resources and plunging the State into perpetual bondage of debt.
“A lot of people might want to reason that; the new government of Ayodele Fayose should just forget about the past and move on with its own programmes. Yes, the government of Fayose will move on, and deliver on its electoral promises. The government of Fayose will bring succour to Ekiti people by putting food on their tables. But the government of Fayose must look at the past, consider the present and project for the future of Ekiti State.
“Therefore, we want to state categorically that all those who have defrauded this State will be made to refund every kobo that they stole. Those who shed the blood of innocent Ekiti sons and daughters too will made to face the full wrath of the law.”
