· Overrules 36 Govs
· Gov Fayemi to meet Buhari this week
· FAAC meeting deadlocked
By Godfrey AKON
Last Friday, the Federal Government paid out $418 million to six creditors for consultancy services supposedly rendered to the 36 state governments and the Federal Capital Territory, to enable them get refunds from the Paris Club.
The beneficiaries were issued promissory notes by the Debt Management Office, DMO, The Abuja Inquirer gathered.
A document seen by this newspaper listed the beneficiaries as: Ned Nwoko, $68,658,192.83; Ted Iseghoghi $159,000,000; RIOK Nig. Limited $142,028,941.95; Prince Orji Orizu $1,219,440.45; Bar. Olaitan Bello $215,195.36 and Panic Alert Limited $47,831,920. The actual total is $418,953,690.59.
“It’s a very dodgy deal. Very messy,” one governor told us last night.
These payments, we gathered, were approved by President Muhammadu Buhari, despite serious documented objections by the Nigerian Governors Forum about the legitimacy of the claims, and ongoing litigations on the matter in court.
As a result of this development, there was deadlock at the Federation Accounts Allocation Committee, FAAC, meeting held last Friday in Abuja.
The FAAC Committee is made up of the finance minister, who is the chairman and the commissioners of finance of the 36 states of the federation.
Last Friday’s meeting was chaired by the permanent secretary of the Ministry of Finance as the minister was in Washington DC for the World Bank meeting.
Once the commissioners were informed of the development, they raised serious objections.
The permanent secretary also told them that the payment will be spread out over 120 months or ten years.
A document given to them showing the actual deductions was sighted by The Abuja Inquirer. All the 36 state governments rejected the deductions and declined to collect the allocation to their states.
In a press release put out last night by David Olofu, Benue State Commissioner of Finance and Chairman of the States Finance Commissioners, explained why they refused to approve the money to be shared from the Federation Account.
Olofu said, “(our) members declined approval after consideration of the reports for the disbursement of the available revenue because of deduction on funds belonging to the local governments councils in favour of some consultants for a four hundred and eighteen million US Dollars judgement debt for consultancy services with respect to Paris Club Loans Refund. Based on available information, the deductions will continue for ten years (one hundred and twenty months”.
He pointed out that this was contrary to the 1999 constitution, adding that the NGF had objected to the execution of this judgement until full determination on the subject matter.
They FAAC meeting was adjourned indefinitely to allow for more consultations and resolutions of all the issues raised.
The issue of these fees to the consultants and contractors have been on for several years now.
They went to court and got judgement amounting to over $418m.
Some said they earned their monies through consultancy services by helping state and local governments to recover their allocations which were deducted by the Federal Government from 1995 and 2002 to service both the London Club and Paris Club loans. Others said they were contracted to execute some projects in the 774 Local government councils in Nigeria.
However, the Governors Forum, led by the Ekiti State Governor, Dr. Kayode Fayemi had disputed these figures and even the indebtedness to these consultants.
In February this year, the Governors thought they got a reprieve when the National Executive Council, NEC, presided by Vice-President Yemi Osinbajo and the 36 states governors, called for a suspension of the payments and commissioned a forensic audit.
But all of this was ignored and President Buhari gave his approval that the creditors be paid.
In a letter dated January 11, 2021, the permanent secretary, Federal Ministry of Finance, Aliyu Ahmed, directed the DMO to issue the promissory notes to the creditors.
The letter, titled, Authorisation To Issue Promissory Notes In Favour Of Category ‘A’ Judgment Creditors, read in Part: “I write to convey the approval of the Honourable Minister of Finance, Budget and National Planning (HMFBNP) for the Debt Management Office (DMO) to issue Promissory Notes in favour of Category “A” judgment creditors in the reconciled list of judgment debts in compliance with various court orders and judgments and the approval of Mr. President.
You will recall that Mr. President had in a letter dated 11 January 2021, approved the issuance of Promissory Notes to liquidate various categories of judgment debts to wit: (Categories A, B1, B2, and C) against Federal Ministries, Departments & Agencies (MDAs); States and Local Governments Councils. (Please find copy attached as Annex A),”
Governor Fayemi has requested to see President Buhari this week in a bid to stop the payments.
