N86bn debt: I’ll probe Fayemi, says Fayose

The Ekiti State Governor, Mr. Ayodele Fayose, has said his government will probe the administration of his predecessor, Dr. Kayode Fayemi, for allegedly incurring N86bn debt.

The governor said due to the monumental debt, he must “look at the past, consider the present and project for the future of the state in order to forge ahead.”

He gave the breakdown as, bank loans​​​​​​-​​N15, 831,613,425.62; bond​​​​​​​-​​N26, 49,796,784.75; outstanding warrants​​​​,​​N15, 522,552,900.76; outstanding to road contractors​​​,​​N21, 286,126,749; outstanding remittances to the Federal Government, ​​N709, 883,656.75; outstanding remittances (state government) ​​-​​N592, 995,374.89; and public servants outstanding emoluments​-​​N5, 137,888,224.37.

But the All Progressives Congress has advised the governor to face governance and stop making false allegations. The Ekiti State APC Publicity Secretary, Taiwo Olatunbosun, at a press briefing in Ado-Ekiti, said the present administration was doing more harm to the people than good. He said the allocation received for September was used to pay workers’ October salaries without paying for September.

He said, “What is the basis for skipping the September salary, government is a continuum. Those things we have done that are good, they are enjoying them, those things we seem not to have done to the best of their knowledge, they are condemning them.” Olatunbosun also accused Fayose of stampeding the former government by writing to the banks to stop relating with it even when he (Fayose) had no constitutional rights to do so. He chided the government for demoting workers who were duly promoted according to the extant rules.

But Fayose, who spoke through his Special Assistant, Public Communications and New Media, Mr. Lere Olayinka, at a separate press briefing in Ado-Ekiti on Tuesday, accused Fayemi of mismanaging the state resources and plunging it into a debt bondage.

He alleged that the former government secured a N25bn loan in two tranches-repayable over seven years-with accumulated interest of N17bn. Olayinka said the N20bn bond was with a period accumulated interest of N13.4bn while the N5bn was with a period accumulated interest of N3.6bn with no evidence of utilisation of the N5bn, suggesting that the loan was taken to fund Fayemi’s botched re-election bid.

Olayinka also accused Fayemi’s government of making fixed deposit at 2 per cent interest rate whereas the average rate was 8.5 per cent and making cash deposits in banks in Ibadan and Lagos at abysmally low interest rates to please his cronies.

Olayinka said, “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.

“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 will be made to face the full wrath of the law.”

Olayinka lamented that Fayemi’s administration built a N3.3bn worth government house at the time he said the state could not fund more than one university.

“In a state like Ekiti with less than N3bn as monthly federal allocation, former Governor Kayode Fayemi spent a whooping sum of N604,961,645.72 just to furnish the new Governor’s Lodge built for the comfort of himself and his wife.

“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 Fayemmi was a monumental disaster to Ekiti and its people,” Olayinka said.(PUNCH)