Immediate past governor of Ogun state, Ibikunle Amosun has faulted the claim made by Governor Dapo Abiodun that he had to borrow N7 billion to pay workers’ salaries for the month of May.
Recall that Amosun, who is now Senator that represents Ogun central senatorial district of the state left government on May 29th, 2019 after the completion of two-term tenure as the Governor of Ogun state, was alleged by Governor Dapo Abiodun and his government not to have made any provisions for the payment workers’ salaries for the month of May, knowing full well that he would quit the seat on May 29th.
Speaking through Adewale Oshinowo, the immediate past Commissioner for Finance’s statement made available to journalists in Abeokuta tagged’ “Governor Abiodun’s ‘Empty Treasury’ slogan: Setting The Records Straight’, Amosun alleged that the claim attributed to Governor Abiodun could not have been true considering arrangements made before quitting government on May 29th, 2019.
“Our attention has been drawn to the widely circulated reports in the media that the Prince Dapo Abiodun-led administration in Ogun State inherited an “empty treasury” and its only recourse was a bank loan of N7 billion in order to pay workers’ salaries in May, 2019. Nothing could be further from the truth!
“Indeed, during a political parley in Abeokuta on 24 June, 2019, ostensibly convened to discredit and denigrate his predecessor, Governor Abiodun was widely reported in the media to have made the infamous comments reproduced below:
“So, I picked my phone and called my friends who are MDs in different banks. I told them I needed to pay salaries and this is the little I have; almost nothing in the state account. I requested for a credit facility to allow me to pay over N7bn which is the state wage bill. That day, my intention was that may be one or two will oblige me, but the five banks I called obliged me.”
“Contrary to the “empty treasury” slogan, the Dapo Abiodun led government inherited over N8.218 billion, comprising N5.735 billion from the Federation Account (FAAC/JAAC) and N2.483 billion from the Ministries Departments and Agencies (MDAs).
“What is more, the N10.6 billion refund for Pay As You Earn (PAYE) due to Ogun State, which the Amosun government had labored for three years to obtain, and which was due to be paid in May 2019, should have been part of the amount inherited by the Dapo Abiodun led administration.
” Ironically, the then ‘incoming’ government did everything possible to frustrate its release and create an enabling platform for the futile “empty treasury” campaign unveiled after taking over the reins of government. The N10.6 billion, which is the third highest amount refunded to some States among the country has since been released to the Gov. Abiodun led administration. Therefore, the Amosun administration can validly assert that it effectively left N18.8 billion in the coffers of Ogun State Government.
“Notwithstanding its covert campaign against the release of the N10.6 billionin May, the Dapo Abiodun led government had no justification for borrowing a dime from banks to pay May salaries as the amount left in the government coffers and the normal tax remittances due by the end of every month were more than enough to significantly offset the monthly wage bill.
The government of Dapo Abiodun would therefore need to explain to the public the reason and motive behind the N7 billion loan he claimed to have obtained on 30 May, 2019 (with undisclosed interest rates) a day after his inauguration!
It is the usual practice that for such large sums of money to be borrowed from financial institutions, the Ogun State Executive Council must debate and ratify it and the concurrent approval of the Ogun State House of Assembly must be obtained. At the National level, both the Federal Ministry of Finance and Debt Management Office (DMO) must also give written approval as part of the process for obtaining a loan.
“Clearly none of these mandatory approvals were complied with before the said suspicious and questionable loans were “supposedly” taken. Indeed this calls to question the compliance level of the Dapo Abiodun led administration with extant laws and financial regulations”, the statement issued by Amosun partly reads.
RAZAQ AYINLA, Abeokuta
