How Fayemi Looted, Mismanaged Ekiti Resources Recklessly, State Debt Is N86bn – Govt

Ekiti State Government has accused the immediate past governor of the

State of reckless looting and mismanagement of the State resources,
saying; “the immediate past All Progressives Congress (APC) government of
Dr Kayode Fayemi ruined Ekiti State economically, putting the State in a
financial bondage till year 2020 and that the State government was
indebted to the tune of N86,013,689,097.”

Special Assistant to the State Governor on Public Communications and New
Media, Lere Olayinka, in a press conference addressed in Ado-Ekiti today,
said it was appalling that the Fayemi-led administration used Fountain
Holdings Limited, an investment company owned by the Ekiti State
Government and saddled with the responsibility of managing and supervising
companies owned by the State Government, to borrow N5billion from EcoBank
in May, this year.

He said; “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.”

On the N25 billion bond taken by the Fayemi’s government, 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.”

Speaking further, the governor’s aide, who was flanked by the Chief Press
Secretary to the governor, Mr Idowu Adelusi and Special Assistant on
Information and Civic Orientation, Hon. Lanre Ogunsuyi, said it was
questionable for Fountain Holdings Limited, a company with N15 million
share capital to have been granted N5 billion loan by EcoBank without
recourse to the Debt Management Office (DMO).

“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.”

On the N25 billion bond, Olayinka disclosed that a total some of N499,
654,808.01 was being deducted monthly deducted from the State allocation
at Federation Account Allocation Committee (FAAC).

He said; “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!”

The governor’s aide also accused the Fayemi-led government of placing
government funds in banks in Ibadan and Lagos at abysmally low Interest
Rates, some as low as 0.85% and 1.5.

He alleged that “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%.”

Olayinka, who also disclosed that 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.”

Concluding, the governor’s aide said; “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. 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.”