FG To Fayose: You’re Not Truthful On The Budget Fund

 

Federal Ministry of Finance has refuted the claim by Ekiti State Governor, Mr. Ayodele Fayose that the statutory allocation to the state has been withheld.

The ministry, in a statement Thursday signed by Mr. Salisu Na’inna Dambatta, Director of Information, said the claim by the governor was incorrect as the ministry has not withheld any statutory allocation due to Ekiti State, or any other State in the country.

According to the ministry, Ekiti State Government has repeatedly failed to comply with the necessary requirements for participating in the Budget Support Facility (BSF), which is a Conditional Loan Programme to State Governments introduced with the view to enhancing fiscal prudence and designed particularly to enhance transparency, efficiency in public expenditure and payment of salaries.

“This is not the first time of non-compliance by the Ekiti State Government. His (Fayose) administration defaulted in meeting the conditions specified and agreed upon by the 35 State Governments that are participating in the programme as contained in the Fiscal Sustainability Plan (FSP) and the Ekiti State Government was warned formally of its failure to comply with the full requirements vide a letter on August 5, 2016, with reference number HMF/FMF/ASG/1/2016.

“The failure of Ekiti State Government to comply with the requirements and conditions for the Budget Support Facility (BSF) resulted in a letter sent to the Chief of Staff to notify him of the suspension of BSF for Ekiti State and it was conveyed to Mr. President before payment to the Ekiti State Government was reinstated.

The ministry said all the participating states including Ekiti are aware of the consequence of failure to comply with the full conditions and this would not be the first time that a State would be stopped from accessing the Facility due to non-compliance.

“In the course of its normal duties, the Ministry of Finance has the right to query, suspend or withhold funds as part of the conditions of the Budget Support Facility. The process is for the Commissioner of Finance of any State or the Governor having issues to contact the Federal Ministry of Finance and resolve the issues without resorting to the media because such issues are of a financial nature and therefore, confidential; they are routinely resolved amicably by the parties involved.

Fayose on Tuesday accused the Federal Government of withholding the state’s allocation and the monthly Budget Support Fund due to the state for January.

He also accused the Economic and Financial Crimes Commission, EFCC, of incessant harassment of the government contractors working in Ekiti State with a view to truncating the ongoing projects.

The governor claimed that the none remittance of the money has made the State government to write a protest letter to the Minister of Finance, Mrs Kemi Adeosun.

He added that 10 days after the letter was sent, no response has come from the Minister.

“We have written to the Minister of Finance. My Commissioner was there. I have spoken to the Minister of Finance but nobody is ready to talk to us. The allocation and the budget support is our legitimate earning…I am calling on people with conscience to speak up. We will take necessary action to ensure that our money is paid. This is beyond Fayose.”

But the ministry of finance restate very strongly that the Budget Support Facility is a conditional programme and that the Federal Government would not be intimidated or threatened in the discharge of its duties.