Abia Clarifies N3.2bn Receipt from FG
Posted by admin | 9 years ago | 2,540 times
The Abia State Government thursday clarified its receipt of N3.2 billion from the federal government, saying that the money was never a bail out for the payment of salary arrears.
The clarification was made by the Special Adviser to the governor on Economic Affairs, Mr. Obinna Oriaku, at a press briefing to correct an earlier impression created by a Special Assistant on Media, Mr. Ugochukwu Emezue.
He had told journalists that Abia had received N3 billon bailout from the federal government, adding that N6 billon was needed to clear the backlog of workers’ salary arrears.
But Oriaku countered that there was no truth in what Emezue had said.
He explained that what the state actually received was N3.2 billion which was its share of the $ 1.7 billion of the Nigerian Liquefied Natural Gas (NLNG) tax shared among the three tiers of government.
Oriaku further explained that N1.2 billion of the fund was the share of the 17 local governments in the state while the balance of N2 billion was the state government’s share.
According to him, the fund was meant for the payment of salaries, maintaining that the much- talked- about federal bailout has not been received.
The special adviser therefore urged members of the public to disregard the earlier “misinformation” regarding the bailout, adding that the state government was already working with the Debt Management Office and the Central Bank of Nigeria on how to get a bailout.
The special adviser who also cleared the air on the controversy trailing the N30 loan request approved by the state’s House of Assembly, said it was not “a fresh borrowing.”
He explained that the money was the accumulation of all the debts owed by Abia Government including salary arrears, pensions, debt owed contractors and other debts owed by agencies of government .
Oriaku said one of the conditions given by the federal government to takeover debts owed by state governments as bonds was that the State House of Assembly must give a legal backing hence the approval granted to the governor’s request by the lawmakers.
“It means that the federal government will acquire the debts as bonds and the condition of payment is easier. Many states are heavily geared including Lagos which owes about N400 billion,” he said.
Oriaku said the Central Bank would be the guarantor of the N30 billion bailout and would be deducting same at source with re- payment spread over 20 years.
He acknowledged that the House of Assembly’s apparently misunderstood Governor Ikpeazu’s letter requesting the lawmakers’ approval for the loan deal.
The House Speaker, Hon. Martins Azubuike, had said the loan deal was approved to enable government execute the dredging of Aba River, and other infrastructural projects but Oriaku said the lawmakers were already clearing the misinterpretation.
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