FG Denies Withholding Statutory Allocation To Ekiti

The federal government has explained why it has not released the Budget Support Facility (BSF) to the Ekiti state government.

A statement from the federal ministry of finance on Wednesday signed by Salisu Na’Inna Dambatta, Director (Information) described the Ekiti governor’s claims as “incorrect as the Ministry has not withheld any statutory allocation due to Ekiti State, or any other State in the country.”

According to Salisu Na’Inna Dambatta, Director “the Ekiti State Government 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.”

Na’Inna Dambatta added that “this is not the first time of non-compliance by the Ekiti State Government. His (Ekiti governor’s) 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 statement said.

Na’Inna Dambatta noted that “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 ministry of finance said “the Ekiti State Government and all the other participating States are aware of the consequence of failure to comply with the full conditions and it is not the first time that a State would be stopped from accessing the Facility due to non-compliance.

The process of resolving this type of misunderstanding, the federal government said “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.”

 

The Federal Ministry of Finance restated that the Budget Support Facility is a conditional programme and the Federal Government would not be intimidated or threatened in the discharge of its duties. 

On Wednesday, the Ekiti state governor, Mr. Ayodele Fayose stormed the Ministry of Finance over the non payment of the state’s January budget support allocation of N1.1 billion.

Addressing journalists after storming the ministry, Fayose said he “came to the federal ministry of finance as a follow up of the alarm raised on Tuesday about the non-payment of Ekiti state’s monthly allocation and budget support fund.”

According to the Ekiti governor, “I believe I should do a follow up to meet with the Minister of Finance for an update, but she actually called me on Tuesday that she just got back but was going to look into it today and have it resolved as soon as possible. You will however appreciate that Ekiti civil servants are restive, having spent Christmas and there is no money in January, obviously there will be challenges.”