By Dipo Olowookere
The Federal Government has refuted a claim by the Ekiti State Govrnor, Mr Ayodele Fayose, that the Federal Ministry of Finance has withheld statutory allocation due to his state.
The Governor was at the Ministry’s office in Abuja few days ago to demand for the allocation, alleging that his findings show that Ekiti State was the only state in the federation yet to receive the money.
Reacting to the issue, the Ministry, in a statement signed by its Director of Information, Mr Salisu Na’inna Dambatta, pointed out that the Ekiti State government has 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.
Mr Dambatta said, “This is not the first time of non-compliance by the Ekiti State Government. His 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 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.
“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,” he added.
Mr Dambatta noted that “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.
“The Federal Ministry of Finance wishes to restate very strongly 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.”
