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Fayose knows why Ekiti was not paid BSF allocation –FG

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Ekiti workers drag out Fayose over N10bn bail out fund, Ozokhome's N75m

The Federal Government (FG) has owned up that it stopped paying Ekiti State from the Budget Support Facility (BSF),

The government at the center however explained that it took the step because the state failed to meet the conditions FG reached with the state governors on the programme.

The clarification followed an alarm raised by Ekiti State Governor Ayodele Fayose, accusing the FG of refusing to pay his state BSF for the month of January after it had paid other states of the federation.

The governor had earlier in the day stormed the ministry of finance, demanding to see the minister for explanations as to how his State did not receive payment.

Adeosun, however, was at the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo, and was unable to attend to Fayose.

Fayose alleged that FG’s action was the latest plot to get at him because of his criticism of the present administration, adding that it was targeted at hindering his efforts to give good governance in the state.

But in a statement released by the Director of Information of the Federal Ministry of Finance, Mr. Salisu Na’Inna, in Abuja, on Thursday, FG said that Ekiti was warned about the situation as far back as August last year but the government failed to do something to remedy the situation.

“The fact is that, 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.

“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.

Read also: FG sets stage for Fayose to fail, allegedly withholds allocation

“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.

“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,” the statement read.

 

 

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