FG to publish details of Parish club refunds to state –Adeosun

The Minister of Finance, Kemi Adeosun ha stated that the federal government would not hide anything in the amount of monies given to the states in the Paris club refunds.

The minister reaffirmed the commitment of the Federal Government to publish all relevant information on the Paris club refunds, adding, that it will consistently comply with all extant rules and regulations in the disbursement of the Paris club refunds to state governments.

A statement released by the Minister, the disbursement process is aimed at transparency and attainment of specific economic objectives.

“The federal government’s disbursement process is transparent and targeted at the attainment of specific economic objectives. The inability of some sub-national governments to meet salary and other obligations was considered in consonant with the Federal Government’s economic stimulus programme.

“The debt management office (DMO) initially requested for a period of 22 months to complete the reconciliation and facilitate disbursement. However, President Muhammadu Buhari, considering the plight of salary earners and pensioners and the need to stimulate the economy, directed that the exercise be completed within 12 months”, in addition, Mr. president gave an express anticipatory approval for the release of up to 50% of the claim of each state, pending final reconciliation. That reconciliation is undertaken by the DMO, office of the Accountant-General of the Federation (OAGF) and the relevant State Governments”, the statement read.

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Adeosun said the release of the first tranche was in the tune of N522.7bn in December 2016. Subject to an agreement by state governments earmarked for the payment of salaries and pensions.

“The release of the first tranche, representing up to 25% of claims, being N522.7bn commenced in December 2016. Disbursement was subject to an agreement by state governments that 50% of any amount received would be earmarked for the payment of salaries and pensions. In addition, each Governor gave an undertaking that excess payments would be recovered from the Federal accounts allocation (FAAC), if the final reconciliation found that the amount paid under the anticipatory approval exceeded that due”.

Adeosun further clarified the batches that have been addressed and the plan to publish details after agreements have been reached.

“To date, nine batches have been processed while some balances remain outstanding to the possible credit of a number of states. Given the foregoing, complete and final figures can only be released and published after each state and the federal government have reconciled and agreed on the sums due”, she stated.

 

 

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