Governors cry out over delay in $3.45bn Paris Club refund

It was learnt yesterday that states who are eager to have the $3.45 billion second tranche of the London-Paris Club loan refund may have to wait longer than planned.

The delay follows the ongoing probe of N19 billion and $86.5million deducted by the Nigeria Governors Forum (NGF) from the first tranche of N522.74 billion.

The Presidency is awaiting the outcome of the investigation by the Economic and Financial Crimes Commission (EFCC) on the first release.

But the governors are angry that some Presidency forces have influenced President Muhammadu Buhari to have a “rethink” on the second tranche.

It could be recalled the President had on April 2, May 24 and May 31, 2016 met with the leadership of the NGF on the financial crisis affecting most of the states, especially non-payment of salaries and pensions.

The governors demanded $6.9billion refund from the Federal Government to states and local governments for alleged over deduction for loans servicing.

They also asked for refund of the money spent by the states on Federal Government projects.

The President conceded to the governors on five conditions:

• A thorough reconciliation be carried out between the Federal Government and the states;

• 50% of the claims submitted by the states be released, prior to completion of the reconciliation, to support states;

• ·25-50% of the cash released will be used to settle outstanding salaries and pension arrears in most states;
• There will be judicious use of the remaining 50% on development projects; and that

• ·Local governments will have access to their share of the refund.

The presidency is said to have realized that most of the governors have defaulted in the conditions attached to the release of the refund.

The government is worried about the diversion of N19 billion and $86million deducted for payment to consultants and legal advisers engaged by the NGF and some states.

A government source, who spoke in confidence, said:

 “The Buhari administration meant well. To show its commitment, it raised a Refund Committee comprising the Acting President, who is also Chairman of the Board of DMO and the Economic Council; Chief of Staff, Abba Kyari(the chief driver of the Refund Movement; The NGF chairman, Alhaji Abdulaziz Yari (Co-Chief Driver of the Refund Movement); the DG of NGF, Mr. Asishana Okaru (Co-odinator of states); Suraj Yakubu (GSCL Consulting Limited) as consultant-in-Chief; Bizplus Consulting Limited, another Consultant, and Alhaji Sani Anani, the refund marketer.

“The committee came up with a template for the release of the first tranche of N522.74billion.

But the security reports on how some governors misapplied the money have shocked the Presidency.

“Many states still owe workers unpaid salaries for as many as 10 months. In some states, pensions have accumulated for about 12 to 15 months. Instead, some governors have diverted the refunds to private use.

“The discovery of EFCC on how some of the loan refunds got into private hands made the government uncomfortable.”

According to the source, “this is why the Federal Government has withheld the second tranche to the states”.


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