APC govt in Kwara has failed in all ramifications –Banu

Mr Ademola Banu is a former commissioner for Finance in Kwara State. In this interview with SUCCESS NWOGU, he speaks on governance in the state and some national issues. Excerpt

is believed that the Kwara State chapter of the Peoples Democratic Party (PDP) under the leadership of Dr. Bukola Saraki, performed woefully, which led to its defeat in the 2019 generation election. How would you react to that?

The All Progressives Congress (APC) deliberately and mischievously closed its eyes to the incredible human capital development and infrastructural provision of the past governments. However, it was surprising that in spite of the laudable achievements of the past administrations, the then opposition embarked on massive negative propaganda to deceive the people thereby resulting in our loss in the 2019 general election.

How would you assess the current AbdulRahman AbdulRazaq in terms of delivery of dividends of democracy to Kwara people?

The administration has failed woefully in all ramifications. Show me any project that has been commissioned during this administration. The government has collected huge loans, several federal government financial interventions/bailout/ Paris Club and the N35 billion bond. What is the impact of those loans on Kwarans? It is estimated that the state has received revenue close to half a trillion naira, including a huge loan of over N60 billion. Unfortunately, this government has not been transparent and accountable in the handling of its finances. Everything has been kept in secrecy. I would like to mention that the people will be interested to know how the money was spent. The governor should also remember to sign the Freedom of Information Bill.

The governor lied when he said that he has been using the funds received to pay the loan. I will like to state that the last administration paid all its loan obligations except for the bailout funds, which were given to all the states and were repayable for 20 years. It will be recalled that the previous government left over N8.5 billion for the new administration

The governor accused the Peoples Democratic Party (PDP)-led administration of paying what it called ‘amputated salary.’ How would you react to that?

We never paid amputated or ‘gerigedi’ as alleged. We paid a minimum wage of N18,000 in line with the law then. The minimum wage was increased to N30,000 by the time we were leaving office. It may interest you to know that the so-called ‘amputated salary’ was what this government paid for three and half years in the state. Meanwhile, when the allocation to the state and local governments dropped in 2015, it affected many states including Kwara. Kwara was one of the four states that were paying as and when due when other states were owning salaries for many months.

The administration of Alhaji Abdulfatah Ahmed prioritised the payment of salaries to civil servants and pensioners in the state. The problem with the parastatals was because of their inability to generate enough revenue to complement the subvention given by the state government.

However, the net allocation coming to local government was less than the amount to pay salary and monthly commitments within the period under review. It would be recalled that the average net allocation to the local governments then was N1.7 billion compared to a monthly salary of about 2.1 billion. Presently, the allocation to the local governments has increased drastically to an average of N4 billion, while the monthly salary is an average of N2.5 billion, leaving an excess of N1.5 billion monthly.

It was about the time this government assumed office that the Value-Added Tax (VAT) was increased from five per cent to 7.5per cent which translates to an average revenue of an additional N1 billion and N600 million to the state and local governments, respectively. Meanwhile, the economy had stabilized by the time we were leaving office in 2019 and the local governments were able to pay their salaries as and when due and offset the over N10 billion loan obtained from banks to pay salaries when the allocation was low. This can be confirmed from the Ministry of Finance. As chairman of the Joint Accounts and Allocation Committee (JAAC), I invited labour union leaders, prominent opposition members and stakeholders to participate in the JAAC meetings to ensure transparency and accountability in the financial affairs of the local governments.

You were petitioned before the Economic and Financial Crimes Commission (EFCC) and arraigned before the court over allegation of money laundering of N411 million?

How far has the case gone? The EFCC withdrew the case from the court as it did not have any evidence to prove the allegation against me. And, I want to state that the allegations jolted, traumatised and affected my health. The worst aspect of it is the media trial and the dent they falsely made on my reputation, integrity and family.

It was so bad that my children’s education and psyche were negatively affected as some of their schoolmates kept mocking them by asking: ‘Is it true that your father is a thief ? It is all over the internet that he stole Kwara State government money.’

Before I came to the government, I was already doing well and worked with great passion and tirelessness to contribute my quota to the development of my state. I was informed that there was an allegation in a petition that we diverted the N1 billion loan we took from Eco Bank close to the 2019 general election. I was interrogated and detained for so many days by the Ilorin office of the EFCC. It was surprising that I was taken to court without any evidence. However, I would like to use this opportunity to express my appreciation to the new leadership of the EFCC for their professionalism.

What was the N1 billion used for?

The N1 billion was used to pay the monthly commitments of the ministries and the outstanding obligations of the contractors. Subsequently, the EFCC used the opportunity to carry out a detailed investigation of all our financial transactions, including the local government accounts. It was gratifying to say that nothing inappropriate was found against me. It was also alleged that you used penyour professional expertise to make N2 billion available to the then Senate President, Dr. Bukola Saraki from the Kwara State government coffers on a monthly basis. That is another false propaganda by the then-opposition to gain undue advantage. They even said Dr. Saraki would ‘follow’ the allocation from Abuja to collect the N2 billion but the allegation does not make any sense. However, nothing like that was revealed in the investigation conducted by the EFCC.

A forensic audit into the financial transactions of the state from 2011 to 2019 indicted the former Governor, Abdlfatah Ahmed for allegedly stealing N11.9 billion.

You were then the commissioner of Finance, what actually happened? The APC government is confused and has misplaced its priorities. Instead of focusing on delivering dividends of democracy to the good people of Kwara State, it is wasting money and time chasing shadows. The report is watery and meant to distract people’s attention from the government’s abysmal performance.

It was a baseless allegation and not worth discussing. The report did not mention the nature of the transactions, audit tray, the approval authority, banks involved if any and accounts the funds were transferred to. The governor should be informed that Kwarans are waiting for the findings of the forensic audit on the following queries under his administration: Why was the N138 million released for the supply of transformers without following due process? What is the cost of renovating each classroom, locations and the number of classrooms renovated under the N14 billion UBEC fund?

What is the excess of N1.5 billion monthly in the FAAC account being used for? What was the N18.6 billion infrastructural fund used for? Why was part of the bond proceeds amounting to N17.9 billion which attracts an interest of N3 billion annually kept in the bank and who is collecting the interest on this idle fund? What happened to the query the sacked former Auditor raised concerning the N6.2b expenditure without receipts? How was the almost half a trillion naira accrued to the state government since the assumption of office of the present administration expended without any landmark project?

What are your thoughts on the redesigning of the naira?

To me, it is a good initiative because, by the time you bring all the money that is outside the financial sector into the banking sector, it will assist the economy. The Central Bank of Nigeria (CBN) is targeting to mopping up about N2.7 trillion of about N3 trillion currency in circulation outside the banking system to tighten the money supply and tame inflation, bring more persons into the banking system, encourage cashless transactions, frustrate money launderers and neutralize kidnapping. The raising of the weekly cash withdrawer limit for individuals from N100,000 to N500,000.00 while corporate bodies to N5 million is commendable. The only challenge I foresee is the deadline of January 31, 2023, when the old notes will cease to be legal tender. I think an extension of six months is desirable. Meanwhile, a lot of publicity is required to sensitise and educate the citizenry.