*Says Saraki, Ahmed delivered superlative dividends of democracy
*Yaman’ll surely satisfy the aspirations of Kwarans
Mr Ademola Banu is a former Kwara State Commissioner for Finance between 2011 and 2019. In this interview with journalists, the former banker turned politician, chartered accountant and auditor addresses Kwara State and national issues. AYO OLA was there. Excerpts:
Why does the Peoples Democratic Party (PDP) still want to recapture power in Kwara State having been rejected by the people in the last elections of 2019?
The defeat was a result of false propaganda against the previous administrations despite their spectacular performance. The administrations of Dr Abubakar Bukola Saraki and his successor, Alhaji Abdulfatah Ahmed, delivered resounding dividends of democracy to our people. Dr Saraki’s administration provided a network of urban and rural roads, the first flyover in the North Central, Kwara State University, (KWASU); Aviation College, Banquet Hall, Kwara Commercial Micro Finance Bank, the modernized Government House and many other infrastructures. The civil servants received their salaries as at when due. There was the security of lives and property which also enhanced the attraction of investors such as the (Zimbabwe farmers) Shonga farm; Kwara Mall, Dangote Industry, Olam and many others.
His successor, Ahmed’s administration also constructed many roads, Vocational Centre, underpass at Geri-Alimi and many others. He also enhanced the internally generated revenue (IGR) by increasing the taxable bracket. There was also enhanced security of lives and property.
The 2023 candidate of PDP, Alhaji Shuaibu Yaman, who is an experienced politician and technocrat has encapsulated his programs and vision for the good people of Kwara State. He has been able to articulate how he intends to raise the Internal Generated Revenue to an appreciable level using agriculture as a springboard to prosperity in the state. Furthermore, he has the willingness, experience and knowledge to carry on the legacies of Dr Bukola Saraki and Alhaji Abdulfatah Ahmed.
How would you assess the current Abdulrahman Abdulrazaq in general delivery of dividends of democracy to Kwara State 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’s 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 their loan obligations except for the Bail-Out 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
But the current Governor has claimed to be delivering superlative governance to Kwarans?
The State government has not been able to fulfil any of its campaign promises three and half years after being in office. The issue of minimum wage was only addressed recently when they realized that another election is close by. At a time, the State government took the Civil Servants to court for demanding for minimum wage. This government is an undertaker whose only achievement in the state is the destruction of the legacies of its predecessors. The Governor sacked more than 4,000 legitimately employed and qualified teachers, paralysed Kwara Hotel, and Kwara Express; destroyed Harmony Diagnostic Centre and immobilized the Civil Service by giving their responsibilities to consultants. The major road leading to the State Capital, Ilorin, to the northern part of the State, Kulende to the University of Ilorin Teaching Hospital (UITH) road, was awarded and almost completed by the last administration, only to lay second coat and Asphalt was left undone. Also, the government terminated the contract for the maintenance of the underpass that was commissioned close to the end of the last administration. Consequently, the filter installed in the underground sub-drainpipe was blocked, thereby allowing water to get to the subbase of the road, causing damage to the surface of the underpass. These underscored their lack of interest in the infrastructural development of the state.
It may even interest you to note that the last administration left over N8.5 billion at the time of exit which included N5.2 billion Tax refund and May 2019 allocation. Furthermore, it is disappointing that in spite of almost half a trillion-naira revenue that has accrued to this State Government since the beginning of the administration, including a huge debt of over N60 billion, they have not been able to commission any landmark project. Unfortunately, this Government has not been able to add any value to the impressive Internal Generated Revenue met on the ground. This government lacks transparency and accountability as they have refused to give accounts for the revenue and expenditure since they assumed office contrary to what was obtainable during the previous administrations.
He also accused the government you participated actively of paying what they called ‘amputated salary.
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 the government. 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 Government dropped in 2015, it affected many States including Kwara. Kwara State was one of the four States that were paying as at when due when other states were owning salaries for many months. The administration of Alhaji Abdulfatai Ahmed prioritized 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 government then was N1.7 billion compared to a monthly salary of about 2.1 billion. Presently, the allocation to the local government 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 5% to 7.5% 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 at and when due and offset the over N10 billion loan obtained from the 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 the 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 government.
Also. the current State Government accused the governments of Dr Bukola Saraki and Dr Abdulfatah Ahmed’s administrations of not paying pensions and gratuities to retired civil servants….
(Cuts in) This is another misrepresentation by this government to cover up its failure. Sometime in 2005, the State government invited the leaders of the pensioners for a meeting to resolve the issue of the outstanding liability since the beginning of the creation of the state which amounted to about N3 billion. It was agreed that the state should pay 50% of the outstanding amount. The state then took a loan from the bank and paid the 50% as agreed. Meanwhile, the government then was not blaming the previous administration for the outstanding pension liability. Afterwards, the state was paying pension regularly while 150 million was paid for gratuity monthly. It was reduced to N100m and then N50 million when the finances of the state became abysmal low.
You were petitioned before the Economic and Financial Crimes Commission (EFCC) and arraigned before the court over an allegation of money laundering of N411 million? How far has the case gone?
The Economic and Financial Crimes Commission withdrew the case from the court as they did not have any evidence to prove the allegations against me.
I want to state that the allegations jolted, traumatized and affected my health. The worst aspect of it is the media trial and the dent they falsely made in 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: “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 N1bn loan we took from Eco bank close to the 2019 general elections. I was interrogated and detained for so many days by the Ilorin office of the EFCC led by the former Zonal Head, Mr Shaku Sharu. 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 were using your professional expertise to make N2 billion available to the then Senate President, Dr Bukola Saraki from Kwara State Government coffers monthly.
This 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. The allegation does not make any sense. However, nothing like that was revealed in the investigation conducted by the EFCC.
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A forensic audit into the financial transactions of the state from 2011 to 2019 indicted the former Governor, Abdlfatah Ahmed for stealing N11.9 billion. You were then the finance Commissioner, what happened?
This government is confused and has misplaced its priorities. Instead of focussing on delivering dividends of democracy to the good people of Kwara State, they are wasting money and time chasing shadows. The report is watery and meant to distract people’s attention from their 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, accounts the funds were transferred to, etc. The Governor should be informed that Kwarans are waiting for the findings of the Forensic audit on the following queries under his administration: (a) why was the N138m released for the supply of transformers without following due process? (b) What is the cost of renovating each classroom, locations and the number of classrooms renovated under the N14 billion UBEC fund. (c) What is the excess of N1.5 billion monthly in the JAAC account being used for? (d) What was the N18.6 billion infrastructural fund used for? (e) Why was part of the Bond proceeds amounting to N17.9b which attracts an interest of N3 billion annually kept in the bank and who is collecting the interest on this idle fund? (F) What happened to the query the sacked former Auditor raised concerning the N6.2b expenditure without receipts? (g) 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?
Many Kwarans opined that after spending billions of Naira on the water project, your government did not achieve any result. In addition, all the waterworks were not working too until after the assumption of the office of Abdulrazaq?
The government of Dr Bukola Saraki paid N2.2 billion for the rehabilitation and upgrading of Asa Dam water treatment plant referred to as Primary Rehabilitation in 2009. Furthermore, the administration of Alhaji Abdulfatah Ahmed completed the reticulation of pipelines across Ilorin metropolis referred to as Secondary Reticulation at the cost of N6.5 billion in 2019.
In the Hand-Over note submitted by the former General Manager, Water Corporation, to the Permanent Secretary, Ministry of Water dated 23rd July 2019, it was confirmed that all the 94-water works were working at their various capacities. It was recommended in the report that the proposed tertiary reticulation of the Ilorin metropolis, to complement Primary rehabilitation and Secondary reticulation, is a MUST-DO as this will bring water service to the doorsteps of residents’ pipes to the various houses in the Ilorin metropolis. It was also recommended that Asa Dam water works needed turnaround maintenance after 10 years of rehabilitation. The tertiary distribution and maintenance of Asa Dam were not given the required attention. The water treatment plant has deteriorated and now working at about 40% capacity which accounts for the worsening water situation in the Ilorin metropolis. This also puts a lie to the Governor’s assertion that all the 94-water works were not working.
How did you enter politics?
I attended the University of Ilorin where I obtained a Bachelor of Agric Engineering in 1988 and Master of Business Administration (MBA) , from the same university. I became a chartered accountant in 1996. I am also an auditor.
I left United Bank for Africa in 2005 where I won several awards, to take up an appointment as Special Assistant on Economic Planning. I had heard that politics is a dirty game, and this had regularly worked on my mind. I had avoided getting involved but I had a new orientation when I was introduced to Dr Saraki in 2005. He intimated to me his laudable plan for the development of Kwara State. I was moved by his passion and love for our people. Subsequently, I was elevated to Special Adviser in 2007 and Commissioner for Finance in 2011.
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 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 6 months is desirable. Meanwhile, a lot of publicity is required to sensitize and educate the citizenry
In 2022, the unemployment rate in Nigeria was estimated to have reached 33 per cent while youth unemployment was 42.5 in a country with an energetic and dynamic youth population. What are the imports of these anomalies and solutions?
The high unemployment rate is a time bomb. The government should do something that will bring confidence to the economy. The first thing is security. We also need to encourage our local manufacturers. Multiple taxes should be addressed. They should encourage entrepreneurship.
We should also focus on and design a flexible funding model for mechanized agriculture as was done in Kwara State during Dr Bukola Saraki’s administration. A subsidiary of Shonga farm holding, Valentine Chicken Ltd with an investment of over $100 million has a daily production of 22,000 chickens per day, 110,000 per week and more than 1,500 staff which has transformed and developed the host and neighbouring communities. This was the same project that this clueless government termed a scam.