A report of a five-man panel set
up by Governor Ayo Fayose to investigate the withdrawal of N852 million 2012
UBEC/SUBEB state counterpart fund has shown that former Governor, Kayode Fayemi
did not embezzle the cash as alleged by his successor.
The panel in its report dated
December 3, 2015 revealed that the cash was withdrawn from the account of the
State Universal Basic Education Board (SUBEB) by Access Bank, Ado-Ekiti Branch
because “the last (Fayemi) administration did not perfect the loan agreements
by not agreed interest rate and providing Irrevocable Standing Payment Order
(ISPO) for the loan.”
In its findings and
recommendations, the panel did not indict the ex-governor of complicity in the
alleged theft of SUBEB fund.
The panel had former Chief Judge
of Ekiti State who is currently the Oluyin of Iyin-Ekiti, Oba Ademola Ajakaiye
while SUBEB Chairman, Senator Bode Ola served as Secretary.
Other panel members are former
Attorney General and Commissioner for Justice, Owoseni Ajayi; Accountant
General, Mrs O.O. Owolabi; Deputy Director, Physical Planning Unit, SUBEB,
Ehinafe Olakunle (now late), Dapo Akinyemi and B.J. Ogundare.
In its findings, the panel said:
“The last administration sought for a loan facility to pay the 2012 Counterpart
Fund from Access Bank Plc, Ado-Ekiti Branch. The sum of N852,936,793.12k was
granted and same was lodged into SUBEB Account No: 0065385694 on the 25th
November, 2013.
“The Universal Basic Education
Commission (UBEC) on 3rd January, 2014 released 2012 Matching Grant of
N852,936,793.12k to SUBEB during the tenure of Dr. Kayode Fayemi-led
administration.
“After following all the
necessary due process, the Ekiti SUBEB awarded contracts to contractors based
on the total sum of N1,705,872.24k (i.e. the matching grant and the State
Counterpart Fund). The projects have been executed to about 55 per cent
completion.
“In October 2014, Access Bank
Plc, Ado-Ekiti Branch withdrew the loan from the SUBEB Account No: 0065385694,
because the last administration did not perfect the loan agreements by not
agreed interest rate and providing Irrevocable Standard Payment Order for the
loan.”
The panel, in its three
recommendations, said: “In view of the present financial situation of the
state, the state government should specifically request/appeal to UBEC to set
aside the payment of 2012 Counterpart Fund to enable Ekiti SUBEB move forward in
project implementation.
“The state government should seek
for special favour from UBEC and source for the 2013 Counterpart Fund of the
sum of N1,030,797,297.30 so that SUBEB can access the FGN/UBEC matching grants
for the period.
“The state government should
henceforth perfect all loan agreements with regard to the implementation of
UBEC/SUBEB projects.”
It was gathered that the bank
agreed to grant the Fayemi administration the facility after the June 21, 2014
governorship election but Fayose as the governor-elect warned the bank against
granting the facility.
The bank obeyed the
governor-elect (Fayose) and the cash was returned to the vault in a bid to
ensure a smooth business relationship with him when he takes over as governor
in October of the same year.
Fayose had accused Fayemi, who is
now Minister of Mines and Steel Development, of looting the funds claiming that
the development had denied the state of counterpart funds from the Universal
Basic Education Commission (UBEC) to execute projects in public schools in the
state an allegation denied by the ex-governor.
The House of Assembly, acting on
the Executive’s complaints, summoned the minister to offer explanation on the
alleged stealing of the cash which he declined on grounds that details on what
happened to the funds are contained in his handover note.
The House of Assembly, after all
efforts to compel Fayemi’s appearance failed, passed a resolution empowering
Fayose to set up a Judicial Panel of Inquiry to probe the management of the
state finances between October 2010 and October 2014 during the minister’s
tenure as governor.
The judicial panel led by former
Acting Chief Judge, Justice Silas Oyewole (retd.) has commenced the assignment
of probing the tenure of Fayemi at its sitting at the Magistrate’s Section of
the State Judiciary Complex.
The Oba Ajakaiye-led panel had
its inaugural meeting on September 3, 2015 and concluded its assignment with
the last meeting held on November 30, 2015.
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