How we spent 13% diversion refund, LG funds – Ondo govt

The Ondo State Government has shed light on how it spent the 13% diversion fund and SURE-P refunds paid to the state from the Federation account between 2021 and 2022.

In a statement on Saturday, the governor's chief press secretary, Richard Olatunde, said the administration had spent the funds on capital projects and to settle workers' salary arrears.

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Mr. Olatunde absolved Governor Rotimi Akeredolu of wrongdoing over allegations that state governments stole statutory funds allocated to local governments from the Federation account.

The statement was apparently a response to the Presidency's exposure of overdue diversion fund payments to oil-producing states and state governments' handling of local council funds.

In a statement released Friday by the President's Senior Special Assistant for Media and Publicity, Garba Shehu, the presidency said nine oil-producing states had received a total of N625.43 billion, representing 13% of oil diversion, grants and SURE-P repays the Federation account in 2021 and 2022.

President Muhammadu Buhari on Thursday during a conference with members of the Senior Executives Course No. 44 (2022) of the Kuru National Institute for Political and Strategic Studies, had accused state governors of stealing allocations to local governments.< /p>

Buhari's assertion came 24 hours after Minister of State for Budget and National Planning Clement Agba said governors had abandoned critical demographics, preferring to spend resources in capitals.

Mr. Agba, who said 72% of the country's poor live in rural communities, accused governors of paying little attention to the grassroots.

But Mr. Olatunde said Ondo State had spent the funds it received on capital projects in the three senatorial districts of the state.

The projects, according to the statement, include "rehabilitation and asphalting of 32.6 km Araromi-Alape road in Ilaje local government area; 16.65 km Ikaramu-Akunnu-chainage 7 -Oke Agbe Road in North West Akoko Local Government Area; 4.5 km from Agadagba Obon-New Ajapa Road in Ese-Odo Local Government Area; 3.0 km from township roads of Oke Igbo, Ile-Oluji/Okeigbo Local Government Area, among others."

He also mentioned the rehabilitation of more than 35 kilometers of road network in Akure, the state capital; the 9.5 km Emure-Iporo road and the rehabilitation of 15.2 km of the Akure phase "D" road networks have all started; and the 10 km Okitipupa-Igbokoda pristine road.

He said that "these capital intensive projects" were funded by repayments and internally generated revenue from the state.

“The monthly revenue of the FAAC is used to pay salaries and pensions agreed by the union leaders during the monthly meetings chaired by the head of the department and the president of the Joint Negotiating Council (JNC),” the statement said. .

"Despite Governor Akeredolu's vow to always pay salaries and pensions when due, the financial crisis across the country caused by the outbreak of the Covid-19 pandemic has resulted in the non-payment of the full wages for a few months. As of January 2022, the government owed four months back wages against seven months inherited.

“Governor Akeredolu, after promising state officials to prioritize the payment of salaries, has continued to clear these arrears of arrears. On three occasions this year, the government has paid wages twice in one month, reducing the number of arrears. All salaries will be settled before the end of the year.

"If the amount spent on these infrastructure projects and the payment of salary arrears is juxtaposed with the reimbursements, it is clear that the money has not been mismanaged in Ondo State.

"Governor Akeredolu's administration rests on the tripod of transparency, accountability and integrity. We will continue to raise the flag of transparency in governance while pursuing excellence in the journey to transform the state for the better,” the statement read.