Against the background of acerbic criticisms trailing the 13 per cent derivation paid to Akwa Ibom, All Progressives Congress (APC) in the state has taken the state government to cleaners for not disclosing amounts collected to the public.
This came at the wake of Akwa Ibom State Government denying claims that it received $1.1 billion (N600 billion) from the 13 per cent derivation funds arrears paid by President Muhammadu Buhari to the nine crude oil-producing states.
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A press release signed by Otuekong Iniobong John, Chairman, APC Media and Publicity Committee, Akwa Ibom chapter, repulsed some inadequacies in the release by Commissioner for Finance for the State Government, purporting to be an explanation to the question of the 600 Billion Naira 13% Derivation Refunds made to the Akwa Ibom State Government.
In the release of November 24, 2022, John said ‘‘We have read with nostalgia the literature carefully but with mischievous intent scripted by the Hon. Commissioner for Finance in the Akwa Ibom State Government, Mr. Nsikan Linus Nkan purporting to be an explanation to the question of the 600 Billion Naira 13% Derivation Refunds made to the Akwa Ibom State Government since 2018.
Entitled: RE: 13% DERIVATION ARREARS. THE TRUTH, the release stated ‘‘It is quite sad that Governor Udom Emmanuel cannot come out clean on this burning issue of utmost public importance. The governor has been unable after nearly one week to give any explanation about the Governor Nyesom Wike’s revelation on the 13% derivation refunds.
‘‘Instead, nearly a week after the Wike revelation, in a hollow and mischievously minded press statement by the Commissioner for Finance released today, 24/11/2022, the Government carefully avoiding details and figures and very evasive. If anything, that press release creates more apprehension in the minds of Akwa Ibomites that the money may have been embezzled with uncommon ignominy.’’
According to him, ‘‘For emphasis, the Governor of Delta State, His Excellency, Mr. Ifeanyi Okowa had declared openly that Delta State is the only Niger Delta State that the amount accrued to Rivers State is 240 Billion Naira and went ahead to give detailed account of his expenses including establishment and building of three State universities, flyovers, interchange, etc despite the fact that the Delta State House of Assembly approved only 14.7 Billion Naira access of the funds while the balance should be saved for the future.
‘‘But in the said press statement released, the Akwa Ibom State Government avoids mentioning the amount refunded to the State Government, having received full payment as confirmed by both Governors Wike and Okowa, and according to official records from the Account General’s Office.
‘‘Instead, the said shallow press statement made an attempt at addressing Akwa Ibomites as a kindergarten that they should ignore the amount mentioned in the media as being received by the AKSG. Then tell us the amount you have received, is that suppose to be difficult? What is wrong in mentioning the figures to dispel rumors and shame the blackmailers as you might wish to brand any Akwa Ibomite asking questions?’’
The media chief observed ‘‘Akwa Ibomites can recall that on 4/3/2021 Gov. Udom in connivance with the State House of Assembly was reported to have tinkered with the provisions of the House Standing Order to allow for loans to be obtained by the Government without debate on the floor of the House. The Governor went ahead to obtain 184 Billion Naira secret loan in March 2021 and another 150 Billion Naira a few months later.
‘‘Yet, in November 2021, Policy Alert, a civil society organization promoting economic and ecological justice in the Niger Delta, relying on the 2021 third quarter budget implementation of Akwa Ibom State, had burst that for the third quarter, of 2021, the State had received 171.2 Billion Naira from the 13% derivation refunds. For the second quarter (May—August 2021) a refund of 121.61 Billion Naira was received.
‘‘Despite these humongous amount of money coming in from the monthly statutory allocation running into billions of naira every month, VAT payments, refunds for federal roads, exchange gain, Internally Generated Revenue, etc, Governor Udom is still keeping our 13% derivation funds unaccounted for and is still obtaining secret loans running into billions of Naira.’’
‘‘According to the 2021 Appropriation Law, in 2021 the Internally Generated Revenue alone was 32 Billion Naira. Revenue paid by the Federal Government from VAT alone was 30 Billion Naira. What is Udom doing with our money?
‘‘The Governor cannot mention to us the amount he has received from the 13% refunds and how he has spent it, but only to tell us that the World Bank looks at his budgets. Is the World Bank an auditor of the Akwa Ibom State Government? They only look at the State Budget to see whether it is healthy enough to sustain all the foreign loans he receives.
‘‘The literature by the Hon Commissioner for Finance has failed. Akwa Ibomites are not as cheap and gullible as they may be thinking,’’ he added.
Finance Commissioner’s version
Apart from denying the amount government allegedly collected the government assured that the funds were judiciously used.
Though the release signed by the state Finance Commissioner did not state categorically how much the state government received during the period, it indicated that provisions for the funds have been captured in the 2023 budget.
In the release made available to newsmen in Uyo on Thursday, November 24, the Finance Commissioner, therefore, urged the people of the state to regard as fiction the amount circulating in the media, saying with the implementation of the International Public Sector Accounting System (IPSAS), it was impossible for the fund to be unaccounted for.
“In line with statutory Public Finance Management procedures, the amounts accruing to and received by the state were duly reflected in the 2021 budget and the supplementary budget of the same year.
“In the current financial year, the expected refund from this subhead has been duly captured in the budget. Additionally, the Accountant General’s report of 2021 has declared without any ambiguity the sum which was received as a refund from the 13% derivation arrears.
“Even the 2023 budget proposal currently undergoing legislative workings, has furthermore included the sum expected to be refunded. For the avoidance of doubt, the refund is reflected in these documents as “Other Exceptional income: 13% derivation revenue arrears. A community reading of these documents, which are already available for public consumption, will reveal the sustainability thinking disposition that guides the governance of our state.
“The report of the judicious application of this income and other incomes accruing to the state, are captured in the statutory Accountant General’s audited report for 2021 and the same will be reflected this year.
“There is therefore no reasonable cause for the activation of alarmist tendencies on the state of finances of our state because the Governor is conscious of the judgement of history and posterity and is doing everything to earn a copious mention on its golden pages.
“We, therefore, urge the entire public to ignore the various figures bandied around on various media platforms, as those are nothing more than fiction. With the implementation of the International Public Sector Accounting System (IPSAS), it is impossible for any unaccounted expenditure to occur.
“It is also worthy pointing out that the state’s budgets and annual reports must first be reviewed by the World Bank and it is practically impossible that financial infractions can skip their attention.
“This is the reason why knowledgeable stakeholders in the national public finance space have greatly commended the Government of our state under Governor Udom Emmanuel for deepening financial transparency in the administration of the state.
“The latest of such commendations came recently from the Consul General of the United States, who not only commended the government but also committed to increased partnership with the state in this respect.
“It is the avowed commitment of this administration, under the capable leadership of Governor Udom Emmanuel, to ensure judicious and justifiable application of scarce resources to provide for the innumerable needs of the great people of our state,” he stated.
