The federal government has blamed the Ekiti state government for its failure to access a budget support facility (BSF) made available to 35 states.

Fayose had accused the current administration of deliberately withholding the January allocation of his state because of the grouse he has with the current administration.

But in a statement on Thursday, Salisu Dambatta, director of information at the ministry of finance, said Ekiti state government failed to comply with the requirements for participating in a conditional loan programme to state governments.

Dambatta said Ekiti was warned that failure to comply with the full requirements of the loan would lead to its exclusion.

“A claim by the Governor of Ekiti State, Mr. Ayodele Fayose, that the federal ministry of finance has withheld statutory allocation due to Ekiti State has been brought to the attention of the ministry of finance,” Dambatta said.

“The ministry categorically denies and states the claim as incorrect as the ministry has not withheld any statutory allocation due to Ekiti state, or any other state in the country.

“The fact is that, the Ekiti state government failed to comply with the necessary requirements for participating in the Budget Support Facility (BSF), which is a conditional loan programme to state governments introduced with the view to enhancing fiscal prudence and designed particularly to enhance transparency, efficiency in public expenditure and payment of salaries.

“This is not the first time of non-compliance by the Ekiti state government. His administration defaulted in meeting the conditions specified and agreed upon by the 35 state governments that are participating in the programme as contained in the fiscal sustainability plan (FSP) and the Ekiti state government was warned formally of its failure to comply with the full requirements vide a letter on August 5, 2016, with reference number HMF/FMF/ASG/1/2016.”

Dambatta said the ministry informed President Muhammadu Buhari of Ekiti’s refusal to comply with the requirements, and that payment was reinstated.

The ministry said Fayose’s government was aware of the consequence of not following the laid down procedure.

The governor was also advised to resolve the issue at the ministry of finance, rather than engaging in media war.

“The failure of Ekiti state government to comply with the requirements and conditions for the budget support facility (BSF) resulted in a letter sent to the chief of staff to notify him of the suspension of BSF for Ekiti state and it was conveyed to Mr. President before payment to the Ekiti state government was reinstated.

“The Ekiti state government and all the other participating states are aware of the consequence of failure to comply with the full conditions and it is not the first time that a state would be stopped from accessing the Facility due to non-compliance. In the course of its normal duties, the ministry of finance has the right to query, suspend or withhold funds as part of the conditions of the budget support facility.

“The process is for the commissioner of finance of any state or the governor having issues to contact the federal ministry of finance and resolve the issues without resorting to the media because such issues are of a financial nature and therefore, confidential; they are routinely resolved amicably by the parties involved.

“The federal ministry of finance wishes to restate very strongly that the budget support facility is a conditional programme and the federal government would not be intimidated or threatened in the discharge of its duties.”

Super1Star:
Fayose wanted to use his usual thuggish way to bulldoze his way without following the required process.

ZUBY77:



Since the ministry of Finance failed to tell us the procedures Ekiti state did not meet, could you please tell us?

There is no need blabbing about not meeting procedures..
I read over 6 times up there that "Ekiti did not meet the procedures"
But there is not a single sentence on these procedures Ekiti did not meet.
We want to know exactly What procedures Zamfara, Osun and Ogun States meet that Ekiti did not.

Atleast it will help us condemn Fayose together.
Some of us are not really interested in throwing petrol to burn a man down because someone called him a thief, even when we don't know what he stole. Unfortunately, that's the state of mind of most of you.

1. Publish audited annual financial statements within 9 months of financial year end.

2. Introduction and compliance with the International Public Sector Accounting Standards (IPSAS).
Publish State budget online annually.

3. Publish budget implementation performance report online quarterly.

4. Develop standard IPSAS compliant software to be offered to States for use by State and Local Governments.

5. Set realistic and achievable targets to improve independently generated revenue (from all revenue generating activities of the State in addition to tax collections) and ratio of capital to recurrent expenditure.

6. Implementation of targets Implement a centralized Treasury Single Account (TSA) in each State.

7. Quarterly financial reconciliation meetings between Federal and State Governments to cover VAT, PAYE remittances, refunds on Government projects, Paris Club and other accounts.

8. Share the database of companies within each State with the Federal Inland Revenue Service (FIRS). The objective is to improve VAT and PAYE collection.

9. Introduce a system to allow for the immediate issue of VAT / WHT certificates on payment of invoices.

10. Review all revenue related laws and update of obsolete rates / tariffs.
Set limits on personnel expenditure as a share of total budgeted expenditure.

11. Biometric capture of all States’ Civil Servants will be carried out to eliminate payroll fraud.

12. Establishment of Efficiency Unit.
Federal Government online price guide to be made available for use by States.

13. Introduce a system of Continuous Audit (internal audit).

14. Create a fixed asset and liability register.

15. Consider privatization or concession of suitable State owned enterprises to improve efficiency and management.

16. Establish a Capital Development Fund to ring-fence capital receipts and adopt accounting policies to ensure that capital receipts are strictly applied to capital projects.

17. Domestication of the Fiscal Responsibility Act (FRA).

18. Attainment and maintenance of a credit rating by each State of the Federation.

19. Federal Government to encourage States to access funds from the capital markets for bankable projects through issuance of fast- track Municipal bond guidelines to support smaller issuances and shorter tenures.

20. Full compliance with the FRA and reporting obligations, including;

21. No commercial bank loans to be undertaken by States;

22. Routine submission of updated debt profile report to the DMO.

Funlordmaniac:



Why won't he forget how to follow laid down procedures? When his only interests involve slicing ponmo, rigging and barking like a rabid rabies afflicted dog!

ZUBY77:



Since the ministry of Finance failed to tell us the procedures Ekiti state did not meet, could you please tell us?

There is no need blabbing about not meeting procedures.. We want to know exactly What procedures Zamfara, Osun and Ogun States meet that Ekiti did not.

Atleast it will help us condemn Fayose together.
Some of us are not really interested in throwing petrol to burn a man down because someone called him a thief, even when we don't know what he stole. Unfortunately, that's the state of mind of most to of you.

Super1Star:
Fayose wanted to use his usual thuggish way to bulldoze his way without following the required process.

The ministry said Fayose’s government was aware of the consequence of not following the laid down procedure.

The governor was also advised to resolve the issue at the ministry of finance, rather than engaging in media war.

ZUBY77:



Since the ministry of Finance failed to tell us the procedures Ekiti state did not meet, could you please tell us?

There is no need blabbing about not meeting procedures..
I read over 6 times up there that "Ekiti did not meet the procedures"
But there is not a single sentence on these procedures Ekiti did not meet.
We want to know exactly What procedures Zamfara, Osun and Ogun States meet that Ekiti did not.

Atleast it will help us condemn Fayose together.
Some of us are not really interested in throwing petrol to burn a man down because someone called him a thief, even when we don't know what he stole. Unfortunately, that's the state of mind of most of you.

“The federal ministry of finance wishes to restate very strongly that the budget support facility is a conditional programme and the federal government would not be intimidated or threatened in the discharge of its duties.”

ZUBY77:



Since the ministry of Finance failed to tell us the procedures Ekiti state did not meet, could you please tell us?

There is no need blabbing about not meeting procedures..
I read over 6 times up there that "Ekiti did not meet the procedures"
But there is not a single sentence on these procedures Ekiti did not meet.
We want to know exactly What procedures Zamfara, Osun and Ogun States meet that Ekiti did not.

Atleast it will help us condemn Fayose together.
Some of us are not really interested in throwing petrol to burn a man down because someone called him a thief, even when we don't know what he stole. Unfortunately, that's the state of mind of most of you.

henchamb:



Didn't you read where it was stated that it's a confidential issue that the governor shouldn't have gone to the press. They would be stupid to start to spell everyword of the procedure line by line.

Osun ogun and Zamfara might have met the criteria because their governor is not fayose who is more interested in media hype than Good governance

I also read up to "6 times" and I saw where it was stated that it's a support loan and not a statutory allocation as claimed by the dog from ekiti. Your interest should be to educate him about it.