Why FG recalled final tranche of N17.3bn Paris Club refund meant for Ogun – Govt

Adewale Oshinowo, Commissioner for Finance, Ogun state has explained the rationale behind deliberate withholding of the final tranche of N17.3 billion Paris Club Refund meant for the state by the Federal Government, saying perception of Federal Government that the refund might be used for another obligations by several state governments caused the withholding.

Recall that Ogun state government had held a press conference on September 20, 2018 where both Taiwo Adeoluwa, Secretary to the State Government and Adewale Oshinowo confirmed to the media that the Federal Government had deposited N17.3 billion to Ogun state coffers as the final tranche of Paris Club Refund for which the state government assured workers of immediate payment of salary deduction arrears, gratuities, severance package and social services.

But, Zainab Ahmed, Minister of Finance, declared on Wednesday after Federal Executive Council meeting that Paris Club Refund was withheld to some states owing to their failure to use the fund to offset backlogs of salary arrears which she said had caused some uproar in the country’s financial cycle.

Speaking after the question and answer session before Victor Fasanya-led Ogun State House of Assembly Committee on Finance and Appropriation on Thursday, Oshinowo said contrary to the Federal Government’s perception that the refund might be diverted to fund expenses that are different from what the refund was meant for, the State government had earlier resolved to offset salary arrears as directed by Federal Government.

He said, “The first tranche is N10.6 billion and government used that for deductions, gratuities and severance and we even added money to that first tranche which means, we used 100 percent of that fund on salary requisite.

“The second tranche was N5.7 billion and the government spent 85 percent on salaries while 15 percent on social services. The third tranche was N5.7 billion and 80 percent was spent on salaries while 20 percent spent on social services. The fourth tranche was N17.3 billion.

“I am a little bit set back. Someone mentioned that we have received it and that it’s in one bank; why haven’t we revealed it out? The truth is, we first received the money which we did a Press Conference on and we said we are going to use 60 percent on salaries and 40 percent on social services.

“Along the line, the president called and recalled the money back to CBN and they met at NEC and they said at that NEC, go and do an MoU (Memorandum of Understanding) with all related agencies.

“As at last Wednesday we met and we signed an MoU in directives of the Federal Government that 50 percent should be spent on salaries and 50 percent on social services. We are waiting for all the necessary agencies to tarry along so that they can release the money to us.”

Responding to some insinuations going round some quarters, especially from the opposition parties that the Paris Club refund was trapped in one commercial bank as a result of state government’s accumulated debts to the bank, the Commissioner of Finance debunked the rumour and said the money is domiciled in Central Bank of Nigeria fault.

“That one (the rumour) to me is a total lie, nothing of such. We don’t have the money in any bank; the money is with the CBN, you (the media) can validate it with CBN”, he debunked.

RAZAQ AYINLA, Abeokuta