Abia Governor Otti, raises alarm over N191 billion debt by Ikpeazu’s Govt

Newsflash Nigeria StaffJune 16, 2023

3 minutes read

The Abia State government has challenged the former governor, Okezie Ikpeazu, to account for the N191 billion debt he left behind for the current administration of Alex Otti. The government also dismissed the claim that Ikpeazu left N24 billion in the state coffers as false and misleading.

This was disclosed by Mike Akpara, the special adviser on finance to Otti, at a press conference in Umuahia, the state capital, on Thursday. He said the government decided to set the records straight following reports that Ikpeazu’s allies were spreading fake news to deceive the public, especially workers and pensioners.

He said the reports were aimed at preempting anti-corruption agencies that were already on the trail of Ikpeazu and his cronies over alleged mismanagement of funds. He added that Ikpeazu would not escape justice even if he joins the All Progressives Congress (APC) as he was planning to do.

“The Okezie Ikpeazu-led government did not leave any N24 billion in the account of the Abia government as they falsely claimed,” he said.

“If Ikpeazu is trying to preempt anti-corruption agencies by making such provocative false claims, he should know that they work with facts and figures,” he said.

“Even if he runs into the APC to seek refuge as he is planning to do, these anti-corruption agencies would pursue and bring him to justice from there.

“Already EFCC is on their trail and as we speak some of their bankers are being invited for questioning by the agency.”

Akpara said the records showed that as of May 28, 2023, the state had a financial liability of N191 billion, comprising loans from banks and the Central Bank of Nigeria (CBN), domestic debts such as salaries, pensions, gratuities and contractors’ arrears, and external debts.

He said the loans were obtained by Ikpeazu’s administration without any repayment plan or evidence of judicious use. He also said the domestic debts were accumulated due to poor internal revenue generation and wasteful payment to consultants.

He said the external debts were incurred without any tangible benefit to the state or its people. He said the debt burden was affecting the development and welfare of Abia State.

Akpara also debunked the claim that Ikpeazu left $200 million and $50 million for Otti’s administration, saying they were loans that had not materialised. He said the N2.8 billion from SURE-P that came into the state account through Union Bank a few days before Otti’s inauguration was taken away by Ikpeazu’s administration.

He said Otti’s administration was able to stop Ikpeazu’s administration from taking another N3 billion from JAAC by writing to EFCC to intervene. He said these actions showed that Ikpeazu’s administration did not leave any money in the state account as they falsely claimed.

“The $200 million and $50 million they claimed they left for the new administration are loans they were pursuing which are yet to crystallise.

“Poor internal generation of revenue, with the little they generated frittered away in payment to consultants for no added value and they pay as much as 20 percent which is highly unethical.

“The members of the Ikpeazu-led administration were busy picking money from everywhere towards the end of their tenure as the N2.8 billion from SURE-P that came in through the Union Bank a few days before the inauguration was taken by them.

“We made efforts to stop them from taking the money but we lost out, however, we succeeded in stopping them from taking the N3 billion from JAAC, as we went as far as writing EFCC to stop them.”

He also wondered why Ikpeazu’s administration did not pay April and May salaries before leaving office if they had billions in the state account. He said this was another indication that there was no money in the state coffers.

He said Otti’s administration was committed to transparency and accountability in managing the state’s resources. He said Otti’s administration would ensure that Ikpeazu and his accomplices face justice for their alleged financial crimes against Abia State and its people.