Rivers govt denies allegation of abuse of public funds

(Nigeria) Rivers State Government has dismissed as untrue, allegations that Governor Rotimi Amaechi abused public funds.

A statement by the Commissioner of Information and Communications, Mrs Ibim Semenitari on Thursday in Port Harcourt, said the government got about N199,286,899,374,40 last year from the federal allocation, adding that borrowing was also done to meet the development programmes of the government for the state.

She said some of the money borrowed had been re-paid. The commissioner gave a detailed account of the government expenditure.

"These debt obligations are not static but constantly reducing as they are repaid. Most of the loans are either already fully paid or getting to the end of their repayment cycle. The Debt Management Office, DMO of the Federal Ministry of Finance, monitors this process.

“It speaks to the high level of fiscal discipline of this administration that the total current loan obligation of the State is less than N23 Billion, and nowhere near the amount alleged as outstanding. However, the government did not borrow N10bn  or any amount whatsoever from Guaranty Trust Bank Plc (GT Bank) in 2014. Due to better terms and conditions, the Government of Rivers State entered into a refinancing of the outstanding facility from GT Bank by Fidelity Bank Plc.

“It is also important to draw a distinction between drawing on an existing loan facility and obtaining a fresh loan.

There have been allusions and references to withdrawals (and deployment of funds) from the Mandatory Monthly Savings of the State – the Reserve Fund. Implicit in the reference is the fact that the Administration of Governor Amaechi does not believe in “consuming” every revenue accruing to it – which is a mark of prudence which the people of the State should be proud of and demand its sustenance by future administrations in the State.

N60 BILLION IN TREASURY AS AT DECEMBER 2014 EMPTIED

There were no such fund in the Treasury of the Government of Rivers State as at December 2014. An accurate and authentic state of the finances of the State Government can always be obtained from the annualfinancial report of the State, which is available.

ABONNEMA BRIDGE

Messrs. Marteli Global Services Limited was contracted by the Government of Rivers State to rehabilitate Abonnema internal roads and build a bridge to connect Obonnoma Community with Abonnema as the old bridge was failing. At present, more than 94 percent of the work has been completed, with the roads asphalted, the bridge completed and the approach to the bridge nearing completion. These are all verifiable facts.

MONORAIL PROJECT

The Rivers Monorail Project as has been clarified repeatedly is an on-going Project. The Project was originally conceived as a 19 km stretch. However, after the withdrawal of TSI Properties and Investment Holding Ltd, the erstwhile partners of the State Government on the Project, the initial stretch was reviewed to a 6.5km stretch divided into two sub-phases. Phase 1A - 2.6km(consisting the Stations located at Sharks Park and UTC Junction including a Depot) and Phase 1B - 3.9km(from UTC Junction and Waterlines Bus Stop).

The Project is multi-year in duration with different components and phases, and requires funding over the duration. The Project is broken down into several components. Each of these components is essential to the over-all success of the Project. Funds are required for the completion of each component of the Project, e.g., the first Depot. It is important to note that the greater part of the infrastructure for the take-off of Phase 1 B has also been addressed in the Phase 1A.

The monies so far released to this Project in 2014 are in line with the plan for the Project. Notwithstanding the plan, the release of monies to the Project is however subject to cash flow. 

MEGA TRANSPORT TERMINALS

The Mega Transport Terminals were conceived to address the problem of traffic congestion in the Port Harcourt Metropolis. The idea is to ensure that all inter-state traffic terminate at these terminals. It is for this reason that these terminals are located at entry points into the city of Port Harcourt. The Strategy is in line with what is applicable in major metropolis around the world.

In the implementation of this Strategy, the State Government partnered with Skye Bank. Two (2) of the terminals have largely been completed at Omagwa and Eleme while the remaining two proposed for Emohua and Oyigbo are yet to kick-off owing to dwindling resources and the acquisition of appropriate site to locate the terminals. However, the Administration is committed to achieving the overriding objectives of this Strategy because of its importance to the transportation system in the Metropolis of Port Harcourt.

The success of the Project requires that all the terminals be completed before operations can commence. Thus, while two terminals are ready, the Strategy of the Project requires that the four (4) terminals take off at the same time, otherwise, the objective will be defeated.

SALE OF POWER PLANTS AND POWER STABILIZATION

This Administration believes that improved electric power supply is vital to improving the wellbeing of the people of the State both economically and security-wise. This belief has warranted intervention in the three value chains of the power sector: generation, transmission and distribution.

For the records, the Government of Rivers State under Dr. Peter Odili made substantial investment in Electric Power related Projects with the aim of mitigating the malaise of inadequate power supply. The Projects included generation (Omoku and Trans-Amadi 1), transmission and distribution interventions. Rt. Hon. Chibuike Rotimi Amaechi on assumption of office recognized the importance of improved electric power supply in the socio-economy regeneration of the State. At the time Rt. Hon. Amaechi assumed office, the Government of Rivers State had invested in 350 Megawatts (MW) of generation capacity. However, only 70MW (equivalent to about 20 per cent) was available. With enthusiasm, Rt. Hon. Amaechi ramped up the efficiency to 77 per cent availability including injecting another 360MW Green Field Generation Project at Afam, of which 180MW have been commissioned and is in commercial operation.

To mitigate the swing in efficiency and its debilitating impact on the economy, the State Government sought private sector operators and sold 70 per cent equity stake in the power generating assets’ company to NG Power HPS. For the sale transaction, the State Government adopted the same model as the Federal Government in the sale of Egbin Thermal Power Plant. The sale of the asset was at a price per MW higher than all the privatization MW rate done by the Federal Government.

The proceeds from sale of the equity in the power generating assets’ company was captured as income in the 2014 Appropriation Law and deployed into funding capital projects as appropriated.

Since the inception of this Administration, a number of activities and works have been identified as required to stabilize electric power supply in the State. In 2013-2014, these included the rehabilitation of Transmission Lines from Omoku to Port Harcourt, the installation and commissioning of distribution transformers in different parts of the State, the construction and commissioning of Injection Sub-Stations, maintenance of facilities for power evacuation and the construction of both High and Low Tension lines. In 2014, efforts at addressing these areas were funded and are continuing. The funds released for Power Stabilization were applied to these activities.

CHATHAM HOUSE TRIP

According to Mr. Wike, "Amaechi's Chief of Staff wrote a memo requesting N72, 000,000.00 (Seventy Two Million Naira) to sponsor the APC to Chatham House in the United Kingdom.” This is a clear misinformation as there was neither such a memorandum nor actual expenditure. However on August 10, 2014, the Chief of Staff, Government House, was invited to the House of Commons by Mr. Martin Brown, Senior Political Adviser, Extractive Industries Group for a Panel Discussion. He travelled with a team of three to honour the invitation at a total cost of N11, 086, 000.00. There was therefore no N72 Million funding of APC to Chatham House as alleged.

N6BN RELEASED IN JANUARY 2015 FOR GOVERNMENT HOUSE EXPENDITURE

There was no release of N6 Billion to Government House on January 6, 2014, as alleged or any other date for the matter.

HOSTING OF PROF. WOLE SOYINKA

It is pertinent to state that Port Harcourt, Rivers State,won the bid and was named UNESCO World Book Capital for 2014. This is a rare feat as it is the first City in Africa to win the title by competitive bidding in a strong field with cities such as Oxford and Moscow.

As part of the activities of the World Book Capital, the Government of Rivers State hosted numerous guests. There is nothing unusual about this as Government routinely host guests including Presidents, Prime Ministers and other dignitaries from time to time. It is however imperative to clarify that such guests are never given any monetary gifts.

Funds for hosting guests of the State are provided for in the annual expenditure document of the State and are released as required.

SIPHONING OF FUNDS – OFFICE OF THE SECRETARY TO THE STATE GOVERNMENT

The claims that between October and December 2014, the sum of N14 billion was “siphoned” through the Office of the Secretary to the State Government (SSG) and on December 23, 2014, the sum of N11 billion was “siphoned” through Government House and Office of the SSG are both fallacious and mischievous. We state categorically that during the period of October - December 2014, no such funds were released to or passed through the Office of the SSG.

SUMMIT OF COMMUNITY DEVELOPMENT COMMITTEES

Community Development Committees (CDC) Summit is a normal programme of Government which involved engagement with Community Development Committees in communities in all 23 Local Government Areas of the state with over 2000 participants. The programme is used for interaction on project execution, health, agriculture and security matters. The budget for this Summit covered, among others, transportation, accommodation and feeding of participants for three days. It is an aspect of the good governance programme of this Administration.

PORT HARCOURT CENTENARY CELEBRATION

The Port Harcourt Centenary Celebration was embarked upon to mark the founding of the City of Port Harcourt on 30th August 1913. The celebration was initially conceived and planned for a duration of one month but later expanded to span over five months owing to the magnitude of necessary activities.

The celebration featured many activities/events including Symposium, equipping of Museum, Exhibition and Fairs, Book Publications, Media Campaign (Advert/Publicity), Memorabilia, Banquet, Beauty Pageant, Musical Shows(concerts), Street Parades, Regatta, and playing host to many dignitaries including former Governors of Rivers State, former Head of state of Nigeria and representative of the Presidency. The funds appropriated and released for this Programme were utilized for the proper purposes.

GOVERNOR’S SECURITY VOTE

The allegations regarding Security Vote for the Governor are misleading in that they ignored the fact that this is appropriated and consistent with established practice.

However, in the light of dwindling revenues from the Federation Account and the Governor’s concern that workers must be paid their salaries and wages before Christmas, since November 2014, there has been no release of Security Vote to the governor.

PAYMENT FOR LEGAL SERVICES

The sum of N1Billion was approved for payment for legal services rendered to the Government of Rivers State and for related legal matters.

In the last two (2) years, the Government of Rivers State has had to defend more than one hundred and fifty (150) suits. These require the services of Legal Practitioners. The cases include:1. ​Banana Plantation Related Suits: These suits numbering up to 40, are essentially alleging that the land for the Banana Plantation in Ogoni was acquired by force and without compensation by the Government of Rivers State were instituted against the State. This was notwithstanding that the genuine landowners had been paid appropriate compensation and that the Plantation employed thousands of youths. The objective of these suits was to secure a restraining order against the continued operation of the Plantation. If the Government of Rivers State did not engage competent Lawyers to defend the suits, the investment in the Project (which include foreign direct investment) would have been impaired.

2.​Federation Account: An ex parte application was made before Hon. Justice Evo Chukwu at the Federal High Court Abuja for an Order to restrain the Government of Rivers State Government with respect to receipts from the Federation Accounts and to restrain the Government with respect to Obio/Akpor Local Government Council.  The Government of Rivers State became aware of the application late at night and had to engage a Senior Advocate to appear in Court in the morning to oppose application.

3. ​Death of a Citizen: Whilst driving on a convoy, Sir Celestine Omehia, as Governor knocked down and killed a citizen in 2007. This resulted in a suit. The administration of Governor Amaechi inherited the matter and had to resolve it finally at the Supreme Court.  

4. ​Other suits for which the fund was approved relate to:

(a)​the Soku Oil Wells;

(b)​the Rivers/Abia Boundary Oil wells;

(c) ​the Niger Delta Development Commission building," she said.