KPMG on 2nd of March 2024 submitted their final report on the Provision of process review services of the Abia state government to the Governor through the Accountant General of Abia State Mrs Njum Onyemenam.
The report covered the period from the 29th of May 2015 to the 28th of May 2023. Page 2 of the 360-page report has restrictions and caveats on the distribution of this report as they stated that it is a mere process review and never a forensic audit as it’s inconclusive.
The Abia state government has been trying to fly kites using this report to portray the past administration of Dr Okezie Ikpeazu as being reckless in the management of Abia state funds during the period under review.
They started with the N10b Contractor Finance Scheme initially earmarked for the Abia Airport project which was later redirected and cancelled as funds were channeled towards payments of local contractors for road projects. Even when evidential documents were produced, contractors’ names stated and identified, and the amounts paid were made public, the Government of Alex Otti continued in their blackmail just to paint a different picture whereas worse situations are going on as evidenced in their financial report of Q4 of 2023 and Q1 of 2024 as stated and hoisted on Abia state website ( abiastate.gov.ng )
The KPMG report on page 30 sub 2.4 under the Executive Summary as attached stated that the total collection and utilization of funds from the Federation Account Committee (FAAC ) for the period under review was N468,357,645,293.64.
Under the same Executive Summary page, 31 Sub 2.6 as attached stated that total IGR (Internally Generated Revenue) stood at 82,610, 062,726.79. All these represent about 90% of expected revenue within the period under review, it now beats every discerning mind’s imagination how N1.9 trillion was manufactured by Alex Oti and his co-travelers as never in the report did KPMG mention such figures in the whole of the 360-page report.
The attached documents (which represent the sectoral analysis of Abia receipts) are from the Abia State financial report as approved, signed, and sealed by past and present Accountant Generals and Commissioners of finance of the state. This report as hoisted on the Abia state website represents the financial position of the state at various times from 2015 to 2022, It has been summarized and analyzed as follows.
Total Revenue which includes revenues from FAAC allocation and IGR Internally Generated Revenue 2015 to 2022 stood at N597,462, 453.105.67.
From the data above N216.679.541.267.70 was used as Salaries (Personnel Cost.
N251,330, 156,108.34 was used for Capital project payment.
N158.679.675.678.86 was used as Overhead.
While these figures may have little variations to the last kobo in summation, at least, it gives a picture of what Abia got during the period under review. We are convinced Abia state government under Dr Okezie Ikpeazu never received more than N630b (Gross figure) as FACC, VAT allocation, or loans and Grants. The 360-page KPMG report never mentioned any figure higher than N550b as a total receipt as stated on pages 30 and 31 of the KPMG report. The question begging Gov Otti and his co-travelers is how he arrived at N1.9 trillion being total receipts, not to talk of being misappropriated.
We are not ignorant of the unending efforts of the present government to paint a bleak picture of the administration of Dr. Okezie Ikpeazu instead of focusing on the job which they were voted for. It is instructive to note that within 9 months of Gov Otti’s administration, a whooping sum of about N300b has passed through the government. N160b being the total receipt of both FAAC and JAAC from June 2023 to March 2024 as evidenced by the Central Bank of Nigeria (CBN) report and Debt Management Office (DMO), the N100b naira borrowed from Access Bank of which Craneburg Construction owned by late Herbert Wigwe got N50b and N45b from Union Bank using the JACC account as security there denying Local Government Transition Committee Chairmen unrestrained access to the local government funds as promised during the campaigns.
Abians are yet to witness the kind of positive changes commensurate with the volume of funds received by the government. Today, Abia state government receives on the average N15b monthly outside the IGR of 1b. This is against an average of N7B received by the State within the period under review.
Abia workers including Pensioners are still being owed as stated in the NLC letter to the Governor (View Attached Letter) and so much noise about infrastructural development is only on social media as most of the things we see are mere road Patchings and maintenance of existing roads, borrowing their words “retrofitting” projects.
Abia state during the period of Okezie Ikpeazu never received half of the amount stated by Premium Times as allocation or revenue within the 8 years and with the explanations as contained in the summary sheet, Governor Alex Otti should reduce lies, propaganda, and blame game, and focus on his job as Abians eagerly expect the “NEW ABIA” that he promised.
Uche Aguoru
Is A public Affairs Analyst and commentator.
