Akeredolu: Oil Derivation Refunds Spent on Salaries, Infrastructural Projects

Ondo State Governor, Oluwarotimi Akeredolu, has said that the 13 percent oil derivation, subsidy and SURE-P refunds the state received from the federation account in the last two years (2021-2022) were expended on payment of accumulated salary arrears and infrastructural projects in the state.

 

In a statement signed by the Governor’s Chief Press Secretary, Richard Olatunde, the governor explained that the refunds received from the federal government were judiciously expended on some key capital projects across the three senatorial districts of the state.

Akeredolu also disassociated himself from governors alleged to have been stealing funds meant for the local governments from the Federation Account Allocation Committee (FAAC).

 

The presidency had accused the Nine oil-producing states of receiving a total of N625.43bn as 13 percent oil derivation, subsidy and SURE-P refunds from the federation account in the last two years, 2021-2022, and without showing tangible projects they used the huge funds to do their States.

Out of the total sum of N625.43bn, Ondo State received N19.4bn with an outstanding sum of N11.7bn.

 

“Some of the impactful projects undertaken and completed by this administration include the rehabilitation and asphalt overlay of the 32.6km Araromi-Alape road in Ilaje Local Government Area; 16.65km Ikaramu-Akunnu-chainnage 7-Oke Agbe Road in Akoko Northwest Local Government Area; 4.5km Agadagba Obon-New Ajapa Road in Ese-Odo Local Government Area; 3.0km Oke Igbo Township roads, Ile-Oluji/Okeigbo Local Government Area, among others.

 

“Recently, the Governor commenced the rehabilitation of over 35 kilometers of network of roads in Akure, the state capital. The roads being rehabilitated are the existing ones built by past governments several years ago and which are already in bad shape with potholes and failed sections. The 9.5km Emure- Iporo Road and rehabilitation of the 15.2km Akure phase “D” road networks have all begun.

 

 “The 10km Okitipupa-Igbokoda virgin road which will be commissioned by the Lagos State Governor, Mr.Babajide Sanwo-Olu, is another evidence of Governor Akeredolu’s commitment to infrastructural development. These intensive capital projects are financed from these refunds and Internally Generated Revenue.

 

“The monthly FAAC receipts are devoted to the payment of salaries and pensions as agreed by Labour Leaders at the monthly meetings presided over by the Head of Service and Chairman of Joint Negotiating Council (JNC).

 

“Despite Governor Akeredolu’s vow to always pay salaries and pensions as and when due, the financial crisis across the country occasioned by the outbreak of Covid-19 pandemic resulted in non-payment of salaries in full for some months. As of January 2022, Government was owing four months’ salary arrears as against seven months inherited.

 

“Governor Akeredolu, having promised the civil servants in the state to prioritise payment of salaries, has continued to clear these backlogs of arrears. On three occasions this year, the Government has paid double salaries in a month, thereby reducing the number of arrears. All salaries will be cleared before the year ends.

 

“If the amount expended on these infrastructural projects and payment of salary arrears is juxtaposed with the refunds, it is crystal clear that the monies were not mismanaged in Ondo State.

 

“The administration of Governor Akeredolu stands on the tripod of Transparency, Accountability and Integrity. We will continue to hoist the flag of transparency in governance while pursuing excellence in the journey to transform the state for the better,” Akeredolu said.

 

President Muhammadu Buhari had on Thursday accused governors of pocketing local government funds, the governor noted that his administration has not touched funds meant for local governments since the inception of his administration.

 

“As a matter of policy, monies meant for Local Governments are shared at their monthly Joint Account Allocation Committee (JAAC). Mr Governor doesn’t touch local governments funds. The local government Chairmen can attest to the fact that they have total freedom in the management of their funds,” he added.