BAYELSA MONTHLY TRANSPARENCY; GOVT POSTS N7.3BN AS BALANCE FOR MARCH 2014

24/04/2014

BAYELSA MONTHLY TRANSPARENCY; GOVT POSTS N7.3BN AS BALANCE FOR MARCH 2014

The Bayelsa State Government has announced a total of N7.3 billion as the balance of funds available to it as at the end of March, 2014.

Governor Seriake Dickson, who made the disclosure during his administration’s transparency initiative press briefing in Yenagoa, said the state government had a gross inflow of N16.4 billion for the month from the Federation Accounts Allocation Committee, (FAAC).

This amount, according to him, comprises statutory allocation of N2.9 billion, derivation N11.4 billion, SURE-P N1.2 billion, VAT N643 million and NNPC refund N233 million.

He said FAAC deductions included the bond servicing of N1.2 billion, foreign loans to the state N20.3 million, refund of over payments N187.8 million and payment of arrears of derivation to Bayelsa State EA Oil field came to N170.3 million and others amounting to N2.3 billion resulting in a net inflow of N14.06 billion.

The Bayelsa State Governor also announced N4.1 billion as funds from other sources, while internally generated revenue (IGR) receipts for the month of February stood at N825 million, bringing the total funds available to N18.9 billion.

On the expenditure profile, the Governor posted a total of N11.6 billion, which comprises bank loan repayments of approximately N4.8 billion, civil servants’ salaries N3.9 billion, while that of political appointees gulped N448 million.

Other expenses for last month included monthly overhead payments N1.2 billion, monthly standing approvals N343 million, gratuity payments N250 million, FIRS deductions N200 million, while a total of N126 million was used in paying the N18, 000 minimum wage arrears.

Governor Dickson, who also briefed the gathering on the financial position of the state for the month of February, added that actual recurrent and capital payments including transfers for March cumulatively stood at N8.5 billion.

Commenting on the bond deductions and other inherited liabilities, he said his administration decided not to repudiate the debts to protect the corporate integrity of the state.

According to him, “There is nothing wrong about the state taking a bond to finance development projects. The issues majority of Bayelsans had been with the management of the bond and not with the fact that bond was taken.

“Most state governments (even now) take bonds, because it gives you time to finance long-term projects instead of going for short-term borrowing and be paying cut-throat interest rates. But the problem was that the bond was not used for the jobs it was meant for.

“But we are a state; and a legitimate government took those decisions and we can’t come and then say the Governor is no more, so we are not liable, which a lot of people actually wanted. But, I said that was not honourable enough. So, we are servicing it.

Daniel Iworiso-Markson

Chief Press Secretary to the Governor of Bayelsa State