The ministry of finance says Ekiti state is not the first state to be denied the BSF funds on grounds of failing to meet the required conditions for the funds
- Fayose accuses the federal government of trying to cripple Ekiti state through the withholding of the budget support facility funds
The ministry of finance says Ekiti government failed to comply with the required conditions for the budget support facility.
The January allocation from the budget support facility (BSF) to Ekiti state was suspended because the state failed to comply with the basic requirements for participating in the facility, according to the federal government.
The ministry of finance in a statement signed by its director of information, Salisu Dambata, on Thursday, February 16, said Ekiti government failed to comply with the required conditions for the payment, of the budget support facility (BSF) and was not the first state to be denied the funds on such grounds.
The ministry said the BSF is a conditional loan programme to state governments introduced to enhance fiscal prudence, transparency, efficiency in public expenditure and payment of salaries, Premium Times reports.
It said Ekiti state defaulted in meeting the conditions specified and agreed upon by the 35 State governments that are participating in the programme.
The statement by the ministry read in part: “The failure of Ekiti State Government to comply with the requirements and conditions for the Budget Support Facility (BSF) resulted in a letter sent to the Chief of Staff to notify him of the suspension of BSF for Ekiti State and it was conveyed to Mr. President before payment to the Ekiti State Government was reinstated.
“The Ekiti State Government and all the other participating States are aware of the consequence of failure to comply with the full conditions and it is not the first time that a State would be stopped from accessing the Facility due to non-compliance.
“In the course of its normal duties, the Ministry of Finance has the right to query, suspend or withhold funds as part of the conditions of the Budget Support Facility.”
The Ekiti government described the explanation as an afterthought meant to mislead the public.
Recall that Governor Ayodele Fayose of Ekiti state stormed the Federal Ministry of Finance over the unpaid January budget support allocation of N1.1 billion to Ekiti state.
The governor had accused the federal government of trying to cripple Ekiti state and he followed this allegation with a visit to the ministry to request for the state fund.
Vanguard reports that the governor spoke after his visit to the ministry insisting that if the move is political and the fund is not paid, he would take a different course of action.
