The federal government has explained why it has not released the Budget Support Facility (BSF) to the Ekiti state government.
A statement from the federal ministry of finance on Wednesday signed by Salisu Na’Inna Dambatta, Director (Information) described the Ekiti governor’s claims as “incorrect as the Ministry has not withheld any statutory allocation due to Ekiti State, or any other State in the country.”
According to Salisu Na’Inna Dambatta, Director “the Ekiti State Government failed to comply with the necessary requirements for participating in the Budget Support Facility (BSF), which is a Conditional Loan Programme to State Governments introduced with the view to enhancing fiscal prudence and designed particularly to enhance transparency, efficiency in public expenditure and payment of salaries.”
Na’Inna Dambatta added that “this is not the first time of non-compliance by the Ekiti State Government. His (Ekiti governor’s) administration defaulted in meeting the conditions specified and agreed upon by the 35 State Governments that are participating in the programme as contained in the Fiscal Sustainability Plan (FSP) and the Ekiti State Government was warned formally of its failure to comply with the full requirements vide a letter on August 5, 2016, with reference number HMF/FMF/ASG/1/2016.”
“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 statement said.