EKITI STATE EXECUTIVE COUNCIL APPROVES N3,031,076,059.82 TERM LOAN AS COUNTERPART CONTRIBUTION FOR 2019 AND 2020 UBEC/SUBEB PROJECTS

The Ekiti State executive council has today approved counterpart funding of  N3,031,076,059.82 term loans for UBEC/SUBEB projects in the state. In a statement released by the state Commissioner for Information and value orientation, Aare Muyiwa Olumilua, said the exco meeting was virtual in view of the Convid – 19 pandemic. Please find below the full press release :

EKITI STATE EXECUTIVE COUNCIL APPROVES
N3,031,076,059.82 TERM LOAN AS COUNTERPART
CONTRIBUTION FOR 2019 AND 2020 UBEC/SUBEB
PROJECTS
Wednesday July 8th, 2020
Ekiti State Executive Council held its 13th EXCO meeting for the year 2020 today, 8
July, 2020. As usual, it was a virtual meeting.
Governor Kayode Fayemi and members of the council deliberated on the following
Memoranda, and granted approval as requested.
Memoranda presented and approved are follows;
1. Memorandum on the offer of N3, 031,076,059.82 term loan for 2019 and 2020
Ekiti State Government counterpart contribution for SUBEB/UBEC projects:
The term loan was approved by council, to enable Ekiti State Government
meet up with its statutory 50% counterpart obligation towards the release of
funds for UBEC/SUBEB projects for the year 2019 and 2020. Failure to do so
would disqualify the State from receiving her share of the UBEC/SUBEB
funding. Being a Federal and State Government partnership, both tiers of
government are required to come up with their respective 50% contributions
before the total sum is released to the State Government.
It should be recalled that Governor Kayode Fayemi has substantially defrayed
the outstanding counterpart funds for the years 2016, 2017 and 2018
UBEC/SUBEB projects, which was initially neglected by the previous
administration, and the repayment is still ongoing.
Governor Fayemi informed the Council that he has constituted 3 separate
monitoring units, tasked with the assignment of carrying out an infrastructure
audit in the Education sector, to determine the precise needs of the various
schools. Their mandate also includes monitoring the execution of all SUBEB
projects in the State, to ensure that all contracts awarded, follow the contract
specifications and timelines.

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2. The Memorandum on the Ekiti State Debt Management Law 2020 was
tendered before the Executive Council. Ekiti State Government in 2011, put in
place the law titled “Regulation to provide for the Establishment of the State
Debt Management Office, and for connected purposes. Nine years later, the
contents and realities of the Regulation are becoming obsolete, due to
economic changes and other factors in the global financial order, and practices.
This has necessitated the need to make necessary changes and amendments in
the regulation, to suit the current economic realities.
The draft of the reviewed law was prepared by the Ministry of Finance, and the
legal clearance of the Ministry of Justice was obtained. With the approval of
the Executive Council, the bill will be forwarded to the Ekiti State House of
Assembly for legislative processing, and passage into law.
3. The Executive Council approved the amendment of section 34(1) (b) of the
Ekiti State Fiscal Responsibility Law (No 12) of 2019. As advised by the
Ministry of Justice, Section 34(1) (b) was amended to read:
“The State Government shall ensure that the level of public or internal debt as
a portion of the state income is held at a sustainable level, as prescribed by the
House of Assembly, from time to time, on the advice of the Fiscal
Responsibility Commission”.
The amendment will be forwarded to the Ekiti State House of Assembly for
legislative processing, and subsequent passage into law.
Signed
Aare Muyiwa Olumilua
Commissioner for Information and Values Orientation

 

 

 

 

 

 

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