FOR THE RECORD: Anambra Govt Says Obi Left ₦9billion Not ₦75billion in the Coffers; Obi Left ₦185bn Debt - Obiano

Former governor of Anambra State Mr. Peter Obi and Governor Willie Obiano

Governor Willie Obiano of Anambra State says he inherited a debt of ₦185 billion from the previous administration, adding that he did not meet ₦75 billion in the treasury as claimed by his predecessor.

Daily Trust reports that the Governor said through the Secretary to the State Government, Professor Solo Chukwulobelu, that the present government paid ₦35.1 billion on inherited projects between March 2014 and August 2015 and spent ₦11.7 billion on projects initiated within the same period.

Daily Trust and The Lead report continues:

He said in addition to ₦400 billion investments attracted from foreign, local and indigenous investors by the Anambra State Investment Protection and Promotion Agency (ANSIPPA), the state’s internally-generated revenue increased from ₦500 million at inception of the administration to ₦1.3 billion.

The Lead reports that former governor of Anambra State, Mr. Peter Obi left ₦9 billion in the coffers of the state government while leaving office 19 months ago and not ₦75 billion, Anambra State government has said.

The former governor had claimed while taking his exit after two terms in office that he kept ₦75billion in government coffers for his successor, Chief Willie Obiano. The claim became controversial when some officials of the present Obiano administration tried to dispute it late last year in hushed voices.

But at a media briefing at the weekend in Awka, the Secretary to the State Government (SSG) Prof. Solo Chukwulobelu flanked by other members of the State Executive Council (SEC) said that the Obi administration as at March 2014 upon handover had approximately a cash balance of ₦9.0 billion left in the coffers, while local and foreign investments, refunds and bank balances stood at N75.0 billion.

He said that there were equity investments made by the previous administration captured in its handover note, which have potential to earn money but are not tradable, while there are yet other assets that are tradable and could be converted to cash but have not.

He also said that there were expenses made on counterpart funding, which the previous administration made in other to get money from donor agencies and that these monies didn’t yield anything.

Moreover, he said that the Obiano administration was yet to assess the US$155m foreign currency investment the state made in Eurobonds and other foreign denominated securities held with Access Bank, Fidelity Bank and Diamond Bank and that given the current decline in Nigeria capital markets, this portfolio of Eurobonds had a market value of approximately US$132m (26.4B) reflective of prices dated September 21, 2015.

“If Anambra State Government (ANSG) were to liquidate the portfolio, the state would incur a loss of US$32m (14.8 per cent) a Naira loss of ₦100M, respectively”, he said.

The Obiano administration he said had appointed a reputable investment-banking firm, Afrinvest West Africa Limited to optimally manage the investment portfolio.

Prof. Chukwulobelu said the Obiano administration inherited a total contract sum for all projects totaling ₦185.1billion from Peter Obi’s administration, paid ₦35.1 billion on these inherited projects between March 2014 and August 2015, while the sum of ₦11.7billion had been paid for projects initiated by him directly.

He refuted insinuations that it was from the ₦75Billion left by Obi for his successor that he uses to pay salaries of workers without applying for bailout from federal government.
He said that the feat was rather fallout of prudent management of the state government’s Internally Generated Revenue (IGR), which rose from ₦500M from his assumption of office to ₦1.5billion monthly as well as resources from the federation account.