…As FG trims budget size, proposes N8.6tn for 2019***
Former Ekiti State Governor Ayodele Fayose is telling the Economic and Financial Crimes Commission (EFCC) detectives all he knows about the N4.685 billion allegedly withdrawn from the Office of National Security Adviser (ONSA).
Fayose spoke yesterday after 72 hours in detention. He admitted knowing a former Minister of State (Defence) Mr. Musiliu Obanikoro, who ferried N1.299billion slush funds to him in a chartered jet.
He also said he has links with Abiodun Agbele, who allegedly bought six choice properties for him in Lagos and Abuja.
But the ex-governor added drama to his grilling when he wrote the EFCC to demand an additional mattress in his cell.
He said sleeping on two mattresses will be more comfortable for him. The EFCC was looking into his request as at the time of filing this report.
The governor, who had vowed not to speak, made a U-Turn, The Nation learnt.
Agbele and Obanikoro are central to the disbursement and receipt of N1.299billion and $5.377million to him.
“The $5, 377,000 was handed over in cash by Obanikoro to Fayose while the N1.299billion was received by Agbele on Fayose’s behalf in the presence of the ex-minister’s Aide-de-Camp who also accompanied them to the bank,” a source close to the investigation said, adding:
“From the $5million, Fayose gave his Personal Assistant Agbele about $1million which he exchanged to Naira and paid for properties on behalf of the governor.
“These assets include four in Lagos (N1.1billion) and two in Abuja worth about N500million to N700million.
“The properties, worth N1.8billion, were purchased with the said proceeds of crime.”
Fayose has been asking the EFCC to take him to court.
The source said: “Fayose will still undergo another round of grilling on Friday (today). We cannot just arraign him in court without obtaining a statement from him.
“By Friday, he has to explain the following:
Did Obanikoro hand over cash to him and Agbele?
What was the N1.299b meant for?
Did Agbele buy properties for him? How did his associate acquire the six properties for him?
“So far, Fayose remains in custody till he is able to respond to issues isolated for him.”
Fayose wrote a letter to the EFCC demanding an additional mattress to sleep on.
He said one mattress was too flat to accommodate his frame in the cell.
”He has demanded for a second mattress from the anti-graft agency and I think they are looking into his request.
“They want to find out from him the type of mattress needed to make him comfortable in custody,” the source said.
Fayose’s lawyer, Mike Ozekhome (SAN), said efforts had begun to secure his release from EFCC custody.
Ozekhome told the News Agency of Nigeria (NAN) in Abuja that “Fayose’s lawyers are already taking steps to enforce his fundamental human rights by getting him released.
”Yes, his lawyers will go to court to enforce his fundamental human rights.
”The EFCC has no right to keep him for over 24 hours.
“If they have done that by obtaining a Magistrate Court’s Order that will be in the form of “holding charge” which has been declared unconstitutional and illegal by the Supreme Court. Holding charge is illegal. It is unconstitutional.’’
Ozekhome said that the section of the Administration of Criminal Justice Act (ACJA) permitting a magistrate to detain a suspect for 14 days was illegal.
According to him, any action outside the provisions of Section 35 of the Constitution, which specifically provides for 24 hours, is illegal and unconstitutional.
The EFCC, also yesterday disowned a tape in which its Acting Chairman Ibrahim Magu is said to have claimed that nothing would happen should Fayose die in detention.
The Head of Media Wilson Uwujaren said the purported audio tape was fake.
The statement said: “The Economic and Financial Crimes Commission wishes to alert the general public about an audio recording of a conversation currently circulating in the social media in which the Acting Chairman of the Commission, Ibrahim Magu, purportedly made comments to the effect that nothing will happen peradventure Ayo Fayose, former governor of Ekiti State, dies in custody.
“Interestingly, the audio tape did not disclose the place where the conversation occurred and the person that Magu was supposedly talking to.
“Purveyors of this fake news especially a former spokesperson of a leading political party, are warned to desist.”
In the meantime, the Federal Government on Thursday proposed a smaller budget size of N8.6tn for the 2019 fiscal year in contrast to N9.1tn for 2018.
It also projected a total revenue of N7.9tn as well as reductions in both borrowing and deficit financing, according to details of the 2019-2021 Medium Term Expenditure Framework/Fiscal Strategy Paper unveiled in Abuja by the Minister of Budget and Planning, Senator Udo Udoma.
The minister, who unveiled the MTEF/FSP to members of the public comprising the media and Civil Society groups, stressed that the Federal Government was oblivious of the revenue challenges assailing it.
Udoma said the government would drastically cut down on borrowing in 2019, as he outlined key assumptions in next year’s proposed budget to include oil production volume of 2.3 million barrels per day at a price of $60 per barrel and an exchange rate of N305 to one dollar; inflation rate of 9.98 per cent; and Gross Domestic Growth rate of three per cent.
According to him, the Federal Government has also projected oil revenue of N3.6tn for 2019 against N2.9tn for the current fiscal year, and non-oil revenue of N1.385tn as against N1.348tn in the 2018 budget.
For non-oil revenue in 2019, the government has projected Company Income Tax of N799.5bn as against N794.6bn in 2018; Value Added Tax of N229.3bn, against the 2018 figure of N207.5bn; while the share of the Federation Account Levy is put at N54.1bn, against N57.8bn in 2018.
For the coming year, the Federal Government has picked top nine government-owned enterprises, excluding the Nigerian National Petroleum Corporation, to generate the sum of N955.3bn, while the sum of N624.5bn is expected from independent revenue sources, compared to the 2018 figure of N847.9bn.
For expenditure, the government projects statutory transfer of N506.8bn, against the 2018 figure of N530.4bn; debt service of N2.144tn in contrast to N2.013tn in 2018; and sinking fund of N220bn, against N190bn in 2018.
According to the government, it intends to commit more funds to paying pension, gratuities and retirement benefits of retired employees in 2019 by proposing N527bn as against N241.9bn in 2018.
Udoma said notwithstanding the small size of the proposed budget, certain critical items would be given priority.
He outlined those items to include human capital development, health, education and pension payment.
The minister said, “In 2019, we will concentrate on getting more revenue, oil and non-oil, by squeezing the maximum from oil, and build up non-oil revenue by an average of 30 per cent up from the previous figure.
“Here, we all know that the rate of tax to the GDP is still very low. We can do much better than we are doing. So, going forward, we will rely less on borrowing and debt, but do more on revenue build up so that debt service to revenue is brought down.
“This is the approach. To the government, it is revenue, revenue and revenue. That is our priority. If you have revenue, it’s possible to deliver on infrastructure.”
Udoma, however, explained that borrowing was critical when the country was short of funds to bring it out of recession.
He added, “And that borrowing was directed at capital projects and it worked. That is why you see activities on Lagos-Ibadan rail line and others.
“However, for that level of borrowing, we are taking it down because as revenue picks up, we will rely less on borrowing.”
The minister assured the audience that the MTEF document would be passed to the National Assembly by the end of this month and that the budget would be sent in November, but regretted that the January to December calendar had yet to be met.
“The January to December budget cycle is what this administration believes in, but as an election year, we do not envisage the National Assembly passing the budget on time. This might not be the ideal time for synergy, but both the National Assembly and the Executive desire it,” he stated.
The Nation with additional report from Punch