The interim administration of former acting governor of Adamawa state led by Ahmadu Umaru Fintiri has been accused of having financial mismanagement by massive embezzlement of state’s funds, ,the administration illegally borrowed over N5b which it lumped on the loans it inherited from Nyako’s regime.
The Adamawa state Press Release was issued and signed through the office of Director of Press and Public Affairs to the governor Mr. P. P Elisha said after diligent review of the financial transactions run by Fintiri, it was verified that the debt portfolio left behind by Nyako’s regime was about N7b not N12b as stipulated by Fintiri.
“The sum of N5.5b was tactically borrowed by the administration of the former Acting Governor and included it in the total debt portfolio of N12,803,763,500.00 owed by Nyako’s administration.
“Although we are not holding brief for the bank, the claim of over N11b bank interest and other charges with a loss of N7b on bank charges alone made by the Acting Governor is frivolous, unrealistic and cannot be ascertained. This is because he neither stated the total amount borrowed nor for how long the funds were utilized,” the statement noted”.
The state government noted that the former administration has equally defaulted on its monthly debt service obligations for the months of June, July, August and September 2014 respectively which amounted to over N1.5 billion.
“Furthermore, the claim that his administration saved N2b on reviewed interest rate from 22 percent to 16 percent on figure of N12.8b and N400m interest free moratorium was misguided information by consultants appointed by his administration to justify the colossal fee of N262m paid to the consultants,” it noted.
The statement also accused Fintiri of hiring incompetent consultants whom exhibited high tendencies of fraud by forwarding a claim of over N262 million which it claimed to represent 2 percent of N9.003b financial benefit brought to the state by restructuring the debt portfolio of N12.8b which cannot be justified but was approved and paid upfront by the Acting Governor.
“Although the Acting Governor stated in his World Press Conference that the total income received during his tenure was N21,406,340,767.20 however, to put record straight, the actual income received during the period was N19,449,294,816.38 while total expenditure with a deficit balance of N3,205,836,274.88 which can be attributed to the technical borrowing made through reversals of the interest and other loans obligation as at 2014 the statement added.