Mimiko left N220billion debt – Akeredolu

Governor Oluwarotimi Akeredolu of Ondo State yesterday painted a gloomy picture of the debt profile of the state inherited from his immediate past predecessor, Dr Olusegun Mimiko.
Akeredolu said a total sum of N220.5 billion debts was left behind either as unpaid salaries, contractual agreement and pension by the immediate past government of Dr Mimiko.
Akeredolu SAN who disclosed this during the swearing in of 18 commissioners and Special Advisers yesterday said his government however inherited an assets of N9,9 from the immediate past government.
Giving the breakdown of the debt profile inherited as at February 24 when he took over as the sixth elected governor of the state, Akeredolu said the internal debt amounted to N53,1 billion, external debt: N17.4 billion, unpaid salaries and allowances, 24.1 billion, pension liabilities: N4,8 billion and gratuity N15 billion.
Others, he said included unpaid Local Government salaries and allowances N14.4 billion, Local Government Pension Liabilities: N25.2billion, Local Government Gratuities Liability N20.9 billion, contractors’ liabilities N39,7billion and outstanding payment requests in the office of the Accountant-General without cash backing: N5.4billion.
However, Akeredolu said he inherited liquid assets including banks balances: N7.2 billion, fixed deposits N837 million, balance in bond proceeds: N254 million, fixed deposit in the State Oil Producing Area Development Commission (OSOPADEC): N1, 4billion and portfolio management account: N180 million.
The governor said with a total inherited debt of over N220 billion, it would not be difficult for the citizens to know that the government’s capacity for seeming elastic adjustment to cater for the people has been stretched to its limit.
Akeredolu told his new commissioners his administration is not in any position for frivolities saying all of them must gird their loins for the task ahead.
According to him, the economic picture of the state is not good saying all acts with the potential of pushing the deeper into economic crisis must be jettisoned.
Giving the revenue profile of the government since he took over six months ago, Akeredolu said the gross statutory allocation is N11,6 billion, 13 percent oil derivation N103.2 million,exchange gain difference N3 billion, excess crude N2,1billion, Paris Club Refund N9,1billion.
Others, he said included N4billion as Internally Generated Revenue (IGR), Budget Support N5, 4billion, Value Added Tax N4, 9billion and deductions by Accountant General of the Federation AGF: N158.7million.
On how the N47.5 billion that accrued to the state was spent between February and July, Akeredolu said N23.8 billion was spent on salary to civil servants, N3.7 billion as subvention to parastatals and N6,521,343,387.70 as gratuity, public Debt Charges and 10 percent grant to Local Governments.
Akeredolu said Capital Expenditure has gulped N4.2billion while N1 billion was spent as running rants to Ministries and Departments, payment for WAEC fees, assistance to security agencies, boundary issues, publicity and special days celebrations, Trainings, Free School Shuttle Programme,
Despite the challenges encountered, Akeredolu said by his administration has approached governance with resilient determination and urged people not to put undue pressure on the appointees.