Paris/London Club Refund: KWSG remitted 35% to LGs  – Finance commissioner

The Kwara State Commissioner for Finance, Alhaji Ademola Nurudeen Banu has said that the state government gave local councils above the recommendation of Federal Government on disbursement of the fund.

According to him,  local government councils in the state were given above the 25 percent demanded by the Federal Government as one of the conditions for release of the second tranche of the fund.

This is coming as  state governments in the federation  await release of the second tranche of the fund.

The commissioner made the disclosure during an interview with Pilot Business at the Ilorin International Airport on Tuesday.

He said ” the Federal Government asked us to give local governments 25 percent of the money but we gave them about 35 percent. We gave them N3.4 billion of the fund released.

” The refund is as a result of the over deduction of loans taken by state and local governments. However, we did more than the specification.

He added: ” If you can recall, we couldn’t  get June allocation from the Federal Government before the Eid-el-Fitr celebration, but we were able to pay salary due to the ingenuity of the Governor.

“We are yet to get the second tranche of Paris Club funds. Though, we have observed signs that the Central of Bank Nigeria has received it for onward transition to states. Hopefully, we are expecting it any moment from now.”

On allegation that the second tranche of the fund is being delayed because states Governors are yet to meet the requirements from the Federal Ministry of Finance, he explained that the money belongs to the states and thus could not be withheld.

” Well, I don’t know about that but you should know the reason for this Paris club, it is loan they have over paid. It is states’ money and I don’t think there is any condition attached to it.

“If you over pay someone, the person is suppose to pay back. Though, there have been some reconciliation issues because most states have their own claims and Federal Government has its own claims also and they are doing reconciliation as part of the ongoing process for the release of the fund.”

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