Akeredolu Justifies Alleged Three-month N7.3bn Unapproved Spending on ‘Contingency’

Fidelis David in Akure

Governor Oluwarotimi Akeredolu of Ondo State, Tuesday, justified his administration’s alleged approval of over N7.3billion for “contingency” between July and September 2023, while he was on medical vacation in Germany.

This came after a report that the Akeredolu-led government had in the last nine months spent over N8,169,005,150.58 on “contingency” instead of the N1,069,000,000.00 appropriated and approved in the 2023 budget by the Ondo State House of Assembly, suggesting that N7,100,005,150.58 was allegedly illegally spent above the budget ceiling on “contingency”.

However, Akeredolu in a statement through his Chief Press Secretary, Richard Olatunde clarified that the referenced N7.3 billion constituted the cumulative amount of palliative funds received from the federal government, noting that the funds were allocated under the contingency sub-heading to address unforeseen expenses not initially budgeted for but deemed necessary during the fiscal year.

The statement titled: “Re: Akeredolu Spent N7.3billion In Three Months On ‘Contingency’ Without House Of Assembly Approval”, said while the original contingency fund in the 2023 budget was N1,069,000,000.00, the additional N7 billion represents funds received from the federal government labelled as “Infrastructure Support Fund,” specifically for palliatives meant to cushion the effects of fuel subsidy removal.

“We have read the report published on SaharaReporters news platform claiming that the Ondo State Governor, Arakunrin Oluwarotimi Akeredolu, SAN, CON, spent N7.3billion in three months while he was on medical vacation.

“In response to the concerns raised across various social media platforms, we wish to provide clarification for the sake of transparency and accountability, which are values synonymous with the Akeredolu-led administration.

“It is important to state unequivocally that the referenced N7.3 billion constituted the cumulative amount of palliative funds received from the federal government. These funds were allocated under the contingency sub-heading to address unforeseen expenses not initially budgeted for but deemed necessary during the fiscal year.

“While the original contingency fund in the 2023 budget was N1,069,000,000.00, the additional N7 billion represents funds received from the federal government labelled as “Infrastructure Support Fund,” specifically for palliatives meant to cushion the effects of fuel subsidy removal.”

According to Akeredolu, “In accordance with the Ondo State Public Finance Management Law 2017, the establishment of a Contingency Fund is outlined in Part five, subsection (i) and (ii). It states: A contingency Fund is hereby established. (ii) The contingency Fund may be utilised for making money available to meet emergency expenditure (other than statutory expenditure) which is not provided for in the Appropriation Law for the current year and which although otherwise failing to be met out of the consolidated Revenue Fund or Capital Expenditure and Development Fund cannot without serious injury to the public interest be postponed until a Supplementary Appropriation Law providing for it can be enacted.”

“Contingency funds are designed to address emergency expenditures not provided for in the current year’s Appropriation Law, but crucial to the public interest and requiring immediate attention.”

The governor emphasised that he did not personally spend the N7.3billion; rather, the funds were appropriately utilised for palliatives, noting that the funds were released to the state by the federal government as part of the efforts to mitigate the impact of the fuel subsidy removal nationwide.

“Our administration remains committed to the highest standards of financial responsibility. Any claim of impropriety is unfounded. We encourage the public to rely on accurate information and refrain from being swayed by sensational claims lacking factual basis.

“The Palliative committee will in due course avail members of the public the details of the expenditure of the palliative fund”, the governor added.