The Financial Management Committee set up by the Bayelsa State Government and headed by the former Presidential Adviser, Mr. Timi Alaibe to audit the account of the state under the administration of Chief Timipre Sylva yesterday submitted its report with details of misappropriation of state funds, diversion of contract and accumulation of internal and external debts profile to the tune of N207 billion naira.
According to the summary of the report as presented to the state governor Hon. Seriake Dickson, though the assets and liabilities of the state with a cash balance at the treasury as at February 14 was N4551, the era under review was characterized by loans and debts.
The Committee stated that the state government under Timipre Sylva incurred an overdraft N3.2bn, total domestic debt of N71.2bn, the total ISPO of N5.73bn.
Others include external debt and multilateral club principal outstanding of N4.219bn, contract liabilities, current and contingent of N125bn, Judgement debt of N1.9billion, debt to Lawyers on the state bill is N2billion and the total liabilities stands at N207.2billion.
Presenting the report at the State Government House, the Chairman of the Committee, Mr. Timi Alaibe said the committee discovered that the main source of revenue (97 per cent) for the state was the federation account, noting that such trend portend grave danger for the state, “as a permanent delay or financial crisis at the centre could immediately translate to a shutdown of the government at the state level.”
The Committee also revealed that the mode of financing of State development programme saw a major shift during the period under review with the year 2007 tagged a debt dependency era, “when there was a great demand on domestic bank to finance current expenditure and other obligations. In terms of total net revenue for the period 2007 to 2011, the federation accounts receipt are as follows; 2007 – 99.5bn,2008 – 164.7bn,2009 – 106.3bn,2010- 110.6bn,2011 – 189.1bn totaling N660.45bn.
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