Fact-Check on Illegal Loan, Controversial Budget: Between Governor Eno and Policy Alert who is misleading the Public?

By Ekemini Simon

Reports and counter reports have emerged recently on the acquisition of illicit loans by the administration of Governor Umo Eno, misplaced priorities and controversial provisions in the 2023 supplementary budget of Akwa Ibom State.

Policy Alert’s Claims 

Policy Alert, a Civil Society Organisation working on fiscal and ecological justice in the Niger Delta had recently issued press releases pointing to financial irregularities and controversial supplementary appropriations by the administration of Governor Umo Eno.

The organization noted that the Third Quarter Budget Performance Report of 2023 has shown that the administration of Governor Umo Eno had obtained a loan of N1.2 billion through Direct Credit Substitute and Discounting Facility without getting the approval of the State House of Assembly thus making it illegal.

Policy Alert in another press release also revealed that Governor Umo Eno in the 2023 supplementary budget has appropriated for projects already inaugurated by the immediate past administration.

The organisation highlighted the appropriations to include N1bn for the Dualisation of 19.8km Ikot Oku Ikono Junction-Etinan Road with flyover at Ikot Oku Ikono, N500m for the Construction Etinan-Ndon Eyo road, N1.2bn for Eket-Etinan road, NIbn for Uyo-Ikot Ekpene road, and N6.5bn for Construction of International Terminal Building at Victor Attah International Airport.

They also noted that billions of naira have been appropriated for 90 Jeeps and 90 Pick Up Trucks for the office of the SSG.

Governor Umo Eno’s Counterclaims 

The Governor of Akwa Ibom State, Mr. Umo Eno on Tuesday reacted to the information made public by Policy Alert, describing them as frivolous allegations.

According to reports from the media unit of the Akwa Ibom State Government House, the governor said throughout his administration, he has not borrowed a dime. ” They talked about borrowing, I challenged them to show me one piece of document that I have signed to borrow one Naira since I became governor. I have not borrowed money and I don’t intend to borrow money until I present the budget”.

Governor Eno also claimed that Policy Alert lied that his administration had budgeted for 90 Jeeps through the office of the Secretary to the State Government (SSG). “So where did they see ninety vehicles? Who signed it? How?”, he queried.

The Governor however did not deny budgeting money for projects already inaugurated. He rather queried that nothing was wrong in budgeting money after it was commissioned.  “What’s wrong with funding old projects? These projects are for Akwa Ibom people”, he said.

The Finding- Governor Eno borrowed N1.2bn

Findings by this reporter reveals that the claim by Governor Umo Eno that his administration has not borrowed a dime is untrue. 

Checks into the Akwa Ibom State Budget Performance Report of Quarter 3, published by the Akwa Ibom State Budget Office on October 28, 2023 and duly signed by the Head of Budget Office, Otu Asuquo, shows that the Government of Akwa Ibom State had taken a domestic loan during the quarter. 

The information contained on Page 11 of the document captures the Direct Credit Substitute/Discounting Facility under Domestic Loans/Borrowings Receipt taken during the period as amounting to N1.2bn.

The Finding – Governor Eno Budgeted for 90 Jeeps 

A visit to the official website of the Akwa Ibom State Budget Office gives the route to unravel the truth. Checks into page 197 of a downloaded 2023 Approved Supplementary Budget of Akwa Ibom State reveals a fact contrary to the Governor’s counterclaim. There, the budget for 90 Jeeps is clearly inscribed with the total cost of N5.5bn.

Further checks into the original approved budget of 2023 prepared by the Udom Emmanuel’s Administration showed that 50 jeeps were originally approved at the cost of 2.75bn (Check page 574 of the original 2023 budget). However, the administration of Governor Umo Eno added 40 more jeeps to be bought with a N2.8bn supplementary budget thus totaling 90 Jeeps for purchase at N5.55bn.

The budget documents shows that the administration of Governor Eno had also raised the quantity of Pick-up Trucks to be bought by his administration from the earlier budgeted 50 (Check page 574 of the original 2023 budget) to 90 adding supplementary budget of N1.2bn from the original N1.4bn to make it a total of N2.6bn.

The governor’s claim that his office and that of the SSG’s office are using personal vehicles raises more questions as to the whereabouts of the new jeeps and other utility vehicles bought four years ago. According to the Financial Statements of 2019, the Office of the SSG bought 15 Toyota Land Cruisers, 15 Toyota Prado Jeeps TXL and 5 Security Jeep at N2.44bn. N2.94bn was further spent on other utility vehicles in this fiscal year. Interestingly, checks into the successive years budget reveals that the office had continued to budget for these vehicles. This reporter however could not access documents on what was released from 2020 through 2021. However, the expenditure details accessed for only January to June 2022 revealed that the SSG’s office had spent N2.8bn for N150 Salon cars within this period.

The Finding- Governor Eno Fails to Explain Reasons for Fresh Appropriation on Inaugurated Projects Amidst Multi-billion Naira Spent 

Findings by this reporter reveals that all the projects listed by Policy Alert were inaugurated by the immediate past administration amidst multi-billion naira disbursed for their execution.

For instance, the 19.8km Ikot Oku Ikono Junction project was inaugurated in July 2021. In the three and a half years financial statements accessed by this report, this project enjoyed release of N23.57bn (2016- N3.31bn, 2018- N5.61bn, 2019- N2.68bn, 2021 – N10.24bn, January- June 2022 – N1.73bn). What was spent in 2017, and 2020 could not be accessed.

 Surprisingly, the N1.73bn spent between January -June 2022 was a year after the project was commissioned.

The Eket- Etinan road which was commenced by the Godswill Akpabio’s administration in June 2013 was commissioned about 10 years after flag off  by the administration of Mr. Udom Emmanuel 27 days before exiting office.

Although the Akpabio’s administration had paid some billions of naira to the  contractor for the project, the administration of Udom Emmanuel had committed N12.8bn for the four and a half years period that this reporter could access expenditure details for the project (2016- N2.96bn, 2018 – N3.71bn, 2019- N2.36bn and 2020- N2.9bn, January -June 2022-N866.7m ). The amount spent in 2017, 2021, July -December 2022, and first and second quarter of 2023 could not be accessed.

The Etinan- Ndoneyo road was inaugurated in September 2022 after gulping N40.28bn (2016- N8bn, 2018- N12.65bn, 2019- N14.37bn, 2020- N4bn, January -June 2022- N1.26bn) within four and a half years period that its expenditure profile can be accessed by this reporter. Expenses for 2017, 2021 and July -December 2022 could not be accessed.

For the Uyo-Ikot Ekpene Road, although the road was initially commissioned by the Godswill Akpabio’s administration in May 2015 without completion, the administration of Udom Emmanuel completed the project and inaugurated it in October 2021. The project within the period this reporter could access financial statements has enjoyed budgetary release of N5.88bn (2018 – N5bn, 2019 -N884.4m). Details of expenditure for 2017, 2020, and 2021 could not be accessed.

On the N6.5bn budgeted for the “Construction of International Terminal Building at Victor Attah International Airport”, this project was inaugurated by the Udom Emmanuel’s administration in May 2023 after enjoying N13.74bn (2019- N8.53bn, 2020 – N3.81bn, January -June 2022 -N1.4bn.) budget releases for the period this report could access financial details of the project. Data for 2021 and half quarter of 2023 could not be accessed.

Policy Alert had said budgeting for these projects which were already inaugurated requires explanation. “The provision of a supplementary budget for these projects after they had been clearly inaugurated by the previous administration raises a red flag and demands answers”, the release said. However, Governor Umo Eno in his response failed to give an explanation to Akwa Ibom people on why budgeting for these projects was still necessary. He only retorted “What’s wrong with funding old projects? These projects are for Akwa Ibom people.” The failure by Governor Umo Eno to respond raises more questions on the real intent to budget for projects completed and inaugurated.