In response to Governor Alex Otti’s allegations of fund diversion against his government, former Abia State governor, Dr. Okezie Ikpeazu, has spoken out.
Otti claimed that a forensic audit uncovered the release of funds by the previous state government for the construction of a state-owned airport and other infrastructure that were supposedly non-existent.
Speaking at the Johns Hopkins University School of Advanced International Studies in Washington DC, United States, Otti made these revelations.
In a statement through his spokesperson, Onyebuchi Ememanka, Ikpeazu dismissed the report as a fabrication intended to portray his deep dislike for his predecessor.
The statement argued that Otti’s motive behind the allegations was to vilify Ikpeazu on an international platform.
The statement read, “Our attention has been drawn to trending reports of a speech delivered by the Governor of Abia State, Dr Alex Otti at a forum somewhere in the United States of America, wherein he made certain allegations against his predecessor in office, Dr. Okezie Ikpeazu, bothering on financial malfeasance.”
“Ever since leaving office as Governor of Abia State for two consecutive terms, Dr Okezie Ikpeazu has carried himself with the dignity his present situation in life demands and has, as a matter of personal policy, avoided any confrontation with the present Governor and his administration.”
“At best, what Dr. Ikpeazu has authorized are clarifications whenever the current administration seeks to misinform the public about what transpired during the last administration. Clear instances of these abound and a few of them shall be highlighted later in this release.”
Questioning the credibility of the audit firm, the statement demanded transparency in the process, urging Otti to make the forensic audit report public.
The statement mentioned, “When forensic auditors are appointed and when they complete their task, the reasonable thing to do is to make the Forensic Audit Report public and allow the document speak for itself.”
“Forensic Audits are no voodoo schemes. They are acceptable means of investigating the finances of organizations and governments. They are carried out by top accounting professionals who are disinterested in politics and internal shenanigans in the organization they are auditing.”
The statement further challenged Otti to reveal the identity of the audit firm and publish the audit report on the Abia State website.
Addressing the allegations regarding fund diversion and the purported airport construction, Ikpeazu’s camp clarified that no airport was built during his tenure.
“At this point, it is important to address the issues raised by the Governor one after the other, naturally starting with the one that has generated the most reactions – the missing airport,” the statement explained.
“Even the Governor himself found his own claims ridiculous and he couldn’t help laughing at himself because his claims are utterly senseless.”
Further detailing the airport project proposal, the statement mentioned that while the idea was considered, it was eventually abandoned due to public feedback favoring investment in critical road projects.
“The only money the Ikpeazu administration committed into the airport project was 10 Million Naira, released to the Ministry of Lands during the process of acquiring the land and to manage the interface with the local communities. Not a Kobo more was spent,” the statement clarified.
The statement also refuted claims of payments made to contractors or any formal agreements for the airport construction.
Challenging Otti to provide evidence of the alleged payments for the airport project, the statement emphasized the lack of tangible records to support such claims.
In closing, the statement reiterated the call for transparency and accountability in addressing the allegations raised by Otti, emphasizing the need for concrete evidence to substantiate the accusations.
Is it possible that a state, even one dealing with financial challenges, would casually allocate 10 Billion Naira to an individual or even a contract document?
Consider the scenario in Abia State – where finances were once a struggle – now effortlessly disbursing such a significant amount?
Questions arise regarding the transparency of such dealings, especially when officials responsible for overseeing such transactions are still actively present.
If Governor Alex Otti fails to address these inquiries, the public will inevitably form their conclusions regarding the integrity of the individual holding the position of Abia State’s Governor.
The narrative surrounding the alleged airport project serves as a template for our response to the various other fabrications Otti has presented, particularly during his addresses in America.
He stated that “79.3 Billion was paid to 7 Contractors for contracts that were not executed at all up till today”. Those were his exact words.
There is no need for elaborate discourse on this matter. The Governor must promptly disclose the identities of these 7 Contractors, along with evidence of the payments made and the corresponding contract documentation.
We insist on being informed of the payment dates and the financial institutions involved in these transactions. Considering Otti’s banking background and continued association with Signature Bank, obtaining these details should not pose a challenge. It is unimaginable for 79.3 Billion Naira of Abia’s funds to simply vanish without accountability!
If Governor Otti is genuinely committed to validating the projects completed and the contractors involved, he undoubtedly possesses the means and avenues to do so.
It is crucial to highlight that throughout Ikpeazu’s tenure, Abia State’s total budget never exceeded 170 Billion Naira annually, encompassing both recurrent and capital expenditures. Capital spending typically ranged between 70 and 80 Billion Naira per year.
Given these facts, it is evident that the assertions made by the Governor on this matter are both erroneous and malicious. As with the airport project, we challenge him to release the audit report for public scrutiny.
Another claim made was that nearly 16 Billion Naira was disbursed to 63 contractors without any supporting documentation whatsoever. 63 contractors without a trace of paperwork?
In the absence of substantiating records, how did Otti ascertain their contractor status? Contractual agreements delineate not only the contractors’ identities but also the specific tasks assigned to them.
Governor Otti must promptly disclose the identities of these 63 contractors to provide clarity to the public.
During Ikpeazu’s administration, no contractor received payment without accompanying documentation. Such irregular disbursals are inconceivable and would contradict the principles adhered to by competent accountants and finance departments.
How were these payments validated in the absence of supporting documents? Moreover, those purportedly authorizing these payments continue to elude accountability?
Further allegations surfaced that “Another 12 Billion Naira was paid to 2 contractors for contracts that do not exist”. Do these contractors remain unnamed? It was alleged that 10 Billion out of the 12 Billion was designated for the airport project, a matter we have already addressed.
While awaiting the publication of the audit report containing the names of the beneficiaries, it is pertinent to remind the public that Governor Otti has a history of disseminating false information regarding the state’s financial matters.
Upon assuming office last year, he publicized that his predecessor had amassed debts of approximately 190 Billion Naira, expressing bewilderment over the expenditure. However, the sum mentioned encompassed all debts incurred by the state since its inception, including residual loans from the former Imo State.
He neglected to emphasize that foreign loans, denominated in dollars, are subject to fluctuations based on forex differentials.
For instance, a loan secured 20 years ago in dollars when the exchange rate was 100 Naira to a dollar, would now be recalculated at the current exchange rate. Consequently, the state’s current debt value surpasses Otti’s inheritance due to these foreign exchange fluctuations.
Furthermore, Otti, during a national broadcast, vehemently denied that the Ikpeazu administration disbursed any funds for acquiring equity in the Geometric Power Project.
Professor Barth Nnaji initially echoed this sentiment, only to retract upon the presentation of documented proof acknowledging Geometric’s receipt of 1.4 Billion Naira. However, Otti persists in refuting any payment acknowledgment. It was only through persistent public and media pressure that the truth regarding the Geometric Power payment was brought to light.
Today, Abia State and its populace proudly own a 3.5% stake in a company valued at 800 Million Dollars!
Another area of contention revolves around Otti’s statements concerning pension payouts. Recently, the Governor proclaimed that all outstanding pension arrears had been settled in the state, a statement that turned out to be untrue.
His actions merely entailed settling 60% of the owed pensions from the inception of his tenure. Initially disbursing 40%, he eventually culminated in paying the remaining 60%, alongside selective fractions of the arrears. Subsequently, pensioners were informed that the compensation received was final and conclusive.
His Commissioner for Finance, Mike Akpara, substantiated this during a radio interview in Umuahia. They coerced the Pensioners’ Union leadership into relinquishing the remaining arrears.
While it is acknowledged that pensioners were owed during the previous administration, efforts to settle those dues were indeed made. Otti’s short tenure, characterized by significant financial resources, differs markedly. The discontinuation of petroleum subsidies during his leadership increased state revenues significantly.
His management approach also involved reducing wage bills by terminating thousands of workers, implementing an 8-year cap for Directors, and engendering a perpetual employee verification process known to discreetly expunge workers from the payroll.
Presently, numerous Ministry employees who completed this verification remain unpaid for several months. Previously, their salaries were considered sacrosanct.
When Otti initiated a legislative bill to eliminate the law mandating pensions for former State Governors, the Majority Leader of the State Assembly, responsible for introducing such bills, disclosed that billions were annually disbursed for these former Governors’ pensions.
Remarkably, none of the state’s former Governors, from Orji Uzor Kalu under whose tenure the legislation was approved to Ikpeazu, actually received any pension. Despite this, Otti seems fixated on notions of billions, whether factual or conjectural – a true banker!
Otti’s animosity towards his predecessor has transcended mere personal disdain to influencing State policy implementation. In his narrative, any positive attribute associated with Ikpeazu must either be suppressed or tainted, while negatives are disproportionately magnified. The overarching goal seems to denigrate Ikpeazu at every turn.
Ikpeazu’s establishment of a state-of-the-art Multi-Specialist Hospital within the Aba General Hospital premises, equipped with modern medical facilities, exemplifies his commitment to public healthcare. No other state-owned facility rivals its capabilities, yet Otti chose to arbitrarily close its doors, denying citizens access to such crucial healthcare resources solely to spite Ikpeazu.
The Osisioma Flyover, a hallmark project of Ikpeazu’s administration, still stands today, a testament to its structural integrity. However, rather than dismantle it, Otti’s administration has allowed the surrounding environment to deteriorate, fostering chaos and disarray – an emblem of neglect.
Otti’s lingering resentment towards Ikpeazu, stemming from his defeats in the 2015 and 2019 elections, is apparent. While understandable, these outcomes are historical facts immune to revisionist narratives.
Never before in Nigerian political history has a sitting Governor displayed such overt hostility towards their predecessor. For Otti, it appears as though Abia State’s existence began in 2015, with every revenue accrued since then deemed misappropriated under Ikpeazu’s stewardship.
It would be prudent for Otti to bear in mind his potential status as a former Governor. Upon exiting office, his portrait will invariably be placed after Ikpeazu’s. The wheel of history has a way of circling back on itself, often defying personal expectations.
The eagerly awaited audit report will hopefully shed light on these contentious matters.