Date Published: 03/31/10

...Before We Crucify Governor Timipre Sylva! By Engr. Telema Timitimi

Bayelsa State seems to be at the cross-roads. That at least is the mind-set of the uninformed and less intelligent half of on-lookers. The Economic and Financial Crimes Commission (EFCC) has transformed the State into a nightmare as if residents in Yenagoa - would be denied the oxygen of life. The political gladiators at both ends of the spectrum are at work, throwing in spanners of discord. The media is awash with advertorials by groups supposedly loyal to the power brokers - a good number of them are hired guns, firing the salvos of dissension. The national papers are inundated with rejoinders for and against groups. While some people perceive the onslaught of EFCC as a political showdown to settle political scores, others believe that the anti-graft agency is carrying out its statutory responsibility of riding the landscape of corruption. A huge segment of the populace holds the view that the backlog of cases not prosecuted by the Agency has cast a dark fog of questionability and the contrasting vivacity with which certain matters are prosecuted. Selective trials, nay a persecutory jihad of sort against perceived enemies of the centre is antithetical to the spirit of the anti-corruption crusade.

But apart from the gladiators, most people have not spared a thought to understand the so called financial challenges facing the State.  Why is Bayelsa State now a target of EFCC’s attack? How did it all begin and who are the originators of the financial crisis rocking the State? This article seeks to look at the historical perspective of the languid road the State has travelled for the past three years.

On May 29,  2007, Chief Timipre Sylva was sworn in as the Executive Governor of Bayelsa State. By virtue of its size and quota of oil production, Bayelsa State is supposed to develop faster than any other State in the South-South geo-political zone. However, when Governor Sylva took office, he not only inherited an empty treasury but a huge debt burden-which for the sake of decency and respect for his kinsman and predecessor, he refused to disclose publicly. The financial liability was such that even a  George Marshall of Henrique’ Cardoso could not have kept the wheels of development rolling without the wisdom of Solomon. The financial situation of the State is contained in the Professor Lawrence Ekpebu led Transition Committee Report.

When he became Governor, the statutory allocation per month was about N6billion. The previous administration left behind a debt of N40 billion in  terms of unpaid contracts, and a bank loan of N13 billion in bank loans, which the Goodluck Jonathan administration used in setting-up the Capital City Development Authority. Recurrent approvals was over N10 billion. Thus, apart from other ancillary financial commitments in assets, the Goodluck Jonathan administration left behind a total of N63 billion for Sylva to inherit. Besides all the social infrastructures were run down. The allocations that accrued to Bayelsa State from June to December 2007, shows that the State received a total of N60,013 Billion. Assuming the loan was not taken, governmental businesses were grounded, and it would have been near impossible for the State to meet her recurrent obligations.For the avoidance of doubt, readers may cross-check with the Federal Ministry of Finance through the official website.

It was the N60 billion loan that enabled the State Government to award the construction of some internal roads within Yenagoa Metropolis and paid the bills of some Bayelsa Youths trained in Information and Communication Technology in India. The loan also enabled Government to sustain the overseas scholarship initiated by the Alamieyeseigha administration. In addition, the Sylva administration has since started work on the permanent site of the Bayelsa State College of Education in Okpoama.

With these facts on ground, it becomes worrisome for groups like the Network of Freedom Fighters in Niger Delta (NFF), Mr. Nengi James ‘there is no life-changing developmental project the current ruling circle can point to as theirs. The state is simply rotting away with graft as the order of the day''. Such comments are expected because some Bayelsans have not bothered to cross-check the facts to know where the rain began to beat us. This writer holds the view that while  Governor Sylva cannot be totally exonerated from certain issues he glossed over, most of the financial and political problems were a carry over from the previous administration. Besides, the State House of Assembly is never pro-active in supporting policy implementation through its oversight functions. For most of them good governance is a jamboree, a money sharing enterprise. If members had taken their oversight functions seriously, the damage caused by the Due Process Bureau could have been avoided. Most irksome is the fact that some of the youths who are critical of the administration were militants government decided to rehabilitate because the Governor believes that would be more useful as productive adults rather than remain in the creeks.

At the height of militant activities, the State spent lots of money on the release of hostages, as there were more than 100 militant camps in Bayelsa State. Formally and informally, so much money was spent in the maintenance of the Bayelsa Volunteers to protect oil installations in the creeks and the release of hostages. The State also maintained the Joint Military Task Force (JTF) deployed to the State to keep the peace. The implication is that budgeted and anticipated of revenues fell far too short of real monies that accrued to the State.

In 2008, the Statutory allocation to the State from all the aforementioned sources hovered around an average of N8 billion to N9 billion  as can be seen in the following table .

Thus in the 2009 fiscal year, Bayelsa State received a total of N155.4 billion, which was far below the budgetary projections. It was in the same fiscal year that the remodelling of the State’s 500 bed hospital was accelerated, even though some fraud was detected in the Ministry of Health pertaining to the importation of hospital equipment. The idea of building 1000 unit Housing estate was also drawn up but the Commissioner of Housing and Urban Development. Substantial payment was also done in the construction of the Galleria Complex, while efforts were made at  fast-tracking the building of the Ox-bow Lake hotel. This is not to say that the efforts of government were perfect, as the State still grapples with inadequate skilled professionals, limited capacity building institutions  and loss of skilled professionals to other developed States.

In 2009, the story went awry, as militancy, as manifested in kidnapping, violation of oil facilities, oil bunkering and militarization of the State. This development had two major implication for the development of the State. First, the State spent lots of money on Security of lives and property. Secondly, militancy negatively affected the State’s oil production quota, which diminished drastically. This was amidst expanding responsibilities. The table below shows the precarious financial situation of Bayelsa State in 2009.

In 2009, Bayelsa State got only N96 billions. The huge deficit financing occasioned by expanding responsibilities necessitated the idea of going to the bond market. In Nigeria, bond financing sates back to 1978b when the old Bendel  State  resorted to the bond market to finance  investment in Housing Estate and Shopping Centre. Other States that have benefitted from bond financing include Oyo (1987), Lagos in (1987, 2001 and 2008), and Cross River State in 2004.  
 

In order to shore-up the poor financial situation,  the State is partnering with the World Bank and International Development Association, International Fund for Agriculture and the European Development Fund. The Ministry of Finance and Budget has established a strong nexus between policy planning and budgeting to maximize value for money. Further, there are certain on-going initiatives such as the establishment of budget credibility through comprehensive  and transparent budgeting process, fiscal discipline and external scrutiny/audit.

It is difficult to reconcile the story about grand larceny in Bayelsa state  and the precarious financial position of the State. If the allegation of the EFCC were true, it may well be that government has not been paying workers salaries at all. As the Press Secretary to the Governor Mr. Doifie Ola rightly said “no government since the inception of Bayelsa state has gone through the kind of financial challenge which the Sylva administration is contending with’. If over N100 billion has been removed from the Bayelsa state government accounts, how much has the state received from the Federation Account and from Internally Generated Revenue since 2007? How much has been spent on salaries and projects?”, he asked.

My sympathy for Sylva is also predicated on the fact that most of the people around him are sycophants who have refused to tell him the truth. Good governance does not thrive on sycophancy, neither does policy implementation succeeds on the basis of falsehood. A State Governor is like a pilot, who needs the assistance of engineers and other crewmen. The pilot cannot do everything. Sadly, however, there are too many politicians rather than technocrats in the Cabinet hence they do not add value to governance. More technocrats with integrity should be injected into the Cabinet.  Lack of political structure or fear of political opposition should not compel Governor Timipre Sylva to condone misconduct and corruption in his Cabinet.

The conclusion is that Governor Timipre Sylva has good intentions at the inception of the administration, but he seems to be losing his focus because of the contending political forces at play, especially the self-styled Abuja politicians. Some of his Commissioners still owe allegiance to their goffathers, and such people have one goal namely: to line their pockets. The Governor has already started the pruning exercise. In spite of the current harassment of the State by the EFCC, I sincerely believe there is still time for the Governor to implement change in Bayelsa State. Two critical steps are needed: weed out those layers of inefficiency such as the Due Process Bureau and  appoint some technocrats into the State Executive Council. Above all, block all avenues of financial leakages to stop the economy from haemorrhaging. Only then would Governor Sylva his mission of building a United, Secure and Prosperous Bayelsa State.  

  Engr. Telema Timitimi, wrote from Warri, Delta State