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Explain FAAC Deductions – PDP Tackles Oyetola, Aregbesola




The Peoples Democratic Party (PDP), in Osun State, has tackled Governor Gboyega Oyetola and Rauf Aregbesola over the recent deductions by the Federal Account Allocation Committee (FAAC).

Naija News reports that the FAAC had revealed deduction from the net allocations to the 36 states of the federation for the first three months of the year 2020.

A statement by Sunday Bisi, the PDP Publicity Secretary in the state on Saturday, asked Oyetola to make public the true financial position of the state.

According to the opposition party, the publication indicated a net accrual of N6.4 billion to the state but with a debt servicing deductions of N5.87 billion representing an average of N2billion per month as debt obligations or 91 per cent of the total allocation.

The PDP said: “Our party finds it curious and extremely worrisome the continued refusal of the state government to avail the people of the State the actual debt profile of the state.

“It beats all accounting imagination and indices for a state like Osun to be obligated to debt servicing to the tune of N2billion every month considering the fact that most of these loans were said to be negotiated on long term basis even when some of the loans are still on moratorium.

“The most curious aspect of the financial quagmire is that, almost all the projects attached to the procurement of these loans on behalf of the state and for which the state now refund to the tune of 91 per cent of its statutory earnings have not seen the light of day several years after the contracts duration and obnoxious reviews.”

George Oshogwe Ogbolu is a Digital Media Strategist | Content Writer | Journalist | New Media Influencer | Proofreader and a Deputy Editor at Naija News.