Governor Willie Obiano's mismanagment of N420 Billion exposed

How Obiano Grossly Mismanaged Anambra’s N420B In 43Months & Failed
Woefully As Governor (1)
(In Response To Obiano’s Unanswered Questions In Our Open
Letter Of 23rd October 2017)
(Intersociety, Onitsha Nigeria: Sunday 5th November 2017)-The eleven
(11) foundations of successful governance in a civil government
particularly in developing parts of the world including Nigeria and
Anambra State are: (a) winning of election by popular votes or input
legitimacy, (b) intent and ability of the elected to serve the people
in the context of service to humanity, (c) avoidance of call to
squander and heeding of call to serve, (d) formation of a sizeable
cabinet composed of moralists and people with technical expertise in
various sectors of public governance, (e) a cabinet type devoid of
favoritism and nepotism.
The rest are: (f) financial prudency, fiscal responsibility and
maintenance of a moderate government monthly wage bill, (g) drastic
reduction in governance running costs most especially in the areas of
security votes and overheads and allowances of the political
appointees, (h)zero debts culture and ability to adequately mobilize
both statutory and non statutory/non loan funds within and outside the
country for capital development of the governing area (i.e. Anambra
State), (i) aggressive sectoral and infrastructural development and
provision and delivery of social services, (j) provision of enabling
environment and social incentives for the FDI inflows, private sector
participation and general wellbeing of the citizenry including
security and welfare and (k) rendering the account of stewardship at
the end of every elected tenure. Combination of these is called “input
and output legitimacy of a successful democratic leader”.
From our in-depth investigation of the 43 months of the Obiano
Administration, the Administration is the direct opposite of the above
highlighted eleven (11) core foundations of successful governance in a
civil government. It is recalled that we had on 23rd October 2017
released an eight-page open letter to Governor William Obiano of
Anambra State, demanding that he should present his governance
scorecard for his first four-year tenure as the democratically elected
Executive Governor of Anambra State, which clocked 43 months on 31st
October 2017. Governor Obiano is seeking for another four-year term in
office having been first elected on 16th and 30th November 2013 and
sworn in on 17th March 2014.
On 25th October 2017, we released another six-page open letter to the
non-incumbent governorship candidates in the State; numbering 36
including leading candidates such as those of PDP, APC, UPP, PPA, etc.
Critical public governance questions were similarly raised and their
comprehensive answers demanded. The incumbent and non-incumbent
governorship candidates were given seven days respectively to respond
to their letters.



In the case of Governor William Obiano, critical questions revolving
around inherited public assets and liabilities (from past Obi
Administration); cabinet size, monthly wage bill and governance cost;
infrastructural development and social services delivery; fiscal
discipline and accountability; foreign investment and agric
development; security and welfare of Anambra People; and N127B
purportedly inherited Roads/Infrastructural contractual debts were
raised and their answers demanded. Deadline given to Gov William
Obiano to respond by way of issuance of a comprehensive (not skeletal)
scorecard of his first tenure has expired since 31st October 2017.
Obiano’s Skeletal Reaction
The Government of Anambra State and Gov William Obiano have refused
till date to make comprehensive presentation of the Administration’s
scorecard of its first tenure as legitimately and popularly demanded
since 23rd October 2017 by our organization through an open letter and
its open demands/questions. Instead, the Administration goes about
bluffing and lying over the true state of governance in Anambra State.
When specifically confronted on the issue by some media managers in a
recent radio program, the Administration through one of its over 1000
SAs dodged the issue and claimed as expected that “the letter was
sponsored by the opposition”. When reminded that quest to account for
democratic leadership stewardship is a universal legitimate call in
spite of where such it comes from, the Administration absconded and
refused to respond till date.
Money Politics & Media Falsehood:
The amount of Anambra public funds squandered so far by Governor
William Obiano and his Administration especially since the Governor’s
campaign flag off on 2nd October 2017 is shockingly alarming. The said
squandered public funds may most likely have run into billions of
naira. The public funds under squander-mania; are statutorily meant
for the collective good of Anambra State and the People of the State
especially in the areas of provision and maintenance of
infrastructures and social services, but found diverted in the form of
“over-bloated monthly security votes”; frivolous and frightening
overheads and allowances for over-bloated political appointees as well
as allied others.
Going by our recent investigation, therefore, it is our credible
estimation that over N500M would have been squandered on media
falsehood and propaganda in 45days (2nd October to 17th November 2017)
or at the end of the campaign deadline. The media beneficiaries of
these Anambra public funds under squander-mania are drawn from the
online/social media, image media, print media, electronic (visual/tv)
media and the eight shortlisted major radio stations in Anambra State.
For instance, a national daily owned by one time Governor of a
Southern State in Nigeria already has its back page and a prime
portion of its front page bought with Anambra public funds on daily
basis; running into millions of naira weekly; likewise a leading
private television station in Lagos which is paid tens of millions of
naira monthly from the State funds.
Our investigation of five out of the eight shortlisted radio stations
in Anambra State for airing the Governor’s campaign and its jingles;
clearly shows that not less than N60M will be squandered in 45 days in
getting them to air the Governor’s election campaigns including
jingles and live or phone-in programs.
That is to say that it would take Governor William Obiano over N500M
of Anambra public funds in 45 days to oil his campaign in the entire
media including eight shortlisted radio stations in Anambra State. For
instance, in the five radio stations investigated, an hour live or
phone-in program without campaign jingles costs N80,000, N70,000,
N60,000, N52,000 and N40,000 respectively; while an hour live program
with campaign jingles goes for N100,000 or more. The cheapest
political campaign jingle goes for N7, 000 for a minute while the rest
go for N10, 000 per minute.
In the most popular of the eight shortlisted radio stations (five in
number), Governor William Mmaduabuchi Obiano is given average of 15
jingles per day or 75 jingles in all every day; translating to N750,
000 per day; while the remaining three less popular radio stations
play average of 10 sponsored jingles for him every day; costing N300,
000 per day. This translates to N1M per day and N45M for 45days. When
added to N15M total cost of live radio programs paid to the eight
shortlisted stations, it brings the grand total to N60M as Anambra
public funds squandered on radio version of the media in 45days. In
some cases, discounts abound, but such sums are privately pocketed by
the Governor’s aides and never returned to the Government coffers.
Total amount of Anambra public funds being squandered by Governor
William Obiano and his Administration in 45 days on billboards,
customized liquor and fruit drinks, T-shirts, caps and other textiles;
and mobilization and inducement of political appointees, church and
other religious leaders, heads of town unions, traditional rulers and
party faithful at State, LGA, ward and community levels etc also runs
into billions of naira. The Governor had reportedly vowed recently to
“out-spend his opponents during this electioneering”.
Mismanagement Of Anambra’s N420B ($1.4B) In 43 Months
From available statistics, the present Government of Anambra State had
between 17th March 2014 and 31st October 2017; a period of 43 months,
inherited and received a total of not less than N420B cash. Sadly,
this huge sum of Anambra public funds is nowhere to be governmentally
and tangibly located till date. That is to say that the said N420B
Anambra public funds are grossly mismanaged, if not squandered;
leaving the state of governance in the State in utter dismay, quandary
and decay.
The breakdown of this huge sum shows that the Government of William
Obiano inherited a total of N75.1B cash; made up of N48.6B local cash
deposits in 12 local banks and N26.5B or $156M dollar deposits in
three banks (Fidelity, Diamond and Access). The cash of N48.6B
inherited from former Obi Administration as at 17th March 2014 was
deposited in 12 banks as follows: (1) Access Bank N1.82B, (2) Diamond
Bank N15.8B, (3) Enterprises Bank N2.68B, (4) First Bank N2.15B, (5)
Fidelity Bank N21B, (6) First City Monument Bank N892M, (7) Keystone
Bank N1.14B, (8) Skye Bank N172M, (9) Sterling Bank N606M, (10) United
Bank for Africa N1.31B, (11) Unity Bank N309M and (12) Zenith Bank
N642M; totaling N48.62B.
The Obiano Administration also inherited a paltry debt of N12.2B made
up of foreign debt of $45M or N9B using then official exchange rate of
N195 per $ and local debt of N3.2B. See DMO Report of 30th June 2015.
No contractor in Anambra State was owed a dime as at 17th March 2014
for public projects executed and certified completed by relevant
supervising government agencies in Anambra State. Contractors handling
ongoing projects as at 17th March 2014 especially road projects were
paid according to levels of completion of their projects including
mobilization, quarter and half levels’ completion.
It is also on available records especially those of the Federal
Ministry of Finance (FMF) that the Obiano Administration had between
31st March 2014 and 31st October 2017; a period of 43 months, received
from the Federation Account a total of not less than N150B as
statutory federal allocations on monthly average of N3.5B. The
received federal allocations included Paris Club overpaid Debts
refunds. By average of N1B internally generated revenues, the Obiano
Government of Anambra State also generated a total of N43B in the past
43 months or between 31st March 2014 and 31st October 2017.
The Obiano Administration which manages the Anambra State Local
Government System made up of 21 LGAs also received a total of not less
than N109B as their statutory allocations from the Federation Account
in the past 44 months or since February 2014 (See FMF reports). Apart
from using appointed caretaker committees for the 21 LGAs since
January 2016, the Obiano Administration had relied and still relies on
Section 162 (6) of Nigeria’s 1999 Constitution (State-LGA Joint
Account) to stifle and manipulate the democratic, administrative and
financial autonomy of the State Local Government System.
The Government of William Obiano had borrowed or incurred about N40B
debts in the past 43 months; comprising foreign debts of $40M or
N12.2B and local debts including budget support and infrastructural
loans of over N27B. See DMO report of 30th June 2017 for Anambra’s
foreign debts. Anambra’s current foreign debt stands at $85M or N26B.
Totality of the above clearly shows that the Obiano Administration had
in the past 43 months or between 31st March 2014 and 31st October 2017
inherited, borrowed and received a total of not less than N420B. In
others words, N75B (inherited cash in local and dollar currencies) +
N150B (federal allocations) + N109B LGAs’ federal allocations) + N40B
(borrowed local and foreign debts) + N43B (IGRs) =N417B/N420B.
These huge amounts of Anambra public wealth, grossly mismanaged by the
Obiano Administration since past 43 months may most likely be higher.
The present Government of Willie Obiano is again called upon to proof
us right or wrong by publishing full details of the State account
including the inherited cash of N75.1B, Federal Allocations including
Paris Club refunds and other interventions as well as IGRs and
borrowings from 31st March 2014 to 31st October 2017.


Fate Of Inherited Assets & Sound State Of Anambra Finance
It is sad to note, from our investigation, that the inherited total
sum of N75.1B especially the $156M (N26.5B) future savings deposited
in Fidelity, Access and Diamond Banks, is no more or has been grossly
mismanaged, if not squandered. The $156M future savings was reliably
said to have been sold by the Obiano Government at N305 per $;
totaling N48.3B sometime in 2016. Today, the money is part of the
grossly mismanaged N420B Anambra commonwealth.
The fate of Anambra State’s multibillion naira investments scattered
in 18 quoted companies and institutions within and outside the State
is also seriously threatened; with whereabouts of some of them not
accounted for since 2015 till date. Recall that former Government of
Peter Obi invested over N27B State funds in 18 quoted companies and
institutions and they are: (a) Nigerian Independent Power Project
(NIPP)- N9B, (b) Orient Petroleum PLC-N4B, (c) Onitsha Hotel-N1B, (d)
Agulu Lake Hotel-N1B, (e) Awka Shopping Mall-N900M, (f) Nnewi Shopping
Mall-N600M, (g) Onitsha Shopping Mall (Shoprite)-N1B, (h) Intafat
Beverages or Hero Breweries, Onitsha (N3.5B +$10M) and (i) Onitsha
Business Park 1 & 2-N600M.
Others are: (j) Anambra State Independent Power Generating Company
Ltd-N250M, (k) E-Force Ltd-N126M, (l) Emenite Ltd-N750M, (m) Quoted
Investment Portfolio-350M, (n) NSIA-Anambra State Contribution (State
+LGA)-N1.5B, (o) Anambra State Investment with Bank of Industry to
support SMEs in the State-N500M, (p) Investment with Bank of Industry
to support Micro Credit Bank in Anambra State-N500M, (q) Investment
with Bank of Agric to support Anambra Farmers- N480M and (r)
Commercial Agric Scheme-N1B; all totalingN27B.
Paces of work at Onitsha Hotel, Nnewi and Awka Shopping Malls have
been grounded to a halt since late 2014 and upwards while that of
Agulu Lake Hotel is at snail speed. The Onitsha Business Park 1 & 2
where Anambra State invested N600M is in a terrible state of
abandonment. The safety of other State investments including
whereabouts of the N1B stake in the Onitsha Hotel Project is far from
being guaranteed under the Obiano Administration.
The Obiano Administration also inherited the soundest state of finance
in the history of state governance in Nigeria. To this end, most, if
not all backlog of arrears of serving and retired workforce in the
State dating back to 1992; totaling N35B was cleared leaving behind
those of few State parastatals such as Anambra Broadcasting Service
and Anambra State Water Corporation. That of the State Water
Corporation (N1.8B) was later paid through monies saved by the Obi
Administration domiciled at the First Bank via a Garnishee order from
a court verdict. The touted “prompt payment of workers’ salaries” in
Anambra State today is on account of soundest state of finance so
bequeathed.




Obiano’s Over-Bloated Cabinet Size & Monthly Wage Bill
The Obiano Administration appears to have been founded on
squander-mania, favoritism and nepotism. The Administration runs one
of the costly, if not the costliest State governance in Nigeria. The
Governor’s woeful failure in governance is owing to his Government’s
excessive or over-bloated monthly wage bill, which has consistently
eaten up funds direly required for capital development of the State.
For instance, Anambra State under Governor Obiano has since 2015, if
not 2014 maintained an over-bloated cabinet size of over 1000, if not
1500 appointees; as against his predecessor’s cabinet size of not more
than 100. The number of SSAs and SAs serving in Obiano Administration
including those allocated to his wife is over 1000. The Governor’s
wife alone has hundreds of SSAs and SAs.
This is not to mention a brigade of PAs and EAs. By the Constitution
of the Federal Republic of Nigeria 1999, elected Governors are allowed
to appoint a sizeable number of commissioners and special advisers for
effective democratic public good. But in the case of Governor William
Obiano, his cabinet size is so over-bloated that even when there is no
single railway that passes the State to other States in Nigeria, yet
there is a commissioner in-charge of railway.
Among leading political players and contractors as well as influential
persons in the State including State and federal legislators,
traditional rulers, religious leaders, commissioners and so on; each
is allowed to nominate either SSA or SA. It is credibly estimated that
over N300M is spent every month in servicing over 1000, if not 1500
SSAs, SAs, PAs and EAs working under the Obiano Administration. This
is on average of monthly “allowance” of N200, 000 per appointee.
This huge sum excludes statutory remunerations of statutory political
appointees such as the Governor, Deputy Governor, Commissioners,
Special Advisers, Legislators and Judges and their heads as well as
the general overheads. The Governor is hereby called to proof us right
or wrong by publicly disclosing all the names and number of non
commissioners and special advisers serving in his Administration.
Further, it is credibly estimated that Anambra State Monthly Wage Bill
(monthly sum total of all non capital expenditures of government
appointees in the three arms of executive, legislature and judiciary
and those of workers, pensioners, governor’s security votes and
general maintenance costs or overheads) under Governor William Obiano
is over N4B. This over-bloated wage bill is compounded by Governor
Obiano’s staggering monthly security votes, said to be between N1.1B
and N1.2B per month.
It is also alleged in several credible quarters that wife of the
Governor is allocated monthly security votes running into tens of
millions of naira monthly; some say, N250M monthly. Former Governor
Obi’s security votes were N5B per annum, on average of N420M monthly.
There were also some cases during the Obi Administration where the
unspent security votes were returned to Government coffers at the end
of the fiscal year.

If it is true that Governor William Obiano and his wife collect and
pocket N1.1B and N250M monthly security votes, respectively, from the
lean coffers of the Government of Anambra State; then the duo must
have collected and lavished a total of N58.05B in the past 43 months.
This is further broken down to N47.3B for the Governor and N10.7B for
his wife. We challenge the Governor to publish what he had collected
as monthly security votes between 31st March 2014 and 31st October
2017 and how they were spent; likewise those of his wife and reasons
for his wife’s monthly security votes. This must be publicly presented
with a sworn and duly stamped High Court affidavit.
The express cost implication of the above is that Anambra State
Government under Governor William Mmaduabuchukwu Obiano has steadily
out-spent its statutory monthly revenue receipts especially its
federal allocations and IGRs put at N4.5B; thereby impeding and
impeaching the capital development of the State. That is to say that
in practical terms, 90% of the total accruals into the State coffers
are lavished or wasted on recurrent expenditures with most going into
governance squander-mania and other frivolous governance running costs
such as highlighted above. This is grandly why Governor Obiano failed
woefully in governance of Anambra State in the past 43 months.
Signed:
For: Int’l Society for Civil Liberties & the Rule of Law
Emeka Umeagbalasi, B.Sc., M.Sc.
Board Chairman
Mobile Line: +2348174090052
Email: [email protected]
Chinwe Umeche, Esq., LLB, BL
Head, Democracy & Good Governance Program
Email: [email protected]
Obianuju Joy Igboeli, Esq., LLB, BL
Head, Civil Liberties & Rule of Law Program
Email: [email protected]