In order to benefit from the projects of the Universal Basic Education Commission (UBEC) for 2019/2020, the government of the state of Ekiti has approved the inclusion of N 3 billion as a counterpart fund.
The temporary loan was approved at the virtual meeting of the State Executive Council on Thursday in Ado Ekiti.
A statement signed by Information Commissioner Muyiwa Olumilua states that the loan is intended to enable the government of the State of Ekiti to meet its 50% legal obligation to release funds for UBEC / State Universal Basic Education Board (SUBEB) projects for the year meet 2019 and 2020.
Olumilua said the fiscal move had become imperative provided that the non-payment of the counterpart fund would exclude the state from receiving its share in the funding of UBEC / State Universal Basic Education.
The statement states: “Memorandum on the offer of a temporary loan of N 3,031,076,059.82 for 2019 and 2020 counter-contribution from the Ekiti state government for SUBEB / UBEC projects.
“As a partnership between the federal government and the federal states, both levels of government must submit their respective 50% contributions before the total amount is released to the state government.
“It should be recalled that Governor Kayode Fayemi has significantly taken over the outstanding counterpart funds for the UBEC / SUBEB projects of 2016, 2017 and 2018, which were originally neglected by the previous government and are still being repaid.”
Olumilua added that Governor Fayemi set up three separate monitoring units to carry out an infrastructure audit in the education sector to determine the exact needs of the different schools.
The Commissioner said that the mandate of the committees includes monitoring the implementation of all SUBEB projects in the state to ensure that all contract awards follow the proper procedure and are executed properly.
Olumilua added that Fayemi also submitted the Memorandum to amend the Ekiti State Debt Management Law 2020 in the Council to allow the state to set up a State Debt Management Office (SDMO).
The government of the state of Ekiti introduced the law in 2011 entitled “Ordinance Establishing the State Debt Administration Office and Related Purposes”.
Olumilua said the council also approved the Justice Department’s amendment to Section 34 (1) (b) of the Ekiti State Financial Responsibility Act (No. 12) of 2019.
“Section 34 (1) (b) has been amended as follows: The state government ensures that the amount of public or internal debt as part of state income is kept at a sustainable level, as required by the House of Assembly from time to time on the recommendation of the Fiscal Responsibility Commission ”.
The Commissioner said that the amendment will be forwarded to the Ekiti State House of Assembly for legislative processing and subsequent adoption.
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