In Defense of Governor Chibuike Rotimi Amaechi - Dr. Chamberlain S. Peterside

REJOINDER

NO MONEY WAS MISSING IN RIVERS STATE UNDER THE ADMINISTRATION OF

THE FORMER GOVERNOR, RT HON CHIBUIKE ROTIMI AMAECHI

 

I.                    By now, it is no longer news that the so-called judicial panel of inquiry headed by Justice Omereji in River State has submitted its findings. What is not known however is the specific and detailed content of that report and its recommendations, leaving room for all kinds of interpretations, speculations and wild allegations.

II.                  Most keen observers do quite understand the intent of the panel in the first place, which is not for me to repeat here; while not many people, especially fair-minded and analytical minds, believe that the information being circulated is true. Nonetheless, the flurry of misinformation calls for serious response by those directly in the line of fire. Just last week Saturday, I was part of a press conference held in Port Harcourt by ex-commissioners in the last administration to address this issue. I deeply believe that I deserve a word or two more on this matter just for the records.

III.                A cursory look at the recent news headlinesin this regard will show that whereas details of the panel report hasn’t been disseminated, all manner of pundits and writers are running amok with their own versions of the report. The conclusions range from N96 billion as being missing from the reserve fund to N39 billion as refundable for the monorail project, or that N4 billion was misappropriated from the agricultural credit scheme and proceeds from the sale of the state’s electric power assets were not accounted for,therefore the former governor and his officials must be made to refund such monies and be prosecuted.

IV.                By the outcome of this panel and tone of the press release by the spokesman of the state chapter of thePeople’sDemocratic Party(PDP) and most of the other news coverage, it is clear that the intent of the panel and the information is aimed at embarrassing and rubbishing the good works of the previous administration and its officials. The main target of course by all account remains the former governor himself.

V.                  I am compelled to issue this rejoinder for very many reasons, not least, to lend my voice in clearing and debunking thewrong impressions and malicious allegations bordering on the finances of Rivers State. For the purposes of full disclosure, I served as the Honorable Commissioner For Finance during the second tenure of Governor Amaechi from June 2011 to May 2015. Prior to that, I was a financial professional based in New York City, with many years of experience and unblemished record of performance, integrity and strict compliance in the United States securities industry and my private financial advisory practice.

VI.                I was called to serve by Governor Amaechi and did so very proudly and meritoriously. I truly appreciate that rear opportunity of serving my state and country in the capacity that allowed me to make very crucial inputs in the way and manner the financial affairs of Rivers State was conducted from a vantage position, beyond merely being an observer or a commentator that would ordinarily see all that was wrong with Nigeria and being able to proffer solutions without actionable input. That role as commissioner was preceded by my service alongside other eminent professionals, as a member of the Rivers State Economic Advisory Council under the Chairmanship of Professor Nimi Briggs.

VII.              All this happened through the singular honour and privilege accorded me by the Governor. I served meritoriously with all sense of pride, dedication to duty, commitment to my homeland and loyalty to my principal the Governor.  It will be no surprise therefore that along the way, I observed him at very close range and candidly speaking, saw a man of strong will, avowed advocate of due process and fiscal transparency. On the personal side, he also has a very good heart and great empathy for his associates as well as the ordinary man, sometimes to a fault. I truly enjoyed the time I spent working with him, albeit with all the stress associated with the job, partly because of his drive to see things done now and done right, plus a voracious appetite to invest, invest and invest in vital sectors of the economy in order to see us shed the toga of under-developed society in Rivers State. To even friends and critics, he might come across, sometimes, as a bit impatient or brash, but that is who he is. He remains resolute and fair when his mind is made up. Dishonesty, avarice or corrupt are not personality traits that can ever be associated with him. Now to the issues at stake:

 

a.      The projects in question were all initiated and executed with a clear mandate that aligns with the vision of the administration. Due process of law was followed in disposing off or concessioning the assets based on collective decision of the Executive Council in which I served as well as the former deputy governor and the current governor (as Chief of Staff). All proceeds were received and duly accounted for in consonance with the appropriation laws and extant regulations. I can’t imagine things being done otherwise under Amaechi’s watch.

b.      The matter of missing N96billion in the reserve fund, is simply laughable, totally inaccurate and a misguided claim. The Rivers State Reserve Fund was created as a “rainy-day savings” and was the second of its kind in Nigeria. At its peak, the fund accumulated over N53 billion, resulting from both a N1 billion monthly contributions and capital appreciation. In the face of rapidly declining federal allocation, which fell from a peak of N25 billion in early 2014 to a low of N6b-N8b in mid-2015, coupled with mounting government financial obligations,  the State House of Assembly passed an amendment that authorized the government to access a portion of the reserve funds in two tranches of N35b and N17b between July and December 2014. The process was fully transparent and well documented under the strict oversight of the trustees - First Trustees Ltd. The proceeds of these withdrawals were all captured in the budget appropriation and deployed to cater for urgent capital and operating expenditures as clearly attested by the utilization schedule that was submitted to the trustees and currently on record in the state Ministry of Finance.

c.       The fictional tales being peddled on the misappropriation of proceeds from the power asset sale first came up in August 2015 by a questionable “integrity group”. In response, my former colleague, the then Secretary to the State government (Mr. George Feyii) and I published an open letter to the President, strongly denying that accusation and clearly showing the detailed transactions with bank statements attached showing when the forex funds were received in Access Bank, how the funds were converted at a more favourable rate than the going Central Bank rate and also linking each remittance/conversion with the corresponding inflow of local currency into the state’s main account in Zenith Bank.

 

1.      The outcome of the efforts and strides during the Governor’s tenure is there in the state for all to see. Needless to say that the huge investments made in infrastructure (schools, hospitals, road/bridges, electric power etc) and institutional reforms, all cost money but also serve as the bedrock for future progress and in fact, is the rails on which the current administration is riding. Rather than building on these achievements, the current administration is busy hounding Rt. Hon. Ameachi at the expense of peace and progress in the state.

11.  Under the auspices of the former Governor over the last 8 years;Rivers State truly witnessed transformative policies and investments in various sectors. As the finance commissioner during the last four years of that administration, [User1]  I was privy and actively participated in that change process some of which included the under listed:

A)     Rivers State remains the first and only state in Nigeria to have obtained and maintained dual international credit rating from Fitch and Standard & Poors. This enabled us to keep a high standard on financial disclosure and reporting as adjudged by the rating agencies. More work of course remains to be done in that regard.

B)     A comprehensive Public Procurement law was enacted to open up an otherwise opaque procurement process and create a level playing field for all vendors and prospective contractors to participate.

C)     A new Tax Administration Law was enacted while drastic reforms were embarked upon leading to the growth in internal revenue from a monthly average of N2,5Billion when the governor assumed office, to N7,5billion when be vacated.

D)     The state launched and currently operates in-house, an automated payroll system that was previously handled by a bank, thereby pruning its operating expenditure and saving huge sums of money that was lost to inaccurate data and ghost workers.

E)      The state launched an automated e-pension platform aimed at creating reliable data on pensioners and ensuring that payments are made on time and accurately. Prior to that, over N4billion of pension liabilities was paid by the administration of governor Ameachi.

F)      The state integrated financial management system was launched in partnership with the World Bank to seamlessly integrate the budgeting, payroll and accounting functions of the state under one unified platform. That project is currently ongoing and it remains to be seen the level of support and how committed the current administration is towards its full implementation.

G)     Electronic Data and Record Management System (EDRMS) was launched and piloted in the Ministry of Finance with a robust Data Center with Servers and standby power supply to ensure efficient operation of the public finance infrastructure.

H)     Rivers State became a frontline state in the migration to the acclaimed International Public Sector Accounting Standards (IPSAS) that is a proved method of accounting for assets and liabilities in all public institutions. The accounting and finance personnel in the ministries and departments were trained on the policies, procedures and practices of IPSAS, therefore are well equipped ahead of this migration.

The facts of the matter are very clear and backed by documentary evidence, all of which are available in relevant files at the state government ministries and agencies. These same documents were accessible to the panel and everyone who cared to know. Therefore the claims and conclusions of the panel on the alleged missing funds that is feeding the media frenzy are all false, baseless and mendacious. It is all aimed at denting the hard-earned reputation of those being targeted, rather than revealing the truth.

 

By

Chamberlain S. Peterside, Ph.D.

Former Rivers State Commissioner for Finance