$418m deductions suspended as FG, states meet for FAAC today

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There were strong indications on Wednesday that the federal and state governments had agreed to the suspension of the deduction of $418m Paris Club refunds from states and local governments’ accounts pending the determination of court cases on the issue.

He stated, “It will be released. It was not withheld. The issue had to do with deductions, which were made on the accounts of the states and local governments. Our position, which has been clearly stated by the Chairman of the Forum of Finance Commissioners, is that we believe that those deductions are being challenged and should not even start unless the claims are verified.

“We have argued that the offices should be separated. There should be an accountant-general for the Federal Government and an accountant-general for the federation, and not the present situation where the accountant-general of the federation is only responsible to the Minister of Finance.” “The Federal Government has issued promissory notes. The judgment they are talking about is a high court judgment.”

The Osun State Commissioner for Finance, Bola Oyebamiji, told one of our correspondents that the state would not borrow to pay salaries.

 

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