A staggering sum of N207billion debts left behind by the administration of Chief Timipre Sylva may hurt projects development in Bayelsa, if the reports of the Financial Management Review Committee is anything to go by.

The committee headed by one-time Managing Director of Niger Delta Development Commission (NDDC), Chief Timi Alaibe submitted its report on Monday with the disclosure that the former regime of Timipre Sylva left behind a liability of over N207 billion.

The committee requested the government to recover funds from alleged questionable payments of contracts of N123.18 by the previous government.

Among the alleged questionable payments to the said contractors included, Moreno Construction Company, N10.2billion, Vehicles purchase N2billion, FAK Engineering, N9billion, SENECO N14.28billion and Ratana N2billion.

Chief Alaibe, who disclosed this in Yenagoa when presenting its report to Governor Seriake Dickson, revealed that only N4,500 cash was  in the state treasury when the present government emerged.

The committee recommended that government should tactically reduce the cash flow in the state and review the biometric process of payment of civil servants to expunge “ghosts” on government nominal roll.

He highlighted that N660billion was received during Sylva’s government in the past four and half years, stressing that only N2.89billion was discovered in government bank accounts which cannot be assessed.

The 11-man committee was inaugurated on February 27 by the state governor to investigate the income and expenditure of the last administration.

Alaibe said the N47.18 billion bond collected by Sylva’s government at the capital market was not repaid, as he noted that government would pay back N104.2billion.

The committee recommended that competent hands should be appointed as accountant general of the state and director of treasury to enhance internal control mechanism to provide checks in the treasury department.

Alaibe called for a fresh valuation exercise of all existing contracts in the state before performance certificate is issued to them for payment and also recommended short, medium and long term planning to increase the Internally Generated Revenue(IGR)in the state.

The report also revealed that the former Acting Governor of the state, Nestor Binabo, awarded contract of N1.8billion on February 7, immediately approved payment and the release of the contract funds without the jobs being executed.

To this end, the committee recommended that the contracts should be revoked.

Earlier, Bayelsa State Governor, Seriake Dickson, said the committee report would serve as living document and assured that government will  look at its recommendations and take action where necessary.

Meanwhile,  former Governor of Bayelsa State, Chief Timi Sylva, has said that the outcome of the report of the committee set up by the Bayelsa State Government constituted another means of witch-hunting him.

Sylva said the probe committee, headed by a former Managing Director of the Niger Delta Development Commission, Chief Timi Alaibe, was another obsession with his ghost.

According to a statement by his aide, Doifie Ola, Sylva said the outcome of the probe committee was premeditated.

He said the report never indicted him of any wrongdoing.

The statement by Ola reads in full: “Our attention has been drawn to a committee report administered by Mr. Ndutimi Alaibe in which phoney allegations of grand financial crimes were made against the government of Chief Timipre Sylva.

“Sylva dismisses these allegations as unfounded, and a failed attempt to divert attention from the calamitous political parodies committed in Bayelsa State by these accusers.

“The report of the kangaroo committee is as ridiculous as it is unsurprising to any Nigerian. The composition did not belie its intent as another mock team impulsively set up to deliver a pre-determined judgement. In their continued battle with the ghost of Sylva, those who have installed a puppet administration in Bayelsa State have once again demonstrated their loss of touch with the essence of government and their choice of shadowboxing as state policy.

“To be sure, government is an administrative structure set up to govern human beings with needs. Any normal investigation of government expenditure would try to demonstrate how the financial laws were flouted. The Alaibe committee did not attempt to do this. It simply compiled the incomes that accrued to Bayelsa State within a carefully selected period targeted to smear Sylva, and assumed that there were no needs met in the period.

“The Alaibe report did not demonstrate any flouting of the state’s financial laws and regulations. If anyone had proof of such contravention, they knew where to go. And where to go is not an illegal committee unknown to the laws of Bayelsa State and Nigeria.

“Besides, the allegations thrown up by the power usurpers in Bayelsa State are too weighty to be handled by people with vested political interests in the state and whose track record and history smell of corruption.

The report by the Alaibe committee is at best biased, petty, and heavily tainted. This is yet another manifestation of the constant distress in the camp of those who recently usurped power in Bayelsa State as they live in perpetual fear of Sylva, and guilt of the harsh judgement of democratic humanity.

“As we near a judicial resolution of the manifest political travesty in Bayelsa State, those who believe they should do nothing other than fight the ghost of Sylva should learn to mitigate their desperation, at least, for the decency of what remains of our democracy that they have tried so hard to compromise.”

In the report by the Alaibe committee, presented to the state government on Monday, Sylva was accused of mismanaging the N660.45 billion his government received from the Federation Account from 2007 to 2011.

Sylva was also accused of accumulating almost all the N207 billion liabilities on the state government in terms of debts and frittering the N50 billion bond he received in December 2009 from the capital market without utilising the funds for the capital projects it was meant for.

The Alaibe committee, tagged the Financial Management Review Committee, told the state Governor, Seriake Dickson, that the state under Sylva received N99.5 billion in 2007; N164.7 billion in 2008; N106.3 billion in 2009; N110.6 billion in 2010; and N189.1 billion in 2011.

Alaibe said though government expenditure increased from N165 billion in 2007 to N208 billion in 2010, the chunk of the money was used to finance recurrent expenditure such as personnel, overhead and other contingency costs.

He said the recurrent expenditure maintained steady increase from 48 per cent in 2007 to 80 per cent in 2010 and 2011, observing that there was 48 per cent decline in capital expenditure within the period under review.

Alaibe added: “This accounted for the absence of funds for the implementation of capital projects. In the same period, recurrent expenditure had increased to 123 per cent from 2007 to 2010. In contrast, there was 48 per cent drop in capital expenditure during the same period.”

The report said most of the spending was without supporting documents, noting that security and ‘Government House emergency expenses subheads were used as a conduit to move the cash.

It further alleged that apart from the conventional security votes contained in the recurrent expenditure, the immediate past administration claimed to have spent on security N3.3 billion in 2010, N10.3 billion in 2011 and N3.87 billion in January and February 2012.

Sylva allegedly withdrew N1.6 billion in 2010, N7.4 billion in 2011 and N155 million in January and February 2012 from the treasury under the subhead: Government House Emergency Expenses.

Alaibe said in the report: “These payments were in spite of the regular monthly security payment made out of recurrent expenditure amounting to N3.19 billion in 2010; 7 billion in 2011 and N890 million for January and February 2012. Clearly these payments are abnormal payments.  They are frivolous and in fact fraudulent.”

Dickson vowed to implement the recommendations of the committee as he lamented the collapse of institutions and processes in the past administration, adding: “It is difficult to believe that this kind of thing happened amidst poverty and so many challenges.  “Never again will the state return to the time when all institutions and processes vanished.”