CurrentReport Blog In a recent development, Chief John Okiyi-Kalu, the former Commissioner for Information in Abia State, has publicly refuted claims made by the incumbent Governor Alex Otti regarding the state’s financial standing. According to Okiyi-Kalu, the immediate past governor, Okezie Ikpeazu, left a net credit balance of N3.48 billion for the current administration.
The clarification was made in response to Governor Otti’s statement on April 6, 2024, where he claimed to have inherited a debt of N192.2 billion from his predecessor. This assertion was made during an interaction with journalists, where Otti explained the challenges his administration faced, including managing high-interest debt repayments.
Okiyi-Kalu, referencing the Abia Forensic Audit conducted by the global audit and advisory firm Klynveld Peat Marwick Goerdeler (KPMG), asserted that Ikpeazu’s administration left more financial assets for Otti than acknowledged. He emphasized that the net credit balance of N3.48 billion was sufficient to cover two months of salaries for Abia State workers.
In his statement, Okiyi-Kalu pointed out the difference between cash in the bank and other near-cash assets, such as the state’s 3.5 percent stake in the Aba Independent Power Project (IPP Geometric), which is now valued at N80 billion. This, he argued, further debunks Otti’s claims of inheriting a purely debt-ridden state.
“So far, Otti’s government has spent N9 billion on a subhead called ‘research and development.’ What is he researching and developing in Abia State? Check the quarterly financial reports published by his administration, if in doubt,” Okiyi-Kalu challenged, questioning the fiscal prudence of the current government.
Okiyi-Kalu accused Governor Otti of frequently misrepresenting facts and being unreliable in his public statements. He referenced a specific instance where he had to counter Otti’s claim of N10 billion missing, explaining that the money had been disbursed to road contractors, only for Otti to later claim the funds were moved into multiple accounts.
This public rebuttal adds another layer to the ongoing debate over Abia State’s financial health, highlighting the complexities and the often contentious nature of state-level fiscal management in Nigeria.
