After weeks of intense speculation and a heated war of words between the media aides of incumbent Governor Alex Otti and his predecessor, Dr. Okezie Ikpeazu, the Abia State Government has finally released the much-anticipated forensic audit report of Ikpeazu’s administration.
The revelation in the audit report marks a significant development in the ongoing political and administrative discourse within the state.
The comprehensive 360-page dossier, meticulously compiled by the globally renowned audit firm Klynveld Peat Marwick Goerdeler (KPMG), was released by the Commissioner of Information, Prince Okey Kanu, following the State Executive Council meeting on Monday night. The report delves into various financial transactions and alleged infractions committed during Ikpeazu’s tenure, shedding light on the fiscal conduct of the previous administration.
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A detailed examination of the document reveals a series of questionable financial activities, including the authorization of N10 billion from state funds ostensibly allocated for the construction of Abia Airport. However, the report alleges that the funds were subsequently redirected into 32 different accounts under dubious circumstances.
Former Governor Ikpeazu has vehemently denied any wrongdoing in the airport contract, stating that the funds were repurposed for road infrastructural development at the behest of traditional rulers. Despite his defense, the audit report’s findings have raised substantial concerns about the financial integrity of his administration.
During the press briefing, Kanu said: “So, we are going to release the report. We want people to read it and interpret it. The report is ready in its content,” he declared, highlighting the government’s commitment to letting the public make informed judgments based on the facts presented.
The fallout from the report has been immediate and contentious. Chief John Okiyi-Kalu, former Commissioner for Information in Abia State, countered the allegations by asserting that the KPMG audit actually vindicates Ikpeazu. According to Okiyi-Kalu, the former governor left a net credit balance of N3.48 billion for Governor Otti, along with other substantial near-cash assets, including a 3.5% share in the Aba Independent Power Project (IPP) Geometric, now valued at N80 billion.
Okiyi-Kalu condemned what he described as a “negative agenda” by the current government, arguing that the audit’s true findings have been misrepresented to tarnish Ikpeazu’s legacy. He maintained that the former administration’s financial stewardship was prudent and beneficial to the state’s economy.
However, the incumbent administration remains resolute. Mr. Ferdinand Ekeoma, Special Adviser to Governor Otti on Media and Publicity, stated unequivocally that the audit report’s revelations have already prompted actions from the Economic and Financial Crimes Commission (EFCC).
“The EFCC has started inviting those indicted by KPMG report. We are talking of N62 billion and not N10 billion paid out in a COVID-19 year for building a non-existent airport!” he exclaimed, highlighting the severity of the alleged financial misdeeds.
Ekeoma further criticized the previous administration for its lack of fiscal discipline, noting that transactions were executed without proper approvals.
“Instead of being ashamed for doing a despicable thing that they did, they are on the media shamelessly mounting propaganda,” he lamented.
When questioned about the rationale behind commissioning an external audit firm despite having an existing probe panel, Ekeoma defended the decision, asserting the need for an impartial and professional assessment of the state’s finances.
“There is nothing wrong with engaging a reputable audit firm with a track record of competence, integrity, and experience to professionally audit the state accounts to eliminate unnecessary doubts,” he explained.
Ekeoma also challenged those implicated by the report to present their defenses to the EFCC rather than engaging in a media battle designed to mislead the public.
“The audit is not directed at anybody; however, the actors have the opportunity to defend themselves,” he stated, urging transparency and accountability.
Ikpeazu’s administration has been repeatedly accused of gross financial misconduct, including embezzlement and mismanagement of public funds. Though he has maintained that he is innocent, critics are pointing at his government – noting that there is little or nothing to show for his eight years as Abia State governor. This they say, suggests that the former governor looted the state’s treasury.