Dep Gov Clarifies Statement on Money Siphoning
From John Iwori in Yenagoa
Bayelsa State Acting Gover-nor, Dr. Goodluck Jonathan, has said his view on the siphoning of money by politicians abroad was at variance with the address he delivered at a recent function in the Rivers State capital, Port Harcourt.
He told newsmen in Yenagoa at the weekend that the story was a misrepresentation of the statement he made as a guest when Fidelity Bank briefed the public on their Initial Public Offer in Hotel Presidential, Port Harcourt last week.
According to him, in my paper, I addressed two issues. The first was a reaction to unfounded allegations from the Minister and Minister of State for Finance that politicians were siphoning monies abroad.
"I did state that we politicians are being accused of siphoning money abroad and if that is true then both the Central Bank and Commercial Banks are more guilty since over 60 per cent of foreign currency passed through the banks. I am presently acting as Governor of Bayelsa State; could I have accused myself of siphoning money abroad as been presented? I made this statement as an interjection and advised that the Ministry of Finance and the Central Bank should come up with micro economic policies that would prevent such transfers if at all they exist," he said.
Continuing, he added that "the second issue, which I spoke more, was on the problem of capital flight in the country. On this, I noted that the banks would not have had any problem in raising N25 billion if a greater part of this country's earning circulates within the country. I added that at the end of the month, over 60 per cent of our funds leave the country which is not good for our economy.
"What I meant by over 60 per cent of the country's money leaving the shores of Nigeria was the issue of capital flight. This is through major engineering contracts of the States and Federal Government, which we know that the companies have foreign origin thus both gains and money for purchase of equipment are always sent out of the country. The other major area is the oil industry, which has less than 5 per cent local content at present. That means for every billion dollar spent, less than fifty million dollars circulate in the country. I believe that because major government contractors are paid at the end of the month, such funds are transferred overseas by the companies leading to enormous pressure on foreign exchange at the end of every month."
"It is perhaps because I did not elaborate on the areas of capital flight that has led to the misrepresentation of my speech by the reporter. Nevertheless, I do not want to join issues with the reporter nor the newspaper because I am happy with THISDAY Newspaper standard of media practice and I do commend its management," he explained.
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