PDP broke as debts rise to N872m

PDP broke as debts rise to N872m

March 14, 2016

This is not the best of times for the erstwhile ruling party, the Peoples Democratic Party (PDP), as it is in dire financial crisis. The main opposition party is finding it difficult to meet its financial obligations.
A brief by the Finance Directorate of the party submitted to the new national chairman, Senator Ali Modu Sheriff, by the director of finance, Chief J.O. Omuya, indicates that the party has accumulated outstanding bills and liabilities to the tune of N872 million.
According to the brief, "the party has over 20 dormant bank accounts with small balances," hence the Finance Directorate has recommended the closure of most of the accounts.
The brief said: "As at the close of business on February 19, 2016, the party's cash and bank balances stood at N616,654,205. It is important to highlight, N8, 266,143 is held in over 20 dormant bank accounts while N508,674,108 held at Skye Bank is currently the subject of litigation for mereva injunction, leaving a paltry sum of N99,714,954."
The report said: "As at date, outstanding bills, claims and other liabilities that have been passed to the Finance Directorate for payment, but which have not been paid for lack of funds amounted to N872 million.
"The party is facing serious financial quagmire at present. There is no adequate and regular source of income to meet its regular expenses and overheads. What used to come in as monthly stipend has become grossly insufficient to pay staff salaries, utilities and National Working Committee (NWC) monthly allowances, not to talk of other pressing party activities and obligations.
"One major challenge which the new national chairman will be confronted with therefore, is the need to pay most of the outstanding genuine bills, claims and liabilities to avoid embarrassment."
A breakdown of the party's indebtedness shows that the following bills and claims are awaiting payment from January 1, 2014, to date: N12,487,160 for utilities and security; N73, 457,912 for staff-related matters; N73,724,000 for the NWC, N37,049,715 owed contractors while N30,750,000 for legal bills and N232,138,273 for others.

From April 2012 to 2013, approved bills and claims awaiting payment include N125,712,740 for NWC expenses; N125,977,713 for staff related matters; N79,896,503 for contractors; N36,350,000 for legal bills; N38,608,275 for publicity; N51,700,000 for congresses and N29,052,427 for others.
The pre-April 2012 outstanding payments include N2,064,674 as staff related, N1,000,000 as NWC expenses, N23,383,500 for contractors, N11,300,000 as legal bills, N21,600,000 for congresses and N79, 949, 750 as others.
Narrating the state of the party's finances, the director said: "In recent years, the National Secretariat has been living from hand to mouth and with no well-defined and sustainable means of regular income, safe for the funds realised from the sale of forms in 2014 for the 2015 general elections, which has been expended."
He lamented that state chapters have stopped paying monthly dues.
"In 2009, the leadership of our great party decided that each PDP state should contribute a monthly sum of one million naira only for the running of the National Headquarters. For over a year now, the states have stopped making this payment to the national secretariat."
According to the brief, at its 319th meeting of October 2012, the NWC approved new amounts of monthly impress for the running of national officers and directorates.
"Unfortunately, due to paucity of funds, the impress has not been paid since February 2013. Most officers have been using their personal funds to run their offices," the report stated.
The brief equally "draw attention to the fact that existing motor vehicles, the furniture, fixtures, fittings and equipment of the party have reached the end of their estimated economic life and have been fully depreciated, except for the purchases/additions made from January 2013 to date. The need to replace most of them is important as the costs of repairs are getting higher."
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