Financial Crisis Hits PDP

  • Have 20 Dormant Accounts
  • Debts Now N872 million
  • Can’t Pay Bills, Staff

sherrifAll is not well with the Peoples Democratic Party(PDP) that once pride itself as the largest party in African, if its financial reports presented to the new chairman are to be relay on, as the party is not only is in dire need of a financial lifeline , but a bailout of a sort.
The party is in a serious financial crisis to the extent that it is finding it very difficult to meet its obligations, and may not even be able to pay its workers by the end of this month, all no thanks to the precarious financial situation the former ruling party is facing.
According to an internal report of the party’s Finance Directorate, prepared as part of the handover document to the new national chairman, Senator Ali Modu Sheriff, by the director of finance, Chief J.O. Omuya, the party has as at last week, had a very hug debt of not less than N872 million.
The report shows that this debt is as a result of accumulated bills and liabilities that are outstanding, and the party is finding it difficult to offset them.
It gives the breakdown of the indebtedness as follows; bills and other claims that have been awaiting payment from January 1, 2014 to date, as; N12, 487, 160, for utilities and security, just as it says N73, 457, 912 is for staff related issues, while N73, 724,000 is for members of the party’s National Working Committee (NWC), while on the other hand, N37, 049, 715 is what the party owes its contractors. Similarly, legal bills now stands at N30, 750,000, and N232, 138,273 is for other out standings.
Accordingly, the report also noted that the party has not been able to pay properly approved bills that dates back from April 2012 to 2013.
These claims still waiting payment includes; N125, 977,713 for staff related issues, N125,712,740, for NWC expenses it is N125, 977,713, and N79,896,503 is for contractors, N36,350,000, for legal bills, it is N38,608,275, for publicity it is N51,700,000, for congresses, and N29,052,427 for other issues.
However, before April 2012, the party had outstanding payments of N2,064,674 for staff issues, N1,000,000 expenses for NWC members, N23,383,500 was for payment of contractors, N11, 300,000 as legal bills, N21,600,000 for congresses and N79, 949, 750 as others.
Also lamenting the precarious financial situation of the PDP, the report described it as ‘From hand to mouth’, particularly its zone 5 national secretariat, commonly referred to as Wadata House, which was once the most powerful place in the country.
“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’’ noted.
The report also quoted the director of finance as lamenting the refusal of state chapters of the party to pay their usual monthly dues, despite approval to this effect since 2009.
It noted that in the year 2009, the party leadership had approved a monthly due of one million naira to be paid by each of its 36 chapters, including the Federal Capital Territory, across the country, for the running of the national secretariat, however, even this due, as noted by the report, states have since stopped paying, thereby compounding the party’s already bad situation.
Part of the report reads: “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.”
Despite this indebtedness, the report told Senator Sheriff that the party still operates several small bank accounts that were not active, which the report recommended the closure of most of them.
“the party has over 20 dormant bank accounts with small balances”, hence the Finance Directorate has recommended the closure of most of the accounts.
From the report, shortly before Ali Modu Sheriff took over as chair of the party, in February this year, PDP could only boast of a mere N616,654,205, as both cash and bank balance, while another N8,266,146, remained stocked in some 20 inactive accounts, and another N508,674,108, is held at Sky Bank as a result of litigation.
“as at the close of business on 19th February, 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 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”, the report stated.
According to the report, at its 319th meeting of October, 2012, the NWC approved new amounts as monthly imprest for the running of national officers and directorates. “Unfortunately, due to paucity of funds, it has not been paid since February 2013. “Most officers have been using their personal funds to run their offices”
It also draw attention of the new head of the party to the fact that existing motor vehicles, 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 and additions made from January 2013 to date. The need to replace most of them is important as the cost of repairs are getting higher.
But a PDP Stewart who do not want to be mentioned in print, told nationalTRAIL that as at about nine months ago when Alhaji Adamu Mu’azu, resigned as chairman of the party, PDP was very buoyant, and wonder how it can be so broke at this time.
“How can just in less than a year, just about a months, this great party of ours can be this embarrassing broke, I really pity Senator Ali Modu Sheriff, he has a very big task, but members of the NWC who held sway all these months must be made to give account, if the party must be strong to confront the APC.” The source concluded.


By Emmanuel IFFER






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