AMOSUN HAS MORTGAGED OGUN STATE An interview dated April3,2014 with Mr.Sina Kawonise(SK), ex-Ogun State Commissioner for Information and Orientation.He is the Governorship candidate for the 2015 gubernatorial election on the platform of the most decent political Party in Ogun state,The Labour Party.He recently opposed plans by the Governor Ibikunle Administration to obtain a loan some of its fiscal programmes.In this interview,he explains why. Excerpts: The Ogun state Government has said you were crying wolf over its level of indebtedness,which it insisted stood at mere #35.6 billion. what proof have you to contradict this? SK: It is quite unfortunate that the government that is supposed to inspire confidence in the people is the same government discrediting itself through lies. The government cannot claim not to know what the simple word debtmeans.A debt is when youve enjoyed a service that you have not paid for.Or direct borrowing or a service you are enjoying that you have not paid for.These are the elements of debt.The #35.6billion that the government claimed to owe is the figure that government owes banks,which we call cash liability.Even at that,it is still not complete because there is a foreign loan component that they have not mentioned which is #15.9billion. Where did you get that? SK:They reported it in their own documents.Because with whatever Im going to be saying.Im going to be showing you documnets to buttress all of this. What documents? SK:Documents released by the Ogun state Government taken on demand to the Ogun state House of Assembly.This is because the government submitted a request for a loan of an additional #19 billion,and because the government had not given account of all the loans previously approved for it,the House of Assembly insisted that they must see those documents submitted by the Commissioner for Finance,Mrs.Kemi Adeosun, and the Commissioner for Works and infrastructure Alhaji Adegbite,from the documents submitted,it was reported that #15.9billion stands to the debt of Ogun state Government as foreign loan.Now add that to the #35.6billion that they have admitted as being owed to commercial banks.We call them term loans and are very expensive.When you add those together,it gives you a total of #51.5 billion that is cash liability. The other aspect of the debt is what we call contingent liability,particularly the liabilies owed contractors on the on-going road expansion programmes.There are no new roads being opened up,just expansion of existing roads,basically urban roads with very little economic added value.When you look at the documents,the total value of the contracts awarded on 25 on-going roads came to #272 billion out of which ,only #30.60billion has been paid to contractors as at Today(April 3,2014).That leaves a total debt to contractors at #241.8billion.When you add that to the #51.5billion being owed,the total debt exposure of the state as at December 31,2013,stands at #293 billion.And of course,it keeps accumulating especially contingent liabilities.They are still owing pensioners #9.6billion,which includes salary arrears and other staff claims.Outstanding contractors that is ,those petty contractors supplying stationeries,diesel and water,vehicles for the use of government officials,etc,amount to #1.6 billion.The total of thta is #11.2 billion.They have severance allowance for the past political fucntionaries ,a total of #524 million that they have not paid.Ogun state is seriously in trouble financially. A vOTE FOR SK IS A VOTE TO BE RESCUED! VOTE SK! VOTE LABOUR PARTY! VOTE THE REAL CHANGE! LABOUR OOO! PARTY OOO!
Posted on: Sun, 02 Nov 2014 12:06:04 +0000
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