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Daniel fights back, denies leaving huge debt
Newsdiaryonline Mon May 30,2011
Former governor of Ogun State Gbenga Daniel is fighting back in
what appears like an attempt to clear his name.In a statement
today, he is debunking
claims that he left a he debt burden behind for the state
.He said the statement credited to the new Governor Ibikunle
Amosun that Ogun is the most indebted state is incorrect .
The ex governor who spoke
through a statement by
Sina Kawonise former commissioner for information
proceeded to say
``Contrary to the impression created by Senator Amosun, Lagos,
in the last 5years, has accessed N290b from the bond
market, Rivers has just floated a bond of N250b, while Bayelsa
has done the same to the tune of N50b. Osun state just did N30b
refinancing loan from a first generation bank. Kano State just
reported a debt profile of N108b. And this is the pattern across
the country’’.
But those who watched the handing over ceremony even on TV say
they are shocked at this denial because an admission of
indebtedness was made on that occasion.
The full text of Daniel’s denial reads thus:
It is important to correct the erroneous impression about the
debt profile of the previous administration in the face of the
inaccuracies contained in the Inaugural Address of the new
Governor, Senator Ibikunle Amosun.
As at May 28, 2011, the cash liability was made up of N13.9b
owed to banks and N12.4b External Borrowing. The external aspect
of the Cash liability was the loan arranged by the Federal
Government on behalf of states and it was used for national
urban water schemes. All states in the federation have varying
degree of indebtedness under this arrangement. It is important
to state that part of the debt was carried over from the
previous administrations in the state.
The balance of the debt is the N22.7b Contingent Liabilities
which are normal liabilities incurred in the course of
government business. These include arrears of payment to
contractors, pension and gratuities, outstanding subventions to
ministries, departments and agencies including running costs
which fell into arrears mainly because of the economic downturn
which affected the cash flow position of government.
It is also not correct that Ogun state, as at today, has the
highest level of indebtedness in the country. Contrary to the
impression created by Senator Amosun, Lagos, in the last 5years,
has accessed N290b from the bond market, Rivers has just floated
a bond of N250b, while Bayelsa has done the same to the tune of
N50b. Osun state just did N30b refinancing loan from a first
generation bank. Kano State just reported a debt profile of
N108b. And this is the pattern across the country.
Indeed the debt management office recently stated that Ogun
state had managed its debt very well and was one of the states
with the least borrowing in the country. And when the cash
liability is contrasted with the quantum of projects executed,
as well as the volume of direct and indirect employment made in
the last eight years nobody would be in doubt that resources of
the state were well managed.
We seize this opportunity to appeal to Governor Amosun to face
real governance and resist the temptation to constantly play to
the gallery. This is because appealing to emotions and resort to
demagoguery does not help the course of good governance nor does
it add value to the lives of the people. And it is expected that
a person occupying the high office of the Governor of a state in
Nigeria should be accurate and truthful with facts and figures.
Sina Kawonise,Former commissioner for information and
orientation
May 30, 2011.
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