Ogun State Governor Gbenga Daniel on Monday said that the decision of his administration to raise a N100bn bond was based on sound financial and fiscal projections.
The governor, who added that the state government would not show any desperation in order to access it, spoke at the formal presentation of the master plan and of the Abeokuta Central Business District on Monday.
According to him, “In spite of the consent given by the state House of Assembly, the government will adopt a wait-and-see attitude, especially because of the needless controversy the bond matter had generated.
“This was due mainly to the way the former leadership of the house treated what was essentially a fiscal measure.”
At the event were the Alake of Egbaland, Oba Adedotun Gbadebo; leaders of the private sector, bankers and a cross-section of the Ogun State society.
Daniel said that the inability of the state to access the bond market at the appropriate time was costing the government about N400m monthly, being the cost of the high interest rate it was paying on the facility used to finance existing infrastructure such as the multi-billion naira new secretariat building and other major developmental projects in the state.
He said if his administration did not take the bond, the succeeding one would seek one because that was the only way to maintain the pace of development and finance projects and growing expenditure in the state.
Daniel added that the people of the state should brace up for the consequences if the bond was not eventually accessed during his tenure.
He said his administration was not desperate to access the bond market at all costs.
He said it was wrong for people to insinuate that the bond was being sought in the twilight of his administration, noting that the process actually started in 2007 while all relevant documentation and notification was concluded in 2008.
On the ACBD, the governor said it was the anchor project for the urban renewal scheme in the state. He said the relocation of the old secretariat was in tandem with the new master plan of the state and was meant to free high net worth land projected to fetch the state about N10bn when it is eventually taken up by the private sector.
He said the ACBD would also generate employment and make Abeokuta a befitting capital.
The lead consultant to the project, Mr. Oluwole Olumide, said the business district would give a new lease of life to Abeokuta and add value to the property market in the state.
However, the impeached Speaker of the Assembly, Mr.Tunji Egbetokun, faulted the governor on the bond in a telephone interview.
According to him, “The sttaement is an irony, it is a parody. If he says he is not desperate, he should have allowed the debate on the bond to come up and not masterminded the sitting on Monday.
“We have been harrassed and intimidated because of this bond. He should have said that earlier on.
“He should not have even presented it in the first instance if he was not desperate about it. He could say that before now.”
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