Ogun Concerned Professionals

A body of professionals of Ogun state origin

PRESS RELEASE

Daniel N60bn Bond: Where is PPP?

Our attention has been drawn to the controversy generated by the move of the Ogun state Government to go to the Nigeria Stock Exchange (NSE) to raise N60bn bond. The State governor, Otunba Gbenga Daniel had explained since the brouhaha started that the fund was meant to actually carry out developmental projects or perhaps complete some capital projects (even with less than 24 months to leave Okemosan oval office).

But, the state House of Assembly, particularly those labeled as G-15 from available records is having a contrary position, a situation that led to the popular House Resolution 167, which barred financial houses from given the crucial financial support to the raising of the fund. The Assembly had noted that the Executive arm could not have raised such bond without intimating the Assembly, particularly when their as being alleged discrepancies in the accounts of the state government's accountant general and auditor general of the state submitted to the House.

The Ogun Concerned Professionals viewed the position of government on the need to float the N60bn bond, and quite agreed with such step if the atmosphere had been conducive and appropriate. But, since the move has been trailed by controversy, particularly from the legislative quarters, whose primary concern is to over see the functions of the executive arm, the need to put our thinking cap on became persuasive, rather than confrontational on this matter.

The development has opened our minds back to the early years of this administration, when the issue of Public Private Partnership (PPP) almost became household name in the state. To remind government that the popular "Business Unusual" acronym was borne out of the fact the administration was of the strong view that unlike her predecessor, business of government should be handled by private sector, with the government providing enabling environment. The song then until now (when Daniel administration seems to be singing a different tune) is "government has no business in business"

From the foregoing, the Ogun Concerned Professionals observed with utmost curiosity the new agitation and clamour by our "Mr. Business Unusual" proponent to be going begging cap in hand soliciting support for the raising of the N60bn bond to execute developmental projects. If actually the Executive is sincere and have the genuine interest of Ogun indigenes at heart as it claimed, the theory of PPP should have been the last resort to this controversy (if at all it will happen).

We recall with nostalgia, the concession of Gateway Hotels (one of the legacy of our dear Ayekooto, the first civilian Governor, Late Chief Bisi Onabanjo) to some private investors last year. This is a typical example of Daniel's PPP at work. So, the question is why not apply the same concept to the execution of these "developmental projects" instead of rushing for the N60bn bond, which without being alarmist and immodest would still generate greater controversies in spending and accountability (the differences in the accounts of the state as presented before the House readily come to mind here)

Where is Governor Daniel's PPP for the Cargo-Airport project, Olokola Free Trade Zones, Railway project, Remo Int. Stadium, construction of Area J4, Ibiade, Makun-omi, Olokola road project? It is on record that the Cargo Airport project for example can not be completed in another 36 months even if all the N60bn is pump into it. So who is fooling who?


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That investors from China would not come to the state if these projects are not executed with the N60bn is very unfortunate defense from government. We asked if the Chinese visited Malaysia or Dubai before developing their economies. Or do they visit Ghana before making in road as one of the fastest growing economies in Africa today.

If Gateway Hotels could be concession what stop others (listed above) from going through private partnership, if they are really money-spinning ventures. What if the projects hit the rocks, who shall be liable to the offsetting of the N60bn (definitely the incoming government, since government is continuous, the pro-N60bn supporters will echo, since they will also share from the "cake"). But, should it be so? We the Ogun Concerned Professionals say emphatic "NO".

The House of Assembly also raised the observation that the debt profile of the state is incoherent, as amount ranging between 10 and 15 Billion Naira is being speculated to be the total debt of the state, at least as at December 2007. Is any responsible government would still heads to NSE for the purpose of raising another 60bn without clearing the air on her debt profile? Is this part of Daniel's administration goal of "setting agenda for a secured future"? Omo ogun lets ruminate on this without sentiment or personal interest. Is NSE also morally right to have given tacit support to the bond move without a careful study of the accounts of the Ogun Sate government, particularly, when the move is being enveloped by controversy and confusion right from the State House of Assembly? Ogun Concerned Professionals recalled and remind Ogun sons and daughters the botch attempt by the NSE leadership to raise fund for the President of the United States of America (USA), Mr. Barack Obama during his campaign and the aftermath. Therefore, we know the antecedents of those backing the governor and we are watching what will become of the Ogun state move to get the N60bn.

If Ogun state government under Daniel administration is broke and governance could not be effectively carried out any longer, is it not appropriate to consolidate on what it is has been able to achieve in the last six years, rather than plunging the state into an unprecedented debt that will make our future unsecured. The little allocation coming from the Federal (as claimed) including the IGR which was very much publicized to have hit N1bn monthly should be used to consolidate the roads, health, education, water provision and other infrastructural needs of the state. Since government is continuous, it our candid view that incoming administration should be allowed to continue where Daniel will stop. It will allow for concentration, performance and effective running of governance just has it happened to this government in 2003 when it took the mantle of leadership.

The allegation raised by the opposition in the state and some Elders' of the ruling Peoples Democratic Party (PDP) that the government of Otunba Gbenga Daniel was aiming to get the N60bn for the purpose of settling debts accrued by the administration would be seen as true if the administration do not reconsider her PPP (government has no business in business) theory for the settlement of this N60bn debacle. It is the only factor that could settle score between the very assertive Ogun legislature and the agitating executive.

So, on Daniel N60bn bond; where is PPP?

Signed:
Harun Babatunde
`Tayo Sokoya
Idowu Samuel
Isiaq Adewunmi