The Ondo State government on Sunday explained that the N50b loan bond approved by the State House of Assembly last week is to be used for developmental projects initiated by the administration of Governor Rotimi Akeredolu.
The State Commissioner for Information and Orientation, Mr Donald Ojogo, who disclosed this while speaking with newsmen dismissed the claim that the loan was secured to fund the re-election bid of Akeredolu.
Ojogo, who emphasised the need to develop infrastructural facilities in the state said the bond loan became necessary in order to pay contractors handling various capital projects in the state, especially contractors handling road projects.
He assured that the money from the capital market would not come to the purse of the state government but it would be spent directly on government’s projects.
Ojogo, explained that Akeredolu would rather spend such huge bond on legacy projects that would impact positively on the lives of the citizenry instead of using same for any re-election bid.
He said, “The bond as we all know is a N50 billion bond that was approved by the House of Assembly on Thursday. That bond is meant to enhance not just to sustain the development that has been achieved but to further engender and sustain development in the state.
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“From that bond N50 billion, 50 kobo or 50 cents of that money is not coming into government purse. It is between the capital market and the banks where the fund will be domicile.
“The governor didn’t take loan or bond to win his election in 2016, the people freely gave him their mandate, so he can’t take loan to do any re-election.
“Disregard opposition, opposition will always talk, it is part of their job to talk. We all know that the money would not be paid into government’s purse but it will be used to fund all these ongoing and new capital projects directly.”
Ojogo assured the people of the state that contractors would soon return to sites of road projects that are currently experiencing a delay, adding that with the approval of the bond, ongoing projects would be completed in record time.
He said the current administration in the state had been able to pay backlog of salary when it came on board and said, “I don’t need to go back to memory lane. One of the revered policies of the governor has been and it remains the fact that he will not dwell on the past. And that is the policy we have promised to uphold.
“Nonetheless, you cannot shy away from the fact this government met a backlog of seven months unpaid salary. By the time this government was coming on board, though not only Ondo State experienced it, every state experienced very drastic reduction in the revenue that accrues to the states.
“We all know that the finances and economic pursuit of states have dwindled, yet they are contending issues. We have come to take over the mantle of leadership not to come and complain.
“We have decided to take over leadership in the state to ensure that what is worth doing is worth doing well. Akeredolu has been elected as governor not complain that there is no money to pay salaries. He has been elected not to come and complain that there is no money to provide good infrastructure in the state. Yet, where is the money?
“So, Akeredolu decided to think outside the box. One of the noble things he did was to pay simultaneously. As he was paying the salary, he took over every month, he was also paying the backlog of salaries and emoluments that the government met, because government is a continuum.
“We have only a month left out of the seven months that the governor inherited and I can tell you categorically that civil servants in the state have received their August salary. I don’t think this government has received up to six billion in a single month from FAAC since it came on board.”
He, however, stated that the government looked beyond payment of salaries and the need to put in place some infrastructural facilities for the people of the state but said all these projects were being executed on an agreement between the contractors and the state government.
“It will be highly unfortunate if with the zeal that the contractors have been deploying themselves to the state is killed over lack of funds.
“For instance, at Ikare where the dualization is taking place, we have to pay the contractors for them to continue to do his work. So, It is a very noble idea. We all how much is accruing to the state, how much the wage bill. How do we now found projects? The only way to do this is to go to the capital market.
“But people said it is because we want to go into election, No. Did we take a bond before Akeredolu won the last election? Was it his law office that obtains a bond to win the election?
“We don’t need a bond to fund Akeredolu’s second term, that is if he so desires to run for second term. If he didn’t use a bond to prosecute the 2016 election, he will not need a bond to do this, because the bond’s conditions are so stringent.
“That is the way modern governance has gone. The best way is to tie your project to a bond. What government will is just to guarantee that a contractor has done a particular milestone and he should be paid? So, I don’t see an idea that could be nobler than what the government has initiated.”
The Commissioner also assured that the local government election would soon be conducted in the state, saying efforts are being made by the party APC leadership to bring aggrieved members to his fold.
He promised that the state government would soon come up with actions on local government election and the creation of Local Council Development Areas (LCDAs).
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