Ogun government denies taking secret foreign loan | Independent Newspapers Limited
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Ogun government denies taking secret foreign loan

Posted: Apr 6, 2015 at 8:30 am   /   by   /   comments (0)

Laide Raheem,  Special Correspondent, Abeokuta


The Ogun State government over the weekend debunked the allegations made by the governorship candidate of the Peoples Democratic Party (PDP) Gboyega Nasir Isiaka that the Senator Ibikunle Amosun led administration had taken secret foreign loans and planned to disengage some workers in the state civil service due to inability of the government to meet its financial obligations.

The allegations were debunked by the Ogun State Commissioner for Finance Kemi Adeosun while addressing newsmen in Abeokuta to elucidate more on the recent release of N1.5billion by the state government to offset civil servants salary deductions and cooperative dues on April 2.

According to the Commissioner, the delay in the release of the payment was due to the global fall in oil prices in October last year which led to the reduction in federal allocations as well as internally generated revenue.

Adeosun who was flanked by her Ministry of Information and Strategy counterpart, Yussuph Olaniyonu and the Secretary to the State Government Taiwo Adeoluwa, explained further that prior to the financial downturn, Ogun State government had stellar acccord of meeting all its financial obligations, including those inherited from the previous administration.

She stated that the incumbent government in the state actually paid salary deduction for 41 consecutive months including three months left unpaid by the immediate past government.

“As stated earlier, since October when we have the general downturn in the national economy, we have been challenged by the effects of a reduction in FAAC, and Internally Generated Revenue. The suddenness of the downturn was such that immediate adjustments could not be made, thus the delay in remittance of salary and cooperative dues.

“His Excellency, the governor of Ogun State, Senator Ibikunle Amosun presided over the development of an interim recovery plan which ensured that no worker would be disengaged. A medium term financial strategy has been developed which will help us to overcome this short term fiscal imbalance.

“Not only  will no worker be disengaged but rather the forthcoming recruitment of additional staff will be undertaken”, the Commissioner said.

Adeosun, however, chided Isiaka for making such unfounded allegations, pointing out that his personal financial mismanagement while serving as the Managing Director of Gateway Holdings, contributed to the financial challenges being faced by Amosun’s government.

“It will be recalled that under his (Isiaka) leadership Gateway Holdings took a loan, guaranteed by Ogun state government, of N1.6 billion for the purported construction of a head office and a mega filling station.

“It is a shame that there is nothing beyond  a foundation to show for the loan taken and the proceeds cannot be accounted for. In addition, not one naira was repaid culminating in this administration inheriting a balance of N2.6 billion which we are now repaying at the rate of N100 million monthly”, The Finance Commissioner explained.