Ogun govt denies taking foreign loans, retrenchment of workers | Independent Newspapers Limited
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Ogun govt denies taking foreign loans, retrenchment of workers

Posted: Apr 5, 2015 at 4:11 pm   /   by   /   comments (0)

Laide Raheem, Abeokuta

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

This was made known during a briefing in which the Commissioner for Finance, Kemi Adeosun, addressed newsmen in Abeokuta to elucidate more on the recent release of N1.5 billion 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 a reduction in federal allocations as well as internally generated revenue.

Adeosun, who was in company with 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 had a stellar record of meeting all its financial obligations, including those inherited from the previous administration.

She stated that the incumbent administration in the state paid salary deduction for 41 consecutive months, including three months that were outstanding from the immediate past administration.

“As stated earlier, since October, when we had 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 that 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 chided Isiaka for making unfounded allegations, pointing out that his mismanagement of the finances of the state-owned Gateway Holdings, as managing director contributed to the financial challenges confronting the Amosun government.

The commissioner said, “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.”