Saturday, 28 November 2015

Why Governor Obiano Plans to Borrow Over 25 billion naira loans

Chris Emmanuel

It was indeed a dilemma going by the report of our reporter  and opinion of experts in economic field on the issue of financial insolvency in Anambra State.
I saw the tensed atmosphere over the letter His Excellency, the executive governor of Anambra State, Chief Willie Obiano sent to Anambra State House of Assembly as proposal or say to make a case on why they must approve the loan we want to take.

The report had it that all the APGA lawmakers in the state Assembly were last weekend summoned in Governor's lodge by the Governor Obiano and indoctrinated with those sweet lies and financial incentive to lubricate the passage of the loan request.
It is obvious, sometime even the most worked out plan flops, but that is where and when we have men with integrity and those who think of posterity, being mindful of the scenario played at during the last governorship and State Assembly election in the state where the lawmakers of APGA extract was sponsored by Anambra State Government thereby caging and blindfolding them on the right sense of what representation, lawmaking and oversight function means in the legislative context.
However, it does not mean that there are no men of integrity in the House, but their hands are tied, owning to the fact that the state government footed their campaign and election manipulation bills in order to emerge.
May I make some cases for you in case there would be a man or woman in that house with brain who will like to ask questions and peruse the documents or make some cogent argument over the loan.
The Young man that is negotiating and packaging the loan portfolio is not doing any favour for the citizenry of the state. He is doing it because you promised him that he will run as the Deputy Governor next election ,meaning he is going to replace Dr Nkem Okeke, and that was why he is trying very hard to muddle up issues and present himself as a juggernaut.
Source  within the governor's lodge confide on us that the loan is tainted on presentation even though the governor  relies on it to pay contractors, I am not a financial guru but I know, Loans are not best for building roads and payment of arrears, but best for projects that have return on investment powers.
In reality, according to the source, the governor will present 10 billion naira loan argument, whereas the original Loan, which he is going for, is 25billion, 10b for paying or tipping the Contractors and 15 for political war chest in 2017. After all what is the15 billion extra loan for?
Let us have it at the back of our minds that the terrain is not a place for suckling “the taste of the pudding is in the eating.” The former governor of Anambra State, Peter Obi saw loan as path to perdition, and he circumvented it by all means.
Having insisted that taking this loan is load of burden that will do us no good, it might interest the public to know that Ministry of Works and Finance are not helping matters as it concerns the issues of payments in the state, let me present you with a scenario that is playing currently.
After 6 months of not paying a kobo to contractors working in Anambra State, the ministries finally paid them less than 2 Billion penultimate last week, out of close to 100 billion naira owed to them. We believed that the two ministries in charge might have told the governor that they have paid the contractors, probably, that was why Chief Willie announced that contractors should go back to site having received their pay.
Daily Champion gathered that when this was announced at Ekwueme Square penultimate last weekend, it attracted rouse clapping without knowing the details. The public should not be deceived and pressmen should take the onus of correcting the misinformation.
The relevant authority mainly paid white contractors and left local ones with transport money in the name of payment.
In order to enlighten the general public on the correct position of things, the payments were as follows: IDC ( handling that 3 flyovers) got 850 Million Naira out of over 10 Billion he is owed; CCC, 450 Million Naira out of over 3 Billion owed; TAMAD, 260 Million Naira out of over 2 Billion owed; Kanuben (Working in Agulueri), 175 Million Naira out of over 1 Billion owed; Masterholdings 30 Million (Anayo Nwandu fronting for Victor Umeh) out of over 500 million Owed; Akumas 50 Million (Anayo Nwandu fronting for Victor Umeh) out of over 100 Million owed; Daniels, 25 Million out of over 100 Million owed; New Idea 30 million out of over 100 Million owed; Grandstar 20 Million out of over 100 Million owed, while others received between 10 and 5 Million Naira each.
Furthermore, with the above payments the Contractors' body language depict out-of-site unless with the latest promise that the state government is going to get a loan and pay them.
Daily Champion also deemed it fit to inform the public that the Governor might have suspected the body language of the contractors, that was why he released the sum of 100 million naira to the commissioner for works Mr. law Chinwuba to carry out some repairs to help our roads during the festival period.  It is a great move of someone who has the suffering of motorist in mind, but the truth is that the Commissioner simply bought some Head pans, shovels, wheel barrows, then dust up some of the machines and equipments bought by ANIDS then call his media and they snap pictures from 16 angles and declare that Solomon has come to judgment. What is scares me is that this Maintenance agency may not be able to fix some of the roads that have degenerated so badly, such as Ichida-Igboukwu Road, Awka Etiti-Nnewi Spur, Ezinifite Aguata Road among others across the state with the kind of higgledy-piggledy attitude of the ministry of works.
However, the public are happy with the way Governor Obiano resurrecting the Anambra Road Maintenance Agency (ARMA) which former governor Obi started, equipped but along with other of his projects, was abandoned until now that we have gullies along our roads.
In the same stratum, an associate professor, department of economics, Nnamdi Azikiwe University, Awka, Obi Ken insisted that it was too early for Governor Obiano to seek for loan considering that his administration was not up to 2years coupled with the amount of money left for him by his predecessor.
He further advised Gov Obiano to galvanize the economic wellbeing of the citizenry by providing all the basic needs of life as promised during his electioneering campaign, noting that Ndi Anambra have not witnessed or recorded appreciable improvement, urging the governor to use his bank experience to boost the economy of the state, especially now the major income earning of the country is reducing drastically.
Meanwhile, the Anambra state government of Chief Willie Obiano has  after  20 months of his administration has denied the claim by the Peter Obi Administration that it handed over N75 billion to it. This was disclosed while the Secretary to the State Government, Prof Solo Chukwulobelu addressing the press last week at the conference hall of government house, described the claim as a hoax. According to the SSG, “The N75 billion was not there; it was not handed over to anybody. At best it can be half truth” Chukwulobelu said that instead the state government inherited a total contract sum of N185.1 billion as liability from the Obi administration.
He said the explanation had become pertinent because of the ground the rumour of the N75 billion was gaining both in the social and traditional media. Chukwulobelu said it took them this long to reply to the claim in other to put the rumour finally to rest.
The SSG maintained that the public should discountenance the claim saying “it doesn't exist”
He said “in the real sense what the Obiano administration inherited from Obi was N9billion cash and N26billion near cash”
“Based on the figures detailed above which were taken from the handover notes from the previous administration, it is evident that the actual and voluntary cash investments made by the previous administration amounts to approximately N35.5billion consisting of mobilization paid on contracts for shopping malls and hotels, cost of two business parks in Onitsha, investments in Eurobonds, amongst a few others”
“Items such as counterpart funds held jointly with domestic development finance institutions, land contributions, FGN refunds differences in bank balances and investments made directly by the federal government on behalf of the three (3) tiers of government totaling approximately N39.5 biilon have been reclassified as “illiquid investments” “FGN receivables” and “involuntary investments” “However, to provide a true and fair picture of the state's net position on March 17, 2014, the investments handover notes ought to have captured current liabilities and contingent liabilities also borne by the previous administration as at the time of handover” “To put this into context, the total portfolio of inherited projects valued at approximately N185 billion was however not captured in the breakdown of the handover notes.
In line with the issue at stake, speaking in an interview, an Economist and lecturer at Nnamdi Azikiwe University, Awka, Olisah Maduka says that government at all levels was free to borrow money either through money or capital market, and advised that they do so to endeavour to remitting of the fund thereafter.
“Government can borrow fund to finance a project that can bring back the funds. They can borrow to establish industries or companies, provided it is ready to generate funds through it. It is not prudent for any government to obtain loan for road constructions which ordinary should done using federal allocation and some part of internal generated revenue. For instance, when a government uses its borrowed fund to establish an industry, and the industry employs people, it will boost the economy because those people will still use their income to buy, sale, among other things”. 
Maduka further reiterated that Anambra State Government was free to borrow funds because according to him, the state is blessed with an abundance of human and natural resources, revenue generation windows and others through which it would redeem the loan



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