Ogun state denies N40bn Brazil bond 4 years ago 1

The Ogun State Government, on Tuesday, said that it had not obtained a N40bn bond from Brazil, as was being speculated in some quarters.

The state government said that it had only got the state House of Assembly’s approval to borrow only N25bn for its development projects, out of which it had secured N6bn as loan.

It also said that the state’s Internally Generated Revenue had been jerked up by the current administration from N742m to an average of N1.8bn per month, resulting in a 143 per cent increase over the preceding year’s sum.

The state Commissioner for Finance, Mrs. Kemi Adeosun, said these in Abeokuta during a ministerial press briefing to mark the one year in office of Governor Ibikunle Amosun.

Adeosun, who   accused the immediate past administration of former governor Gbenga Daniel of  misappropriation of funds, said that the state government had uncovered various underhand deals allegedly perpetrated by the former government.

According to her, the state government discovered N1bn fraud during a recent review of banking transactions and charges carried out by her ministry.

The immediate past Commissioner for Information under the former administration, Mr. Sina  Kawonise,  had recently alleged that the Amosun  administration had  obtained  a N40bn  loan from  an unnamed Brazilian financial  institution.

But in her reaction, Adeosun, who denied the allegation, said that some companies from Brazil approached the government with a proposal to do some capital projects for the state on “contractor financing” basis.

She explained that contrary to the allegation by the aide of the former governor,  Amosun administration only sought the permission of the state House to allow the companies from Brazil  to construct some  capital  projects and this was approved by the state legislature.

“We are one year in office. There is no bond. It has been disapproved and debunked. We are not saying that we are not going to borrow. We have taken loans. We have borrowed only N6bn out of the N25bn approved by the House. Brazilian loan is another example of some misinformation. It is not a loan, it is contractor financing. We have not collected any Brazilian loan,” she said.

Adeosun also alleged that the Daniel administration operated no fewer than 300 bank accounts, which it used to siphon funds, adding that they had been reduced to only one bank account.

The commissioner said, “We are still working on the debt profile and even yesterday my Director of Treasury and IGR   received a letter from an institution which we have been negotiating with since I assumed  office.”

Adeosun stated that by the end of the year the state government would have concluded its verification and by then be able to confirm the debts incurred by the immediate past administration. Home Page

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