Governor Amosun: How Daniel Raped Ogun State

On Wednesday 28 June, at a meeting with traditional rulers and other stakeholders in Ogun State, Governor Ibikunle Amosun, just a month old on the saddle, spoke on the the parlous state of affairs that he inherited from his predecessor, Otunba Gbenga Daniel.

Today, 29 June, the governor has expanded the theme, throwing in more light, offering mind-boggling insights of the atrocities committed by the ancient regime in the state. It’s a story of looting, mindless concessioning, graft and abuse of office by the old People’s Democratic Party administration. Here is the full text of what Governor Amosun said in the broadcast:

 

 

State of Affairs in Ogun State

By

Senator Ibikunle Amosun FCA

Governor of Ogun State, Nigeria

 

 

 

 

 

Some few weeks back, the process of rebuilding our dear state began. We were not under any illusion as to the enormity of the problem. Even before we came in, there were visible signs of infrastructural decay, an epileptic social sector and visible stagnation in the economic domain. We knew the situation in the state was dire and might require desperate solutions.

 

2. Since our assumption of office, our fears have largely been confirmed. Never in the history of this state and perhaps in the country have we had such dire situation as having our collective patrimony given out under the guise of concessioning. Our intention is not to witch -hunt anybody, but needless to say that the situation is precarious. Where some strides had been made, we will acknowledge this.

 

3 During inauguration, l made public our administration’s programmes, directed at impacting positively on the lives of the good people of the State. Also, l emphasized the importance of the need to carry everybody in the State along in our mission to rebuild. This attempt therefore is in furtherance of our promise to put you in the picture as we take every step in this mission. Our preliminary findings reveal a state that has been wilfully and deliberately sabotaged. I have come to the conclusion that Ogun State is the most indebted state in the country. Officially, the debt the last administration claimed to have left behind is about fifty billion naira (N50, 000,000,000.00), but the real value of the debt could even be more. Professionals who are well trained in this regard are working on this. People compare Ogun State with Lagos and Rivers States; they forget that the revenues from these other states can easily pay off whatever debt they owe.

 

4. If we imagine a fifty billion naira debt with the total sell- out of the assets of the state under the guise of concessioning, then you can imagine that the real value of our loss is colossal.

 

For instance Public assets like The Gateway Hotels were given out in like manner:

 

. Valued after Procedures by Ayo Otegbola & Co at N1, 408,694,108

 

in 2009.

 

. Fees of N300Million paid to Gateway Holdings Limited

 

 

 

. Tenor of Concession is 25 years.

 

 

 

. In effect for N1.4Billion or N300Million upfront payment,

 

Concession for 25 years or average of N60Million per annum

 

 

 

B. Gateway Hotel Ijebu – Ode

 

. Similar arrangement save for figures of valuation at N707, 529,709 and Concession fees of N100Million or average of N30Million per annum. This is just an example. Details will be given shortly by officials in charge.

 

G. Gateway Trailer Park

 

. This is one of the worst cases of abuse of power by any

 

Administration ever encountered. In this case Gateway Holdings

 

had no clue of this invidious concession that was entered into on

 

2nd May, 2011 in the tail end of the last administration’s days. To

 

underscore the insincerity of the past administration in this regard

 

the 2nd of May 2011 was a public holiday!

 

 

 

. When it is considered that like in all other cases no valuation was

 

embarked upon, only N10 Million was paid as concession fees

 

for a concession that is supposed to last for a period of 25 years

 

against the back drop of very hazy obligations that will bring no

 

benefit to the State one will not fail to wonder the motivation

 

behind this mindless exercise of power.

 

ILLEGALITY PERPETRATED:

 

The Land Use Act makes it mandatory for every State to have a Land Use Allocation Committee. However, in the case of Ogun State, due diligence and processes were not followed. There was clear breach of the extant laws and an unacceptable abuse of official position by the concentration of such committee powers in the hands of a single individual in the last 8 years. For example the case of Western Publishers (Owners and Publishers of Compass Newspapers) who were allocated 41hectares.

 

REVENUE PROFILE OF THE BUREAU OF LANDS & SURVEY

 

 

 

The revenue that ought to accrue to Ogun State from the huge land allocations was at least N33.8 billion, if we use the Bureau rates.

Curiously, for the entire period of 8 years, the last administration posted a meagre N10.9 billion for land allocation and N577 million for land ratification

It may be noteworthy to remind ourselves that our neigbouring Lagos State with less land potentials to ours posted N60 billion for 2009 & 2010.

It is obvious, even to the uninformed, that the land resources of our dear State were mindlessly mismanaged

OGSG PROPERTY AT VICTORIA ISLAND:

Against the advice of the Ministry of Justice, economic, business and common sense, this common patrimony had been signed off to a private concern by way of dubious concessioning for 50 years.

NEW ABEOKUTA CENTRAL BUSINESS DISTRICT

The land area consists of 30 hectares divided into 55 plots. We understand that two plots were sold already to certain friends of the last administration. The competent government officials raised an assessment for N379.5 million. In his wisdom, the last administration waived the payment and at the end of the day, government got a paltry N146 million. Like in all other cases, the people of ogun State were the losers in the arrangement.

 

 

The same thing applies to Olumo Rock, which was concessioned for the shortest period-twenty five (25) years. Liaison Office, Lagos, Apoje Farms, Ijebu Igbo, etc had been given out. Some were concessioned out for sixty years or more.

 

5. Since our assumption of office, we have paid the salaries of civil servants in full. We had to borrow money from the bank to augment what is left of revenue from Federation Account to pay the salaries of civil servants. A substantial chunk of the revenue had been signed out as Irrevocable Standing Payment Order, (ISPO). This is for payment for projects of doubtful value and less than fifty percent stage of completion. This is in a state where the total recurrent expenditure is about five billion naira (N5, 000,000,000.00). In order to pay the eighteen thousand naira minimum wage, the state will need six billion naira (N6, 000,000,000.00) monthly. In fact, the state of our social and economic services is nothing to write home about. We will elaborate on this as we go on in this address, but let me give you a cursory look into it.

 

6. Between the period 1999 and 2003 there were 253 Secondary Schools with initial enrolment of 237,748 students. This was as a result of re-opening of some closed-down secondary schools, and establishment of some community secondary schools. In all, a total of additional thirty (30) secondary schools were either re-opened or newly established including those sited at Makun-Omi, Mowe, Iyana Iyesi ota, Igbala (Sango-Ota) Ajegunle Idi-Iroko, Agbara, etc. to de-congest the schools in the neighbourhood. The climax of this was a massive increase in student enrolment to 313,877.

 

7. With the directive from the Universal Basic Education Commission (UBEC) in 2007 following the introduction of the UBE Intervention Fund which stipulates that the Junior Secondary Schools should be disarticulated from the Senior Secondary Schools, all schools with an enrolment of more than 500 students were disarticulated – This resulted in increase of schools to 441, both Junior and Senior and with autonomous administration.

 

8. The number of schools gradually increased to 468 in 2007 (JSS = 193; SSS = 173 and combined schools = 103). The number of schools rose to 471 in 2007/2008 session with students’ enrolment of 322,295.

 

9. However, the enrolment in the public secondary schools gradually started to decline in 2008/2009 from 317,614 with the transfer of some schools to their original private owners culminating in the current enrolment of 281,613 which represents a drop of 13.7% when compared with the previous enrolment of 322,295 in 2007/2008 before the transfer of these schools.

 

10. The main issue is that using a modest projected increase in student enrolment of five percent (5%) per year, the enrolment in public secondary schools should by 2010/2011 be about 373,096 instead of the current 281,613. The implication of this is that about 91,000 students are presently enrolled in private schools or in apprentice workshops or out of school.

 

For example in Abeokuta South, a total of six schools were handed over to private owners.

The total school enrolment of these schools in 2008 was 12,663 of the total students’ enrolment in Abeokuta. By 2010, the students’ enrolment of these schools dropped drastically to 401 representing 97% drop in enrolment. Consequently, 12,262 students were not able to get access to secondary education.

In Ijebu ode,three schools were handed over to private owners in Ijebu-Ode. These schools had a total students’ enrolment of 8,729 in 2008 and by 2010, the students’ enrolment had dropped to 876 which implies that 7,853 students, about 90%, were not able to get access to school.

In Ado Odo/Ota, although, only one school was handed over to private owner, this however still had a negative effect on the students’ enrolment of the zone. In 2008, the school had a total student’s enrolment of 3,663 and by 2010, the enrolment dropped to 228. The implication of this is that 3,435, that is, 94% students’ were not able to get access to school.

Also in Sagamu, the school handed over was Methodist Comprehensive High School, Sagamu with students’ enrolment of 2,578 in 2008. This enrolment reduced to 97 by 2010. It then follows that 2,481 was not able to have access to school. This indicates 97% did not have access to school.

 

In all, 23 secondary schools were returned effective 2009/2010 Academic Session.

 

Agriculture and Forestry

 

Though this is a sector that should interest any administration in Ogun State because it is the traditional basis of our economy and has the best potential for providing mass, profitable and beneficial employment for our people, it has suffered serious neglect in the past. In fact, the state is yet to pay counterpart funds amounting to about N616, 955,000.00 (six hundred and sixteen million, nine hundred and fifty thousand naira) which would have enabled us access hundreds of millions of naira to be invested in harnessing agricultural production.

 

Another seven million naira (N7,000,000.00) is being owed as field allowances for extension staff since 2008.

 

In the same way, the immediate past administration has concessioned key assets in the agriculture sector like Remo Rubber Plantation which was given out at N20 million for sixty years. Also, Apoje Farms Limited which occupies about 8000 hectares of land was parted with for thirty years on a dubious concession term. Also, Ikenne Dairy Farms was concessioned out for twenty five years for a fee of one million U.S. Dollars, but no record of this transaction is reflected in government’s accounts.

 

All these concessions were done in a manner that will kill agricultural production among the people.

Finance

 

13. Finance is very crucial to our rebuilding efforts. Whatever we intend to do in all other sectors is dependent on the funds available for such exercise; and the financial situation we met on ground is scary enough.

14. There are two main channels of revenue from which the Government finances her financial obligations. They are:

 

1. Federally Allocated Revenue (FAR)

2. Internally Generated Revenue (IGR)

 

15. Occasionally, the State receives Grants to execute developmental programmes as directed by the Federal Government and/or International Donor Agencies. The sum total of this for years 2003 to 2010 is N223.10 billion.

 

16. For the same period, the Internally Generated Revenue (IGR) of the State is N102.75 billion.

 

19. As of 31st March, 2011 the State’s liability stood at N49.23 billion. It is broken down into the following:

 

Internal Loan/Overdraft N13.98 Billion

 

External Loan N12.47 Billion

 

Contractor Arrears N3.45 Billion

 

Pension and Gratuity N7.64 Billion

 

ISPO N3.60 Billion

 

Salaries Arrears N2.42 Billion

 

Others (Subvention, Bulk PHCN etc) N5.67 Billion

 

Total N49.23 Billion

 

WAY FORWARD

 

20. Going through the details above, it is obvious that expenditure over the past eight years had always exceeded the revenue culminating in the last administration contracting short term financial instruments which led to the payment of various charges amounting to N23.67 billion. In a situation like this, the following options are available for the State Government to make a prudent choice.

 

1. Increase the sources of Revenue

2. Drastically reduce Government spending

3. Block all leakages in Revenue generation

4. Borrow funds to augment Revenue from FAAC and IGR using short, medium and long terms financial instruments.

5. Provide efficient social services with appropriate service charges,

6. Manage responsible private sector involvement,

7. Attract appropriate investment into the economy of the State and

8. Regulate activities for the public good.

 

21. It is obvious that we have challenges; though very daunting and intimidating, but they are not insurmountable. We have to do what we have to do. In the days and weeks ahead, we intend to take some hard and painful decisions. It is not because we intend to inflict pains on our people or that we enjoy their suffering; but just as a surgeon, determined to save the life of a patient does not consider the temporary pains suffered by the patient during surgery, we are determined to do what is right to save Ogun State and rebuild it. The pains might come, but I assure the good people of Ogun State that they will be temporary and very soon shall see the positive results of our efforts.

 

22. I sincerely crave your understanding, patience, encouragement and trust. We may step on toes, but it is in the process of doing the right thing. I have a responsibility to protect the interest of the people of the state; and that is what I intend to do. We will not fritter your goodwill on the altar of needless political intrigues; neither will we embark on unnecessary populist misadventure. We want to make life more meaningful for our people and this is the goal we have set for ourselves. This is what our people expect from us.

 

23. I want to thank you so much for your rapt attention. God bless you.

 

Senator Ibikunle Amosun FCA

Governor of Ogun State, Nigeria

Wednesday 29th June, 2011.