Budget 2012: Lagos Lawmakers Query Fashola’s Plan To Borrow Money

Members of the Lagos State House of Assembly have raised concerns over moves by the Babatunde Fashola-led administration to go to the bond market to fund the 2012 budget.

Some of the lawmakers who spoke on the floor of the Assembly yesterday queried the rationale behind going to the market to secure a bond to cover the budget considering the debt profile of the state.

They also questioned the continued existence of some parastatals and agencies of government which some of them described as moribund and no longer have value in the socio-economic strides of the state.

The lawmakers also raised concern over the money allocated to some parastatals and agencies of the state government that were created to generate revenue for the state.

They claimed that while the government has continued to assist these agencies and parastatals with subventions, the agencies and parastatals have always consumed 100 percent of the revenue they make annually.

They alleged that some of these agencies do not even make returns to the state coffers, even though they make money.

Some of them suggested that henceforth, such parastatals and agencies should be made to sustain themselves.

Bayo Oshinowo, one of the lawmakers, particularly protested against the provision of N39 billion for the Lagos State Broadcasting Corporation, which operates the state television and radio (LTV and Radio Lagos).

According to him, the two stations get a lot of sponsored programmes daily. They also get advertisements from the public and as a result, do not need such an amount as subvention since they could generate enough money to sustain themselves.

Arguing further, the lawmaker said if the station was privately owned, it would be declaring profits just like other private media houses in the state.

Another lawmaker, Mudashiru Obasa, said though the governor meant well, the sub-committees should look critically at the agencies and their sources of revenue, especially at this period when the issue of austerity has become a policy of the state government.

According to him, “Some of the agencies generate more than enough to sustain them, but we have not been giving adequate attention to this.”

He maintained that this area must be addressed as they look into the appropriation bill.

He said there is a pending bill before the National Assembly which when passed into law may affect the revenue received from the federal government.

“We have more than enough control over the revenue generation process in the state and we must start to use them.

“Some of our agencies can generate more than enough to execute our plans for the state.

“We have some parastatals that were established by the authority of this House that have not made money for the state since they were created. They are manned by individuals and we know they have been making money,” he added.

He advised his colleagues to ensure strict monitoring of the revenue to the state, henceforth.

Prior to Obasa’s comment, one of his colleagues, Gbolahan Yishawu, had told the lawmakers that many of the parastatals and agencies make money and utilise the same money for their personal reasons.

Yishawu suggested that such agencies which generate revenue should be made to become self sustaining.

Rotimi Olowo, another lawmaker, said there are many loopholes in government administration and this has a way of affecting the revenue generated by the state.

He suggested that some of the agencies that have been seen as not adding to the state positively should be closed while their staff should be absorbed by other parastatals and agencies.

— Eromosele Ebhomele & Tosin Areo