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Peoples Democratic Party (PDP) governorship aspirant in Oyo State, Seyi Makinde, has accused the state government of “deliberate silence over grievous allegations of mismanagement and neglect of critical sectors.”
In a statement signed by Prince Dotun Oyelade, for the Seyi Makinde Organisation, Makinde alleged that the “government has resorted to silence and blackmail in spite of the declining fortunes of the state that has made it the 5th most indebted state in the country with a whopping N116bn debt as at 2016.”
According to Makinde, “when the 2018 debt profile is added, the state will owe over N130bn by conservative estimate which will further entrench its position as the most debt-ridden administration since the old oyo was created in 1976.”
Makinde said he was worried because the Central Bank of Nigeria’s Public Finance Statistics Bulletin Volume 27 published in December 2016 supports his claim that while the current administration borrowed N4.8bn in 2011 when it assumed office, the debt profile stood at N47.4bn in 2015.
But in a swift reaction, the All Progressives Congress (APC) explained that more than half of the so-called debt stock of the state government is attributed to arrears of workers emolument, that is, arrears of gratuities which require no interest payment which predate the current administration.
According to a statement by the Director Publicity and Strategy, Oyo APC, Dr Azeez Olatunde, “all the other components of debt are attributable to payment of salaries e.g Fiscal Sustainability Plan (FSP, salary bail-out of 2015 among others which were accessed by almost all the states.
“It is in the public domain that interventions and bail-outs are given to all the states to ameliorate hardship in the country.
“The terms the Federal Government (FG) used to give the States loans are liberal terms with the overriding motive to bring succor to the workers/people and all the States of the federation got it. It is a known fact that throughout the world, organisations, both public and private use
debt and borrowings as a cheaper way of funding their operations, hence, the debt leveraging by states.”
Makinde in his statement claimed there was a “sudden jump of our debt from N47.8bn n 2015 to N116bn, a difference of N69bn and 144% jump all in one year.”
He stressed that government must “do the needful by coming out of hiding and explain why a government with N69bn in its treasury will still owe tertiary institutions workers 20 months salaries, leave the education sectors in tatters, fail to pump money into job oriented policies for our agricultural sector and neglect Teaching Hospitals, the 27 General Hospitals, two Nursing schools and the numerous health clinics and centres across.”
He accused the government of engaging in grandiose eye-catching projects like model schools and selective road constructions while the poor are left uncatered for, all n a bid to cover its tracks
But Olatunde slammed Makinde, saying that the governorship aspirant “needs additional course in elementary Public Sector Finance, to be offered free of charge by the APC.”
The statement said that the humanitarian and welfarist record of Governor Abiola Ajimobi is second to none and no administration in the state has surpassed our achievements in empowerment and helping the needy, stressing “we will not rest on our oars and no amount of distraction from desperate political failures and failed party founders can make us change our plans and resolutions to make the people of the state benefit immensely from our social welfare packages.”
Dr Olatunde stated that the present administration in the state has empowered and provided succor to about a million and one hundred thousand people in Oyo State through its welfarist programmes including the Ajumose Food bank, poverty alleviation and other empowerment programmes in the last 7years especially through the Ministry of Women Affairs, Community Development Social Welfare and Poverty Alleviation.