INTRODUCTION: We wish to draw your attention to the grossly and blatantly desecration of the sanctity of good governance and accountability by the award of fraudulent contracts by the governor of Edo State Adams Oshiomhole, to his cronies and obtaining loans on behalf of the State government for unspecified purposes. This act has now gone to a point of crescendo that we feel that unless something is done, the State debt profile may put us in a perpetual state of debt repayment for generations to come.
We feel these are breaches of the Nigerian Constitution and Code of Conduct. Following this mischievous and orchestrated virus of corruption infested in our government today, we have deemed it necessary to avail all stakeholders and indeed the entire people of Edo State of the implications of Governor Adams Oshiomhole’s financial recklessness.
1). In November 12th2008 when Adams Oshiomhole took over the reign of government from Senator Oseirhemen Osunbor, he met a debt profile of 4.4 Billion Naira (this was confirmed by Oshiomhole’s State Commissioner of Finance before the State House of Assembly in his budget defense).
2). In December 2009, the State debt profile rose astronomically to 18.8 Billion Naira (also confirmed by his Finance Commissioner at the budget defense before the State House of Assembly).
3). Added to this, Oshiomhole’s government secured new loans on behalf of the State government for other unspecified reasons between January 2010 to date as follows:
a). From the Sky Bank he has obtained a loan of 5 Billion Naira
b). From the United Bank of Africa (UBA), he obtained another loan of 5 Billion Naira.
c). From Equatorial Trust Bank (ETB), he obtained yet another loan of 2.2 Billion Naira.
d). Let me also inform you that as at the time of this my interactive section with you, Governor Oshiomhole has concluded negotiations to obtain another loan of 2.9 Billion Naira from the First Bank of Nigeria.
Other information available to us, is that the State government has over 10 Billion naira debt owned to various contractors who has appropriate certificates for payment.
What is worrisome in this scenario is governor Oshiomhole’s penchant for taking loans without due regard to the State finances and the implications of such loans to the present and future generations.
In line with the Central Bank of Nigeria’s reforms to bring sanity in our banking sector, we use this opportunity to call on the governor of Central Bank of Nigeria, as a matter of urgency to examine the fiscal policy of the State, as it is now clear that the debts being incurred by Adams Oshiomhole’s government can no longer be serviced by our statutory allocations and the IGR just as we feel the banking sector may further be endangered by the State’s indebtedness. We therefore challenge Governor Adams Oshiomhole’s government to disclose and make public our financial state of affairs in the spirit of accountability and the oath of office he swore when he assumed the office as the governor of the State.
CONTRACT AWARDS:
We have also observed with dismay the manner and ways the administration of governor Adams Oshiomhole award contracts in the State. Most of the contracts recently flagged off were never advertised nor due process followed as some of them are not even captured in the 2010 budget. Examples are the Anegbete-Ekperi road and the Ewohimi-Igueben road.
In other to promote corruption and over invoicing of the contracts, the governor has cleverly refused to state the distances of the roads and the contractors handling the projects. We also call on the governor to make public the details of these contracts awarded.
1). 2.7 Billion naira was said to have been spent on Auchi erosion control. As I speak with you now, the money has been fully paid and there is no single work done.
2). Adams Oshiomhole gave over 20 million Naira to some traditional rulers in Edo South senatorial district to request for a constitutional position of Speaker of the Edo State House of Assembly. This is the taxpayers’ money.
3). During the briefing before the State House of Assembly, the Commissioner for Environment claimed to have spent over N4 Billion Naira on ordinary designing of erosion control in Benin City and its environ. The said design project was never advertised.
4). The Commissioner of Environment also told the State House of Assembly that the government had expended over 250 million Naira to remove sand from the gutter and disilting. Yet everywhere you go, no gutter is found disilted.
CONTRACTS AWARDED TO RELATIONS:
Today in Edo State, we live in unprecedented times.
1). On the 11thAugust 2009, Adams Oshiomhole awarded a contract to his in-law’s company, Source – EM Global Services. The company was engaged to supply two (2) New Dando Watertec 24 Mobile Borehole Drilling Rigs, complete with tools and accessories to Edo State government at a cost of three hundred and seventy one million, nine hundred and forty four thousand Naira (N371, 944,000) only. This was to be supplied within three months from the day mobilization fees were paid.
2). On the 28thAugust 2009, the sum of two hundred and twenty six million, five hundred and thirty thousand Naira, eighty hundred and ninety (N226, 530, 890) which was 70% of the contract sum was paid to this his in-law’s company (with payment voucher Head 455, sub head 5 on month of August, 2009 P.V. No 2). The contract was signed by the then Permanent Secretary of the Ministry of Energy and Water Resources, Mrs. C. Edo-Osagie for the State government.
We wish to inform the public that, six months after the mobilization has been paid, the contractor had neither supplied the items nor refunded the money collected. The specified three months to deliver the items as agreed upon in the contract had long expired. Information available to us is that the contractor has absconded...
Granted that this said contract was highly inflated as our contact with the manufacturers revealed, we wish to call on governor Oshiomhole to call on his in-law to refund the Edo State Tax payers money and the contract should be terminated. Those who seek equity must come with clean hands.
Thank you.
Chief Dan Osi Orbih
PDP State Chairman
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