BY KOLADE LAREWAJU

FOR Governor Ibikunle Amosun, it is not yet time to talk about the huge debt that immediate past Administration of Otunba Gbenga Daniel inflicted on Ogun State.

The debt profile put at a whopping N49 billion by Daniel himself is being looked into by a team of Accountants commissioned by Amosun. After ascertaining the truth, Governor Amosun said he would go back to the people and show them the facts.

The new governor is peeved at the way assets of the state were managed especially the mortgaging of some of its properties at ridiculous and give away prices to people believed to be friends and cronies of the former governor.

In a move that may throw the state into legal combats, Amosun  has vowed to retrieve the assets. He also warned that prominent people and traditional rulers who connived with the past regime to strip the state of the assets would be brought to book.

Addressing a stakeholders forum in Abeokuta, which had in attendance former Governor Olusegun Osoba, the governor said:  “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 N50 billion 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.

“If we imagine a N50 billion 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 N300 million paid to Gateway Holdings Limited. Tenor of Concession is 25 years. In effect for N1.4 billion or N300 million up front payment, Concession for 25 years or average of N60 million per annum.

“Gateway Hotel Ijebu – Ode, Similar arrangement save for figures of valuation at N707, 529,709 and Concession fees of N100 million or average of N30 million per annum. This is just an example. Details will be given shortly by officials in charge. Gateway Trailer Park 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.
“The same thing applies to Olumo Rock, which was concessioned for the shortest period- 25 years. Liaison Office, Lagos, Apoje Farms, Ijebu Igbo, etc had been given out. Some were concessioned out for 60 years or more.”

Governor Daniel in a swift reaction through his former Commissioner for Information, Mr. Sina Kawonise, admitted the mortgaging of the assets which he said were a drain on the purse of the state. However, he said that he left more new assets including two stadia, a high rise building “OPIC Towers”, Free Trade zones among others for the government.

His words: “Senator Amosun deliberately did not tell the people of Ogun State that he inherited assets far in excess of the liabilities. For instance, we are aware that because of the proactive policy of making Ogun State the first choice for investors, the Free trade zones in Igbesa and Olokola are now yielding resources into the coffers of government. At the last count, the Free Trade Zone in Igbesa has industrial concerns that have employed more than 7,000 people in direct employment, with triple that figure in indirect employment.

Indeed from the one in Olokola where the last administration  invested a total of N15 million, $15 million (N2.325 billion) in ground rent is now due for payment to the Ogun State Government. The industrialization policies of the OGD-led administration brought into Ogun State 66 companies with a combined direct investment in excess of N100 billion. A direct benefit of this was the cheering news late last year by the National Bureau of Statistics which put the unemployment rate of Ogun State at 8.5 percent far below the national average of 19.5 percent.

“ We affirm that the concessions of all the non-performing government companies and ventures were done in the best interest of the State and in line with best practices under the Private Public Partnership (PPP) arrangement. The concessioned ventures were not bringing in any money to the State and were essentially drain pipes. We chose the concession arrangement rather than outright sale as many states have done to preserve our common patrimony and ensure a win-win situation for the State.
“In the case of the Gateway Hotels, they could not meet the objectives for which they were set up and there was a need to reconsider government funding.

To achieve this, the OGD administration opted to involve private investors in the management and/or ownership of the hotels.  Both due diligence and due process were followed all through the transactions.

The move was intended to, among other objectives, ensure efficient management of the ventures and generation of higher returns and employment for the teeming populace of the state and ultimately partner with the private sector to drive sustainable development in the economic sector. Other concessions that were carried out followed the same pattern. And we affirm that the concession option is what is prevailing everywhere as it has been found out with verifiable evidence that commercial ventures handled by government rarely thrive.

That was what informed the divestment of the Federal Government from its ownership of NICON NOGA hotel, the MM2 local airport concessioned for 36 years, among others.

“Even in Lagos State, where Governor Amount’s godfathers hold sway, the Lekki Expressway was concession for 30 years! It was in the light of the soundness of the concession imperative that the Federal Government, by an Act of the National Assembly, set up the Infrastructure Concession Regulatory Commission (ICRC). Oh, who will rouse the new power people in Ogun State from the slumber of their economic illiteracy?”

Residents of the state are however waiting for a probe of the mortgaged assets considered to be messy by the State House of Assembly which is believed to be capable of getting to the bottom of the issue by inviting former commissioners and permanent secretaries, who were involved in the whole deal.