N20b bond: Gov Ahmed allays Kwarans fear
Governor Abdulfatah Ahmed has allayed the fear of Kwarans over the proposed N20billion bond, asserting that it will not be diverted.
Addressing stakeholders meeting during the weekend in Ilorin, the governor said the money would be expended on development projects.
The governor who emphasised that the government could not afford to divert the money explained that adequate arrangement was in place by the capital market to ensure the fund was used accordingly.
According to him, "Before we can borrow the money, we have listed what we want to use the money for in our agreement with the capital market.
"And the capital market's officials will also monitor us to ensure that the fund is not diverted. So, the issue of money diversion should not come in".
The projects that would be executed with the bond according to the governor include; Vocational Centre, Ajase-Ipo, KWASU campuses in Ilesha- Baruba and Osi, School of Business and Governance in KWASU, Kaiama/ Kishi Federal road.
Others according to the governor are; dualisation of Sango/UITH road, dualisation of Michael Imoudu/ Ganma road, completion of Ilorin water reticulation network, completion of Ilesha-Baruba/ Gwara road among others.
He also explained that the government had the capacity for repayment without stress, disclosing that the government would service the bond within the period of seven years. On the salaries of local government workers, the governor attributed the problem to the dwindling allocation.
According to the governor, "before now crude oil was being sold $100 per barrel during President Jonathan's regime but now it has dropped drastically to $35 per barrel thereby affecting monthly allocation. The present situation is taking serious toll on Local Government Areas across the country. "In 2013, we used to get N3.2billion as monthly allocation, but just last month, we got N1.8billion due to the dwindling allocation.
"And there is no any sign at the moment that the crude oil price will improve very soon.
"So, any government that wishes to surmount the adverse effect of the present dwindling allocation and survive it, must look inward.
"For me I do not have the power to shoulder the responsibility of paying local government staff and SUBEB teachers. The council chairmen should be held responsible for these peoples' woes.
"So, for the Local Government Areas to survive in the face of the present problem, they have to critically review their personnel and overhead costs".
The governor who told the stakeholders about his efforts in surviving the situation, explained that workers of the state parastatals like higher institutions and media houses would be settled before the end of this year.
He also stressed the need for the local government areas and SUBEB to go back to their drawing board and address the problem head on.
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