Ogun owes N35.6bn, says commissioner

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The Ogun Government says  the balance of infrastructural loans taken under  Governor Ibikunle Amosun’s administration is N35.6 billion  as at December 2013.

This was contained in a statement issued in Abeokuta by the Commissioner for Finance, Kemi Adeosun.

The statement said that the administration had since May 2011 repaid  “approximately N20.3billion in capital in line with its medium term financial strategy.’’

It added that the figure included loans taken from banks as well as the balance of loans inherited from the past administration.

“Also inherent in the loan profile is the sum of N1.7billion which remains unused.

“The unspent loans include counterpart funds relating to the State Universal Basic Education Board (SUBEB) and the Millennium Development Goals (MDGs) which are awaiting roll-out,” the statement said.

It added that  the loans had   been utilised to finance its investment  in security, education, environment as well as the ongoing state-wide urban renewal programme.

The statement said the administration complied with  the state’s law relating to the process of obtaining loans, adding that the House of Assembly gave approvals before they were obtained.

It added that in the 2014 appropriation law, the House of Assembly approved that the government could  source for N29.3billion of its total proposed expenditure of  N201billion through loans.

Government, the statement  added,   was able to maintain the loan profile at that level.

It said this was because it had “continued to comply with the repayment schedule which qualifies it to take new loans as it has a high level of credibility with lenders.’’

Other commitments, according to the  statement  included  the N6.4billion contractor -finance obligations, the  N16.9billion foreign denominated long term debts advanced by the World Bank and other multilateral agencies.

Of this amount, he said  N14.4billion (86 percent) was inherited from the  past administration.

“It should be noted that the state is currently working with the World Bank to implement the Public Financial Management (PFM) reform programme.

“The government has also consistently expressed its commitment to the highest standards in public accounting,” the statement quoted Adeosun as saying.

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