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Truth, lies, scandals of Gov AbdulRazaq’s N35bn bond bid

By Mike Adeyemi
Facts have begun to emerge on the alleged illegal and secret deals in the procurement of N35 billion bond bid by Gov. Abdulrazaq AbdulRahman as concerned people in the state have described the proposed bond as another ploy by the government to plug Kwarans into perpetual slavery.
While unraveling the truth, lies and scandals behind the said bond, a former member of Kwara State House of Assembly, Hon. Ayansola Mohammed, on Thursday during a Radio program said the process in the procurement of the bond was not only flawed, but an executive rascality.
Proposed bond amount to slavery
“What we stand for, it seems many people don’t know it. This program is a watch dog for the state. All Kwarans should sit down to listen to details on the issue of bond the Kwara state government wants to obtain.
“This proposed debt by the government is to us a slavery. Each time we talked, we have our facts. Despite huge Internally Generated Revenue (IGR) coming into the coffer of government, they still want to borrow N35 billion in bond. Who are those to repay this debt? AbdulRahman AbdulRazaq is acquiring debt for the next government.
“For the past two weeks now, we have brought before the people of Kwara State to let them know the amount of IGR coming to the purse of Kwara State Government alongside the Federation Accounts Allocation Committee (FAAC), and other income like grants.
“At the same time, we explained why this government wants to borrow money. We showed you the 2021 budget and what they wrote inside the bond on the projects this present government wants to use the money for.
“We also enlightened our people all the rights about this bond which we called ‘Public Disclosure’ on the issue of the bond. On this note, we urge people to listen to us on how monies come in and out of government coffer.
“This was the promise made by Governor AbdulRaman AbdulRazaq when he assumed office that he would run a transparent administration, and we all felt happy when he made this pledge.
“If people of the state can remember that Governor AbdulRahman AbdulRazaq went to the Kwara House of Assembly and passed the 2021 budget on 21 January, 2021. He signed the budget into law on 26th of January, 2021.
“The governor told us then that the approved budget for 2021 is N137,1684,916,550. They told us then too that open balance is N19 billion.
Unkempt promise
“If you could recollect that this government said they would not borrow any money to run it’s government. We applauded them then for that promise. But inside the 2021 budget, the government now makes provision for the borrowing of N6bn via commercial banks. We cried then why at the commercial bank, because the interest will be much.
“It came to us as a surprise that the same government want to collect N35 billion bond. This bond was not included in the 2021 budget that was earlier signed.
“On this note, we called this bond a ‘secret borrowing’. But that is the secret the AbdulRahman AbdulRazaq led government is trying to hide from the good people of Kwara state and it is our duty to let you know this.
Repayment scandal
“The first issue there is the fact that this N35 billion is going to be paid in two tranches. The first they will collect is N25 billion after which they will get N10 billion. If we add it together, it will give us N35 billion.
“The second thing is that the bond is seven years tenure repayments and it is our FAAC that will be use to pay this debt. It is our FAAC they used as surety. Our government signed ISP (Irrevocable Standing Payment Order) of N630,203,900 which will be deducted every months from our FAAC.
Secret deals
“Firstly, it’s a private financing arrangements. That is, it was some group of people that gathered themselves to give this money to government. The interest on the bond is 16 per cent.
“If you don’t forget, the Bukola Saraki administration also obtained similar bond like this. But Security Exchange Commission (SEC), Nigeria Stock Exchange approved that of Bukola Saraki.
“With this bond that the present government wants to obtain, they indicate that it will not be disclosed to the public. If what am saying was wrong, the government should challenge me on it. The bond has no approval of the SEC.
“The issuing company for this borrowing is called Greenland Growth SpV Ltd situated at Plot 1069 A, Oyin Jolayemi street, Victoria Island, Lagos.
“The most unfortunate about this bond is that the said company was incorporated on 16th,March 2021 with authorised share capital of N1million to 1 unit of ordinary share of N1 each fully issued and paid for. Is it not because of this money they quickly incorporated this company?
“Our concern is that Kwara should not bankrupt as we won’t mislead the people of Kwara State. The share of SPV is what we called ,’Special Private Vehicle’. Who owns it. Greenwish Ltd owns 60 per cent, EAC Trusty Ltd has 20 per cent, GTF Trust Ltd has 20 per cent. All these are information they don’t want the people of Kwara State know.
“Now, Kwara State Executive resolution on the bond was dated on 24th, December 2020 with reference number, KWS/S/CAB/39/51/1/91 signed by the Secretary to the State Government and Attorney General on 11th January, 2021.
“When the SSG and AG signed this, the commissioners were dissolved effective from 31st December, 2020. Kwara House of Assembly quickly approved the bond on 26th January, 2021 with reference number, KWSHA/5.23/Vol4/3068 signed by the clerk of the house.
N7.58 billion is what will be paid by coupon rate annually for seven years. If we calculate this money ,it will amount to N63,105,1227,000 if multiply by 7. Now subtract the amount they borrowed from this figure.
Same projects
“They said they will build the Virtual Art Centre with N1billion for 36 months. Inside the 2021 budget, they allocated N100million for the same VAC, despite the fact that the contract for the project had been awarded. I wondered how come another N1 billion for the same Virtual Art Centre.
“The government also said they want to build Kwara Garment Village for N4billion, but when we check the budget, it shows that they had allocated N1.8 billion for the same project.
“They also said another N1 billion would be spent on Ilorin Hub, budget of N100million was earlier gazetted for in the budget.. The government should explain to the people of Kwara.
“Infrastructure, roads, bridges they said would gulp N7billion for 24 months duration. They had earlier allocated N1billion for Rural works in the 2021 budget. They later wrote N7billion for it in the bond.
“Education, classrooms and hostels were said would gulp N21,125,000,000. Inside the budget they said N500million with N14billion to build classrooms. Agriculture they said would gulp N7billion. In the budget they stated N2.7 billion aside anchor borrower, FADAMA that they earmarked N3billion.

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