…No N70b FG Bailout To Delta
The Delta State government has described as mere rumours, the reports that the state has collected N70b bailout from the federal government and has also dissolved Delta State Oil Producing Areas Development Commission ( DESOPADEC).
A statement by the Chief Press Secretary to the governor, Mr. Charles Aniagwu explained: “On DESOPADEC, we want to make clear that the Commission is intact and never dissolved. What was dissolved is the Board whose tenure has elapsed long before now.
“Section 7 of the DESOPADEC Act, provides for a three years tenure for members of the Commission, the Board in question was inaugurated August 2011 and reconstituted in November 2012. The life of the Board was thus extended by 3 months [ to take of the September-November, 2012 when they were out of office] and it lapsed by November 2014 following the expiration of their three years tenure as spelt out in Section 7. That meant that they have overstated their three years tenure.
“We are also aware of report suggesting that contractors are being owed money because the Board has been dissolved, nothing can be further from the truth as one of the early actions of The Governor, Senator Dr. Ifeanyi Okowa on assumption of office was to direct the release of 2 billion naira to the Commission to enable it meet its regular and contractual obligations. It is pertinent to also point out here that the Commission between January and May, 2015 received 3.5 billion naira.
“Some persons have also raised issues regarding the on-going amendments to the principal act. Let’s make it very clear that the alleged inclusion of gas in the definition of Oil producing communities is not new as Section 2 of the Existing Act aptly defined Oil producing areas as oil and gas producing communities in the state.
“There has also been insinuation that the amendment bill is introducing ethnic nationalities to the Act, Section 7 of the principal law, sub section 1 paragraph C, clearly talked about oil producing ethnic nationalities.
“At this juncture let make it clearly that the reason for the proposed amendment is to reposition the commission to effectively address the plight of oil bearing communities and not just a theatre for mere ethnic arguments. The introduction of a managing Director and Executive Directors is aimed at efficiently maximizing allocation to the Commission to bring about optimal benefits to the downtrodden people of the oil bearing communities.
“It is important to stress that the Board under the proposed amendment has strict oversight and regulatory function on the powers of the management.
On the N70b bailout
“From the onset, let’s make it clear that no 70 billion naira under any guise whether allocation, bailout or gratis was released to the state.
“You recall that when the Governor briefed the House of Assembly, he made it clear that the debt burden of the state is huge and beyond the contractual obligations, the commercial debts to banks and the repayment conditionality were quite strangulating.
“As a pro-active administration, the government sought ways to alleviate the burdens so as to deliver on its promise of prosperity to all Deltans
“One of the ingenious ways the government considered was to explore the option of the Federal Government bond.
“What this meant was that the state liaised with the Debt Management Office to take over the commercial loans and restructure them to federal government bonds giving the state a long repayment period without increasing the debt burden of the state. Certain conditions were attached to the bonds for the state government to meet, the state government has meet the conditions and the federal government is considering the application.”
