The Lagos State chapter of the Peoples Democratic Party has demanded a probe of the N160bn bond the Governor Babatunde Fashola-led administration obtained from the World Bank.

The party in statement by its Publicity Secretary, Taofik Gani, on Sunday, accused the state government of converting the bond to other uses rather than using it to improve the lives of Lagos residents.

The party said Fashola’s defence aimed at rationalising the whereabouts of the funds was “weak, unsatisfactory and diversionary.”

It said, “We are again vindicated by the Debt Management Office’s revelation on the amount Lagos State is indebted to under Fashola. We had said it many times that Fashola has plunged the state into irreparable economic damage going by his monumental and unprecedented debt profile.

“This present revelation of N160bn debt is apart from other local and foreign loans, bonds etc. running into over N1trn. This is baffling considering the fact that the state is not enjoying commensurate development as it lacks adequate and affordable services and infrastructure.”

The party said Fashola’s defence claiming to have spent the loan on infrastructure, was an afterthought.

The statement added, “The major infrastructure is the light rail project, which was erstwhile presented as public-private investment. What is therefore the amount contributed by the private investor who is eventually taking the concession? This is another government stealing by proxy. No doubt the protracted project has been used as a conduit to steal Lagos funds.

“It is our demand that the Governor’s Office must explain the details of this needless loan, while the Economic Financial Crimes Commission probes the veracity.”

However, while inspecting the ongoing construction of the light rail terminus at Orile-Iganmu, Fashola had said the decision of the state government to take a N160bn bond from World Bank was in order.

He added that strategies were in place to ensure that the loan was paid back.

Fashola questioned the intention of the DMO of the Federal Government, which published the report that Lagos owed about N160bn. He added that the loan was approved by the Federal Government.

http://www.punchng.com/politics/pdp-demands-probe-of-n160bn-lagos-debt/

polithievians getting ready 4 2015

while we watch from sidelines

And the owners of Lagos here on Nairaland are comfortable with it and will never fault their governor. If that be it, why won't he keep stealing?

For the records, my governor is the most heartless thief and I say it always hoping I will have someone good enough to save me and the state come to our rescue!

There is no updated record of Lagos domestic debt on DMO's website. However, from reports on lagos state.gov.ng, total debt profile of Lagos both internal and external is about 435 billion naira (not trillions). It has a domestic debt profile of about 300 billion naira.
Contrast that with Bayelsa. There is also no updated domestic debt profile for Bayelsa both on DMO and their website. However, the most recent filing on DMO (December 2012) shows a nearly equal domestic debt profile to Lagos with nothing to show for it - 222 billion naira.

You can rail all you like about Lagos debt. The figures are self evident on its income and expenditure profile which is available for all to see that progress is being made. Lagos is transforming.

And finally, while you are still trying to under stand the figures, inquire from the FG what it did with 9 billion dollars external debt and 7 trillion naira domestic debt with all the Crude income that has accrued over the years.

What has he done with all those monies?

zoeee: What has he done with all those monies?

Lagos state did not go about raising the domestic debt arbitrarily. In 2008, a plan was floated and this was communicated publicly. The domestic debt was then raised in tranches and this was concluded in 2013.

http://www.tundefashola.com/archives/news/2008/12/24/20081224N41D.html
http://www.cnbcafrica.com/news/western-africa/2013/11/29/lagos-state-raised-bonds-to-complete-projects/

chemali:


Lagos state did not go about raising the domestic debt arbitrarily. In 2008, a plan was floated and this was communicated publicly. The domestic debt was then raised in tranches and this was concluded in 2013.

http://www.tundefashola.com/archives/news/2008/12/24/20081224N41D.html
http://www.cnbcafrica.com/news/western-africa/2013/11/29/lagos-state-raised-bonds-to-complete-projects/

Does dis explain what he used the monies for?

zoeee:

Does dis explain what he used the monies for?

God bless you.

@ op I will expand further on this when I log back in later today

Btw yes it is true. Also APC fashola has spent 4.5 trillion naira from jusr IGR and federsl allocation since his arrival in 2007

zoeee:

Does dis explain what he used the monies for?

If you read the second link you would see the stated objectives for the last tranche of the bond.

chemali:


If you read the second link you would see the stated objectives for the last tranche of the bond.

Objectives which have not been implemented, I guess... Lets just face facts

zoeee:

Objectives which have not been implemented, I guess... Lets just face facts

We are facing facts... Are the roads and rail undergoing construction as we speak or not? When did construction start?

chemali:

We are facing facts... Are the roads and rail undergoing construction as we speak or not? When did construction start?

I need to know...

But Fashola, why are u borrowing again when d Igbos are developing Lagos State...The Igbo merchants developing d south west region since 1702