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Why The Rush By Daniel And Fashola To Sell Bonds And Incur Debt? - Politics - Nairaland

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Why The Rush By Daniel And Fashola To Sell Bonds And Incur Debt? by forpeace: 1:42pm On Oct 11, 2010
We were all aware of the recent imbroglio that ensued in ogun state over OGD's attempt to borrow 100bn Naira which would have resulted in debts for future generations of governments and citizens of ogun state. .this move was rebuffed by the ertswhile speaker Tunji Egbetokun who was later impeached in an obasanjo kangaroo style manner. .

It is however strange that here in lagos Saint Governor Fashola is trying to do the same thing even with the huge revenue position of the state at present and noone is saying anything. .The house of assembly has rebuffed him twice but he remains adamant. .I personally hope he doesnt succeed in this emergency request for fund at the eleventh hour for God knows what.


[b]LAGOS State Governor Babatunde Fashola (SAN) and the House of Assembly are yet to reach an agreement over the desirability or otherwise of a supplementary budget which has deepened the crisis between the two arms of government, reports Deputy Political Editor EMMANUEL OLADESU



THERE is no end to the crisis between the Lagos State House of Assembly and executive arm of government as the legislators declined to approve the supplementary budget sent by Governor Babatunde Fashola, for the second time in a week.

The bone of contention is the sourcing of funds for the implementation of the proposals. The House led by Speaker Yemi Ikuforiji has objected to the proposal on the ground that the governor wanted to rely on bond for financing the projects in the budget.

A group, ‘The True Face of Lagos, also woke up from its slumber, to resume its self-imposed unfinished business of asking the House to probe the financial books of the administration. Its leader, Adebayo Adesina, punctured the court case that has tied the hands of the legislators, insisting that the probe is in public interest. ‘We do not have grudges against Fashola government. All we want is accountability’, he maintained.

Another group, ‘Democrats for Checks and Balances’, asked the governor to accord more respect to the Assembly by seeing the arm as a joint partner in progress. ‘If a governor sends a supplementary budget to the House twice, and it was rejected twice, he should learn to acquire the experience about legislative/executive relationship, especially when his party has the majority in the House’, said the association led by Mr Allan Olaniran.

Following the return of the supplementary estimates to the executive, the governor wrote to the House, directing his commissioners to explain the grey areas to the lawmakers.

Now, the legislators complain that the members of the executive are blackmailing them by attributing to them the inability of government to meet certain obligations to the people.

The Majority Leader, Hon. Kolawole Taiwo said that, when teachers complain about non-payment of allowances, when workers say that the salary increment promised by the governor has not been effected or when there is a complaint about a collapsing road in the state, the people in the executive tell them that it is because we have not approved the supplementary budget.

The legislator, who has been a member since 1999, chided the governor’s advisers, especially his economic team for refusing to do a thorough work before presenting the residual budget.

He said the executive had uncritically confused refinancing with wholesale approval for supplementary budget, without giving thought to how past loans were paid before the expiration of the preceding administration.

Taiwo objected to the style of the Economic and Planning Commissioner, who directed the House to contact his counterpart in the Establishment and Training Ministry, when he asked him to shed light on proposed allocations in the budget to personnel.

He said the executive may have underrated the competence of the legislators in strict economic matters, particularly budgeting.

The Majority Leader said that it was wrong to have budgeted without consideration for funding of the budget, adding that the financing of budget proposals by loans is old fashioned.

Former Deputy Speaker Funmi Tejuoso (Mushin) and Sunai Agunbiade( Ikorodu) had pleaded with the House to consider the proposals in the interest of the people.

One of the oldest lawmakers, Ipolola Omisore, blamed the governor for not opening a communication link with the Speaker and members to iron out issues as members of the same party. Kolawole said that the blackmail was unnecessary because there is still much to the credit of the governor in the 2010 budget which has not been spent.

He pointed out that, when the governor promised salary increment to workers, it was not in the budget. Kolawole maintained that the executive is not superior to the House.

Majority of members believed that the blackmail, which was meant to create public disillusionment, was in bad faith. Hon. Adejare, who lamented the development, said that the House had adequately protected the interest of the people by their scrutiny of the proposals and source of funding.

The Speaker said that it was worrisome that the executive was inciting Lagosians against the parliament constituted by their legitimate representatives.
He reiterated the determination of the House to continue to support the governor’s developmental efforts.

Ikuforiji said: ‘Nobody is fighting the governor. We brought him out when nobody knew him. The House will support Governor Fashola, but not at the expense of 18 million Lagosians. The governor is surrounded by smart people. We will ensure that public funds are not wasted. We will not allow some hawks around him to turn this state into other states around us.

‘The tone of the letter from the governor supports the blackmail against us. There is N389.9 billion to the credit of the governor. What portion of it has been spent? The reference to salary increment is just to give dog a bad name to hang it. How can the money be sourced for? When people are groaning under the tax regime, the state cannot make the N109 billion IGR before the end of the year.

‘There are some elements in government who want to rupture the legislature/executive relationship in Lagos State’.

Two weeks ago, members of the executive council were jittery as information filtered that the Assembly was mooting the idea of an impeachment against the governor. Party leaders who showed concern moved swiftly to avert the political calamity because of its implications for the ruling party.

When political crisis is not properly managed, it escalates. The chairman of the party, Otunba Oladele Ajomale, had to allay the fear of impeachment, saying that the rumour was contorted by the detractors of the party.

Many have expressed worry about the seeming gulf between the party and government last month when the party countered the governor’s promise to allocate more slots in the executive council to Igbo in Lagos because of their support for the administration. Then, the chairman clarified that the governor could not exercise that power exclusively, reminding him that it is the policy of the party.

A party leader had also complained that the governor had not shown enough interest in how the party was being run, pointing out that, when the zonal branches in Lagos kicked off their mobilisation meetings in the East, West and Central Districts, the governor was initially not aware of the processes.

Before the last sitting of the House, the Eleko of Lagos, Oba Rilwan Akiolu, had waded into the crisis, appealing to both sides to sheathe their swords. Sources said that the Assembly’s Principal Officers tabled their complaints which were not different from the ones expressed by Ikuforiji and Taiwo on the floor when the supplementary budget was again referred to the committee.

‘The problem is that, while the governor has established himself as a good administrator, he has deliberately refused to learn the ropes of politics. Therefore, he seems not to understand any political language. He is the party leader and he should be seen to be interested in the party and political affairs’, said the source, who disclosed that many party members are also aggrieved because of Fashola’s style, but lack the public forum to express their annoyance like the legislators.

Another sign of crisis is that, while Fashola’s posters are gradually flooding Lagos, key party leaders said that they were not aware of the source. Many interpreted the celebration of the 1,200 days of the administration in three locations across the three districts as the flag off of governorship campaigns by the governor, but the secretariat of the party told reporters that guidelines were not yet out. Many of those behind the campaigns are not likely to be delegates to the convention where the fate of governorship aspirants would be determined.

Party members confided that the initiative for the resolution of the crisis should be taken by the governor. But Omisore admitted on the floor that he seemed to lack the skill of political lobbying, Another legislator said: ‘The governor should have contacted us so that we can iron out the grey areas as members of the same party. That is how it is done in parliamentary caucuses. He has distanced himself from us too much. Party leaders are saying the same thing. He needs to change some habits. He is the property of the party, the state and people’.

Gradually, the supplementary budget has become the main issue. As the executive pressed for its approval, the ‘Democrats for Checks and Balances’, (DCB), warned the House of Assembly against passing a supplementary budget that would be financed by bonds to avoid incurring debts for future generations.

The group wondered why state governors would want to borrow funds for project implementation at the twilight of their tenure, stressing that that approach is incompatible with developmental trends in the world.

Its leader, Olaniran, said that no responsible and focused governments can hope to financing budgets by uncertain means at a time governments are trying to keep low debt profile.

He said creative governance is about creating wider opportunities for progress and prosperity through sound budgetary implementation, without imposing greater economic burden and massive debt strains on the people after the implementation.

Olaniran praised the Assembly for sticking to the best legislative practice and defending the future of Lagosians, stressing that “the future generation should not suffer the agony of reckless debt”
‘We are amazed at the cheer blackmail against the members of Lagos State House of Assembly by some people paid to close their eyes at the achievements of the Sixth Assembly.

It is unfortunate that, at a time the issue of bonds is generating controversy in Ogun State, Lagos State is also planning to borrow multi-billions under the guise of financing a supplementary budget, when the money voted in the real budget has not been fully spent. What Lagos needs is not a government that wants to borrow, but a government that can justify the need for more funds based on the budget performance’, Olaniran added.

The group hailed the Assembly for putting in place an autonomy law that has thwart the tendency to make it an appendage of the executive.

According to the organization, ‘Lagos House of Assembly is able to act in public interest because it is fully independent of the executive, and this is a plus to the practice of legislative democracy in our country’.[/b]

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