The N100 billion that the Delta State government recently borrowed? from the Nigerian Stock Exchange for its development programmes has generated criticisms and counter claims by the opponents and supporters of the state governor.? Kola Niyi-Eke in this report, describes the bond as an instrument of controversy.
The bond was meant to facilitate the transformation of the state, but it has stirred more controversies than development from its potential beneficiaries.?
The criticisms that have so far trailed the bond are capable of beclouding its fruits and render it incapable of producing the results for which it was taken by the state.
Governor Emmanuel Uduaghan, who initiated the loan as a catalyst for developing the state, appears to be put in the dock by the very people he wanted to uplift and may be wondering what pushed him into the deal in the first place.
Notwithstanding the altruism that might have fired Uduaghan’s interest in taking the bond from the Nigerian Stock Exchange (NSE), the knocks he is receiving from his people have tended to cast aspersion on the entire package and cripple his hands. He may also be biting his fingers over the deal.
?Uduaghan may not get the sympathy of most of his natives if the antagonists of this bond overwhelm his supporters because of how the deal was brokered and secured.
The governor had in November last year approached the state House of Assembly for approval to secure N50 billion bond from the NSE, hinging the desirability on the urgent need to source for funds to transform the state as the rationale for the request.
As expected, the lawmakers mostly drawn from his party, the Peoples Democratic Party, gave him the nod, but strident protests and threats from individuals and groups against the decision forced the lawmakers to retreat.
With threats from students and other stakeholders to burn down the House should they approve the loan, the legislators asked the governor to stand down the request and he complied. But the compliance did not remove the burning desire for the loan from his mind.
Still unwilling to do away with his burning desire for the loan, Uduaghan returned to the lawmakers shortly after winning the April 26, 2011 election with a request for a higher loan of N100 billion and the lawmakers unanimously endorsed his request.
In justifying his prayers, Uduaghan had said that it was cheaper and easier to secure the bond for the development of the state from the NSE than doing same from the commercial banks.
According to him, the loan would attract a yearly interest? rate? of? N2.6 billion? and that? it would be fully paid back in two years.
His tone of the letter was as irresistible as a love portion.
Apart from educating the lawmakers on the resort to bond as a financing option, the governor pleaded with them to urgently approve it for him.
Among other things, he said bond was preferred because it is fast and fiscally prudent to finance the government development agenda.? The bond was to be drawn down in two tranches: N50 billion each.
But many months after drawing down the bond and with no dramatic development projects taking shape in the state, coupled with the abandonment of many ongoing projects, the voices of dissents have flared against the administration.
Some of the projects are, Ughelli township roads, Asaba Textile Mill, and drainage project, Ughelli High Court building, Ogwashi-Uku road,? Asaba Township? Stadium and? Warri Park land.
Many are quick to accuse the administration of laying claims to projects that were done by the previous government of James Ibori.
At a meeting in Asaba last week, some of the aggrieved persons threatened to mobilise to Abuja and protest what they termed the ‘looting of the state’ in the name of development via bond. They want the Economic and Financial Crimes Commission to take a look at the bond and whether it has achieved the intended results or not.
President of the Ijaw Peoples Development Initiative, Comrade Austin Ozobo, alleged that the bond was a big fraud and would not achieve any meaningful purpose.
“As far as I am concerned, it is a medium to enrich themselves; the masses will not be empowered,” Ozobo said.
The former Education commissioner in the state, Dr. Veronica Efe Ogbuogbu also slammed the bond, saying that if steps were not taken to stop it, the present administration would leave the state in a huge debt.
But the state information commissioner, Mr. Chike Ogeah, has described the planned protest against the bond as frivolous and of no effect, saying that loan was meant for specific development projects.
Similarly, Uduaghan’s Communication manager, Mr. Paul Odili, has urged those opposed to the loan to sheath their sword and wait for the completion of the projects for which it was taken.
As the bromide from both sides of the divide in the state continues to rage, it is not clear how soon natives of the state who are struggling with development challenges like erosion menace and basic infrastructure will get value for the divisive bond.
If the bond fails to yield the expected dividends, many who had vouched for its desirability may soon hide their heads in shame. That may tacitly arm the antagonists with the tar brush to paint their opponents black and sing their dirge before the next election.