The Osun State government has explained that its decision to seek funds from banks to finance some of the capital projects contained in the 2010 budget was based on rational patriotic reasoning.

A government statement issued on Friday by the Chief Press Secretary to the governor, Mr. Lasisi Olagunju, described the reaction of the Action Congress (AC) to the decision to take the bank facilities as very unfortunate and a product of bad politics, especially when the governor´s letter to the House of Assembly contained also a list of projects to be executed with the funds.

The government explained that all the projects listed, along with the request for the bank facilities, were approved by the House of Assembly in the 2010 budget and that government should explore other ways of financing the projects in the light of the dwindling regular revenue from the Federation Account which has been on an average of N1.35 billion every month.

“ It is common knowledge that monthly allocations to the state are dwindling and are even not enough to pay salaries of workers and pensions of retirees. Monthly workers’ salaries hover around N1.3 billion while monthly pensions stand between N350 million and N400 million.

“Although government has grown the internally generated revenue from the inherited figure of less than N100 million per month to over N350 million, government still feels this figure is low but Osun is a peculiar state where no government can introduce new taxes or raise rates without the welfare of the people being adversely affected.

“Short-term loan facilities such as the one being sought are necessary, therefore,  to execute capital projects and get the state going while other measures are being taken to get the economy of the state improved.

“ Indeed, this government has shown commitment to best practices in management  of public financies, over the years, as seen in the number of roads, water schemes, rural electrification and other projects executed so far, without borrowing a kobo.

“As for its reference to the case at the election tribunal, we say the judiciary should be allowed to do its work without any uninformed suggestions from crooked minds as abound in the Action Congress, “ the statement said.

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