Obaseki's N410bn Debt Burden: APC's Damning Allegation

Obaseki Leaves Edo with N410bn Debt, APC Claims

“All employment carried out in the recent past should be cancelled, while the governor should investigate the...”

Edo State's outgoing Governor Godwin Obaseki leaves behind a staggering N410 billion debt, a significant increase from the N55 billion inherited in 2016, sparking concerns over financial management and transparency.

The All Progressives Congress (APC) Transition Committee has sounded the alarm on Edo State's staggering debt, calling for an investigation into the whopping N410 billion in local and foreign debts allegedly owed by the state government. This revelation came to light on Monday, November 11, as part of the committee's report presented to Monday Okpebholo, who is set to be inaugurated as the fifth democratically elected governor of Edo State today, November 12.

According to Pius Odubu, chairman of the committee, the report exposes a shocking increase in the state's debts, ballooning to N410 billion in liabilities. This is a far cry from the N55 billion inherited by the outgoing administration in 2016. The drastic surge in debt raises concerns about the state's financial management and sustainability.

For context, Edo State's debt-to-revenue ratio has been a concern in recent years. In 2020, the debt-to-revenue ratio was 145%, indicating that the state's debts far exceed its revenue. This calls into question the state's ability to service its debts and meet its financial obligations.

The committee's report highlights the need for transparency and accountability in Edo State's financial dealings. As the new governor takes office, addressing this debt crisis will likely be a top priority.

“For those of you who have the capability to fact-check, you will find out that the indebtedness today is much more. It is over N500billion,” he said.

Pius Odubu, former Deputy Governor of Edo State, has recommended a thorough review of the management agreements for Central and Stella Obasanjo hospitals. This call to action is part of the Transition Committee's report, presented to incoming Governor Monday Okpebholo, highlighting concerns over the hospitals' management and potential irregularities.

Odubu's suggestion aims to ensure transparency and accountability in the hospitals' operations, which is crucial for effective healthcare delivery in Edo State. The review will likely examine the memoranda of understanding, contracts, and other agreements governing the hospitals' management, aiming to identify areas for improvement and potential reforms.

“All employment carried out in the recent past should be cancelled, while the governor should investigate the true ownership of the Ossiomo power plant and Radisson Blu Hotel..

“The same with the Museum of West Africa Arts-MOWAA. We deserve to know the state's equity in these companies as the outgoing government went blank on these enquiries.

“We also demanded a comprehensive review of the World Bank-funded EdoBest programme, and a probe should be instituted to uncover its rather opaque operations,” Odubu explained.

He added, “All major contracts issued by the state government under the Ministry of Roads and Bridges should be reviewed as they appear not to have followed due process, including the payment advance awarded to the contractors.

“The procurement agency indicted the government in its own report to the transition committee. Hence, we have advised the incoming governor to take a critical review.”

"We also demanded a comprehensive review of the World Bank-funded EdoBest programme, and a probe should be instituted to uncover its rather opaque operations," Odubu explained.

Pius Odubu, the committee chairman, has called for a major overhaul of Edo State's ICT sector, citing redundant responsibilities and inefficiencies. Essentially, he wants to eliminate unnecessary overlaps, streamline operations, and boost productivity. This move aims to enhance the state's digital infrastructure, promoting better service delivery and transparency.

Some potential areas for streamlining include:

Consolidating Departments: Merging or eliminating redundant agencies to reduce bureaucratic red tape.

Clarifying Roles: Clearly defining responsibilities to avoid confusion and overlapping work.

Enhancing Digital Infrastructure: Investing in modern technology to improve efficiency and citizen engagement.

By addressing these inefficiencies, the Edo State government can create a more effective and responsive ICT sector, ultimately benefiting its citizens.

“The outgoing government didn't provide audited financial statements published or unpublished. Hence, the committee is advising the government to institute an inquiry into this.

“The government couldn't account for the number of teachers in the state. Hence, we demand a proper teacher headcount,” Odubu said.

The committee chairman revealed that the comprehensive document, comprising a 24-page report and 800 annexures, was the culmination of an intensive three-week effort. This undertaking involved rigorous assignments, meetings, discussions, engagements, and meticulous analysis of the materials presented to the committee, demonstrating the committee's thoroughness and dedication to producing a robust report.

Edo State's Financial Situation

While Obaseki's administration has been praised for its efforts in improving infrastructure, healthcare, and education, critics argue that the state's financial management has been lacking. The alleged debt increase raises concerns about the state's ability to provide essential services and meet its financial obligations.

APC's Concerns

The APC has expressed concerns about the state's financial situation, citing the need for transparency and accountability. The party's accusations against Obaseki's administration highlight the importance of responsible financial management and the potential consequences of unchecked borrowing.