IN Governor Adams Oshiomhole's supplementary budget submitted to the Edo State House of Assembly towards the close of 2011, he requested for, among other things, N7.2 billion for debt servicing.
This item in the budget corroborates the often repeated claim that Edo State has been saddled with a massive loan indebtedness since the start of Oshiomhole's tenure as governor.
The alarm over Edo State debt burden was first sounded by the Chairman of the State Chapter of the Peoples Democratic Party (PDP), Chief Dan Orbih, as far back as February 2010, when he disclosed that since the inception of the Oshiomhole government in November 2008, it had accumulated bank loans worth several billions of naira from several Nigerian banks and other sources.
In 2011, Orbih said that the debt profile of Edo State had climbed to over N60 billion, including loans from the World Bank and other international organisations. The rising indebtedness of Edo State was further echoed by the immediate past Governor of the State, Professor Oserhiemen Osunbor, who put the figure at over N100 billion in 2012, with the serious allegation that only N5 billion of that amount was utilised for state projects (Vanguard of10 January, 2012).
Both Orbih and Osunbor were consistent in raising the alarm on the dangers of these loan obligations; more importantly, they were both concerned about the reckless manner in which the funds were being expended. While these two men (because of their political inclinations) may be accused of a partisan perception of reality, the figures appear to be on their side. First, there is obvious truth in their claim that the State is heavily indebted. Second, the figures for some of the well advertised projects in the State seem to be beyond belief.
One of the most hyped projects since Oshiomhole took over the governance of Edo State is the dualisation of the Airport Road. This project, which is essentially an upgrade of an existing road, is advertised as costing the State as much as N11.1 billion. This is for a road less than 8 kilometres long. It does not require any great mathematical knowledge to know that Oshiomhole is claiming to be building this road at a cost of more than N1.6 billion ($10 million per kilometre).
It is doubtful if in human history, anywhere in the world, a road has cost that much. The same outrageous claim is being made about the rehabilitation of the Ring Road. Here, the sum of N2.1 billion is claimed to have been spent on this project. It is instructive to note that this road is less than 1 kilometre long. What this means is that the only road that has exceeded Oshiomhole's world record of $6.5 million spent on the airport road is the Ring Road which, according to the advertised cost, is calculated to be approximately $14 million per kilometre.
There is also the Ring Road-Siluko Road to Textile Junction, a distance of 3.2 kilometres, the contract of which was awarded to Hitech at the sum of N2.8 billion (calculated to be N875 million per kilometre or $5.5 million per kilometre). It should be noted that in comparative terms, the Niger Delta Development Commission (NDDC) awards more sophisticated contracts at between N78 and N125 million per kilometre.
The series of mind-boggling disbursement of resources permeates all the development projects of Oshiomhole's government. The beautification of King Square, involving the planting of flowers, slim asphalt and other subsidiary works, is estimated to have cost N900 million, approximately $5.6 million dollars. Many commentators on this project have suggested that it should not have cost more than 10 percent of that amount. Even if we want to be charitable and allow that it would cost 20percent of the amount claimed by Oshiomhole, we would be talking of an exaggerated difference of N720 million.
The same ratio of actual cost to advertised cost is evident, for example, in the so-called rehabilitation of Idia College, Benin City. The Government claimed to have spent N500 million on that project; where as many observers believe that the sum would have conveniently been spent in rehabilitating 30 secondary schools. Again, even if we were to be charitable, we would find it difficult to accept that more than 20percent of N500 million would have been spent for the project.
These projects present the picture of a pattern of inflated contracts and wasteful expenditure in Edo State. Put differently, it appears that the people of the State are getting only 10-20 per cent of their money's worth while 80percent or more percent is disappearing into thin air. At that rate, it does not require any soothsayer to know that the State will soon go bankrupt. This would be a double jeopardy as the funds being mismanaged are borrowed. The people of Edo State are facing a situation where their resources are being spent recklessly on projects of marginal value, and a future of indebtedness and insolvency.
Even, if we grant that the opposition tends to exaggerate and will do everything to stigmatise the government in power; it is difficult to disagree with the scenario of doom when one looks at the figures of contract estimates in Edo State. Interestingly, the Oshiomhole government has been tongue-tied in its own defence. No where can one find any defence, vigorous or timid, of the charge of inflated contracts, a fact which, of course, has given room to the blossoming of the belief that Edo State is in the grip of a rampaging oligarchy.
Nothing supports this portrait more than the scandal over the new estate in the governor's country home of Iyamho. As it is now widely known, he is building an estate of gargantuan proportion, spread on over 93 acres of land., containing: an amphitheatre, a sixty-five bedroom mansion, sixteen outhouses, three separate man-made caves, a round-the-entire-perimeter artificial lake, an Olympic-size swimming pool, with a king-size fountain and Jacuzzi in the centre.
Mr. MORRISON EGBADIAMUNE, a public affairs analyst, wrote from Benin City, Edo State.
Vanguard Nigeria