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Govt Edge Over $44.1m Phoney Contract
Bayelsa State Governor, Hon Seriake Dickson on Wednesday shocked highly impoverished Bayelsa people and other stakeholders when he admitted to making payments, to the tune of $44.1million, to two foreign firms for two fishery projects that he said were still being negotiated.
The governor’s response to a question by a reporter on the value of the contract raised eyebrows in Yenagoa at the monthly transparency media briefing to give account of the financial position of the state for the month of July.
Dickson, who presented payment instruments for 80 per cent of the contract, had declined to mention the contract value but merely said that the government was making a 30 per cent and 50 per cent payment to the two contractors.
Curiously, the heavily-indebted state is still servicing a commercial agriculture loan and sundry bond obligations undertaken by his predecessor, Governor Timipre Sylva.
Responding to the question on the contract sum denominated in dollars, Dickson said that he was still looking at the figures with a view to arriving at the final figures.
But the same governor admitted to making 80 per cent upfront payments amounting to $44.1million.
In a lengthy and convoluted explanation, the governor failed to give reasons for making such princely upfront payments for contracts that are still being negotiated.
Former Governor Timipre Silva had awarded many phantom projects across sectors where contractors got huge upfront payments, only to abandon such project sites without any meaningful work done to deliver on their obligations to the people of the state.
However, in spite of the confusion generated by the presentation, Governor Dickson said that his administration was committed to promoting aquaculture in its bid to position agriculture as the bedrock of the state’s economy beyond oil and gas.
He announced the government would soon commence construction of two fishery projects valued at $44.1 million in the state, stressing that the state government was desirous of an economic growth and development built on agriculture and tourism.
He also said that the government had signed a contract valued at $17 million for the construction of a Professional Golfers Association-rated Golf course in Yenagoa.
“We are committed in broadening the base of our economy beyond oil and gas. It is our determination to make agriculture the major plan upon which a virile economy will be based.’’
According to him, the state government has sent 500 Bayelsa youths to train in vocational and skills in various aspects of agriculture in Benin Republic, to build a sound manpower base that would drive its huge investment in the sector.
The governor expressed the determination of his administration to make the state number one in agricultural food production, not only for local consumption, but for export.
He said: “We are doing all this, so that when oil and gas is gone, agriculture and tourism will be the major stronghold of our state economy.
“We want to impact on middle level manpower in our agriculture sector; that is why we are training our youths in agriculture to sustain our huge investment in the sector.”
The Deputy Governor, Rear Admiral John Jonah (rtd.), who gave the financial breakdown of the income and expenditure of the state at the occasion, put the state’s statutory allocation from the Federation Account at N3.219 billion for the month of July, 2013.
According to Jonah, gross inflow stood at N17, 961billion, while total deductions was put at N2.70 billion which comprised bond deductions, repayments on derivation, agricultural loans and grants to farmers, among others.
He said that a total of N658.39 million was recovered as Internally-Generated Revenue for the month of June, while workers’ salaries for the month of July gulped N3.96 billion.
The deputy governor further explained that recurrent expenditure of the state stood at N3.82 billion while actual capital payments was N9.67 billion.
According to him, after all expenses, the balance in the coffers of the state stood at N19.96 billion.
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