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Thursday, January 23, 2014

WHY I ABANDONED DANIEL'S PROJECT; GOVERNOR AMOSUN REVEALS

The Governor Ibikunle Amosun-led government in Ogun State has again lashed out at the former administration of Otunba Gbenga Daniel in the state, describing as obsolete the electricty generating equipment procured by it to boost electricity supply in the state.

The condemnation took place Thursday during the 2014 budget analysis of the state when the state Commissioner for Finance, Mrs Kemi Adeosun addressed a crowd that gathered at the June 12 Cultural Centre, Kuto, Abeokuta.

Adeosun explained that the present government led by Amosun had decided not to install the N9 billion power equipment following experts’ advice that the equipment was manufactured 20 years ago.

According to her, “the company from which Daniel bought the equipment requested for a balance of N5 billion and N3 billion installation fee. But a consultant noted that if the state government had so much, it could procure a better and new model of the power generating equipment.”

She however, declared that the state government was searching for someone who will buy the equipment.

“When we came into office, we met the power equipment on ground. N9 billion had already been spent on that equipment. They were asking for additional N5 billion. In addition, they wanted N3billion to install it. When you want to spend that kind of money, you have to do cost benefit analysis, which we did. We called in some power experts; they looked at the equipment and said this equipment is about 20 years old. To install it with N3 billion, with that money, you can buy brand new equipment which is going to be far more efficient than that average equipment.

“They said if you have that kind of money, we do not advise you to instal this equipment. I’m sure you’ve gone past that power plant and seen the plumes of black smoke coming from the power plant. Go to Dangote’s plant at Ibese, look at the tiny, efficient, quiet power plant and that’s modern technology. So, that’s why we took that decision and what we are trying to do is and we have told the contractor, to look for somebody who can buy this and let us use the
money to buy something modern.”

Close to the end of the tenure of the former Gbenga Daniel administration in 2011, he bought some electricity generating equipment and installed about seven turbines, some of which stopped working shortly after the end of the administration.

Daniel also installed the Phase I of the power plant, which is currently serving the state government secretariat and some parts of the state capital.

Speaking on the breakdown of the budget, the State Commissioner for Budget and Planning, Mrs. Wande Muoyo explained that the government was poised to consolidate on its achievements of 2013.

She explained that the policy trust of the budget is geared towards completing the existing projects and sustaining the developmental strides of the administration.

The Commissioner disclosed that the Amosun-led administration has concluded plan to procure gas turbine engines to boost electricity supply in the state in the current fiscal year.

She assured the people of the state that the budget would be implemented, and charged them to pay their taxes promptly.

Governor Ibikunle Amosun presented a budget proposal to the State House of Assembly on 19 November, 2013 while a total of N210.29 billion was passed by the lawmakers and it was signed into law on 30 December, 2013.

On the key features of the budget, the commissioner said that the state government was ready to adopt the International Public Sector Accounting Standards (IPSAS)

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