All contracts will be tied to availability of funds – Okowa
Delta State Governor, Dr. Ifeanyi Okowa has said contracts for the execution of projects will be awarded based on availability of funds.
The governor in a no-hold-back town hall meetings held at Ozoro and Oleh Isoko North and South local government areas respectively of Delta State, disclosed that his administration was committed to delivering infrastructure that will stand the test of time.
According to the governor, ” there has been a lot of destruction of our pipelines and resources to our state is limited, we cannot award contracts when we don’t have the capacity of paying, it will be wrong for us to award contract and contractors will be borrowing money to execute the projects and at the end of the day, some will commit suicide because of their inability to pay their debts to their bankers.”
While disclosing that most of the projects his administration has executed throughout the state was as a result of proper planning culminating in the phasing of payments to the contractors, Governor Okowa assured Deltans that his administration would continue to ensure prudent management of funds to the benefits of the people.
The Governor who stated that since early 2016, large quantity of crude oil has not been lifted from the state as a result of the destruction of the Forcados Export Trunkline, observed that the economic recession that rocked the country, also, affected revenue accruing to the state government.
“The prices of oil went down and unfortunately, it is the main revenue earner for Nigeria including Delta State, so, with such, our revenue went down; apart from the revenue going down, starting from February 2016, half of the oil production in Delta State has not been exported because of the destruction of pipelines but, by the grace of God, the Forcados Trunkline will come on stream in the next few weeks which will bring about more funds to the state and we will have to also assist the local government councils,” he said.
He observed that the issue of payment of salaries of local government staff and primary school teachers was a great challenge because, the allocation to that tier of government could not pay their salaries.
The Governor stated that his administration has consistently paid salaries of workers regularly.
Governor Okowa reiterated that funds from the Federal Accounts Allocation Committee (FAAC) goes straight to the local government councils, expressing hope that the situation would improve once the Forcados Trunkline is fixed in the next couple of weeks.
The Governor stated that the town hall meeting was in line with his electoral promise of partnering with the people, giving the people the opportunity to contribute to government and allowing them the freedom to express themselves to enable him be guided in engaging in what the people want.