INTRODUCTION: We wish to draw your attention to the grossly and blatantly desecration of
the sanctity of good governance and accountability by the award of
fraudulent contracts by the governor of Edo State Adams Oshiomhole, to
his cronies and obtaining loans on behalf of the State government for
unspecified purposes. This act has now gone to a point of crescendo
that we feel that unless something is done, the State debt profile may
put us in a perpetual state of debt repayment for generations to come.

We feel these are breaches of the Nigerian Constitution and Code of
Conduct. Following this mischievous and orchestrated virus of
corruption infested in our government today, we have deemed it
necessary to avail all stakeholders and indeed the entire people of Edo
State of the implications of Governor Adams Oshiomhole’s financial
recklessness.

1). In November 12^th2008 when Adams Oshiomhole took over the reign of government from
Senator Oseirhemen Osunbor, he met a debt profile of 4.4 Billion Naira
(this was confirmed by Oshiomhole’s State Commissioner of Finance
before the State House of Assembly in his budget defense).

2). In December 2009, the State debt profile rose astronomically to 18.8
Billion Naira (also confirmed by his Finance Commissioner at the budget
defense before the State House of Assembly).

3). Added to this, Oshiomhole’s government secured new loans on behalf of the
State government for other unspecified reasons between January 2010 to
date as follows:

a). From the Sky Bank he has obtained a loan of 5 Billion Naira

b). From the United Bank of Africa (UBA), he obtained another loan of 5 Billion Naira.

c). From Equatorial Trust Bank (ETB), he obtained yet another loan of 2.2 Billion Naira.

d). Let me also inform you that as at the time of this my interactive
section with you, Governor Oshiomhole has concluded negotiations to
obtain another loan of 2.9 Billion Naira from the First Bank of Nigeria.

Other information available to us, is that the State government has over 10
Billion naira debt owned to various contractors who has appropriate
certificates for payment.

What is worrisome in this scenario is governor Oshiomhole’s penchant for
taking loans without due regard to the State finances and the
implications of such loans to the present and future generations.

In line with the Central Bank of Nigeria’s reforms to bring sanity in our
banking sector, we use this opportunity to call on the governor of
Central Bank of Nigeria, as a matter of urgency to examine the fiscal
policy of the State, as it is now clear that the debts being incurred
by Adams Oshiomhole’s government can no longer be serviced by our
statutory allocations and the IGR just as we feel the banking sector
may further be endangered by the State’s indebtedness. We therefore
challenge Governor Adams Oshiomhole’s government to disclose and make
public our financial state of affairs in the spirit of accountability
and the oath of office he swore when he assumed the office as the
governor of the State.

CONTRACT AWARDS:

We have also observed with dismay the manner and ways the administration
of governor Adams Oshiomhole award contracts in the State. Most of the
contracts recently flagged off were never advertised nor due process
followed as some of them are not even captured in the 2010 budget.
Examples are the Anegbete-Ekperi road and the Ewohimi-Igueben road.

In other to promote corruption and over invoicing of the contracts, the
governor has cleverly refused to state the distances of the roads and
the contractors handling the projects. We also call on the governor to
make public the details of these contracts awarded.

1). 2.7 Billion naira was said to have been spent on Auchi erosion control. As
I speak with you now, the money has been fully paid and there is no
single work done.

2). Adams Oshiomhole gave over 20 million Naira to some traditional rulers in Edo
South senatorial district to request for a constitutional position of
Speaker of the Edo State House of Assembly. This is the taxpayers’
money.

3). During the briefing before the State House of Assembly, the Commissioner for
Environment claimed to have spent over N4 Billion Naira on ordinary
designing of erosion control in Benin City and its environ. The said
design project was never advertised.

4). The Commissioner of Environment also told the State House of Assembly that
the government had expended over 250 million Naira to remove sand from
the gutter and disilting. Yet everywhere you go, no gutter is found
disilted.

CONTRACTS AWARDED TO RELATIONS:

Today in Edo State, we live in unprecedented times.

1). On the 11^thAugust 2009, Adams Oshiomhole awarded a contract to his in-law’s
company, Source – EM Global Services. The company was engaged to supply
two (2) New Dando Watertec 24 Mobile Borehole Drilling Rigs, complete
with tools and accessories to Edo State government at a cost of three
hundred and seventy one million, nine hundred and forty four thousand
Naira (N371, 944,000) only. This was to be supplied within three months
from the day mobilization fees were paid.

2). On the 28^thAugust 2009, the sum of two hundred and twenty six million, five
hundred and thirty thousand Naira, eighty hundred and ninety (N226,
530, 890) which was 70% of the contract sum was paid to this his
in-law’s company (with payment voucher Head 455, sub head 5 on month of
August, 2009 P.V. No 2). The contract was signed by the then Permanent
Secretary of the Ministry of Energy and Water Resources, Mrs. C.
Edo-Osagie for the State government.

We wish to inform the public that, six months after the mobilization has
been paid, the contractor had neither supplied the items nor refunded
the money collected. The specified three months to deliver the items as
agreed upon in the contract had long expired. Information available to
us is that the contractor has absconded…

Granted that this said contract was highly inflated as our contact with the
manufacturers revealed, we wish to call on governor Oshiomhole to call
on his in-law to refund the Edo State Tax payers money and the contract
should be terminated. Those who seek equity must come with clean hands.

Thank you.

Chief Dan Osi Orbih

PDP State Chairman