The cheering news among Civil servants/ Public Servants and their households is the acknowledgement by the state Governor, Owelle Rochas Okorocha that the long awaited bailout from the Federal government has eventually touched the Eastern Heartland. It is goodnews according to some that the governor has entrusted a group of persons to Administer same towards clearing the backlog of salaries but, to the Pensioners also on the queue, it certainly may not be a good soup to savour.
Also, the goodnews among financial Service operators is the injection of over three hundred billion Naira into the system and further, that the bailout has helped to revive hope as some of these Commercial debts would probably not have been totally recovered in the future with some incoming Administration calling for review .
On a lighter note, a friend of mine jokingly said that as the workers are devising means to evade Creditors due to the publicity attached to this bailout, the Creditors have learnt to shoot without aiming by monitoring every movement of the debtors and news media.
Obviously, the bailout is a fallout of the cries by our governors to President Mohammedu Buhari on the growing Salary arrears and other commitments. Though, I may not totally belong to the supporting group for using same as an option outside the commentary on its capacity to revive the financial system to stem general decline in the economy.
Now, it is with us as we tended to the sound of the gong from the evil forest while forgetting that bailout comes with a price which the next generation would contend with especially the ensuing gap in our development. Mind You, it is like a transfer from every day pressure for the sin of a few to a longtime curse on those who may not have been born as at this day.
This debt restructuring exercise may have only worked to mortgage our dear State and others to a future date as the bonds mature in 2034. It is just about 20 years from this day when possibly most actors may have fizzled out from the Political space, and by rushing to restructure, we have only said goodnite to questions on what these huge loans as debts were used for and match the values to what is on the ground to enable us overcome the challenge of history. It is one thing pushing the argument to falling oil prices though a global phenomenon but, Accountability would have led us into the application of our monthly allocation earlier.
Indeed, we seemed to have bought into debt restructuring and Salary payments that we forgot that the debts are only extended to a later date for repayment.
According to Dr Abraham Nwankwo, Director General, Debt Management Office (DMO) and captured in the Punch Newspaper of August 25, 2015, Imo State share in the N322.78 billion debt belonging to 11 States is N37.1billion. Continuing,it states “the restructuring was effected using a reopening of the FGN-Bond issued on July 18,2014 and maturing on July 18,2034”. Also, “the Pricing was based on the yield to date of the bond at a 30-day average resulting in a transaction yield of 14.83 percent”.
From the above submission by the DMO’s office that a transactional yield of 14.83 percent of the total value would be borne by these States including Imo State showed the advertised bailout is never a free ride across the ocean of our development targets.Mark it, we are not better off as a transactional yield of 14.83% would be multiplied by the stock of debt (N37.1bn) and will see Imo State cough out N5.5 billion annually. Then we can sum the 20 years to realize that N11o billion needed for development would leave our coffers outside the N37.1 billion. We are in for the harsh reality.
The argument by the governors could be a drop in monthly servicing obligations which according to DMO ranges from 55 percent to 97 percent depending on the individual State’s commitment.
Truthfully, this action represent a transfer of the sin or poor judgement of a few to generation yet on the way with repayment terminating in 2034 when most of these actors would be terminating by 2019.So, Governor Okorocha is definitely sharing in this episode for only 4 years out of the 20 years, and incidentally may have limited the capacity of subsequent Administration from borrowing assuming the need arises. This is on the premise that the present Administration may not contract further loans.
The President has only succeeded in taking the ropes tied to the neck of our actors and graciously handed it over to future Administrations/ generations.
I am worried that we have missed opportunity for Accounting and have only shielded elected Public officers from saying all they have done on our behalf. I say this because our Legislators have never purged themselves of intimidation and selective audition to question letters from the Executives before the gavel for the chorus.
Only recently came the call by the Catholic Arch Bishop of Owerri, Anthony Obinna for the governor to bring Imo State Account to Public dormain and has kept on to the call. We are only waiting but, I can imagine if it were to be other publicity glitz and the State actors would not rush to show why they have represented a shift in a box. Indeed, the call is not about the Arch Bishop but a citizen residing in Imo State desiring to know what monies collected was applied to.
Obviously, we must guard against act pushing us towards corruption as the Imo Anthem preaches. According to Prof Pat Utomi in “Ideas and the end of Systemic Corruption” argued that “Corruption has indeed crippled the possibilities of Progress in the land of great Potential”. Continuing he said” the System is in denial of a body of ideas that can lead to consistency of superior ideas for Progress”.
The Nigeria Political space is in need of men and women of roboust ideas that would lead us out of short-termism to sustainable future.
To the workers, I say that it is possible that we only postpone a date.
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OGWAZU NNAMDI
A Journalist and Commentator writes from Owerri
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