Osun state governor, Rauf Aregbesola, has denied an allegation levelled against his government in the State that he wasted N4.6 billion from the state treasury on four trailer parks that was not executed.
The People’s Democratic Party (PDP), Osun State chapter, had in a statement signed by its chairman, Hon. Soji Adagunodo, questioned the whereabouts of the fund meant for the project, five years after awarding the contract without execution.
But dismissing the poser raised by PDP, Aregbesola denied spending such amount of money on the project.
A statement signed and issued by the Osun state Commissioner of Information, Adelani Baderinwa, said contrary to the insinuation by the main opposition party, the state government didn’t spend a kobo on the trailer parks.
He explained that the trailer parks were awarded to Safeway Track Solution on a concessionary agreement but it later terminated it when the contractor failed to execute the project.
“To set the record straight, the state government wishes to state that no kobo of the state was spent on the proposed trailer parks, the government had no financial commitment to the execution of the contract, and it had been terminated for a very long time,” he said.
Providing details on the contract entered with the construction firm, Baderinwa noted that, “The concession agreement was signed on 30th November, 2012.
“The concession agreement was that the company was going to be fully responsible for the project financing; therefore, the government had no any financial commitment to the project.
“And all necessary facilities would be provided by the company in each of the parks that were to be built in Osogbo-Ikirun road, Osogbo-Iwo road, Osogbo-Ilesa road and Osogbo-Akoda road,” he added.
Baderinwa further noted that as agreed by both parties, after the execution of the projects, the construction firm will operate the facilities for 25 years before transferring it to the state but that within the 25 years period, the state would receive 30 percent of revenue while the concessionaire retain the balance 70 percent.
He, however, said the state government committed land to the planned parks, whose values stood at N320 million from the N4.6 billion total cost of the project.
“The only commitment of the state government to the planned park was the provision of Land which was provided to the Safeway Track Solution Limited by the Ministry of Works.
“The total cost of the contract was N4.6bn, including the value of the provided land which was N320 million.
“It is on record that the contractor worked for sometimes before challenges set in, which prevented further work on the project sites.
“Base on the inability on the failure of the concessionaire, the government terminated the contract. That is the facts of the contract.”