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Home Economy Budget

Governor Soludo reacts to allegations of budget padding

Chike Olisah by Chike Olisah
July 7, 2022
in Budget, Politics
Professor Chukwuma Soludo, Anambra State

Anambra State Governor, Professor Chukwuma Soludo

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The Governor of Anambra State, Professor Chukwuma Soludo, has denied allegations that his administration is involved in budget padding for some projects with margins as high as 300% in some ministries.

The reaction by the governor follows an article titled, ‘Budget padding scandal hits Anambra State Government’.

This disclosure is contained in a statement issued by the Press Secretary to the Governor, Christian Aburime, on Thursday, where Governor Soludo said that criminals of different types displaced by his government were fighting back with propaganda.

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What the Anambra State Governor is saying

Soludo who said that Anambra state no longer has free money for those greedy people who solely depend on the state government for the source of livelihood and patronage stated that the allegations are part of the diversionary antics of people whose criminal enterprise is being affected by its fight against all forms of criminality.

According to the statement, Soludo said, ‘For clarity, it is important we state that we are not oblivious of the diversionary antics of those whose lucrative criminal enterprise is being smoked out by the renewed fight against all forms criminality in the State, housed in various camps and bushes perpetrating heinous crimes.

”Anambra no longer has free money to feed the greed of those whose source of livelihood is government money and patronage as a result of free oil money which sadly stopped while assuring that there will be value for every penny spent.

”The claims that the commissioner for works refused to appear before the House of Assembly to defend his ministry’s budget on June 29 is false.

”We owe it as a duty to Anambra to ensure that every penny of our borrowed funds is accounted for, and deployed to building quality infrastructure, and not for consumption.

”On the cost of the road per kilometre, it is funny that the unknown writer is using propaganda and deceit to hoodwink the unsuspecting public.

“How do you start talking about the cost of contracts for roads currently being designed and contracts not awarded, of course, people always judge others by their own standards.’’

Governor gives breakdown of cost trend of road projects

Soludo also provided cost trend of road projects executed in the state which he said ranged from above N200 million to as much as N1 billion per kilometre in 2018 when diesel was N120 per litre and a tonne of asphalt, N18,000

  • He said though the cost of diesel and asphalt had risen to N850 per litre and N65,000 per tonne in 2022, his administration would deliver quality and durable roads at the cheapest possible price, adding that the roads under design were planned to last for at least 15 years under heavy axial loads.
  • He stated, “It is important that we place it on record for the purposes of our employers and to whom we are accountable, that the previous administrations awarded roads with the cost per kilometer varying from above N1 billion to a little over N200 million.
  • “It is also on record that none of our predecessors awarded any road for less than N200 million per km.
  • “Of course, one can even get a road for less than N1 million by spreading sand and lean asphalt on it to be washed away within one rainy season.
  • “The losers of the new order will continue to try desperate acts to fight back but we remain focused, during the dry season, Anambra will see the mass action on their roads and Anambra will continue to win.’’

What you should know

  • Recall that earlier in May, Governor Soludo presented a revised draft budget of N170 billion for 2022 to the state House of Assembly for approval.
  • Soludo said the purpose of the revised budget was to reflect current realities, challenges, and priorities of the new administration and the dire needs of residents in Anambra.
  • He stressed that the budget was made up of N108 billion capital expenditure, which is 64% compared to 57% previously, while N61.3 billion is for recurrent expenditure, translating to 36% compared to 43% in the previous budget.

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Tags: Anambra stateBudget PaddingChukwuma Soludo
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

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