Expert douses tension over Kwara's proposed N20b bond
The intense fear over the future of Kwara State on the proposed N20billion was allayed yesterday as Managing Director of Harmony Securities Limited, Alhaji Muftau Adeola Balogun, said the government was navigating the state on the right path.
He said no capital projects could be desirably done without recourse to the capital market for funding.
The government had written the state House of Assembly seeking approval to raise the huge sum from the bond market to enable it continue with yet to be completed capital projects and execute new ones in the pipeline.
The legislative arm, in response to the request, had asked the state government to furnish it with detailed explanation on what it intended to do with the proposed fund.
But the Harmony Securities Limited boss justified the bond request in the capital market, saying the Security and Exchange Commission and other relevant agencies were partaking in the process before it could scale through.
Balogun advised the people not to entertain any fear as transactions involved in the release of the fund could not be performed in isolation of all other agencies.
He said the people of Kwara would benefit maximally from the capital projects to be executed through the bond as done in the previous ones taken.
"The only best way of funding government capital projects and infrastructures is the capital market all over the world. Because that is where you have long term fund and the rate is very low. Reservation by people might come from what happened with the previous bond. And I think that might go to the government that they are not having enough education and enlightenment.
"The first N7billion (bond) that was taken by Bukola (Saraki)'s administration in 2009, the impact is enormous. At least, Harmony Securities partook as broker to the issue. Among the so many projects that happened, one comes clearly and that is Kwara State University.
"Taking money from the capital market is even the more transparent way, because you itemize the projects and it is equally measured by another group and the payment is secured. We have Irrevocable Standing Order Payment that guarantees the payment.
"So what I'm saying is that anywhere in the world, the way government goes for developmental projects is the capital market. So let the people of Kwara State know that the government is doing the right thing.
"If the state government wants to go for another N20billion, I think it is the right thing to do. The people of Kwara should know that the government is doing the right thing, they have no cause to doubt the sincerity of government particularly when it comes to capital market.
"As a professional like I said, we are involved and we keep not only advising, but also monitoring the projects enumerated by the government. Do not forget, the state House of Assembly must have seen the bond and they have to key in. So, it is not unilateral, and when many people are involved, transparency becomes more. I want to assure Kwarans that the government is doing the right thing", Balogun said.
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