The Delta State Commissioner for Information, Mr. Charles Aniagwu, has said the Governor Sheriff Oborevwori administration cleared over N200 billion debts since its inauguration 19 months ago.
Aniagwu, who made the disclosure while fielding questions from newsmen during a press briefing held in Asaba, the state capital, on Monday, pointed out that the current administration is ensuring that it settles all ongoing contractual obligations, while initiating new projects.
He explained that the amount covers both contractual obligations and loans taken to finance critical investments, adding that debt in governance is often dynamic, with new obligations arising from ongoing projects.
“Every day, you award a project, new debt comes in because until you are able to complete that project and pay off that contractor, it’s assumed you are still owing,” Aniagwu explained.
He further clarified the concept of retention in project management, stating that even after a project is completed, contractors are bound to a retention period, during which they are required to fix any issue that arises at no additional cost to the state government.
“For instance, in the road sector, the retention period can be two years. Within that period, if the road goes bad, the contractor is obligated to fix it. However, if the road remains intact, the contractor can demand payment of the retained funds. This constitutes a debt because it’s part of the initial agreement,” Aniagwu added.
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Highlighting the state government’s proactive approach, the commissioner noted that all certificates of payment presented by contractors have been cleared under the Oborevwori administration.
The commissioner also shed light on the process of debt servicing in relation to project execution. “When contractors proceed with their work, they present what we call certificates, which is a demand for funds to match the work done.
“This certificate presentation isn’t done daily. For instance, even if you pay a contractor today, the certificate may be for work completed last month. Between that last month and now, the contractor has likely done more work, generating additional certificates, which means more debt,” Aniagwu explained.
He assured the public that the state government remains committed to fiscal responsibility and transparency, ensuring that funds are allocated efficiently to meet the demands of contractors, suppliers, and other stakeholders.
The commissioner reiterated the administration’s dedication to completing ongoing projects and reducing the debt profile, while addressing pressing developmental needs.
“We have a governor who understands the importance of fulfilling contractual obligations. Governor Oborevwori’s commitment to clearing certificates presented by contractors underscores his resolve to deliver on the promises made to Deltans,” Aniagwu said.
