Press Releases

Lagos Government Did Not Buy Sunborn Yatch – Fashola

Feb 19, 2009 - Lagos State Governor, Mr. Babatunde Fashola (SAN), at the weekend stated categorically that the Lagos State Government did not commit any money to the purchase of Sunborn Yatch on the Lagoon along the Marina in Central Lagos.

Fielding questions from Government House Correspondents at the new Lagos House, Governor Fashola said what the Government did was to engage a partnership predicated on a business initiative by a Private Sector operator who was interested in providing the facility as a way to provide accommodation to visitors in the State, especially on weekends.

“It is factually incorrect that Lagos State Government acquired that Yatch. We did not. What we did was to engage a partnership. That partnership was predicated on a business initiative by a Private Sector operator who felt that Lagos hotels were usually fully booked over the weekend and that there was opportunity, rather than build a whole new hotel, to get the facility which would provide hotel lodging on the waterways”, the Governor said adding that the Government encouraged the initiative.

According to the Governor, the involvement of the State Government was to the extent of providing a mooring facility and land near the mooring facility that would serve as booking hall and reception for the facility.

Governor Fashola, however, explained that the operators had not come back to him since they made the acquisition to indicate when they intend to deploy the operation of the boat, adding, “But the boat does not belong to the Lagos State Government. We did not buy it”.

“But we engaged and we are still ready to engage that partnership to provide that kind of facility that they sought to bring, which is a hotel on the water and we will make our necessary commitment when we see clearly how to proceed to actually realize the investment that business concern has made”, he said.

Offering a panacea to ameliorate the effect of the global economic meltdown on the country, Governor Fashola called for the consideration of the release of a quarter of the nation’s foreign reserve into the local economy as a way of cushioning the effect of meltdown.

Governor Fashola said that just as China recently released the sum of $568Billion into the Chinese economy to cushion the effect, now is the time for Nigeria to draw down on its foreign reserves, adding that what is missing in the Nigerian economy in terms of effect of the global financial meltdown is about $3Billion.

He said the country should also consider the possibility of lending local Nigerian banks from the foreign reserve at prevailing foreign interest rates.

Governor Fashola emphasized that today, globally, the prices of so many items have dropped, adding that now is the time for the country to consider buying up some refineries overseas or even engage professionals to build new ones.

He explained that this has become necessary because most of the construction outfits and professionals abroad are experiencing a lull which could be capitalized upon now for the nation to put its major manufacturing concerns in place.

According to Governor Fashola, “this is the period when the Nigerian foreign reserves should be constructively used, because it also represents a period when the nation is free from all forms of debts and have foreign reserves”.

Continuing he added: “Truly there is recession, but has it truly affected the fundamentals of the Nigerian economy. In our critical sectors like transportation and power, there has been depression such that there are no efficient rail services operational in the country. No coaches can take us to Ibadan as an example in two hours”.

The Governor also said now that Western economies are depressed, the country needs to consider what its options are because the Nigerian economy cannot be equated to Western economy.

He wondered why the nation is crying wolf now when it has not spent its reserves adding that what is most important now is how to ensure that people are kept in employment.

Governor Fashola who was reacting to a question on what informed his meeting with business leaders in Lagos on Wednesday night said he convened the meeting because he thought the business leaders would serve as a useful source of ideas for the financial meltdown committee set up by President Umaru Musa Yar’Adua of which he is privileged to be a member.

He added that his meeting with the business leaders which is the inaugural one was also aimed at having a feel of what business leaders in Nigeria think and thinking along the line on what kind of laws can be put in place with a view to getting the business leaders informed about how the committee intends to go.

Governor Fashola who also spoke on the bill before the National Assembly on the setting aside of 3.5 percent mandatorily for Corporate Social Responsibilty said such a legislation would not be business friendly.

He added that any form of legislation which seeks to concern itself about earnings of corporate concerns which were legitimate and making it compulsive for such organizations to set aside a definite amount is not going to help the Nigerian economy.

He added that especially against the background that the country has an economy which is trying to promote Foreign Direct Investments (FDI), such a legislation may be counterproductive.

The Governor said the Lagos State Government as an example has refused to place a benchmark or tax on the issue of security in the state, especially since the business organizations have to contend with other forms of taxes which they pay to different levels of government.

He said legislations on CSR in Nigeria should rather concern itself about how integrity in governance can be promoted by enthroning probity but not legislations in terms of pecuniary needs.

On media reports that toxic items might have been dumped in the State through fairly used items, Governor Fashola said the State Environmental Protection Agency (LASEPA) would investigate and determine if indeed the items in question are toxic items.

He said the state would first investigate the issue and communicate the people who are exposed to the items and are using it to realize that they are playing with great danger.

He emphasized that the issue of fairly used items are signs of the neglect of the Nigerian economy which allows it to become a dumping ground for other economies.

On the cancelation of the election of Governor Segun Oni in Ekiti State, Governor Fashola told the newsmen that the judgment has shown that injustice cannot stand in a society of men.

He added that the pronouncement represent one of the first steps to political reform which has been taken by the judiciary and has shown that electoral malpractice would not be allowed to go unpunished.