By Chibuike Nwabuko
Abuja (Sundiata Post) – Federal lawmaker representing Kogi West senatorial district at the red chamber, Senator Dino Melaye has raised the alarm over plan by the Kogi State governor, Yahaya Bello to secretly borrow N180billion without recourse to due process.
Dino who raised the alarm at the floor of the senate, expressed worry that not even the state House of Assembly is aware of the fresh loan and did not approve such a fraud. Adding that this makes this loan “under the table deal”.
He therefore called on the senate to ask the Ministry of Finance to suspend the transaction forthwith pending the outcome of investigation by an adhoc committee to be constituted by the senate.
While informing that Governor Yahaya Bello has penchant for mismanaging loan, Dino reminded that despite the fact that the governor has received in the past, two bailout funds from the Federal Government and three times Paris Club fund to offset salary arreas; salaries have still not been paid.
“As representative of the people, the people of Kogi State are disturbed that this loan with 15 years tenor, two years moratorium with interest of 10 percent will jeopardize the future generation, Dino said”.
He further alleged that the fresh loan which is christened “loan refinancing of Kogi state local debt” is being sort to fund both the election in Kogi State and that of presidential. Stressing that the Federal Government through the Ministry of Finance has guaranteed the same loan and has since signed alongside the government of Kogi state without recourse to the National Assembly as required by law.
According to Senator Dino, “Senate notes that Kogi State government is owing about N40billion local debt borrowed by the present administration for the payment of salaries that was never paid.
“Furthermore, that Kogi state government has approached East –West Capital Cooperation of united Arab Emirate owned by one Arab man called Mr. Mahmud for a loan of $500milion which is about N180bn.
“The senate is worried that this fresh loan has been christened loan refinancing of Kogi state local debt in order to avoid coming to National Assembly for approvals.
“Further worries are that the Federal Government through the Ministry of Finance has guaranteed the same loan and has since signed alongside the government of Kogi state without recourse to the National Assembly as required by law.
“The senate is disturbed that the loan to refinance consolidated loan, Kogi state should borrow what it is owing locally which is about N40billion and not to be borrowing N180bn.
“Obviously, there is a plan to defraud the people of Kogi state to fund both the election in Kogi State and that presidential. Further disturbed that the loan is about 15-year tenor and for a two years moratorium while the governor has just one year to complete his tenure is very disturbing.
“The loan is about 10 interest since the state House of Assembly is not aware, and did not approve such a fraud , it makes this loan “under the table deal”.
“The senate is concerned that after three Paris club refund to the state government, and two Federal government bailout funds to the state, the governor is yet to clear or pay outstanding salary of over one year and over two years of outstanding pension arrears. This money, if allowed to pass through will go the way these other funds in the past have gone.
“The import of my motion is that while the government of Kogi state is owing N40bn local debt he is seeking for loan of N180bn to finance local debt; he wants to borrow to pay borrowed money. Even if he wants to consolidate our debt and pay, he should be borrowing exactly what we are owing.
“How can the state be owing N40bn and you want to borrow N180bn for 15 years and they called it debt refinancing because they want to avoid coming to the National Assembly for approval, he said.
“This matter was never raised in the t House of Assembly, it was not approved by the Kogi State House of Assembly and yet they want to illegally collect loan and fund election and create mayhem in Kogi State.
“The state has received in the past, two FG’s bailout funds, three times paris Club fund yet salaries has not been paid. As representatives of the people of Kogi state, we will not allow the future generation of Kogi State to be in trouble we cannot repay or mortgage our destiny because of egocentric interest of one individual.
“We are calling on the senate to ask the Ministry of Finance to suspend the transaction forthwith.