June 14, 2009

Disregard resolution on loan, Ogun ALGON tells banks


THE Association of Local Government of Nigeria (ALGON) in Ogun State has told financial institutions in the country to disregard the resolution of the State Assembly asking that the executive be denied loan by the bank.

The House led by Speaker Tunji Egbetokun passed the resolution on Tuesday barring banks, the capital market operators and regulators, security companies and allied institutions from granting any further loans to the state government until the financial profile of the state was ascertained by the House.

The state government is said to have concluded arrangement to raise N60bn through the issuance of bonds to prosecute some capital and long-term projects in the state.

However, ALGON chairman in the state, Mr. John Obafemi, at a press conference in Abeokuta yesterday said the resolution of the Assembly was capable of truncating development projects in the state and wondered whether there were no other ways the legislators could channel its enquiry to the executive than directing the financial agencies to stop its obligations to the state government.