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Delta House approves Ag Gov’s N20bn loan request

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By Austin  Ogwuda
MEMBERS of the Delta State House of Assembly, Tuesday, approved expressly a request for N20 billion from the acting Governor.

The acting Governor, Prince Sam Obi, had in a letter dated December 7, 2010, to the State Assembly, personally signed by him said, “I wish to hereby request the approval of the House to borrow the sum of N20b only to enable the state government meet some of its very pressing contractual obligations for which the state government had taken benefit.

“The loan facility, shall be sourced from reputable financial institutions in Nigeria and shall attract not more than 13 percent interest rate per annum subject to mutually agreeable adjustments in line with CBN monetary policy rates and two percent upfront fees. It shall be repaid within a 24 months period with revenue from the state’s monthly Federal Statutory Allocations, FAAC,  with a three months moratorium on the principal sum,” he had said in the letter.

The approval was granted with no objection after the letter was read on the floor of the House.

But in a sharp reaction to the approval, the Labour Party governorship candidate for the re-run election, Chief Abel Edijala,  said  “this is ridiculous and laughable  when you consider that the acting Governor has only two months to go. I am sure the money is meant to prosecute the re-run but labour shall resist them on the field.”

On his part, the national Coordinator  of the Forum for Justice and Human Rights Defence, Mr Oghenejabor  Ikimi,  condemned the N20billin loan,  describing it as reckless.

devilish and the height of fiscal irresponsibility barely three weeks to the end of year 2010. We are oblivious of the fact that the said monies are for the urgent needs of the political class in the state and definitely not for the needs of the suffering and traumatized masses of Delta State”.

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