The three senators representing
Kaduna State in the upper chambers of the National Assembly have warmed banks
and financial institutions not to extend loan facilities to the Nasir El-Rufai
led Government.
This is contained in a statement
Senators Suleiman Hunkuyi (Kaduna North), Shehu Sani (Kaduna Central) and
Danjuma La’ah, (Kaduna South), jointly signed and issued in Abuja.
They said the warning became
necessary following alleged move by the state Governor, Nasir el-Rufai, to
obtain huge loans through the back door.
The Senate had in April 2018
turned down Kaduna State Government’s request for the approval of a $350million
loan
But the senators advised money
lenders to approach the Debt Management Office (DMO) for necessary briefing
before venturing to grant loan facility to the state government.
The two-page statement read in
full: “Caution to chief executives of commercial banks and other fiancé houses,
local and abroad, on loan offers beyond the solvency of Kaduna State Government
emphasised that the Kaduna State Government recently failed the Legal litmus
test in obtaining a World Bank facility to the tune of USD 350,000,000, through
the process of the Nigerian Senate.
“Information available to us the
three senators representing Kaduna State confirms the resort by the state
government to other routes in obtaining loans, local and international.
“The Committee on Foreign and
Local Loans/Debts of the Senate is not unaware of efforts by the state
government to negotiating with some Finance Houses to procure huge foreign
loans to the detriment of state government.
“Such efforts being made through
private finance management companies may have to do with the failure of the
state government to secure the disapproved USD 350million earlier this year
through the Senate.
“The public to note, the extent
of desperation the state chief executive went to town on personalising the
official disapproval of the loan, which was officially reported by the Senate
and backed by the DMO official reports.
“The desperation of the state
government has now reached an epoch of reckless dimension as to use private
finance companies (Home and Abroad) to negotiate and procure similar facilities
through other mediums alternatively circumventing the Senate.
“The Senate committee on Foreign
and Local Debts and senators representing Kaduna State are also aware of the
efforts of Kaduna State Government to negotiate and collect huge unreasonable
sums of local currencies loans through Nigerian local banks.
“It is imperative to mention here
that Kaduna State solvency in collecting such loans (in those huge amounts) and
obviously, and objectively are incapable of carrying such huge debt burdens.
“The moral causes of a government
few months from elections, with no clear identity of requisite public supports
and sympathy to be re-elected aside.
“The recklessness with which
these loans are being heaped on Kaduna State Government from many commercial
banks in such huge sums calls for caution
“The three senators and indeed
the committee for foreign and local debt of the Senate use this medium to alert
chief executives of the local commercial banks, finance houses, foreign finance
managers and finance houses, to take seriously the commercial and ethical
responsibilities in doing business with the current leadership of Kaduna State
Government under Governor Nasir el-Rufai.
“The banks and finance managers
are in their own interest and the wider interest of the l public in the state
advised to not only seek approval of Kaduna State legislature (Which has long
before now turned to be a rubber stamp of the governor), but also turn to the
DMO for correct indices and reports of the current debt status of the state
government.
“For the Kaduna State House of
Assembly, it is worthy for you to be reminded that you are in those offices to
protect the interest and integrity of the people.
“Therefore, the Committee for
Finance and Clerk to the state assembly to publish all the requests for local
and foreign loans received from the state government, and the various approval
and those under consideration of the assembly or its relevant committees.
“The three senators, want to use this medium
to also thank the public in our dear state for the understanding and support
for us to continue to do our duties no matter the intimidation by the state
government.”
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