The thirty billion naira (N30b) Loan requested by the governor of Abia state Dr. Okezie Ikpeazu which was consequently approved by the house of Assembly during its executive session on the 21st of July, 2015 has been criticized by the opposition party All Progressive Grand Alliance (APGA).
Governor Ikpeazu had in a letter dated 15th July, 2015 and addressed to the speaker Abia house Of Assembly requesting for the approval of N30 billion Loans from Commercial banks to enable his administration to construct and to rehabilitate roads, Dredge Aba River, Construction of one Hospital in each of three Zones of the State among other projects.
Announcing the approval through the resolution of the house during plenary, the speaker of Abia house of Assembly Rt. Hon Martins Azubuike noted that the application for the Loan was occasioned by the dwindle falling of oil price which affected the Federal allocation and poor revenue generations in the State adding that the Loans will assist the state government to execute its budgets and clear salary arrears.
In a swift reaction, the All Progressive Grand Alliance in the State in a Release signed by its Publicity Secretary Madu C. Chikwendu and made available to newsmen in Umuahia, the party rejected the resolution of the house in passing the bill saying “very important and legal provisions were neglected”.
The party also noted that the Loan Transaction is riddled with additional illegalities because the said Loan was not approved by the debt management office as requested by Law. “Even the banks providing this Loan are toying with depositor’s funds since there is no guarantee that the state has the capacity to repay these funds. By granting this Loan, the Banks are violating Federal Law and endangering Depositors funds”.
The All Progressive Grand Alliance (APGA) Abia State chapter therefore calls on the Abia State House of assembly to Tow the part of honour and consult individual constituencies and the people of Abia state before undertaking such “ Monumental Decision that may mortgage the future of Abians yet unborn”.
“Most worrisome was that whereas other states have made full disclosure with specific facts and figures about their finances, our dear state Abia has found it impossible to do same. This information and full disclosure must precede the approval of any new Loans”. The release stated.
