The Peoples Democratic Party (PDP) in Imo state has faulted the excuses proffered by the state’s government for borrowing N8.9 billion.
In a statement signed the the PDP’s publicity secretary in Imo State, Ogubundu Nwadike, the party said the reasons and excuses recently proffered by the Imo State Commissioner for Information and Strategy, Declan Emelumba for the Uzodinma regime borrowing a N8.9 billion loan from Fidelity Bank Plc was untenable.
The PDP said the claim by the commissioner that the N8.9 billion was not a loan but money that accrued to the State as its share from the “Excess Crude Account” from the Federal Government is suspect.
The PDP quoted a statement from the chief press secretary/media adviser to the state’s governor, Oguwike Nwachuku, to argue its case.
The statement reads: “The Commissioner for Information and Strategy clarified that the money in question is not a loan, but Imo State Government’s share from the Excess Crude Account from the Federal Government.
“He said that *what Imo State Government did was simply to use her entitlement to get the money in bulk from Fidelity, her customer bank, instead of waiting for it to come to the state installmentally.*”
But the PDP argued that from the statement, it is very clear that the N8.9 billion qualifies as a loan and not an entitlement as suggested by the government.
“What type of entitlement is that? This Party arrived at this conclusion because of the fact that ideally and in real terms, according to the Government, the money was designed to come in tranches installmentally. That is the standard practice.
“Imo PDP makes bold to ask how this Government arrived at the idea that of N8.9 billion being the share of Imo State Government from the Excess Crude Account? Have States’ shares from Excess Crude Account become fixed? For what periods is the N8.9 billion the share of Imo State Government?
“It may understood why our Party reasoned that the Governor Uzodinma regime was outrightly wrong and would have done well to wait for each tranche of the fund from the “Excess Crude Account” to come to the State installmentally, than circumventing the order and getting the fund in bulk, apparently by force.
“Imo PDP still wonders why the hurry to get the entire fund in bulk, if not for some unorthodox pecuniary needs that have no communal benefit to the State and the people. That decision to hurriedly get the money in bulk left the red flag that the Government is up to something sinister with the State’s money.
“This Party is strongly convinced about the impropriety of the Government getting the money in bulk, because it is not a normal and standard practice. The current regime is not the first in the 45-year old State, and it will not be the last. Our Party has the benefit of experience in being the longest and best occupant of Government House, Owerri. Hence, whenever Excess Crude Account is the issue, PDP understands it very well. The Executive arm does not require approval of the legislature to appropriate Excess Crude Account funds. Once the Legislature is involved, then it is a loan negotiation by the Executive arm that is supported by the Legislature.
“Therefore, we insist on our earlier conclusion that Governor Uzodinma has only obtained a loan of whopping N8.9 billion, which from the official statement, Fidelity Bank Plc will be discounting from the Imo State Government Account with them as the appropriate share of the State from the Excess Crude Account matures and reflects as having been deposited. It is a loan and nothing else. Unfortunately, the Legislature granted him leave to acquire such questionable loan.
“The fact that the Imo State House of Assembly was required to give impetus to the acquisition of the N8.9 billion also reinforces our conclusion that Governor Uzodinma just borrowed another huge sum from the bank. Yet, the use to which all the loans obtained by Governor Uzodinma are put to are still unknown and invisible to Imo people.
“Our Party would, however, further warn that the current regime must desist from its constant mortgaging of the future of our State with multiple borrowings of loans in any disguise. Governor Uzodinma should stop running Imo State on borrowed loans. He must work out ways of generating revenue for the development of the State. With allocations from the federation account, the internally generated revenue, the excess crude account, ecological funds, and various other sources of revenue, Governor Uzodinma has no need for recurrent borrowings,” the PDP said.
