Press Release
The party this morning received the embarrassing news of passage of a house resolution authorizing Governor Okezie Ikpeazu to borrow thirty billion naira (N30b) for infrastructural development from a consortium of commercial banks.
Whereas APGA would welcome any genuine efforts to develop the state, we wish to categorically reject the hurriedly packaged and approved resolution .Our investigations have revealed that;
Contrary to the existing house rules, there was no public hearing and secondly, there is no evidence that any of the legislators consulted their respective constituencies. Additionally , very important and legal provisions were neglected. These include details about interest rates, mode of repayment, duration of facility, security, moratorium and others
We note with consternation the grand deception employed by the ruling party for the hasty passage of the loan. For instance the purported assurance by the speaker that the loan would be repaid through “through the over N1b generated from Aba is an obvious fallacy.
We are aware that Aba, has never declared more than N250m monthly from IGR in the last few years. More laughable is the information that the government misled the house of Assembly members that “Abia being the least indebted state needs to borrow and equal the debt level of other states. That indeed the N30b is the least amount being borrowed by any state and finally that the federal government will write off this debt “, How ridiculous .This era of conscious and unconscious impunity fuelled by executive and legislative rascality must end.
In the words of the APGA State party Chairman Rev Augustine Ehimere ,
“APGA as a political party represents the will and the determination of all Abians for change; and have entrusted this vision for change to APGA. We shall not compromise. This worrisome development confirms our earlier calls for transparency in the conduct of affairs of the government particularly Abia state. What is the financial standing of the state, how much is owed to contractors , how much is owed to civil servants and other creditors .The shrouding of government affairs in secrecy must end .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 ”.
Indeed this transaction is riddled with additional illegalities .Was this loan approved by the Debt Management Office as requested by law. Even the banks providing this loan are toying with depositors funds .Since there is no guarantee that the state has the capacity to repay these funds. The bank(s) must be mindful of the fact that they own no money but are mere guardians of depositor’s funds. By granting this loan the banks are violating federal law and endangering depositor’s funds.
The All Progressive Grand Alliance (APGA) Abia State chapter hereby calls on the State house of Assembly, to tow the part of honour and consult individual constituencies and the people of ABIA State before undertaking such monumental decisions, that may mortgage the feature of Abian yet on born.
Sign
Madu C Chikwendu
Publicity Secretary
All Progressives Grand Alliance
Abia State Chapter
