The three senators representing Kaduna State in the Senate have cautioned local and foreign commercial banks and other financial institutions against granting loans to the state government without recourse to the National Assembly.
The lawmakers said they have unraveled plans by the Kaduna State Government to secure the facility after the Senate rejected the request by the government to obtain a $350 million loan from the World Bank in March this year.
The senators are Shehu Sani (APC, Kaduna Central) and Chairman Senate Committee on Local and Foreign Debts; his counter from Kaduna North, Suleiman Hunkuyi (APC) and Danjuma La’ah (PDP, Kaduna South).
A statement jointly signed by the three senators senators on Wednesday, also disclosed that the government is already negotiating with local banks with a view to obtaining ‘huge unreasonable sums of local currencies loan’.
According to them, such facilities are beyond the solvency of the state government.
The statement reads: “Information available to us the three Senators representing Kaduna State confirms the resort by Kaduna 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 Kaduna State Government, to negotiating with some Finance Houses to procure huge foreign Loans to the detriment of Kaduna 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 350m earlier this year through the Senate.
“The general public to note, the extent of desperation the State Chief Executive went to town on personalizing the official disapproval of the east while 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 ofthe Local Commercial Banks, finance Houses, Foreign finance managers and Finance Houses, to take seriously to the commercial and Ethical responsibilities in doing business with the current leadership of Kaduna State Government under Nasir el-rufa’i.
“The Banks and Finance Managers are in their own interest and the wider interest ofthe general public in Kaduna 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 ofthe Kaduna State Government”.
They therefore urged the Finance Committee and Clerk to the State Assembly to publish all the requests for local and foreign loans received from the state government.
OWEDE AGBAJILEKE, Abuja
