The Delta State Government has on Friday, denied the allegation that the recent N150Billion loan facility approved by the Delta State House of Assembly, is a last minute looting by the Governor Ifeanyi Okowa-led administration and the Peoples Democratic Party (PDP), to fund election.
Veronica Abang, who is the Special Assistant to the Governor of Delta State on New Media in a statement released on Friday 6th May 2022 via her official Twitter handle, which was an immediate reply to the fraud allegation raised by Deji Adeyanju, stated that the N150Billion loan facility was not a fresh loan, but an advance from the N270 billion owed the Delta State by the Federal Government.
Veronica Abang in her reply to Mr Deji on her official Twitter handle, said:
“Dear Deji Adeyanju, I would like to start by correcting a misconception. The N150 billion “Bridging Finance” facility was not a fresh loan but an advance from the N270 billion owed the Delta State by the Federal Government.
The request was not particularly a loan but discounting receivables from the Federal Government for Petroleum Subsidy payments made without recourse to the 13% derivation due to oil producing states from 2010 to date,” she said.
According to Veronica Abang, the N150 billion Bridging Finance facility which total N270.6billion, “ought to have been received a long time ago, but because the Federal G couldn’t pay the whole money in bulk, it became reasonable and logical that the oil producing states agree with some parts of it to be paid within 3years and the other part within 5years,” she added.
The tweets by Abang continued:
“Moving on, Delta State Government has made it clear that the N150B bridging finance facility was requested to pay for the completion of critical ongoing legacy projects awarded by past & present administrations & facilitate payment of all awarded contracts before the end of its tenure.
In 2015, Governor Okowa met a backlog of pensioners entitlement totaling N35billion and has since reduced the outstanding dues by approving a monthly payment of N500million to offset all outstanding pensions.
With the facility, the Delta State Government will be spending N20 billion for state pensions outstanding past dues, and N10billion to the Bureau of Local Governments as a grant to enable them also reduce whatever outstanding payments to local government pensioners.
It is important to also note that, Governor Okowa on assumption into office, reduced the debt profile of Delta State from N151billion to N72billion and seeks to ensure that on transition day, the debt profile will be almost insignificant.
With the N150billion bridging finance facility, the Delta State Government, will be able to execute projects like the Orere bridge, Ode-Itsekiri bridges and roads, Koka flyover and interchange, Bridge across River Ethiope at Obiaruku, the Ughelli-Asaba Road.
Others include; flood control in Effurun and Warri, Owa-Alero drainage channels, and projects being executed in the three new Universities.
The general public and Deltans need to know that the Governor
Okowa- led administration would not take any decision that would jeopardize the peace, unity, and overall transformation of Delta State,” she added.
The N150 billion Loan Facility:
Governor Okowa while presenting the request to the Assembly, had said the requested credit facility which has Zenith Bank PLC as the “lead arranger, would be principally to settle the arrears of unpaid certificates earned by contractors with respect to the completion of some critical ongoing legacy projects awarded by past and present administrations in the state.
The governor also said that part of the loan would be used to take care of outstanding pension commitments to the state and local government areas pensions in the contributory pension scheme, amounting to N20 billion and N10 billion respectively.
The governor said, “The speaker and members of the state house of assembly, I wish to inform you that the state is expecting refund from the Federal Government, being Petroleum Subsidy Payments made without recourse to the 13 per cent derivation due to oil-producing states from January 1999 to Nov. 30, 2021.
“Delta state’s portion in this regard amounted to N270.6 billion.
“Bearing in mind the administration’s resolve to finish strong, it is necessary for the state to capitalise on the refund to defray arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations.”
The majority leader of the House of Assembly, Chief Ferguson Onwo moved the motion for the approval of the credit facility was moved by the Majority leader of the assembly, Chief Ferguson Onwo.
The motion which was unanimously adopted by the house, assembly when put to a voice vote by the speaker, was seconded by the Chief Whip, Mrs Pat Ajudua.
The Allegation By Delta State APC On The N150billion Loan:
Delta state chapter of the All Progressive Congress (APC) had criticised Governor Ifeanyi Okowa for requesting the state House of Assembly to approve another humongous N150billion loan.
APC had in a statement signed by the publicity secretary, Mr. E. V. Onojeghuo, said Governor Okowa aims to secure this completely irregular loan against, “Expected inflow from the Federation Account from petroleum subsidy payments made without recourse to the 13 % derivation due to oil producing states from January 1999 to 30th November, 2021.”
The spokesman of APC noted that Okowa wants to spend what will accrue to Delta state over the next five years within the last one year of his administration.
He said: “Within the last few months, this fellow has gotten approval from the rubber-stamp legislature of Delta state, for loans amounting in excess of N250 billion and we are all sitting quietly in this state watching this pathetic excuse for an administration mortgaging our children’s children way into the future, while all the resources of our state keep steadily disappearing into private pockets.
“This N150billion loan is a fraud from the pit of hell and it is absolutely shocking that a financial institution of the supposed pedigree of Zenith Bank PLC would lend itself to such a self-evidently unconstitutional transaction.
“Governor went further to present what is a most unlawful excuse for obtaining this insane amount to his rubber stamp legislature, claiming that the state’s ability to deliver the phantom legacy projects of his shameful administration is limited by the fact that the expected total refund will not be received into the state’s account in one lump sum but will be refunded over a period of five years on a quarterly basis with effect from April, 2022 to January, 2027.”
He said upon these astonishingly unconstitutional grounds, Okowa claims that the implication of this is that the state will need to secure a bridging facility in order to achieve the objectives and the facility shall be secured with the quarterly expected inflows.
Mr. Onojeghuo said unlike what Okowa told legislators, the only lawful and legitimate implication of future revenue is that it can only be allocated in the future for expenditure by the government that happens to be in power at such time in the future at which such revenue materialises.
“Indeed, going by Okowa’s logic, it means that if we can just get some crooked bankers to simply project that 20 years from now, Delta state will earn a windfall of N1 trillion, the government in power today can just go ahead and borrow N1trillion and spend it right now, having secured the repayment of the loan against the projected N1 trillion, which, if it ever materialises, is deemed in law as revenue meant for expenditure by a future administration that would be in power 20 years from now,” he said.
“The income ordinarily accruing to our state every month can adequately settle pensions and ensure the completion of all projects as long as it does not keep disappearing into private pockets in and around Government House, Asaba.”
“Let no one be fooled: Delta State is, per capita, by far the richest state in Nigeria, today.
“Our one and only problem is to have found ourselves in a true horror of a situation wherein we are stuck with a complete mistake of a governor who insists on leaving office as the richest governor in the entire history of Nigeria.”