Dino Melaye, a senator representing Kogi West Senatorial district, has accused the Kogi State Government of attempting to bypass the National Assembly in accessing a $500 million loan.
Mr Melaye said the loan request was tagged ‘Loan refinancing of the Kogi state local debt’ in order to edge out National Assembly approval as required by law.
He alleged that the loan was sought in order to raise fund for the 2019 presidential and governorship elections in Kogi.
Governor Yahaya Bello’s Chief Press Secretary Petra Onyegbule, however, denied knowledge of such loan.
“I will get back to you on that. So far, I don’t know anything about it,” she told Premium Times reporter on phone.
She was yet to provide further details at the time of filing this report.
In a point of order on Wednesday, November 28, 2018, Mr Melaye said the amount sought by the state government is way beyond its local debt which it fronted as a reason.
“Kogi State Government owes about N40 billion local debts for payment of salaries that was never paid. Furthermore, Kogi State Government has approached East-West Capital Corporation of United Arab Emirates owned by one Mr Mahmoud for a loan of $500 million.
“This fresh loan has been christened loan refinancing of the Kogi State local debt in order to avoid coming to the National Assembly for approval. The Federal Government through the Ministry of Finance has guaranteed and signed along Kogi State Government without recourse to the National Assembly.
“Kogi State should be borrowing what it owes locally which is 40 billion naira and not 180 billion naira ($500 million). Obviously, there is a plan to defraud the state and fund both elections in Kogi State and presidential,” he said.
Mr Melaye also expressed worry over the 10 per cent interest rate and 15 years payback period of the loan.
He accused the governor of mismanaging FG bailouts and Paris Club refunds as salaries remain unpaid in the state.
The Senate mandated its Committee on Local and Foreign Debts to establish if the Kogi State Government has made such a move and report back to the Senate.
There is no love lost between Messrs Melaye and Bello, with the latter allegedly spearheading a recall process for the lawmakerearlier this year.
