Cash Crunch: Kwara lawmakers-elect in frantic moves to secure loans ahead inauguration

By Mumini AbdulKareem

Ahead of the formal inauguration of the 9th legislature in Kwara State scheduled for June 9, 2019, majority of the lawmakers-elect have engaged in spirited efforts to secure loans from banks in the state before the ceremony, National Pilot, learnt, last night.
The development is coming just as majority of the lawmakers are said to be going through what a source described as “serious financial situation” after their election, last month.
Most of the incoming lawmakers who benefitted from the paradigm shift in the politics of the state that saw the Peoples Democratic Party (PDP) lose all elective seats are coming into governance for the first time.
The problem is reportedly compounded by the lack of a clear cut leader within the fold of the Kwara State chapter of the All Progressives Congress (APC). The elected lawmakers had expected such leader would augment their financial expenses before inauguration.
Previous efforts by the elected-lawmakers to secure financial assistance from some of party leaders especially the Kwara State Governor-elect, Abdulrahman Abdulrazaq have not been successful as their overtures were reportedly shunned.
Towards this end, it was learnt that the lawmakers decided to approach financial institutions in the state to seek for loans.
They however met a brick wall as they were requested by the banks to obtain a letter from the Kwara State House of Assembly (KWHA) indicating that the House will stand as guarantor for them before such loans can be granted.
Last week, some of the lawmakers-elect stormed the Kwara Assembly as a follow up to the request of the banks but were disappointed with what they met on ground.
Speaking on the matter, a source, who was privy to the development told this reporter that the House rejected the request to stand as guarantor for the lawmakers-elect in their attempt to obtain bank loan.
“You know after their election and the attendant pressures from their constituencies and supporters, they realised they need running funds and since the party or any of the APC leaders have not been forthcoming in extending any financial assistance to them yet, they approached the banks to bail them out of the situation.
“But the financial houses requested that they should bring a cover letter from the House signifying that the legislature will stand as guarantor for them.
“They were however told that the House cannot take such action on their behalf when they have not been sworn-in yet. And there is a difference between the two statuses as far as the state legislature is concerned.
“You know most of the incoming legislators lack the financial and political clout of their new status. They were just fortunate to benefit from the current political situation in the state.
“And coupled with the huge financial demands from supporters and their constituencies, they have found the going very tough,” the source disclosed.
Meanwhile, a serving lawmaker, who also spoke on the issue, said the banks are not likely to grant the loan request of the incoming lawmakers.
The lawmaker, who said although those affected already have Certificates of Return, he however said they need to be sworn in before they can enjoy such privilege.
“As long as you have the Certificate of Return, the bank will oblige you but I don’t think for now the bank will do that because they have not been sworn-in, what do they really need loan for now. During our time, those of us who were interested in bank loans did that after our swearing-in.”
Another serving lawmaker who further spoke on the issue however said, “The issue depends on the understanding with the particular bank and their Certificates of Return can serve as collateral. But it might be difficult to do that before swearing-in”.
Another legislator however advised the lawmakers-elect not to be in a hurry to secure bank loans at this stage, adding that banks will eventually ‘harass’ them to come for such opportunity after their inauguration.