The Kwara Emerging Voice (KEV), a Non Governmental Organization has warned the present administration of Mallam Abdulrahman Abdulrazaq against “mortgaging the future of the present and unborn generations of Kwarans” by accessing the proposed N35billion loan from the capital market.
In a statement issued in Ilorin, Thursday and personally signed by the state Chairman of the organization, Alh. Ahmed Bayero, KEV threatened to drag the state government to court if it goes ahead to secure the credit facility.
The statement disclosed that if the loan is accessed, the sum of six hundred and thirty two million and two hundred thousands (N632.2m) would be deducted on monthly basis for seven years from the state coffers.
The agreement, according to the KEV, is contained in a 2021 Quasi Corporate Bond Draft Rating Report by Greenland Growth SPV Limited and Augusto & Co, the financial brokers sourcing for the loan on behalf of the Kwara State government.
In the statement, the organization wondered how a state that receives an average of N3.5bn as monthly allocation would survive if N632.2m is deducted from source, given the continuous dwindling federal allocation and an “unpredictable IGR shrouded in complete secrecy.”
The organization expressed fear that the State would simply collapse under financial burden and become ungovernable in the next few years if the government goes ahead to secure the loan.
KEV queried why dealings as regards the N35 billion had been shrouded in complete secrecy with the details kept away from Kwarans whom it said would bear the brunt of the loan.
“No wonder the prospect for the loan and debt profile rating of Kwara State are now in circulation in Lagos and Abuja and deliberately kept away from Kwarans whom the loan is supposed to serve,” the statement said.
KEV, then, accused the Kwara State House of Assembly (KWHA) of complicity and negligence of its statutory duties by rushing to give approval for the loan within 24hours.
It alleged that the lawmakers gave nod for the credit facility without due and detailed scrutiny and considerations on the floor of the House, as attested to by Hon Saheed Popoola, a member of the KWHA in one his radio programmes.
The statement reminded Kwarans that the government of Governor Abdulrazaq recently received about nineteen billion naira (N19bn) from the Federal Government for projects executed during the tenure of both Dr. Bukola Saraki and Alh. Abdulfatah Ahmed.The projects include Sango – UITH expansion, Offa garage – Michael Imodu – Ganmo dualization project amongst others.
“These were projects financed by past administrations not with loan and as such the state is not indebted to anyone as regard those projects. Therefore, the N19 billion received recently was Greek gift to the present administration.
“In view of this the government should jettison seeking for a loan that will put further burdens on the already impoverished people of Kwara State. Rather the government should make use of the N19bn for whatever purpose the N35bn is proposed for,” the organisation advised.
The statement added
that KEV’s team of lawyers and legal experts are currently studying the 2021 Quasi-Corporate Bond Draft Rating Report of Greenland Growth SPV Limited and other documents relating to the proposed bond, in order to be able to take appropriate legal action.
It promised to furnish Kwarans with details of the government’s “secret agreement” with the loan brokers and the negative implications of the proposed loan deal.
The organisation, therefore, called on Human Rights organizations, critical stakeholders, traditional rulers, political parties, students unions, labour unions and well meaning Kwarans to prevail on Governor Abdulrazaq to drop the idea of accessing loan for the state.
