Cross River assembly rejects Ayade’s N15b loan request, others

Breaking News Business Education Features Finance Legal Opinion NATIONAL Politics SECURITY

The Cross River State House of Assembly has rejected a N15 billion loan request by the state government, a development that is causing friction between the executive and legislature.

A letter dated January 14, 2020 and signed by Secretary to the State Government (SSG), Tina Agbor and sent to the Speaker of the House, stated that the state government had in recent times been contending with cash flow shortfall, which had challenged government’s efforts in meeting some of its statutory financial obligations.

“In line with the state government’s desire to industrialise the state, it approached the United Bank for Africa (UBA) for a N15b facility for development of projects in the state.”

“In consideration of the above, the state executive council at its first meeting in January 2020, resolved to get a N15b loan. This facility will be used to fund development and allied projects. The facility has 120 months repayment plan at 15% interest rate per annum.”

“Consequently, I am pleased to convey the governor’s request to the Speaker and members of the House to consider and approve the loan. We count on your usual expeditious consideration,” the letter reads.

But the State House of House of Assembly on February 4, 2020, rejected Governor Benedict Ayade’s loan request, just as it stood down a request to approve 30 additional special advisers (SAs) for the governor, saying members were not carried along on appointments.

The House presided over by the Speaker, Eteng William Jonas, disapproved the borrowing, saying the lawmakers “can’t continue approve loans that would make the state insolvent.”

The House also complained over alleged hand picking of councilors and chairmanship candidates ahead of the March 28, 2020 council polls.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *