NFIU: Kogi PDP raises the alarm over alleged plans by Bello to outwit new financial regulation

The Kogi state chapter of Peoples Democratic Party (PDP) has raised the alarm over what it described as plans by the state government, led by Governor Yahaya Bello, to outwit Nigeria Financial Intelligence Unit (NFIU) new policy on financial regulations concerning states, local government joint accounts.

PDP while ventilating its observation through its spokesperson in the state, Bode Ogunmola, on Tuesday in Lokoja, alleged that the state the government had directed all Directors of Local governments and Head of Works department to obtain N3 billion loan from a first generation bank.

He said the local governments were directed to tie the N3 billion loan to a project to be advertised immediately; a development he lamented will further increase the indebtedness of the state and council areas.

“The bank’s branch in Lokoja is in the picture of the moves to grant the sudden loan to Kogi councils.

“This is a plot aimed at circumventing the NFIU policy that is expected to take effect from 1st June 2019.

“The policy implementation of NFIU which when fully in operation would have ensured direct payment to council allocation, may not achieve its desired objectives, as the deduction from the council allocation following the N3 billion loan that is now quickly arranged.

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“Worsening is the fact that the state government would still be the one to provide contractors for the fictitious projects, an avenue the government still intends to syphon councils funds.

“This ongoing arrangement to further indebt Kogi Councils is presently unknown to NUP, NASU, NUT, NULGE, NMHWU officials, who ordinarily would have been great beneficiaries of the direct payment to local government account in terms of salaries and workers welfare. We urge them to rise up and fight for their right.

“The loan to be taken by the local councils and the contractors to be supplied by government would serve as another conduit to inflict debt and poverty as is currently witnessed in the state.”

The PDP lamented that the bank is allowing itself to be dragged into a fraudulent transaction that would not be in the interest of the people and the local government areas.

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