Oshiomhole mortgaging Edo future with reckless loans-PDP

Chairman of the Peoples Democratic Party (PDP) Edo State chapter, Chief Dan Orbih has lamented, that the World Bank loan being sought after by the Edo State government would amount to mortgaging the future of the state, as it would be spending a substantial part of its monthly income to service the loans.

He called on the Senate and House of Representatives to reject the loan application in its entirety, warning, that if granted, it would impoverish the state.

President Muhammadu Buhari had written to the Senate requesting for approval to obtain a total of $75 million credit loan amounting to N14.7 billion from the World Bank for Edo State.

According to the president, the proposed loan facility of $ 75 million would be a second leg of a Development Policy Programme the World Bank had approved in 2012 which was a total sum of 225million dollars (N44.1 billion) to Edo state government designed to be implemented in three tranches of 75millon per annum.

But speaking with journalists in Abuja, on Thursday, Orbih stated, that “if this loan is granted I am sure the state maybe giving up to 800 million on monthly basis to service all these numerous loans they have taken and it is really sad that there is nothing on ground in Edo state today to justify the huge debt profile of Edo state which is put at approximately 250 billion”.

According to him, the state government hasn’t been bold enough to come out with the actual figure of its debt profile, adding, that the state already has a very huge debt profile.

Read also: Oshiomhole using bogus security challenge to loot Edo -PDP

Speaking further, Orbih who called on the national assembly to first verify what happened to the first tranche, said, “I want to call on the leadership of the Nigerian Senate to kindly reject the request for Mr. President to grant this money to the Edo state government. The issues that comes to mind at the mention of this loan are; what is the governor going to use this loan for? How has he utilized previous loans obtained by his government because you must look at what he has done with the previous facilities he has taken before considering offering him any new financial lifeline.

“Don’t forget not too long ago, he went to the capital market to obtain 35 billion loan for the Benin water storm project as we speak the only thing after paying out billions of naira in respect of that project all that is visible today in Benin city is the pool of stagnant water littered all over Benin city and the attendant emergence of what people now refer to as Oshiomhole mosquitoes, very stubborn and deadly mosquitoes that is what that project has brought to the city.

“There is nothing to show that the 35 billion which he took for the capital market for that particular project has been utilized. So what is he talking about 75 million dollar loan? In fact what the governor is asking the Senate to grant him permission to access is not up to what he collects as security votes for undisclosed security challenges, it is on record, the vouchers and related documents showing that Oshiomhole takes up to an average of 500 – 700 million every month for what he refers to as urgent security challenges, what these challenges are never disclosed and from the records available to us from the police headquarters Edo state since he came into power has never witnessed any major, urgent security challenges that will warrant the expenditure of 20 million in a month talk less of 500 – 700 million in a month.

” So we see this request by Oshiomhole presented to the Senate by the president as a request to further impoverish the good people of Edo state, to further drive the state into a bottomless pit of ineptness occasioned by his mismanagement and misappropriation of his government.We call on the leadership of the Senate to reject this request and it is time for all hands to be on deck to check the declining economic fortunes of this country. This is not time for needless borrowing by government and government institutions. So, I think what Edo people expect from the senate leadership is to reject this request.

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“More so, it is coming from the means of a previous rejection by a minister, we are aware that the former minister of finance, that great lady of distinction had earlier reviewed this request, an informed position of a renounced economist. She analysed this request and rejected and declined to approve this request. Going through the back door now by way of request to the Senate is Oshiomhole’s antics of wanting to play smart, the world is now aware why Oshiomhole has be launching an attack on that woman of distinct, I think she can now laugh loud now that the actual reason for the recent uncontrolled attacks by Oshiomhole on her person is arising for this request which Oshiomhole made earlier which she turned down.

“That request was made when elections were approaching it was the last presidential, national assembly and state assembly election were approaching and it was turned down by Okonjo Iweala. Now that Edo people are gearing up for the governorship election in early 2016, he has presented it again, to me it is clear signal that Edo state is broke and I think rather than resorting to this financial palliatives that the new government to state government, the government should come out boldly to challenge some of these state governments, ask questions what they have done with the previous money granted them, allocations, excess crude account, IGR, they have various ways this government has generated money to say the list.

“Today I make bold to state that Edo state has borrowed so much in the past that for over 5 years now the people got into agreement that a particular sum should be deducted as funds anytime the state is receiving its allocation. It is sad to state here that for over 5 years, the sum of 520 million is being withdrawn as source as part of the mandatory obligation to institutions the state government has borrowed money from. When it became clear that the government on its own wasn’t prepared to service these debts the issue was brought to the attention of the former minister and a meeting was arranged where the state government agree that they withdraw 520 million to service previous loan”, he said.

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