OrderPaperToday – The Senate committee on Foreign and Local debts have issued a stern warning to all commercial banks and finance houses in the country to desist engaging in any loan transaction with the Kaduna state government.
It would be recalled that the red chamber disapproved of the World Bank loan sought by the state government because of its high and increasing debt ratio.
The three Kaduna senators had supported the disapproval of the World Bank facility to the tune of USD 350 million.
The decision had resulted in exchange of words between the senators and their Governor, Nasir El-rufai.
But in a related development, the Senate panel alerted the public to other means the government is taking to obtain “huge unreasonable sums of local currencies loans through Nigerian local banks.”
It also noted that it is “not unaware of efforts by the Kaduna State Government, to negotiating with some Finance Houses to procure huge foreign Loans to the detriment of Kaduna State Government.”
The committee highlighted the “extent of desperation” on the path of the State Chief Executive who “went to town on personalizing the official disapproval of the Senate.”
It added: “The desperation of the State Government has now reached an epoch of reckless dimension as to use private Finance Companies (home and abroad) to negotiate and procure similar facilities through other mediums alternatively circumventing the Senate.”
A statement by the committee and the three senators on Wednesday further warned that the state government is “incapable of carrying such huge debt burdens,” noting “the moral causes of a government few months from elections, with no clear identity of requisite public supports and sympathy to be re-elected aside.”
The statement also said the Kaduna state assembly was a rubber stamp of the government while reminding them that “you are in those offices to protect the interest and integrity of the people.”