APGA tackles Abia Assembly over N30bn loan deal

The All Progressives Grand Alliance (APGA) has kicked against the N30 billion loan the Abia State government plans to take from commercial banks to meet its infrastructural needs.
The party described as embarrassing, the resolution of the state House of Assembly, authorising Governor Okezie Ikpeazu to borrow N30 billion from commercial banks.
In a statement signed by the party’s publicity secretary, Madu Chikwendu and made available to journalists in Umuahia, APGA said it would welcome genuine efforts to develop the state, but would “reject the hurriedly packaged and approved resolution.”
According to the statement, “Contrary to the existing House rules, there was no public hearing. Secondly, there is no evidence that any of the legislators consulted any of their constituencies.
“Additionally, very important and legal provisions were neglected. These include details about interest rates, mode of repayment, duration of facility, security, moratorium and others.”
The statement further described as deceptive, the assurance given by the speaker, Mr Martins Azubuike, that the loan would be repaid through the over N1 billion internally generated revenue from Aba, even when the city hardly records a monthly IGR of N250 million.
The Abia State House of Assembly had, in a resolution, authorised the state government to borrow the sum of N30 billion from commercial banks at the prevailing interest rate. The resolution followed a request from the Governor Ikpeazu for the authority to borrow the money.
The letter revealed that the money would be used for the construction and rehabilitation of roads and bridges in the three geo-political zones, as well as the dredging of Aba River.
According to the speaker, who read the letter, the money would also be used to build industrial cluster, one modern hospital in each of the zones and other infrastructural projects.