$350m loan: Kaduna Senators warn finance houses against fronting for state

By Musa Adamu and Ikechukwu Okaforadi

The three Senators representing Kaduna state at the Senate, Shehu Sani, Suleiman Hunkuyi and Danjuma La’ah, have warned Banks and Finance Managers against fronting for the state government to obtain either local or foreign loans.
Kaduna state had had its loan approval request turned down by the Senate Committee on Foreign and Local Loans/Debts.
Speaking through a press statement yesterday in Abuja, the three Senators warned that the state had no enough solvency to withstand any further debt.
The Lawmakers called on these Finance Managers not to restrict their approval seeking to the state House of Assembly but that they should also contact the Debt Management Office (DMO) to get the true picture of the state solvency status.
They said: “the committee is not unaware of efforts by Kaduna state government, to negotiating with some finance houses to procure huge foreign loans to the detriment of the state.
“ Such efforts being made through private finance management companies may have to do with the failure of the state to secure the disapproved $350 million earlier this through the Senate.”
They further said it had come to the notice of the Senate Committee that the state government was negotiating to “collect huge unreasonable sums of local currencies loans through Nigerian Banks.
They therefore, warned that: “ it is imperative to mention here that Kaduna state solvency in collecting such loans and obviously, and objectively are incapable of carrying such huge debts burdens.
“The moral causes of a government few moments from election, with no clear identity of requisite public supports and sympathy to be reelected aside.
The reckless with which these loans are being heaped on Kaduna state government from many commercial Banks in such huge loans sums calls for caution.
They further warned the chief executives “to take seriously to commercial and ethical responsibilities in doing business with current leadership of Kaduna state government.
“The Banks and Finance Managers are in their own interest and wider interest of the general public in Kaduna state, advised to not only seek approval of the state House of Assembly, but also turn to the DMO for correct indices and reports of the current debt status of the Kaduna state government.”