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PDP Calls Out UBA In Alleged Scheme By Kogi Govt To Circumvent NFIU Guideline
The Peoples Democratic Party, PDP in Kogi State has called out the United Bank for Africa, UBA in a plot by the Kogi State Government to frustrate the new guidelines on the operations of the State/LGA Joint Account.
The party in a statement issued in Lokoja alleged that the state government had instructed eight directors of Local Government and heads of works to obtain a N3 billion loan from the bank.
The PDP in a statement issued by Bode Ogunmola, spokesman of the party, alleged that the local governments were directed to tie the N3billion loan to a project to be advertised immediately, lamenting that it was a scheme to further raise the debt profile of the state and councils.
The PDP thus called on the UBA and particularly its Lokoja branch not to allow itself to be used for what it described as a fraudulent scheme to worsen the plight of the people of the state.
The bank said that if the loan goes ahead that it would circumvent the NFIU policy that is expected to take effect from 1st June, 2019.
The NFIU guidelines recently issued to the displeasure of the nation’s governors would block the state governments from direct access to the funds of the local governments.
The PDP further disclosed that the meeting concluded that the state government would provide the contractors for the fictitious projects, an avenue the government still intends to allegedly syphon council funds.
The PDP observed that the arrangement is presently unknown to many of the workers’ unions in the state.
The loan to be taken by the eight local councils and the contractors to be supplied by government, the PDP disclosed would allegedly serve as another conduit to inflict debt and poverty on the state.
The PDP cautioned the bank to be wary of being dragged into a fraudulent transaction that would not be in the interest of the people and the local government areas.
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