Delta Govt Fumes Over Reports Of New N40b Loan

The Delta State Government has fumed against reports that it recently secured a N40b loan insisting that the Governor Sheriff Oborevwori administration has not added to the state’s debt profile since it came to power.

In a statement rebuffing the reports of the new loan, the government said that instead of borrowing but that it was rather liquidating the estimated N465 billion debt it inherited from previous administrations of Delta State.

The statement issued by the state commissioner for information, Dr Ifeanyi Osuoza read thus:

“The Delta State Government notes with serious concern some reports in some online media platforms alleging that Governor Sheriff Oborevwori borrowed the sum of N40billion soon after assuming office.

“The reports are not only misleading, but also capable of creating misunderstanding and confusion in the State. For the avoidance of doubt, I wish to state categorically that the Delta State Government DID NOT Borrow N40 billion. And the Sheriff Oborevwori administration has not borrowed any dime till now. The records are there for anybody who cares for the truth to verify.

“What the Oborevwori administration did was to graciously guarantee a N40b loan facility for ALGON, to enable it offset the unpaid pension liabilities of retired Local Government personnel. Repayable over a five-year period, the loan is to be repaid through direct debits to the Local Government Councils.

“For the umpteen time, let me also state without equivocation that the so-called N465 billion debt amount is actually the existing debt profile accumulated by previous administrations in the State. Governor Oborevwori, as many would testify, is a prudent manager of resources, and has done the right thing by keeping to the terms of repayment as specified in the loan agreements. The Governor deserves commendation, not condemnation, for being a man of honour and integrity.

“Debt servicing/repayment improves the credibility of any administration in the global financial community as a serious minded and progressive administration, which will enjoy the respect and support of financial institutions. It is only a well run economy that can embark on debt servicing and still maintain its developmental vision and focus for the welfare and well being of its citizens, as the Oborevwori administration has continued to do.

“Meanwhile, I appeal to the media, as strategic partners of development, to always cross check their facts, as the ethics of the profession demands, before rushing to publish. I wish to reiterate that Governor Oborevwori maintains an open door policy, and is committed to transparency and accountability in the administration of the State,” the senior Delta government official said in rebuffing the reports of the new debt of N40 billion to unknown creditors.

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