Loan controversy: Abia has secured loans but yet to draw any – Otti

…Demands apology from PDP

From Boniface Okoro, Umuahia

Governor Alex Otti of Abia State has maintained that despite regular salary payment and numerous projects his administration has been executing since it came to power nine months ago, the government has yet to take any loans.

The Governor also denied allegations that he was tampering with local government funds.

Otti clarified at the Banquet Hall of Government House, Umuahia, during the March 2024 edition of his monthly engagement with the media on Monday that though the state government has secured loans from banks, it was yet to draw down on any of them.

The Governor’s clarification followed the controversy arising from whether the state has taken loans or not.

In the Abia 2024 budget, Governor Otti had laid it bare that he was going to borrow to finance capital projects.
But recently, the opposition Peoples Democratic Party (PDP) in Abia accused the Otti-led administration of secretly taking N145 billion loan.
The party had alleged that some principal officers of the House of Assembly had secretly approved the loan for the Governor.
A document the party circulated in the social media showed that the state governmet did not take any bank loan but had guaranteed a loan for Craneburg, one of the construction firms handling some road projects in the state.
Responding to a question on whether the state has taken any loans, Otti answered in the negative. He proceeded to demanded an apology from the Abia PDP for lying against his administration.
“There are plans to secure loans and the plans are actually at maturity stage,” the Governor disclosed.
“But this your question is tangentially related to the recent issue that was masterminded by PDP, accusing us of securing N145 billion loan. I’m sure you must have read the Special Adviser (Media and Publicity), his refutal. Those were lies and I have been expecting that the authors of the garbage should apologise.
“But what I see is that some of them have gone to delete the post from their timelines, instead of coming out to apologize.
“So, that allegation was untrue, it was based on wrong information, either because they were ignorant or they were mischievous, or both,” Otti said.
Speaking further, the Governor revealed that the state has secured some bank loans but has not taken them.
“So, we are in the process. Just two days ago, the Islamic Development Bank approved a loan of $125 million for the state under the ABSEED project.
“I’m sure you are aware that the African Development Bank had approved another loan for us.
“Those loans have not been drawn yet but the approvals are in place. The next thing that will happen will be for the documentation to be perfected, loan agreements to be signed and conditions precedent to draw down to be met.”
He said that though loans have been secured, they would not be withdrawn until the need for it arises.
“We have received offers of loans from commercial banks in the country but we have not drawn on any of them. And, of course, we are also financially enlightened as a government, that we don’t need to draw loans until we need them. Even the loans that we are talking about, when all the documentations are in place, we will only draw them when we need them.”
The Governor added that if possible, government would not wait for the loan moratorium to run out before repaying them.
“Any time we have liquidity, we will repay so that we do not continue to accummulate interest. So, that is our area,” he said.
On the allegation of tampering with local government funds, Otti said the allegation was unfounded.
“There is nothing like that. You know it is not possible. We don’t operate a system where snakes swallow money. There is nothing like that. If they have proofs, they should come forward with it.”
He rather said that people should be seeking to know the secret behind the performance of Mayors of the local governments.
“But then, if anything, local governments are now operating very well and when you get to your local government, you can also approach your Mayor.
“Just yesterday, I saw pictures were posted of the massive renovation going in Ohafia LGA. I mean I was very glad. The same thing in Isiala Ngwa South, Isiala Ngwa North, Aba South and a few other local governments and the Mayors are grading roads, fixing health centres, just doing things that were not done before.
“So, if anything, we should expect that somebody should ask where are the local governmentts getting the momey to do the jobs that they are doing, instead of talking about funds being tampered with. So, it’s not true,” he said.

Ends