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Ahead of the 2015 general elections, former military governor of Kaduna state, Colonel Abubakar Dangiwa Umar (rtd) has raised the alarm over the spate of financial borrowings from the financial institutions by state governors, warning that if not checked the states would be mortgaged.
Colonel Umar described these borrowings by the governors, which they claimed was ‘to finance projects of dubious viability’, as capable of mortgaging the future of these states.
Umar in a statement yesterday, a copy of which was obtained by Nigerian Pilot Saturday, said that the motive why the governors embarked on these acts was still unclear, noting however, that ‘it is either to fraudulently acquire funds as the 2015 elections approach or retirement benefits.’
Umar’s statement reads in part: ‘It has become necessary to alert the nation of a dangerous, indeed an explosive scheme by which some state governors are mortgaging the future of their states through excessive borrowing from commercial banks and other financial institutions to finance dubious viability.
‘The motive is entirely unclear. But one suspect is that it is either to fraudulently acquire campaign funds as the 2015 elections approach or retirement benefits.
‘Some of them are also desperately selling off states’ assets including shares and other long term investments.’
The fiery retired soldier also gave thumbs down to the various states’ legislatures and accused them of reducing themselves to an arm of the Executive, adding that, ‘it is unrealistic to expect them to check and stop this fraud.’
umarUmar, who is now into farming, however, appealed to the anti-corruption agencies to intervene.
He also warned the banks to desist from conniving with these governors and reminded them of their civic responsibilities and the banking ethics to protect the helpless public.
“They must be aware that most of these states have already lost the capacity to meet their financial obligations due to huge debt burden and diminishing source of revenue resulting from failing oil revenue,” he said.
“The bankers must not forget that in the past, collapse of oil prices in the world market have often led to wide spread collapse of Nigerian banks because they never learned to say ‘no’ to prodigal but cash-strapped state governments in such critical periods,” he added.
Most of the states are in debt running into billions of Naira. Only recently, the Rivers state legislators approved the release of the sum of N19 billion from its reserved funds for Governor Rotimi Amaechi. The state chapter of the Peoples Democratic Party, PDP, said that the money was not for any developmental projects, but for the governor to bankroll the presidential campaign of one of the aspirants on the platform of the All Progressives Congress, APC.
The governor of Ekiti state, Mr. Ayo Fayose had also accused his predecessor, Dr. Fayemi of leaving a debt totaling over N54 billion.
The Benue state government recently sold its shares in the Dangote cement. The Lagos state government is also in debt running into billions of Naira
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