The Rivers State House of Assembly yesterday gave a legislative nod to a request by Governor Chibuike Rotimi Amaechi to secure a N100 billion loan from a new generation financial institution, Guaranty Trust Bank (GTB).
Amaechi, had on August 16, 2011 , declared his intention to approach the state legislature for an approval for the loan.
The governor, who spoke yesterday in Port Harcourt, during an interactive session with professional organszations in the state, said that the N100 billion loan would also be plunged into on-going projects in the state.
He enumerated some of the on-going projects to include the new state University of Science and Technology project, whose first phase would cost the sum of N150 billion, the mono-rail project and model primary and secondary schools as well as network of urban and rural roads in the state.
Reacting to the approval in a statement in Port Harcourt, the Action Congress of Nigeria (ACN) expressed regret that Amaechi could not limit himself to the huge and adequate allocations available to him.
“But beyond this, it is most baffling that the governor cannot limit himself to his huge and pretty adequate allocations and has abandoned the yearly budget of the state while promising to turn Rivers State into a London overnight on borrowed money.
“Where are the billions accruing from the numerous oil wells returned from Akwa-Ibom State? Where are the billions from the excess crude account? Where are the billions from the internally generated revenue (IGR) which the governor told the state and the whole world would not be less than N72 billion per annum?
“Where is the much hyped sovereign fund? In fact, what is the fate of the state annual budget now that the governor borrows and borrows again to execute projects in the state?”, the party queried.
The statement, which was signed by the party’s publicity secretary, Mr. Jerry Needam advised the governor to refrain from deceiving himself and the people of the state as no state across the world was developed on funds in speculation.
The party chided the state House of Assembly for its inability to check the excesses of the state executive but rather constantly massaging the governor’s ego, nourishing his whims and caprices, and mortgaging the future of the state without constraint.
It lamented that, by the several loans and bonds opted for, the governor had failed to operate the state budget, abandoning it in preference to handier cash which commits the future of the State into the hands of creditors within and outside the state.
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