Senators Melaye, Aidoko Kicks Against Kogi Govt’s $500m Loan Without Approval

The Senate has directed its Committee on Local and Foreign Debts to investigate allegation that the Kogi State is on the verge of borrowing the sum of $500 million (about N180 billion) from the United Arab Emirates.

This was sequel to a motion raised by Senator Dino Melaye, who also pointed out that the State is already indebted to the sum of N40 billion.

Melaye, who rose under Orders 42 and 52, added that the loan has been christened Loan of Debt Refinancing to avoid the Kogi State Government from approaching the National Assembly for approval.

Melaye alleged that the loan would be used to fund the Kogi State and Presidential elections.

He particularly expressed concern that a State, whose debt already stands at N40 billion, is borrowing N180 billion.

“What it means is that the Government is borrowing to pay borrowed money,” he added.

In his contribution, Senator Attai Aidoko said that it is unacceptable for the Kogi State people to accept an illegal borrowing.

Aidoko added that it is also unacceptable for the Senate to allow the alleged borrowing.

He pointed out that there are no capital projects going on in Kogi State in addition to unpaid salaries that are still being owed by the government of Mr. Yahaya Bello.

“This is unacceptable, this State is in so much debt. There is no law that allows a Governor to withdraw $500Million without approval from the Senate.

“The State has not been paying salaries, where is all this money going? Let us do the needful and put these loans to an end,” Senator Aidoko said.

In his remarks, the Senate President, Senator Abubakar Bukola Saraki, assigned the Senate Committee on Local and Foreign Debts to investigate and establish, if the loan has been taken. He charged the Committee to establish the approach being used to access the loan.

“There are comments and allegations that we must first decide. We must refer it to the Committee on Local and Foreign Debt and we are supposed to set up an Ad-hoc Committee and give them a maximum of 48 hours to report back on whether this loan has been taken, the process to which these loans have been taken and that such actions should be suspended until we establish it them,” he said.

Senate resolved to refer the point of order to the Committee on Local and Foreign Debt to come back with a report within 48 hours or a maximum of 5 days.