How RSG’ll Spend N120bn Loan, By Amaechi

Governor Chibuike Amaechi has put to rest controversies surrounding the N120billion loan the Rivers State Government seeks to access from banks.

He had explained at the weekend during the signing of the 2013 Appropriation Bill, that the state government was converting the bond to loan with a N20billion bridge financing.

He said, the  N20billion was  approved by the Assembly while three hundred and something billion naira was approved as budget. “I say okay, having approved N100billion for the debt financing of the budget, out of the three hundred and something billion naira that will come from Abuja, allow us extra N20billion as bridge financing. Every money will be attached to projects,”he said.

According to the governor, N40billion would go to the Ministry of Works, N20billion will go to the Ministry of Education for the completion of primary and new model secondary schools, saying, he had given directive to the commissioner to deliver about seven of the new model secondary schools by September.

Amaechi added that from the loan, N10billion would be allocated to healthcare and the monorail project, while challenging anybody to a debate on the transparency of his administration.

‘People should stop playing politics with development” he said ‘ House members should be very vigilant and not allow people who are being sponsored from Abuja to use them to fight us. This is about development, about the lives of our people, and not some cheap petty politics by persons who do not care about the people”.

Amaechi explained that it was better to go for the loan rather than the bond, which attracts higher interests and was cumbersome to access.

‘We asked you to convert the N100million bond which you have approved for long into a loan because we looked at it that by the time you finish the process and all that, and the bond currently is at 14 per cent, it will affect development and the reality is that we have dry season.”

The governor argued that the extra N20billion on top was for bridge financing, as over N300 billion is expected from Federal Allocation.

He added, “if I had 12 months of dry season, I would not ask for loan. We have money, but it is not enough to do all the projects we want to do the same time. That is why I ask you, the Assembly to permit me to borrow money because by June, we will have rainy season, nobody can work, you just have to wait for the rains to stop before you can start work again”.

Coroborating the Governor’s view, House member and chairman, House Committee on Finance, Hon Josiah Olu said, “the four consortium of banks that are ready to give us these funds are giving us the funds almost lower than the bond market was supposed to charge us as interest on the funds. So, that is why government decided to convert the bond that the House resolution approved for the executive to go to the market to source for  into a loan.

Rivers State Governor, Rt. Hon. Chibuike Rotimi Amaechi (middle) in a handshake with former ECOWAS Commission Chairman, Mohammed Ibn Chambas (left),during the 2nd Claude Ake Memorial Lecture in Port Harcourt,last Friday. With them is Ambassador George Obiozor.