RVHA Approves N120bn For RSG

Rivers State House of Assembly has approved a loan of N120billion for the executive arm to ensure completion of ongoing development projects.

The loan, which is expected to be financed by four banks namely, First Bank, GTB,Access and Zenith Banks, is to replace the bond that was approved last year for the government but was not accessed due to administrative difficulties.

Debate and subsequent resolution permitting the executive to obtain the loan, followed a letter from the state governor, Rt Hon Chibuike Amaechi and read by the Speaker, Rt Hon Otelemaba Amachree at Wednesday’s plenary session.

Opening debate on the request, Hon Fredrick Anabaraba, representing Akuku-Toru II, said the House had earlier granted permission for a bond and the difference was a mere conversion to a loan and urged the House to endorse it.

Hon Gift Wokocha, ONELGA I supported the conversion of the bond to a loan, describing it as a replacement”, particularly since the bond had not been accessed and urged the Assembly to approve the request.

Hon Josiah John Olu, representing Eleme and chairman, House Committee on Finance, explained that the loan would be repaid in 24 months through internally generated revenue (IGR).

Hon Olu, noted that the interest rate of the bond was almost the same with what the banks were offering, emphasising that since the present administration did not intend to leave uncompleted projects, the bulk fund would be properly utilised to provide infrastructure.

Hon Michael Okey-Chinda, Obio/Akpor II, supported the move to improve infrastructure but noted that the request lacked clarity, adding that the House needed to know why the bond approved a year ago was not accessed.

Hon Martin Amawhule, Obio/Akpor I and Hon Ikuinyi Ibani, Andoni said the projects to be covered by the loan should be clearly stated before granting the permission while the interest rate must be determined before the loan.

However, when the Speaker, Rt Hon Amachree divided the House, it was 23 votes against one, with nine lawmakers abstaining to have unanimous resolution in favour of the loan.