Ahead of the full implementation of Nigeria Financial Intelligence Unit (NFIU) new financial regulations on states, local government joint accounts, the Kogi State chapter of the Peoples Democratic Party, PDP, has accused the Governor Yahaya Bello-led government of allegedly conniving with a commercial bank to circumvent the policy.
This was made known on Tuesday in a press statement issued by Prince Bode Ogunmola, the Publicity Secretary of the party.
PDP accused the state government of allegedly summoning and holding a meeting with eight directors of Local Governments, Head of Works department, and directing eight local government councils in the state to obtain a N3billion loan from the said bank.
It also alleged that the local government areas were directed to tie the N3billion loan to a project to be advertised immediately.
The party also warned against further further indebtedness of the state and councils.
The PDP accused the bank’s branch in Lokoja for been in the picture of the moves to grant the sudden loan, a plot which the party believes is aimed at circumventing the NFIU policy that is expected to take effect from Ist June, 2019.
According to the PDP, ” the policy implementation of NFIU which when fully in operation would have ensured direct payment to council allocation, may not achieve its desired objectives, as the deduction from the council allocation following the N3billion loan that is now quickly arranged.”
The opposition party further disclosed that the meeting concluded arrangement that the state government would provide contractors for the fictitious projects, an avenue the government still intends to allegedly siphon councils’ funds.
The PDP observed that ” this ongoing arrangement to further indebt Kogi Councils is presently unknown to NUP, NASU, NUT, NULGE, NMHWU officials, who ordinarily would have been great beneficiaries of the direct payment to local government account in terms of salaries and workers welfare.”
In a swift reaction, the Director General Media and Publicity to the Kogi State Governor Kingsley Fanwo debunked the allegation of the opposition party in the state.
According to him, “Governor cannot access funds through the Local Government Councils. It is not possible in this age where every transaction is open. You can speak to the Local Government Councils and know if they are doing such transactions.
“This Government doesn’t involve itself in financial misdemeanors. We work strictly on transparency and accountability. We didn’t wait for NFIU before granting autonomy to our councils. We won’t have time to respond to the PDP all the time as we are busy fixing the ruins of 13 years in the state.”
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