The Senate yesterday approved a $75
million World Bank loan for Edo State’s
Development Policy Operation (DPO) as
requested by President Muhammadu
Buhari.
The approval followed the consideration
of a single-prayer report of the Ad-hoc
Committee on Local and Foreign Debt
presented by Kabiru Gaya, an APC
senator from Kano South.
The committee in its report urged the
Senate to approve the loan, saying that
the World Bank had already considered
the state ready for it.
Adamu Aliero (APC Kebbi Central), in his
contributions, said Edo State had
qualified for the loan, because the state
had met the conditions set by the World
Bank, saying the loan would help
increase the internally generated
revenue of the state and, therefore,
urged the Senate to approve it.
He also called on other states that had
the capacity to borrow, to go ahead and
take such loans, as long as they could
utilise such judiciously.
Ali Ndume, Leader of the Senate, while
supporting the motion for the approval
of the loan, encouraged other states with
genuine needs to take advantage of such
low interest loans, rather than the
patronising commercial banks.
“The first tranche of this borrowing plan
had already been approved by the Senate
and the World Bank has strict borrowing
conditions, which the state has met. I
therefore move that we approve this
loan,” he said.
However, Matthew Urhoghide, a PDP
senator from Edo South, while
supporting the approval of the loan,
expressed the misgivings of the people of
the state about it.
He said on the day the Senate received
the letter from the president, he got over
2000 text messages and emails; “out
rightly, the people have said that they do
not want the loan.’’
Urhoghide said that although the loans
would bring about more gains for the
people of the state, there was need to
accede to the yearnings of the Edo
people and verify the misgivings
expressed by the people of the state.
The first tranche of the loan was used for
projects that were not visible, the senator
said, and urged that the second tranche
should be judiciously utilised to clear the
doubts of the people.
“This loan was premised on certain
things that the state government said it
was going to do, it was meant to enhance
good governance, it was not meant to be
used on things that were tangible or
visible.
“It was to enhance private sector
development, improve facilities for
increased IGR in the state and increase
private investment and employment
opportunities.
“I am not standing to oppose what has
been granted by Mr President or the
desire of the state government, I am here
to look at some of the views expressed by
the people on the things that have been
done with first tranche.
“We need to verify some of the claims
that has been made, we need to look at
the report that has been given by the
World Bank, if they are satisfactory,” he
said.
It would be recalled that Dan Orbih,
chairman, Peoples Democratic Party
(PDP), Edo State chapter, told BD
SUNDAY in an interview that President
Buhari should be careful not to allow
Oshiomhole take cover under
presidential wings to mortgage the
future of the state, since the state was
already in debt to the tune of N250
billion.
“The President should take time to gather
the facts on ground before aiding
Oshiomhole to take further loan.
Oshiomhole has borrowed money than
any previous governor of Edo State. The
President needs to ask what he has done
with previous loan before knowing what
he intends to do with the new one he
wants to take,” he advised.
According to him, from records available
from various sources, the debt profile of
the state has risen to over N250 billion
from less than N5 billion when the
governor took over from the PDP-led
government in the state.
“The last loan he took was from the
Capital Market where he borrowed the
sum of N35 billion for erosion control
which he christened ‘The Benin Water
Storm Project.’
“As I speak with you, the bulk of that
money has been paid out; but if you go
round Benin City today, the only relics of
the fact that something is being done
towards that direction is stagnant waters
that are littered round the city that has
brought about what people now refer to
as ‘Oshiomhole’s mosquitoes.’
“Those mosquitoes are very deadly. The
malaria they bring about is resistant to
many anti malaria drugs. There is
nothing to show for previous money he
has borrowed,” he alleged.
He said for anyone to contemplate
granting the governor further loan
facility, was like condemning the state to
bottomless pit of debt which it may
never get out of.
“Due to the uncertainty of some of the
loans he has obtained, he went into a tri-
partite agreement with the creditors and
the Federal Ministry of Finance in the
past five years where they have been
deducting the sum of N520 million at
source every month from federal
allocation to service some of the loans,”
he said.
He noted that the implication of granting
the Edo State governor further access to
foreign loan, would be mortgaging the
future of the state, and requested the
Senate not to approve the President’s
request.
“We call on the President of the Senate
and the distinguished members of the
upper chamber to reject in entirety, the
request by the President. This same
facility, with the same facts, was what
they used in approaching the ministry of
finance under Ngozi Okonjo-Iweala and
the request was turned down; because
the request did not meet all the economy
reasoning to convince the former
minister of the need for the facility. The
Senate has a responsibility to call for the
file under which this request was earlier
presented to Ngozi Okonjo-Iweala and
take a look at the reasons for turning
down the facility,” he said.

www.businessdayonline.com/2015/08/senate-approves-75m-loan-for-edo-against-protest/

Oshobaba go happy die,,, the *Secret embezzler*