Saraki administration neither obtain nor guarantee any loan for Shonga



The Kwara Advancement Initiative (KAI) has advised the Kwara State Government to stop displaying ignorance and peddling cheap lies by claiming that the Saraki administration took loans on behalf of a private company, Shonga Farms while using the state property as collateral.


In a statement signed by its Head, Democratic Mobilisation and Monitoring Desk, Hajia Adeola Bashiru, KAI stated that governments do not use properties as collateral for loan as no bank will accept it. Rather, governments use allocations from the federation account to guarantee loans.


It stated further that the Kwara State government under Saraki never guaranteed any loan for Shonga Farms Holding where it has 25 percent of the shareholding and therefore could not have used any of its property as collateral for any loan obtained by a limited liability company that has a legal personality and could enter into any agreement, sue and be sued.


“Kwara State government was just a shareholder in Shonga farms like four of the nation’s banks: FinBank, Intercontinental Bank (now defunct), GT Bank and Unity Bank and therefore it cannot be held liable for the debt incurred by the company, particularly since the loan must have been adequately secured before it was granted.


“As a shareholder in Shonga farms, the Kwara State government had no liability for any loan contracted by the company more than its investments. Curiously, the Kwara State government under Abdulrahman is claiming that its property had been seized when the other shareholders in the bank have no such complaint.


“If Shonga Farms took any loan and defaulted in its payment, then the creditors who must have granted the loan based on the appropriateness of the collateral must simply resort to realising the collateral.


“Thus, the appropriate step for the Kwara State Government is to fight through the legal means any attempt by the Asset Management Company of Nigeria (AMCON) or any private or public institution to illegally appropriate its property. It is unfortunate that AMCON sometimes illegally attaches property of any of the directors or shareholders of any company that is purported to be indebted to any bank. This is an illegal means of asset recovery and a reasonable shareholder will use legal means to resist being victimized through illegality.


“However, instead of the Kwara State Government to fight for its rights and protect its properties, Governor Abdulrahman Abdulrazaq decided to play politics with the issue by folding its arms and allowing Kwara State Property to be illegally and unduly seized so that it could once again blackmail the preceding administration.


“To clear all doubts, the KAI has made all necessary checks and is convinced that neither the Saraki administration nor the Abdulfatai Ahmed administration contracted or guaranteed any loan on behalf of Shonga farms. There was no need for the government to do so and it was also not possible for the state government to use its landed property to guarantee or collateralise any loan.


“Kwarans should tell Governor Abdulrahman Abdulrazaq to do the needful. He should stop peddling lies and displaying ignorance. This cheap Politics must stop and now, too”, the KAI stated.


Signed

Hajia Adeola Bashiru

Head, Democratic Mobilisation and Monitoring Desk

Kwara Advancement Initiative