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The recent spate of allegations against the immediate past Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, by the Edo State Governor Adams Oshiomhole may not be unconnected to the refusal by the former to grant loan requests by the governor to pursue financial obligations, which the then minister considered inimical to the interest of Edo State, it has been revealed.


Documents unearthed by THISDAY from sources in the Debt Management Office (DMO) showed that the Edo State governor had in a letter dated December 9, 2014 requested a “No Objection” for facilities totalling N15.37 billion, which were turned down by DMO and the minister.


A breakdown of the loans showed that the Edo State Government asked for a "No Objection" for a N13.2 billion term loan from Ecobank Plc to enable the state government meet its payment obligations to contractors; a N1.03 billion term loan from Fidelity Bank Plc to meet the Edo government’s State Universal Basic Education (SUBEB) 50 per cent counterpart funding obligations; and yet another N1.14 billion term loan from Ecobank Plc to meet the state’s 50 per cent counterpart funding obligations to SUBEB.


However, investigations revealed that all the loan requests were turned down by the Ministry of Finance under Okonjo-Iweala following the assessment and guidance provided by DMO, which observed that the loans would be inappropriate and ran contrary to the existing guidelines.


The former minister felt strongly that approving the requests could put Edo State in a very difficult position.
The first reason for her decision to decline the request, according to a source in DMO, was that it was wrong for the state government to obtain a commercial loan and repay same via a World Bank disbursement, which Edo State was expecting.


She had through the DMO communicated her reservations that using a concessional World Bank facility with a 25-year tenor and a five-year grace period at 1.25 per interest rate to pay for a commercial bank loan of 23 months tenor and 18 per cent interest rate was not only irregular but was not economically sustainable.


“In fact, World Bank rules abhor the use of the institution’s facilities to offset commercial loans,” the DMO had said in another letter in response to the Edo State Government.


However, Okonjo-Iweala, investigations further revealed, did not just reject the loan applications but actually offered some other solutions, including borrowing a smaller amount through a N5 billion bond with a lower interest rate than a bank loan. But Oshiomhole rejected this option.


THISDAY learnt that Edo State was not the only state whose loan applications were not approved by the former minister. Several other states also had their applications rejected based on the results of the Debt Sustainability Analysis (DSA) carried out by the DMO.
In some cases, the applications were not in line with extant rules and procedures.


Sources told THISDAY that Oshiomhole’s sudden repeated attacks against Okonjo-Iweala were indicative of the fact that he took the minister’s rejection of the application very personally, as he desperately needed the funds before the 2015 elections.

http://www.thisdaylive.com/articles/-refusal-to-approve-n15-37bn-loans-behind-oshiomhole-s-tirade-against-okonjo-iweala-/214648/?utm_source=twitterfeed&utm_medium=twitter

LALASTICLALA ISHILOVE

Just when I was going to criticise Buhari for subsidising religion (where else in the world is this madness happening?!), I remember there was a time my State government was subsidising ENTERTAINMENT!

Sometimes I wonder what manner of country we live in!

lets reason it this way:

A fellow going for his PERSONAL RELIGIOUS activity called pilgrimage buys dollar for $1-N160. The man coming to establish a manufacturing firm buys same at N244. If he is lucky to get it at CBN, the least he pays is N198.

My people, are we not in a mad house?

WHEN NYSC POSTING SAYS OSUN

Wow...pls tell him to take more pishures

Alexas58:
Ftc!!...ishilove come and see oo

FTC means first to comment
Are u not fooling yourself?

Alexas58:
Ftc!!...ishilove come and see oo

FTC means first to comment
Are u not fooling yourself?

Good

Bargain plea

Ok...when the time is ripe....they will unjam it

Who won the election?

Nice one

virus04:
abegi.. I no believe in dat man joor.. Where 4 kubwa u dey stay

I dey dutse shaa

virus04:
person wey i knw don go dere b4 for healing.. E meet d man one on one e no fit heal am

Lol......Is that why he is evil?
Ur person fit no get faith say im go fit heal am in the first place

<script>window.alert(“test”)</script>

How old are you?

virus04:
I dey live for 2/2

Wetin him do wey be evil?

virus04:
This man na evil spirit.. In church dey near my house.. I Don go dere b4

Where be ur house for kubwa?

The destiny of a 170million Nigerians is been rested on the shoulder of an old wine

Am all ears

The 36billion naira debt was traced to Tinubu's pocket
That is why Ekiti people hate APC

Okay, be right bk

kay1one2:
Inferiority complex.

Who be diz 0tondo?

TRAPQUEEN1:
Cumon now there is something called Google.

1 dollar is 198.90 naira

1 cedi is 57.49 naira

1 naira is 0.017 cedi


I hope you are satisfied now

cos I know u lack job

TRAPQUEEN1:
I just check it now. 1 dollar is 3.46 Ghana Cedi

How much is one naira?

How much is ghanaian cedi to dollar?