The Plateau State chapter of the All Progressives Congress (APC) has raised serious objections to the recent approval of a N15 billion loan by the Plateau State House of Assembly. The loan request, made by Governor Caleb Mutfwang, was granted in less than three weeks since the start of the People’s Democratic Party (PDP) administration in the state.
As a critical stakeholder in the Plateau project, the APC believes that this loan acquisition reflects the desperate and hasty nature of the PDP administration, which has shown little regard for due process and accountability.
The APC emphasizes that the two-thirds majority enjoyed by the Plateau State House of Assembly should not be seen as a license for recklessness and arbitrariness. If left unchecked, the state could face even more turbulent days ahead.
The reasons given for the loan are deemed unconvincing and untenable by the APC. Reports suggest that the funds will be allocated for recurrent purposes, such as salary payments and the purchase of fertilizer. The government claims that this loan is intended to demonstrate its concern for the welfare of striking workers and the farming community in the state.
However, the APC sees this as a mere facade and an attempt to deceive the people. The party argues that instead of installing Interim Administrators in the local governments to serve as conduits, the government has opted for the N15 billion loan to fulfill its extra-budgetary commitments.
According to the APC, government is a continuum, and the previous administration had already made adequate budgetary provisions for essential expenditures like workers’ salaries and fertilizers, considering the agrarian nature of Plateau State.
The approval of this N15 billion loan is particularly alarming because it violates the clearly outlined steps for loan acquisition as specified in the Plateau State Debt Management Law, which has not been repealed. These steps include the State Debt Management Advisory Committee’s discussion on the purpose and necessity of the loan for the state.
The APC highlights the importance of following due process and not operating as if under a military junta where decisions are made arbitrarily. For a loan of such magnitude, it is mandatory for the State Executive Council to approve it before submitting it to the House of Assembly for deliberation.
Furthermore, the approvals from the State Executive Council and the House of Assembly should be forwarded to the Ministry of Finance and the Debt Management Department for further processing, including seeking approval from the Debt Management Office and the Minister of Finance through the raising of an Irrevocable Standing Payment Order (ISPO).
The APC raises several important questions, including whether a State Executive Council is presently constituted in the state and if the Debt Management Advisory Committee has been established to discuss the loan based on the law. Additionally, concerns are raised about the state’s debt position in the future, considering the rapid acquisition of N15 billion within just three weeks, potentially leading to a debt of N720 billion in four years.
The APC questions why the same government that complains about a debt profile of N200 billion, which they misleadingly attribute to the immediate past administration, is eager to accumulate another substantial loan.
The APC concludes by urging the governor to exercise caution and be wary of certain advisers appointed to oversee critical institutions, such as the House of Assembly. The party suggests that immediate attention should be given to addressing pressing issues, particularly security, as the people of the state are continuously being killed and displaced by heartless murderers
