N23bn bond: APC govt has mortgaged Kwara – PDP

Kwara state chapter of the Peoples Democratic Party (PDP) has accused the All Progressive Congress (APC) led government in the state of mortgaging the future of Kwarans following its plan to access another N23 billion bond from the capital market.

The PDP said the Governor Abdulfatah Ahmed-led APC government and that of his political god father and predecessor had failed in executing people-oriented projects without accessing bonds either from the capital market or money market with a repayment period that outlived its government.
The state executive council had last week announced that it will  access another N23 billion bond from the capital market to execute projects of infrastructures as soon as it complete the repayment of the N17billion it accessed in 2009 by first week of August this year.

The Commissioner for Finance, Demola Banu, said the continued drastic shortfall in monthly allocation from federation accounts had hindered the state government from carrying out it projects which left it with no better option than to approach the capital market .

Banu said the government opted for  the capital market because it allows for savings, cash flow, a low  interest of 14 per cent per annum and a repayment period of 7years as against money market with a minimum interest rate of 25 per cent per annum and a repayment period of one and half year.

But the Kwara PDP in a statement by its chairman, Caretaker Committee, Hon. Solomon Edojah, said the APC government had not shown probity, accusing it of hiding under the guise of shortfall to source funds for it party’s activities.

“It is now crystal clear that the APC is frustrated and also desperately in dear need of funds to finance its numerous activities and therefore resolved to borrowing money with little or no decorum and consideration of its implications on the well-being of the masses as well as the finances of the in-coming government.”

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