Kwara LG Funds: N317m set aside monthly to offset N4bn loan obtained by past administration – Report

0
758

Following the conclusion of its investigations, the Justice Adewara-led panel of inquiry on allegation of diversion of local government funds has revealed that the sum of N317 million was set aside monthly from LG account to offset the N4 billion loan obtained by the previous administration of AbdulFatah Ahmed.

The panel, however, noted that the N4 billion loan has been fully repaid since September 2019, adding that what is being repaid now is another loan of N1.6 billion obtained by same previous administration.

The report reads in part: “The past administration obtained a loan of N4bn from a commercial bank for payment of two months arrears of salaries of local government staff. It was this loan that the Local governments were repaying at monthly instalments of N317m. The loan of N4bn has been fully repaid in September 2019.

“There is another loan of N1.6bn also obtained by the past administration while the repayment of the loan is ongoing and will terminate in August 2022. It means therefore that the present administration inherited the obligation to repay the loan.”

The panel, meanwhile, urged the government to ensure “monthly publication of the total wage bill, IGR and expenditure at the state and Local government levels. This, we are sure, would guarantee accountability and transparency which will enrich the integrity of the government in the minds of the people; thereby preventing future reoccurrence of doubt, allegation of financial misappropriation emanating from the people against government.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here