The factional chairman of the people’s Democratic Party in Adamawa, Umar Ardo, has lambasted Governor Ahmadu Umaru Fintiri over the 17 billion naira loan the governor sought approval from the Adamawa state house of assembly to spend on “development projects”.
Mr. Fintiri on Tuesday sought the approval of the state house of assembly to obtain 17 billion naira on loan for “development projects” which he fails to specify on the projects he intends to spend such amount on.
Mr. Ardo said the Fintiri led state government should tabulate the accumulated debt profile of Adamawa state and explain to Adamawa people the basis for the present loan request and warned that it portends danger for the state economy.
The factional chairman of PDP had raised alarm over the 17 billion loan request by the governor.
Mr. Ardo, in a text message to our correspondent in Yola, stated that what the Fintiri led administration is doing with regards to the 17 billion naira loan was an act desperation that will not auger well with the state well-being.
He accused Mr. Fintiri of lacking the basic knowledge of the norms and rules of taking bank loans on high interest rate of 13.5 per cent.
“The government must outline in details what these ‘development projects’ are as justification for this loan request”.
“The government must outline in details how these loans would be serviced and be paid back; 3. 13% interest rate with .5% management fee is unfairly and even criminally high.
“The government must negotiate for lower interest and service rates failure of which the loan request is rejected and alternative be sought, Government should tabulate the accumulated debt profile of Adamawa state and explain to Adamawa people the basis for the present loan request.
“All loans bases that are consumptive and not revenue generative must be discouraged and rejected, Government must discourage the habit of taking loans and device means of creating wealth for the state thereby assuring the future of the state than burying our future generations under the weight of debts and loans.
“The people of Adamawa state must take keen interest in how they are governed beyond,” he said.
He therefore, said requesting for another loan without recourse to the state debt profile would be a dangerous scenario that would not even work.