Members of the Kogi State chapter of the All Progressives Congress (APC) have cautioned the management of Zenith Bank against granting loans to Governor Yahaya Bello without prerequisite approvals.
The members, under the auspices of Concerned All Progressives Congress Stakeholders, urged the bank to pull the break before releasing further facilities to the administration of Governor Bello, who it alleged has been drawing a N400 million overdraft from an Abuja branch of the bank.
Spokesman of the group, Chief Dare Mayegun, alleged in a statement yesterday that the governor has not improved the socio-economic life of the Confluence State since he took the mantle of leadership few months back.
The statement alleged that the bank has concluded arrangement to release a N10 billion loan, which the governor allegedly applied for without following the due process.
The statement reads: “The Zenith Bank management should apply caution in granting loans to Governor Yahaya Bello, who has applied for a N10 billion facility.
“It will amount to a violation of the financial regulation if a financial institution is granting loans to a governor in an official capacity without a proof that such request enjoys the backing of the State House of Assembly and members of the state executive council.
“As of today, the House of Assembly is not in session and the excommunicated has not been constituted. The governor operates with a handful of special advisers who lacked constitutional powers to endorse such requests.
“Section 192 of the Constitution states clearly how a state government can approach a financial institution for loans. The House of Assembly and members of the exco must have endorsed the application.
“The Constitution is very clear on matters like this. Governing a state is not a one man show. So, what authority is the governor using to seek for loans? Besides, why are such facilities not routed through the bank’s branch in Lokoja, the state capital? Why is the N10 billion being sought from an Abuja branch?
“we have it on good authority that the governor has been taking N400 million overdraft to pay his own security vote. Why should a governor who wants to serve the people borrow money to pay himself?”
The stakeholders urged the governor to be prudent in the management of state funds, warning that plunging the state into debt will not only hinder growth, but mortgage the future for upcoming generations.