Ahead of the full implementation of Nigeria Financial Intelligence Unit (NFIU), policy on new financial regulations on states, local government joint accounts, the Peoples Democratic Party (PDP), Kogi State, on Tuesday accused the state government of deliberate attempt to circumvent the policy.
The party alleged that state government held a meeting with eight Directors of Local Governments and Head of Works department and directed eight local to obtain a N3billion loan from the United Bank for Africa (UBA).
The PDP in a statement signed by its spokesman, Bode Ogunmola, alleged that the local governments were directed to tie the N3billion loan to a project to be advertised immediately, lamenting further indebtedness of the state and councils.
The PDP fingered the first generation bank in Lokoja for been in the known of the moves to grant the sudden loan to Kogi councils in the plots aimed at circumventing the NFIU policy that is expected to take effect from Ist June 2019.
According to the PDP, the policy implementation of NFIU which when fully in operation would have ensured direct payment to the council, may not achieve its desired objectives, as the deduction from the council allocation following the N3billion loan that is now quickly arranged.
The party disclosed that the meeting concluded arrangement that the state government would provide the contractors for the projects, saying this would be an avenue for the government to allegedly syphon councils funds.
The PDP observed that this ongoing arrangement to further indebt Kogi Councils is presently unknown to NUP, NASU, NUT, NULGE, NMHWU officials, who ordinarily would have been great beneficiaries of the direct payment to local government account in terms of salaries and workers welfare, urged them to rise up and fight for their right.
The PDP lamented that the bank is allowing itself to be dragged into a fraudulent transaction that would not be in the interest of the people and the local government areas.
Credit: Tribune
