Delta denies borrowing N40bn, clarifies loan guarantee for LGs
Delta State Government has declared that Governor Sheriff Oborevwori “has not borrowed any money” since the inception of the state’s current administration.
This was stated in a communiqué signed and released on Tuesday by the State Commissioner for Information, Dr. Ifeanyi Osuoza, copies of which were made available to journalists in Warri.
The Commissioner said, “The State Government has noted with serious concern some reports on online media platforms alleging that Governor Sheriff Oborevwori borrowed the sum of N40 billion soon after assuming office.”
Osuoza insisted that “the reports are not only misleading but also capable of creating misunderstanding and confusion in the state.”
“For the avoidance of doubt, I wish to state categorically that the Delta State Government DID NOT borrow N40 billion. The Sheriff Oborevwori administration has not borrowed any money to date. The records are available for anyone who wishes to verify the truth.”
The statement, however, clarified that “What the Oborevwori administration did was to graciously guarantee an N40 billion loan facility for ALGON, to enable it to offset the unpaid pension liabilities of retired local government personnel.”
“Repayable over five years, the loan is to be repaid through direct debits to the Local Government Councils,” it explained.
The statement also acknowledged the debt profile inherited by the Oborevwori administration, which is claimed to be in the region of N465 billion.
The Information Commissioner said, “For the umpteenth time, let me also state without equivocation that the so-called N465 billion debt amount is actually the existing debt profile accumulated by previous administrations in the state.”
“Governor Oborevwori, as many would testify, is a prudent manager of resources and has done the right thing by adhering to the terms of repayment as specified in the loan agreements.”
“The Governor deserves commendation, not condemnation, for being a man of honour and integrity.”
“Debt servicing/repayment enhances the credibility of any administration in the global financial community as a serious and progressive administration, which will garner the respect and support of financial institutions.”
“It is only a well-run economy that can embark on debt servicing while still maintaining its developmental vision and focus on the welfare and well-being of its citizens, as the Oborevwori administration has continued to do.”
