Africa

Kalu wants government to reschedule states debt

Abia state governor has urged the federal government to reschedule the payment of all the loans owed by state governments in the country in order to reduce the sufferings of the masses.

UMUAHIA – Abia state governor, Dr. Orji Uzor Kalu has urged the federal government to reschedule the payment of all the loans owed by state governments in the country in order to reduce the sufferings of the masses even as he maintained that his administration has not borrowed any money from any international agency since coming into power.

Kalu made the plea on Tuesday at Umuahia when he met with a delegation of the revenue mobilization, Allocation and Fiscal Commission led by one of its commissioners, Elder Efanga Okon-Enyang who visited him (Kalu) at the government house.

According to him, the rescheduling of the debt which has grossly affected the developmental programmes of most states would give democracy in the country a new face and also reduce the clamour for military re-emergence in power by the people who may feel dissatisfied.

The governor said he was bothered by the monthly deductions of state governments allocation by the federal government due to the debts and added that this situation had made it impossible for states to meet their responsibilities to the people.

Kalu further said that “Abia State still stands by the Supreme Court ruling with regard to the revenue sharing formula and advised elected officials of government to respect constitutional provision “if the nascent democracy is to survive.”

He also commended the revenue mobilization commission for its firmness on the matter and called on the commission to ensure the reflection of the revenue formula in favour of states which he said is the bedrock of development.

On the recent publication by the debt management office disclosing that Abia owed a total of USD608m from foreign loans, Kalu said the state government under him had not borrowed any money from any international agency since he assumed office.

He said that the 608m dollars debt owed by the state as published in the papers were money borrowed between 1980-1984 which clearly exonerates his administration from the debt.

Earlier, the leader of the delegation elder, Efanga Okon-Enyang told Kalu that the team was in the state to get imput from people in view of the revenue formula especially the area of special fund which has been declared unconstitutional in various quarters.

Kingsley Emereuwa, This Day (Lagos), August 8, 2002

Categories: Africa, Nigeria, Odious Debts

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