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A group known as Gombe Good Leadership Association has called on the Gombe State Governor, Muhammadu Inuwa Yahaya to stop borrowing in order not to mortgage the State.
TheNewsGuru.com (TNG) reports the association made the call in a statement signed and released by Mohammed Salisu Abdullahi on Saturday.
The association noted that Governor Yahaya has borrowed over N44 billion in just a little over two years and that what is particularly concerning is that the borrowings are not stimulated by the urgent and realistic needs of the state.
The association expressed worries that if the borrowings of the State government are not checked, it will end up crippling the state and subject its people to a long term of heinous and infernal economic slavery.
“We have been tracking the spate of borrowing by the Muhammadu Inuwa Yahaya led Government in Gombe State and have noticed that it has borrowed well over N44 Billion in just a little over two years and yet it is embarking on obtaining another loan of N35B from the Capital Market.
“Already, the Gombe State Executive Council has on 6th October 2021 given its approval for the loan and directed the Commissioner of Finance and Economic Planning “to write to the Honourable Minister of Finance to issue an ISPO of N665,605,647.90 monthly to allow deductions from State FAAC allocation in settlement of Principal and Interest accruing on the Suku through a sinking fund to be created for the purpose and the payment of the Financial Advisory.
“Service Fees of 0.005% of the sum of N175,000,000.00 to Finmal Finance Services Ltd”(A company owned by Umaru Kwarianga, Chairman Gombe Investments and Property Development Company and the Campaign Manager to Governor Muhammadu Inuwa Yahaya’s 2019 Gubernatorial election).
“What is particularly concerning to us is that these excessive borrowings that come with a crushing socioeconomic burden and impact on the state are not stimulated or urged
by the urgent and realistic needs of the state. This irresponsible borrowing enthusiasm, if not checked or curbed, will end up crippling the state and subject its people to a long term of heinous and infernal economic slavery.
“The overarching condition for the justification of a State Government to borrow is the ability of the proposed project to be self-sustaining, able to repay the loan and above all is integral and vital to the State’s Fiscal and Development framework. State debts should not be acquired at the whims and pleasure of State executives but for the sole purpose of fast-tracking development at a comparatively reasonable cost,” the statement reads.
Meanwhile, Gombe Good Leadership Association has called on the Governor of Gombe State to within seven days publish in at least one National daily newspaper and one other circulating within the state details of all the debts it has procured.
The association also called on all banks that have granted loans to the Gombe State Government or are in the processes of processing loans for the Gombe State Government or that are involved with the loans of the Gombe State Government in any manner whatsoever to comply with all regulatory requirements concerning such an involvement.
“We are worried that despite the borrowing of humongous sums and of course the earnings of the State from FAAC and IGR, the State is getting poorer by the day, its infrastructure, public institutions and departments are deteriorating at an accelerating rate.
“The rising profiles of the Education and Health sectors of the State under the previous Governments are dimming, and no aspect of the State can be said to have been positively impacted by this borrowing Government.
“Indeed, the State is falling apart and the present borrowing spree is indicative of the cluelessness of Governor Yahaya and his team. The Government has on paper been awarding contracts but we state boldly that the reality on the ground is not reflective of such contracts,” the statement added.