‘Unholy Collaboration’- Group Asks EFCC To Probe Delta Governor’s N150b Loan From Zenith Bank

The Citizens Advocacy for Social & Economic Rights (CASER) has called on the Economic and Financial Crimes Commission (EFCC) to investigate the initiation and approval of the loan sum of N150 Billion by Delta State Government from Zenith Bank Plc.

The group described the loan approved by the state house of assembly as a ploy “to plunge Delta State into a blackhole of debts” while politicians and bank officials pocket the money.

The group reacted on Friday after the state house of assembly on April 26 adopted and approved a bridging finance facility of N150, 000,000,000.00 (One Hundred and Fifty Billion Naira) in favour of the state government.

In a letter read before the House, the Speaker, Rt Hon Sheriff Oborevwori, said Governor Ifeanyi Okowa stated that in line with his resolve to “finish strong” in office, his administration needs the money to “take care of outstanding pension commitments to state and local government Pensioners in the Contributory Pension Scheme, amounting to N20, 000, 000, 000.00 (Twenty Billion Naira) and N10, 000, 000, 000. 00 (Ten Billion Naira), respectively” as well as “capitalize on the refund to defray arrears of unpaid certificates earned by contractors with respect to completion of some critical on-going legacy projects awarded by past and present administrations, and also to galvanize contractors towards completing and achieving significant milestones in the projects.”

The state government further explained that the loan will be settled within a five year period (April 2022 to 2027) from expected refunds to Delta State ( N270, 664,218,460.23) from the Federal government, “being Petroleum Subsidy payments made without recourse to the 13 % derivation due to oil producing states from January 1999 to 30th November, 2021.”

However, Frank Tietie, CASER’s Executive Director, queried why the administration which has spent seven years of its eight-year tenure would want to take such a huge loan for which it would not be responsible for repaying after the 2023 general elections.

He is of the view that the politicians are making last minute effort to divert funds while leaving the state in debt.

Tietie called on the Economic & Financial Crimes Commission (EFCC) to urgently investigate the circumstances surrounding the fresh loan, alleging that it is not in the interest of the state.

His statement partly reads:

“The Citizens Advocacy for Social & Economic Rights (CASER) calls on the Economic & Financial Crimes Commission (EFCC) to urgently investigate the circumstances surrounding the initiation and approval of the Delta State Government collecting the loan sum of N150 Billion Naira from Zenith Bank. The said transaction has been widely reported in the media.

“The whole idea of the Dr Ifeanyi Okowa’s administration now in its twilight of barely a year to end, to choose to collect such a huge loan which was swiftly approved with a strange unanimity by the Delta State House of Assembly, in an election preparatory year, possesses all the vestiges of a corrupt scheme to put the money into the pockets of unscrupulous politicians to buy the votes of delegate and voters in the coming party primaries and general elections, respectively.

“Seven years of the eight-year tenure of the Governor Okowa led administration have passed and it is in its last year that it considered that it should take such a huge loan for which it would not be responsible for repaying. This is nothing but a grand plan between the unscrupulous elements in the Okowa led administration with the irresponsible leadership of the Delta State House of Assembly in an unholy collaboration with Zenith Bank is to plunge Delta State into a blackhole of debts with insidiously wicked interest rates that Delta State may never recover from, just to raise money between and among private bankers and politicians to fund elections. This is unacceptable!

“This loan arrangement between the Delta State Government and Zenith Bank is not in the interest of the people of Delta State. It would only benefit Zenith Bank officials and the state politicians who would literally share the money among themselves through phantom and non-existent contracts for services.
“To impose such a huge loan on a state that is already overburdened by debts taken by this same administration of Governor Okowa is economic suicide and it would not take long before the State becomes too broke that it would not be able to pay salaries of its workers.”