Ekiti to sue banks over alleged under hand loans to Fayemi’s government

The Ekiti State Government may soon drag some banks to court for allegedly granting some loans to the immediate past government in the state without due process.
The Governor, Ayo Fayose, at a meeting with monarchs in the state on Thursday, alleged that some banks granted loans to the immediate past administration of Governor Kayode Fayemi without knowing the purpose the loans were given.
Governor Fayose said dialogue with the affected banks had failed and that the controversial, “untraceable loans were meant to defraud the state because they could not be traced”.
The governor’s outburst was a reaction to a suggestion by one of the monarchs that the state could still approach banks for loans.
Fayose said the banks were not forthcoming and had refused to cooperate with the state on the matter.
He said: “We are currently entering legal action against some banks because some of the loans they gave the state, we don’t know where they entered.
“They granted some loans without due process.
“The banks have been approached but they are not willing to cooperate.”
Monarchs at the meeting also agreed to pray and work for the revival of the finances of the state, saying that the “state of Ekiti finances and debts is worrisome”.
The governor had invited the monarchs to brief them on the poor finances of the state, which he said was caused by numerous loans and bonds taken by the immediate past administration in the state.
He added: “So, what we are doing now is to approach the courts to seek a legal redress.”
He said the banks had tagged Ekiti State as insolvent and would not grant the state loans, a situation which he noted had further worsened the liquidity problems faced by the state.
The traditional rulers agreed that the state needed prayers “in this time of austerity”.
They said they would pray for the state and also advised the state government to “look inwards in the area of internally generated revenue”.