Gov. Lalong seeks conversion of N11b loan to bond

The Plateau State House of Assembly on Wednesday received a letter seeking the conversion of N11 billion loan the state secured into a bond.

The request came through a communication sent to the House by Governor Simon Lalong on the restructuring of the state’s commercial bank loans to a Federal Government bond.

The News Agency of Nigeria reports that the Plateau State Government had in June secured N10.8 billion loan to enable it to settle the backlog of workers’ salary.

Reading the communication at the plenary, Speaker Peter Azi explained that the governor’s letter suggested the loan should be paid off by the Federal Government.

Azi said with such intervention from the Federal Government, the payback duration would be expanded and the interest rate reduced.

“I pray the Federal Government will continue with this intervention and to also extend it to cover the other loans secured by previous administration in the state,” Azi said.

However, the Majority Leader of the House, Daniel Dem, raised a motion that the Accountant General of the state should appear before the House.

Dem said the Accountant General needed to explain the detail of the other part of the communication on loan secured by the previous government.

The communication from the governor had in it the conversion of N25.9 billion loan secured by the previous administration in the state.

Dem, who represents Riyom constituency, said the House was not aware of any loan taken by the past government, hence the need for explanation by the accountant-general.

He said: “We don’t have problem giving approval for the conversion of the N10.8 billion loan into bond because we approved and gave the go ahead for that to be secured.

“As for the N25.9 billion loan secured by the previous government, seriously we need more explanation from the accountant-general of the state.

“On issues concerning money, we don’t need to be in a hurry to approve.

“We need in-depth knowledge of it before we take decision.”

After much deliberation, the House resolved that the accountant-general should appear before it to give in-depth explanations on the matter.

The House also directed its standing committee on finance to investigate the matter through the state Ministry of Finance and report back in one week.

NAN.