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Imo LG Chairmen Want N13.7 billion Bond Investigated

By on December 18, 2012

Imo Governor, Rochas Okorochas

As a way of showing their dissatisfaction and unhappiness over the way the state public funds are managed, especially as regards the allocation for the local governments, ousted chairmen of the local governments under the auspices of the Association of local government of Nigeria(ALGON) have called for a probe into the about N13.7 billion bond issued by the state government.

It will be recalled recently that the Securities and Exchange Commission (SEC) Director General Ms Arunma Oteh expressed concerns and worries over the way states were going for bonds, which she described for some states as unnecessary at the moment.

Former Governor Ikedi Ohakim got the bond with a focus of repositioning the State as a key industrialization hub in the nation, but the chairmen are frowning at the way present Governor Rochas Okorocha is managing it.

In a petition sent to the Economic Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) the embattled chairmen called for thorough investigation into the issue.

The Okorocha Government has been at loggerheads with the LG bosses since June 26, 2011 when in a state broadcast unlawfully dissolved the 27 local governments, taking custody of the state joint accounts that has the local government allocation in it.

Secretary of the Group Mr Enyinnaya Onuegbu speaking on the whole situation said “As law abiding citizens, we the democratically-elected 27 local government Chairmen, took the unlawful dissolution of the local governments to court. In a rather curious judgment, the Chief Judge of Imo state, Hon. Justice B.A. Njemanze ruled that the Governor had no powers under the constitution to sack a democratically-elected tier of government. The Chief Judge however, refused to order our return to our offices claiming that there was no evidence before him that the local governments were dissolved this notwithstanding the governor’s widely publicized broadcast.”

By this claim the recent call for local government autonomy is credible as it should free up funds and allocations for the third tier of administration from the control and shackles of the state governments, who sometimes mismanage the funds.

This development has become a thorn in the flesh for Owelle Okorocha who has been touted as one of the leading Governors in the country in terms of policy and programmes designed to transform the socio-economic landscape of the state.

Onuegbu further stated that “Okorocha has also used the allocations due to local governments in the state as collateral to borrow over N45 billion from Zenith Bank and another N28 billon from Diamond. These borrowings are clearly illegal”.

One of the challenges facing the economic stability of the nation has been the incidence of reckless borrowings and unnecessary expenditure, the claims made by the LG chairmen if validated, will dent the image of the much celebrated Okorocha administration.

 

One Comment

  1. walerich

    December 18, 2012 at 3:56 pm

    I THINK THE PROBLEM HERE IS THAT THESE CHAIRMEN ARE HUNGRY, THEY WANT TO SHARE THE MONEY AND THE STATE GOVERNMENT HAS BLOCKED THEM. ALL OF THEM HAVE EVER BEEN THERE WITHOUT DOING MUCH WITH THE MONEY THEY HAD COLLECTED BEFORE NOW. AND, BORROWING MONEY IS NOT A PROBLEM IF THE BORROWED MONEY IS WISELY INVESTED FOR GOOD RETURNS.