UBA, Kogi Govt. Plans To Circumvent NFIU Policy, Direct Councils To Obtain N3billion Loan - PDP

Ahead of the full implementation of Nigeria Financial Intelligence Unit, (NFIU), policy on new financial regulations on states, local government joint accounts, the Kogi State Peoples Democratic Party have accused the Kogi State Government of deliberate attempt, working with the United Bank for Africa to allegedly circumvent the policy.

A PDP accused the State Government allegedly summoning and holding a meeting with eight Directors of Local Governments and Head of Works department, accused the state government for directing eight local government councils in the state to obtain a N3billion loan from the UBA.

The PDP alleged that the local governments were directed to tie the N3billion loan to a project to be advertised immediately, lamented, warned against further further indebtedness of the state and councils.

The PDP fingered the UBA branch in Lokoja for been  in the picture of the moves to grant the sudden loan to Kogi councils, plots aimed at circumventing the NFIU policy that is expected to take effect from Ist June, 2019.

According to the PDP, the policy implementation of NFIU which when fully in  operation would have ensured direct payment to council allocation, may not achieve its desired objectives, as the deduction from the council allocation following the N3billion loan that is now quickly arranged.

The PDP further disclosed that the meeting concluded arrangement that the state government would provide the contractors for the fictitious projects, an avenue the government still intends to allegedly syphon  councils funds.

The PDP observed that this ongoing arrangement to further indebt Kogi Councils is presently unknown to NUP, NASU, NUT, NULGE, NMHWU officials, who ordinarily would have been great beneficiaries of the direct payment to local government account in terms of salaries and workers welfare, urged them to rise up and fight for their right.

The loan to be taken by the eight local councils and the contractors to be supplied by government, the PDP disclosed would allegedly serve as another conduit to inflict debt and poverty as is currently witnessed in the state.

The PDP lamented that UBA is allowing itself to be dragged into a fraudulent transaction that would not be in the interest of the people and the local government areas.