The committee constituted by the Niger state house of assembly to investigate contract financing loans of 25 local government councils has recommended the suspension of 15 LG chairpersons.
The committee, in its report presented to the house on Wednesday, said the development is to enable the members of the committee have “unhindered access” while discharging their legislative duties.
According to the report, the suspension is in line with the provisions of sections 128 and 129 of the 1999 constitution as amended, and section 90 of the Local Government Act, 2001 as amended.
The committee recommended the suspension of the LG chairpersons of Mokwa, Gbako, Suleja, Gurara, Tafa, Paikoro, Bosso, Agwara, Borgu, Kontagora, Wushishi, Magama, Mariga, Mashegu and Rijau.
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“You will recall, Mr. Speaker sir, hon. members, that at the plenary session No. 15 of Thursday, 5th July, 2022, the House considered a motion under matters of urgent public importance, calling on the house to set up an ad-hoc committee to properly investigate the capital project financing loans to the 25 local government areas (LGAs),” the report reads.
“That owing to the council chairmen’s interference in its assignment, the committee hereby recommends the suspension of the following council chairmen from office to allow the committee conclude its legislative assignment in line with the provisions of Sections 128 and 129 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) and as well as the provision of section 90(1)(a), (b) and (c) of the Local Government Law, 2001 (as amended).
“In addition, the deductions of N8m each from LGAs for loan repayment be suspended for failure of the ministry to obtain house resolution as provided in Section 97(1) of the Local Government Law, 2001 (as amended) before the loan was obtained, and for failure of the Bank to provide schedule of loan repayment, as well as the ministry’s refusal to give the committee certified bank statement of account of its inflow from the federation account and its reserve fund account.
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“Mr. Speaker sir, hon. members, the committee notes that traditionally, infrastructural investments and capital projects are finance using public resources.
“However, severe budget constraint and inefficient management of the resources by public entities led to an increased involvement of private investors through loan facilities from corporate organisations such as the banks to finance some capital projects world over. Consequently, the capital project financing loan of the 25 LGAS was premised under this guise.
“In carrying out this assignment, Mr. Speaker sir, the committee, in its maiden meeting on the 5th day of July, 2022, drew up terms of reference intended to serve as modus operandi for the investigation.
“Though it is by no means an easy task, the committee painstakingly, within limited time and other constraints, tried to meet the demand of a balanced investigation.”
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The assembly, at its sitting, adopted the resolution of the committee and also resolved to forward the recommendation to the state executive council for approval.
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