- Says Any Bank that does that, does it at its own peril
An Adamawa Pressure Group, the Save Adamawa State Movement, has given an urgent stern warning to banks operating in Nigeria not endanger themselves by giving further loans to the Adamawa State government, if they want to lose the their money.
The group stated this on Thursday in Statement it issued to newsmen in Yola the State capital. According to the Group they said they are doing this in order to alert the general public and the banks in particular on the court action instituted against Governor Nyako, the Adamawa State Government and the Adamawa State House of Assembly over the $24 million loan which the administration are planning to borrow from the Islamic Development Bank, IDB.
According to the statement which was also obtained by universalreporters state thus; “Today the Adamawa State High Court presided over by Justice Hafsat Abdulrahman adjourned to 30th April 2014 for further hearing, the suit filed by Engineer Albert Stephen, Dr. Penni Boga and Dr. Francis Zira against the state government, Governor Murtala Nyako and the State House of Assembly to stop it from sourcing for over 24 million dollars loan from the Islamic Development Bank.
“The adjournment is to enable the plantiffs reply to the objections of the defendants that they lack the locus standi to sue the state government regarding sourcing of loans. The other issue is that the case filed does not disclose a reasonable cause of action and that the court lacks the jurisdiction to entertain claims questioning the capacity of the government to take loans. As law abiding citizens we have faith in the justice administration. However, what we refuse to accept is that while the matter is still pending in court, the state government in other to circumvent the pending suit has taken or is in the process of taking a total of N43 billion. The implication of the action of the state government is that even if we get judgement, it will be an ‘empty judgement’ because the damage the case sought to stop, would have effectively been scuttled.”
Furthermore the statement added; “Today we have asked our lawyers to take all necessary steps including joining the banks as parties to the suit to stop the state government from drawing down the loans, pending the determination of the suit. They have also been mandated to draw the attention of commercial banks and other financial institutions to the court action against the state governor who is at the tail end of his administration. The banks are hereby warned to be wary of granting loans to the Adamawa State Government, because the next government will not pay back these illegal loans.”
“Our opposition to the loans is that they would not be used for the development of the state. In his letter dated 25th November addressed to the Speaker of Adamawa State House of Assembly asking for permission to draw-down from the N40 billion bond, the governor did not mention the ‘specific’ projects.
“The letter also said: “I write to notify the honourable House that the state executive council at its meeting held on 21st November, 2013 unanimously resolve to draw-down from the N40 billion naira bond to fast track the execution of projects.’ ”
