Kwara LGs to Face Prosecution over Unauthorised Loans

Date: 2012-12-11

Out of 16 local government areas of Kwara state, 10 would face prosecution for taking "unauthorised loans" to run their councils.

The affected councils according to state government, in a letter to the Speaker, Kwara state House of Assembly, was also alleged to have involved in unnecessary employment while they could not meet up its obligation.

In the letter to the Speaker, Barrister Razak Atunwa which was read on the floor of the house, The state governor, Alhaji AbdulFattah Ahmed said two local governments- Kaima and Baruteen- were on clean bill.

"The state government has for sometime now been having a running battle with local government councils in the state over maladministration occasioned by reckless spending which culminated in mass discontent and above all the inability to pay staff salaries and fulfil statutory obligations", the governor stated.

"However, as the situation continued to degenerate unabated and assuming a chaotic and calamitious dimension, government had to intervene quickly by setting up a committee to look into the matter and advise as appropriate. High points of the committee's observations and findings include:"that the internally generated revenue of all the local government councils is abysmally low and cannot effectively complement other sources of revenue, such as the regular inflow of the state 10 percent to local governments and that local government councils should scale up their revenue drives, that the local government councils are experiencing dwindling inflow from the federated account,

"That local government councils obtain loan from banks and other unauthorised sources without official authorisation and due clearance from constituted authority-with Ilorin East, Ilorin South, Offa, Edu, Ifelodun, Ekiti, Irepodun, Oke-Ero ad Asa local government councils being the worst culprits, that only Baruten and Kaima local government councils presented clean bills of health in this regard.

"That all chairmen found culpable particularly in obtaining unauthorised loans should be sanctioned to serve as deterrent to others", he said.

Source

 

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