Against the backdrop of the state’s huge financial debt, Delta State House of Assembly yesterday approved the request by the state Governor, Senator Ifeanyi Okowa for a ten billion naira loan offer by the Zenith Bank PLC.
The letter conveying the request titled; “Restructuring of Existing Loan Facilities and Offer of N10 Billion Term Loan by Zenith Bank PLC” dated June 22, 2015 was read to members of the House by the Speaker, Hon. Monday Igbuya and it was unanimously approved.
The state governor had informed the House that the new administration met a huge bank/capital market debt burden of N96.62 billion with a scheduled monthly repayment of N4.6 billion.
This, he explained, was in addition to the monthly repayment of the state infrastructure development bond of N50 billion obtained in 2011.
Constrained by the huge debt and in order to free resources for other development purposes, Senator Okowa informed the House that his administration had to resort to the bank which has offered to restructure the state government existing loan facilities and that of the state House of Assembly.
“The restructuring of the existing facilities and acceptance of the N10 billion term loan will mitigate the harsh impact of the liquidity crisis, reduce time lag in payment of salaries, pensions and overhead costs as well as ensure that take off of some key projects germane to the agenda of this administration,” the letter read.
Meanwhile, the House yesterday received a list of the first set of nominees for appointment as commissioners from Governor Okowa for consideration and confirmation.
The list include, Mrs. Mary Owhotu Iyasere, John Nani, immediate past member of the House, Dr. Kingsley Emu, a former Commissioner, James Augoye and Vincent Uduaghan.
Others are immediate past Commissioner for Local Government, Newworld Safugha, Mr. Joe Ogeh, Sir Fidelis Tilije, Mrs. Omatsola Williams, Hon. Austin Chikezie, Mrs. Joyce Overah, former member of House of Representatives and Mr. Chiedu Ebie.
The House also constituted its principal officers. They include Tim Owhefere, Majority Leader, Pat Ajudua, Chief Whip, Oboro Preye, Deputy Majority Leader, Michael Diden, Deputy Chief Whip and Reuben Izeze, Majority Whip, all of the PDP. Festus Okoh of Accord Party is the Minority Leader.