THE Kwara State government at the weekend refuted allegations by the opposition, Action Congress of Nigeria (ACN), that the state was bankrupt.According to Dr. Muideen Akorede, the Senior Special Assistant on Media to Governor Alhaji Abdulfatah Ahmed, the ACN's allegation was done in a bad light and is a calculated attempt aimed at tarnishing the image of the government.Akorede said: 'We assert that Kwara State remains financially viable and capable of meeting its financial obligations including huge infrastructural projects, both concluded and on-going.'We assert that the CBN's action was informed by a communication gap which government is trying to bridge. To set the records straight, the said loan was obtained by the Ministry of Finance Incorporated (MOFI), the erstwhile investment body, which is a separate legal entity, to buy shares in an effort to shore-up IGR. Expectedly, the loan was subsequently secured against the shares. Also, the outstanding figure includes the principal and interest accrued.'Unfortunately, due to the stock market crash, MOFI's ability to repay was heavily impaired. Furthermore, the said loan and shares so purchased have since been taken over by Asset Management Corporation of Nigeria (AMCON), which has the option of selling the shares to recover the said loan.'In response, the state chapter of ACN has accused the PDP-led government of wrecking the state with its 'financial recklessness and corruption,' days after the CBN barred banks from granting further loans to the state.The party's Chairman, Kayode Olawepo, said at the weekend in Ilorin that the CBN hammer was inevitable in view of what his party called the 'the financial recklessness and corruption of the immediate past and present PDP governments in the state.'He added: 'It is interesting that this blacklisting comes amid empty boasts by KWSG officials that the state is viable and is in no financial mess. It is an embarrassing situation, even though it is a case of the chicken coming home to roost. We saw it coming, and had indeed warned against it.'Olawepo said ACN's findings show that the state is indebted to the tune of N6.8 billion and was shortlisted for the penalty following its 'failure to pay back its backlog of loan which led to the purchase of the debts at an agreed price by the Asset Management Corporation of Nigeria.'The party called on the anti-graft agencies to probe the alleged mismanagement that led to the state being declared unviable by the country's monetary body, and bring to book anyone found wanting.The statement added: 'The CBN circular said the state and others in the same condition have no viable means of paying their loans and so cannot be allowed to borrow again. In other words, the 45-year-old Kwara State is not a viable entity. This revelation confirms our repeated alarm that Kwara State is being wrecked under the PDP government, no thanks to financial recklessness, misplaced priorities and wanton corruption.
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