PDP faults Ahmed’s N5bn loan

Kwara State Governor, Alhaji Abdulfatah Ahmed

People’s Democratic Party in Kwara State has faulted the
rationale behind the state government’s decision to borrow five
billion naira to pay the arrears of local governments’ staff
salaries.
The state Publicity Secretary of the Party, Chief Rex Olawoye,
made the observation in an interview with News Agency of
Nigeria in Ilorin.
Olawoye, therefore, challenged Governor Abdulfatah Ahmed, to
explain what the monthly Federal Allocations to the councils
have been used for.
He maintained that the N3.5bn Federal Allocation to the 16 local
governments in the state for the month of June was adequate to
offset the three months arrears of salaries allegedly owed
council staff.
He said this was aside the state statutory allocation of N5.2bn
from the Federation Account for the same month.
“Once an organisation resorts to borrowing to pay salaries, such
organisation should be counting its days of collapse or
bankruptcy.
“As much as it is good to pay salaries with borrowed money,
how do you pay back the loan with the interest? Borrowing to
pay salaries means postponing the evil day,” Olawoye said.
Olawoye challenged Ahmed to tell the world what happened to
the June allocations that should warrant his borrowing money
for salaries.
The spokesman gave a breakdown of the June allocation to
each of the 16 councils to prove why it was needless for the
APC-led state government to raise bond to pay salaries.