Lagos PDP Demands Probe Of Fashola Over N160 Billion Debt

Posted by African Examiner Latest Headlines, News, Press Releases Sunday, September 14th, 2014

The Lagos State Chapter of the Peoples Democratic Party (PDP) has accused the Governor Babatunde Fashola led All Progressive Congress (APC) government of Lagos State of converting the N160 Billion loan meant to improve the lives of Lagosians in the areas of affordable housing, ‎transportation, Education, Medicals to other uses, calling for his probe.

Lagos State Governor Babatunde Fashola

The Party, in a statement signed by its Publicity Secretary, Taofik Gani posits that the attempted defence hurriedly conjured by governor Fashola to rationalise the whereabouts of the said loan is weak, unsatisfactory and diversionary.

It would be recalled that the Debt Management Office (DMO) recently stated that the Lagos State Government exclusively owes $1 billion out of the total $3 billion owed by all 36 states and the Federal Capital Territory.

Governor fashola had in a reaction during his inspection of the protracted‎ Light Rail project questioned the DMO’s motive behind the revelation, whilst also claiming to have spent the money on infrastructure such as the ongoing Light Rail project.

“We are again vindicated by the DMO revelation on the amount lagos state is indebted to under governor Fashola. We had said it many times that Governor fashola has plunged the State into irreparable economic damage going by his monumental and unprecedented debt profile. This present revelation of 160 billion naira debt is apart the other Local & Foreign loans, Bonds etc running into over 1thrillion Naira.

“This is baffling, especially considering the fact that the State is not enjoying commensurate development as it lacks in adequate and affordable services and infrastructure. It is in deed an afterthought for the governor to claim to have spent the loan on infrastructure,” it stated.

“The Major infrastructure is the Light Rail project and which was erstwhile presented as Public-Private Investment. What is therefore the amount contributed by the Private investor who is eventually taking the concessionaire?

“This is another government stealing by proxy. No doubt the protracted Project has been used as conduit to steal Lagos funds. It is our demand that the Governor’s Office must explain the details of this needless loan, whilst the EFCC probes the veracity,” the PDP said.