N7bn Loan: Mimiko’s Excuse is lame, witless, says Boroffice

Professor Ajayi Boroffice

Senator Ajayi Boroffice has described the defence of Governor Olusegun Mimiko to taking a N7 billion naira loan from Zenith Bank as lame and witless.
In a statement issued by his media office, he lambasted the governor for stating that since other states were borrowing money, why should Ondo not borrow?
Read full statement below:
The Media Office of Senator Ajayi Boroffice has noted the lame and witless defence of Ondo State Government to the controversial N7billion loan request from Zenith Bank PLC.
It is amateuristic and awkward that the Governor Olusegun Mimiko-led administration has lowered the debate on ‎the N7bn bank loan to crass politics and puerile argument; that since some states have borrowed, why should Ondo State not borrow? Is the government saying it requested for N7bn loan from Zenith Bank on the ground that World Bank has granted credit facilities to Lagos and Edo States. The witless argument from the government further shows there exist no developmental plan for which the loan was sought after.
Really, ‎there is nothing hypocritical or ignorant about a warning inspired by patriotism against mortgaging the future of our children under the guise of seeking loan to fund infrastructural deficit. However, It is rather preposterous that a government renowned for limitless deceit thinks it can preach on honesty.
On the issue of Lagos and Edo States: it is quite clear that while World Bank granted Lagos and Edo States long-term, low interest rate development policy operation credit facilities, our dear Ondo State is seeking N7bn loan at an unduly high and exorbitant interest rate from a commercial bank.

Governor Olusegun Mimiko of Ondo State

It is on record that World Bank has strict borrowing conditions with strong emphasis on transparency, accountability, strong financial management information system for budget management, high financial accountability through timely audits and publication of state government’s audited financial accounts. In truth, same conditions cannot be said of the controversial N7bn loan request. When last did the Mimiko-led administration audit government spendings and present its audited financial accounts to the people of Ondo State for public scrutiny? Not once in 7 years.
The undoing of the Mimiko-led administration is that it is exhibiting severe disillusionment as well as demonstrating retiring soporific with its indolent belief that no developmental project could be executed without recourse to borrowing. Senator Boroffice does not agree with this absurdity.
Furthermore, the issue of N7bn is coming at the same time the Mimiko-led administration declared that paucity of funds is delaying local government polls after feeding fat on local government allocations for about 7years. Is it true that the #7bn loan is designed to enhance the rigging machinery of the sinking PDP in Ondo State?
Senator Ajayi Boroffice remains committed to the genuine development of Ondo State and her people. It is the administration that has thrown Ondo State into senseless debt of about 77bn, yet untiring, and seeking to borrow more that is consciously working ‎to ground Ondo State for the next administration. ‎The Mimiko-led administration should address the people of Ondo State on the debt profile of Ondo State ‎and leave the people to figure out their true enemy.
On reiterating note, although government is continuum, the incoming APC government in Ondo State will not be committed to the repayment plan of any dubious loan granted by Zenith Bank PLC or any other commercial bank at the detriment of the people of Ondo State.