House Probes Federal, State Govts over Foreign Loans
From Onwuka Nzeshi in Abuja THISDAY | Feb.16.2010

The House of Representatives will today commence an investigative hearing on the alleged indiscriminate procurement of foreign loans by the Federal and State Governments during the current political dispensation.

The Ministry of Finance , Accountant-General of the Federation, Debt Management Office and the Governors of the 36 States of the federation have been summoned to appear before its Ad hoc Committee on Foreign Loans to explain the process, procedure and status of all foreign loans obtained over the last three years.

Chairman of the Ad hoc Committee, Hon Emeka Ihedioha disclosed that the resolution to embark on the investigation was prompted by revelations that the various tiers of government have been obtaining foreign loans without authorisation from the parliament and in contravention of the provisions of the 1999 Constitution.
Ihedioha who is also the Chief Whip of the House said that statutorily both Federal and State Governments ought to obtain the endorsement of the National Assembly before obtaining foreign loans.

According to Ihedioha, his committee has been working closely with the Debt Management Office (DMO) to establish the foreign loan profile of each of the tiers of government. The overall objective of the investigation, Ihedioha said, was not to witch hunt any individual but to establish the mistakes that have been made with a view to correcting them.

“The investigation would uncover whether the Federal and State Governments followed due process in get ting the loans. The Investigative Hearing planned for Tuesday and Wednesday would provide the committee the chance to cross-check the figures we got from DMO and to find out from the affected Governments their repayment plan. The real task before the committee is to set new standards consistent with the provisions of the law to avoid the nation sliding back into foreign debt crisis that impacted negatively on the economy,” he said.

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