The Southeast Development Commission (SEDC) totally denied obtaining a N25 billion loan from any commercial bank as alleged by the Association of Igbo Town Unions (ASITU).
ASITU had alleged that SEDC secretly secured a N25 billion loan at a 30 percent interest rate from a commercial bank without approvals from the Debt Management Office (DMO) or the National Assembly.
But the SEDC, in a statement, described the allegation as entirely false, misleading and a calculated attempt to derail the commission’s mandate and early progress.
The SEDC in the Statement entitled: “Re: Alleged N25 billion ‘secret’ loan” said it had not obtained any loan facility from any financial institution.
It said since inauguration on February 11, SEDC remained focused on extensive stakeholder engagement with southeast governors, the organised private sector, civil society organisations, development partners, development finance institutions and the general public to co-create a strategic roadmap.
It said roadmap which defined the commission’s vision and priority programme would be made public during the 100th day in office of the commission on May 12, while noting that implementation of 2025 budget had been extended to June 30 by the Senate
It said the SEDC remained committed to transparency, fiscal discipline, and accountability and urged members of the public to disregard unsubstantiated claims but continue to support the Commission’s efforts to deliver sustainable development in the region.
In line with its developmental mandate, SEDC said it has and continues to explore various financing options including preliminary discussions around a potential short-term bridge facility.
The SEDC said if pursued, such a facility would be strictly within the bounds of its approved budget and full compliance with the law with difference to appropriate oversight by the Debt Management Office and other regulatory and supervisory bodies.
It said its actions would be guided by the letters of line the SEDC Act 2024 (as amended).
“Any financing arrangement will be transparently procured and responsibly applied to support early program rollout, and the launch of our Quick Win agenda – in alignment with the Renewed Hope Agenda of President Bola Ahmed Tinubu,” it said.
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