Gov Otu Berates DMO, Denies Taking Fresh Loans

BY UBON EKANEM, CALABAR – The Cross River State Governor, Bassey Otu has challenged the Debt Management Office (DMO) over figures indicating the State accumulated fresh loans under his watch, insisting that there is no truth in the Agency’s latest presentation.

Accordingly, the governor has urged DMO to come clean on the alleged loans’ reports, even as he denied taking nor signing fresh loan packages, both domestic and foreign, since assuming office on May 29, 2023 to date.

Speaking against the backdrop of figures published by the DMO on its website, Governor Otu wondered how the Office arrived at N220.2billion as the domestic debt profile of Cross River State as of December 2023, up from N204.04 billion posted for the state as of June 30th, 2023.

The Governor, who expressed surprised that the DMO can willfully attribute the sum of N16.2 billion as fresh domestic loans purportedly acquired by his administration after subtracting the initial N204.04 billion from N220.2 billion, boldly declared; “This is not true.”

Speaking through his Chief Press Secretary, Comrade Nsa Gill, the governor further said; “There’s no record in the annals of the State government that suggests that fresh borrowing was undertaken; since the inception of the present administration till date; both domestic and foreign debt”.

“We challenge any person, including the DMO, who has evidence of any fresh loan taken under the administration of Governor Bassey Otu to make that Public”.

While defending the Governor as a stickler for the rules, Gill noted that fresh loans take processes, including seeking legislative approvals, adding; “The governor has not signed nor taken in a fresh loan on behalf of the state.”

The statement further quoted Governor Otu as saying; “Anyone in doubt of our position can make findings with the State legislature and even to the DMO. I have taken up the matter with the DMO and they have denied knowledge of any fresh loan under the current administration”.

The Governor Otu frowned at what he described as misinformation the post by DMO portraying fresh borrowing by the Cross River State government and demanded proper scrutiny of the figures, adding; “It is also pertinent that the media and the general public understand that the dynamics of DMO debt profile spreadsheets includes the principal amount plus interest over time as well as other variables that may have been made available to the DMO; such as judgment debts, contract debts, garnishee orders, etc.

“In this case, Cross River State Government vehemently rebukes any interest calculation or any surreptitious calculation that portrays the government to have increased her domestic debt profile by borrowing N16.2 billion within June 2023 to December 2023. And the taking Foreign debt amounting to $57.9 million within the same period.

“We would like to reiterate that, Senator Bassey Edet Otu’s “People First” administration has promised the good people of Cross River State a very financially responsible leadership and will not borrow except for very critical and fiscally responsible reasons in line with the Fiscal Responsibility Act of 2007.”

Meanwhile, determined to straighten out things and clear his administration’s name, Governor Otu has reportedly directed the State Commissioner for Finance to immediately engage the DMO on the figures for proper explanations and understanding of the published figures which the State government maintained are “untrue and unacceptable”.

This is as the State government warns that it would not tolerate any calculated attempt to portray the administration in bad light of embarking on a voyage of fiscal irresponsibility when clearly the opposite is the case.