N40bn loan for LG pensions strictly ALGON's responsibility - Ebonka

By Andy Emephia

As the hue and cry over the misgivings surrounding the N40 billion loan facility authorized by the Delta State House of Assembly , raises dust, the Association of Local Governments of Nigeria, Delta State Chapter has stridently affirmed that the facility is for the local governments to offset

 Contrary to misgivings in this direction, the state leadership of Association of Local Governments of Nigeria (ALGON), Delta state chapter, has unequivocally stated that the N40 billion facility will be repaid by the local governments but needed the authorization of the state house of Assembly

Speaking with newsmen, the state ALGON Chairman , Hon Victor Ebonka, after a meeting with the Joint Accounts and Allocation Committee (JAAC) , in Asaba , said it was unfortunate that the misinformation over the purported #40 billion loan went viral on social media and has generated unnecessary controversies

 Hon Ebonka, the Ika North East local government Chairman, said the challenge arose due to errors in the enrolment of local government workers in the contributory welfare scheme

According to the Delta State ALGON helmsman who acknowledged the constitutional responsibility of local governments to offset the emoluments of their staff as well as primary school teachers, the issue predates to previous administrations that tried to mitigate the effects of the pension arrears even though they were not constitutionally their prerogative

Hon Ebonka who stared that since 2016 and still counting,, various administrations have supported the pension benefit with over N5billoon which could not meet up the overall target , saw the need for the magnanimity of Governor Sheriff Oborevwori to brave the odds by the N40 billion guarantee on behalf of local government retirees

Ebonka said contrary to speculations , the State government did not borrow N40billion but only gave approval for the facility from Zenith Bank and forward same to the state house of Assembly for ratification

According to the state ALGON Chairman, Hon Victor Ebonka, "it is exclusively the local government councils that are borrowing this N40.billion . You know that statutorily, we need the approval of the state government and by extension the state house of Assembly. That's exactly what transpired. This repayment will be norne solel Will be borne solely by the local governments. It's not a state government loan but local government," Ebonka affirmed