The Kwara State 35 billion Naira bond imbroglio has taken another dimension as a civic group, Kwara Consultative Forum has challenged the AbdulRahman AbdulRazaq led Kwara state government over suspected infractions in the transaction process to raise a N35 billion debt in the capital market through private issuers.
……The group particularly challenged the suspicious transactions of Kwara state government in connivance with Greenland Growth SPV Limited, to raise up to N25 billion secured fixed rate issues (bond) due in 2028, under the N35 billion notes issuance program. The N35 billion debt, with 15% interest and 6.5% issue cost, is backed by an Irrevocable Standing Payment Order (ISPO) on Kwara state share of statutory allocation to the tune of N632.2 million monthly. This implies that the State’s total first line deductions as a percentage of statutory allocations which averaged 16% over the last three years (2018-2020) will rise to 25% on account of the bond.
…..According to the group, Kwara state government is currently repaying or refunding a sum of N1.37 billion monthly from statutory allocation and addition of #632 2million will bring the State ISPO monthly deduction to over N2 billion.
…In a document issued by Augusto and attached as evidence in a suit challenging the bond, the credit rating agency noted that the N35 billion debt is capable of impacting negatively on Kwara state’s main source of revenue and exposes the State to susceptibility to volatilities in global crude oil prices and disruption to local crude oil production volume,
….The Kwara Consultative Forum queried why the state government a non operating entity, Greenland Growth SPV Limited which was only floated in 2021, with no bearing to Kwara state was chosen to raise and manage a whopping N35 billion on behalf of the State.
….Greenland Growth SPV Limited is a private limited liability company with registered office at Plot 1698a, Oyin Jolayemi street, Victoria Island, Lagos. Incorporated in March, 2021, Greenland is a non operational entity with no management and operational structure. The company with authorized share capital of N1 million has as Directors, Mr. Tunbosun Falowo, Mr. Kenneth Ero and Mrs. Omobola Makinde.
….It is however suspicious, how the Kwara state Executive Council approved raising of the N35 billion bond through an non existing Greenland Growth SPV Limited on 24th December, 2020, as the company was only created in March, 2021, 4 months after Kwara SEC already approved the transaction.
…It then means Kwara State Executive Council approved business dealings with an unregistered company unknown to law, while Court also noted that extract of the State Executive Council Resolution with ref no KWS/S/CAB/39/SI/I/91 was signed by the Secretary to the State Government and Hon. Commissioner for Justice on 11 January, 2021.
….Meanwhile, the State had no Commissioner for Justice as at January, Governor AbdulRazaq dissolved the State cabinet on December 30th, 2020 and only reappointed the Commissioner for Justice and Attorney General in June, 2021.
(FRESH INSIGHT TV)
