Delta State House of Assembly has passed a resolution approving the request by Governor Ifeanyi Okowa to rectify a promissory note discounting facility of N22.7 billion, issued by the Federal Government to the state.
Zenith Bank declares N785.19bn gross earnings for 2017
Governor Okowa’s request was contained in a letter to the House read by the Speaker, Mr Sheriff Oborevwori, during plenary.
Governor Okowa’s request was contained in a letter to the House read by the Speaker, Mr Sheriff Oborevwori, during plenary.
Okowa, in the letter, said over the years, the state government reconstructed, rehabilitated and resurfaced several federal roads amounting to N76.4 billion.
He said efforts were being made to recover the expended funds from the Federal Government through the presentation of claims to relevant Senate and House of Representatives committees and hence the Federal Government issued a promissory note in the sum of N22,695,917 to Delta State government.
Okowa explained that the promissory note, which represented 30 per cent of the amount spent on federal roads, is scheduled to mature in February 2021, adding that there was an urgent need of funds to complete numerous roads projects before the onset of the rainy season.
He noted that due to the urgent need, it had become expedient to obtain a discount facility of the promissory note from Zenith Bank Plc to receive immediate value for the amount.
He disclosed that the State Executive Council at its third meeting held on March 19, ratified the approval at a discount rate of 18 per cent and a management fee of one per cent payable upfront.
The governor said the purpose of the letter was to seek the resolution of the House in support of the discounting of the promissory note from Zenith Bank Plc.
Majority Leader, Tim Owhefere, in separate motions, moved for the House to receive the governor’s letter for consideration and approval.
The motions were seconded by Festus Okoh and Oboro Preyor and adopted.
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