The Rivers State House of Assembly, on Monday at its resumed sitting, gave an approval for the state government to transfer its N5.9 billion Guaranty Trust Bank Plc outstanding loan to Fidelity Bank Plc.
The approval is sequel to a letter by Governor Chibuike Rotimi Amaechi to the House through the Speaker, Rt Hon. Otelemaba Dan-Amachree, dated November 10, 2014, requesting the transfer.
The letter reads in part, “May I hereby inform you of our intention to refinance a loan of N5.9 (five billion, nine hundred naira) only currently with Guaranty Trust Bank Plc.
“You will recall that you had earlier approved the loan in the sum of N40 billion from the same bank in 2013.
That loan has been successfully repaid with a current balance of N5.9 billion as at November 9, 2014.
“Consequently, the state is desirous of transferring the loan of the same amount to Fidelity Bank Plc at more favorable rate and longer tenor to ease financial burden on the state and progressively improve our fiscal status.”
All 17 lawmakers present at the sitting voted to approve the transfer after House Leader, Hon Chidi Lloyd explained that Fidelity Bank was buying over the loan from GTB.
Meanwhile, a 5-man committee to investigate alleged unlawful termination of the appointment of one Comrade Ameze Kevin, by Pabod Breweries Plc by the speaker with a mandate to submit its report within one week was appointed.
This came after member representing Onelga I, Hon Gift Nwokocha presented a petition by Kevin on the floor of the House, saying he was wrongfully kicked out of the company.