Delta Assembly Ratifies Govt’s Promissory Notes Of N22.6bn With Zenith Bank


Delta State House of Assembly (DSHA) has passed a resolution approving the request of Governor Ifeanyi Okowa in support of the State Executive Council’s ratification of Zenith Bank promissory note discounting facility of N22,695,597, 917 issued by the Federal Government to the state.

The governor’s request was contained in a letter to the House and read by the Speaker, Hon. Sheriff Oborevwori, who presided over plenary on Tuesday.

According to the letter, Okowa said that over the years, the state government had reconstructed, rehabilitated and resurfaced several federal roads amounting to the sum of N76,357,226,598.62.

He said efforts were made to recover the expended funds from the Federal Government through the presentation of claims to relevant Senate and House of Representatives Committees and the Federal Government issued a promissory note in the sum of N22,695,597, 917 to the Delta State government.

Okowa, in the letter, said the promissory note, which represented 30 per cent of the amount spent on the federal roads, was 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 said 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 promissory note.

Okowa stated that the State Executive Council (SEC), at its third meeting held on March 19, 2019, ratified the governor’s approval of the Federal Government promissory note discounting facility, stressing that by implication, the state government had accepted the Zenith Bank offer to discount the promissory note of N22,695,597,917 at a discount rate of 18 per cent and management fee of one point zero per cent flat payable upfront.

The governor said the letter was meant to seek the resolution of the House in support of the discounting of the promissory note N22,695,597,917 from Zenith Bank Plc.

Thereafter, the Majority Leader, Hon. Tim Owhefere, moved separate motions for the House to receive the governor’s letter for further consideration and approval.

The motions were seconded by Hons Festus Okoh and Oboro Preyor and adopted

The House also passed the Delta State Private Health Care Registration, Operations and Prohibition Bill, 2017. The House had adjourned plenary to Tuesday April 2, 2019.


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