By Eze Onyekachi
Honorable Members of the Imo State House of Assembly on Tuesday, June 29, 2021 passed two bills into Law.
The ninth House, led by the Speaker, Rt. Hon. Paul Emeziem gave an accelerated hearing and eventual passage of the two different bills into Law, awaiting for the State Governor’s assent.
The first bill is titled, “A bill for a Law to provide for the establishment of the Imo State Debt Management Office and for other related matters”.
The Law, according to the document may be cited as the Imo State Debt Management Office (Establishment) Law, 2021, made up of seventeen pages.
Part of it states that both Consolidated Debt Service Account, dedicated as saving account from which public debt repayment obligations of the State will be fulfilled, and the Consolidated Revenue Fund of the State were all captured.
The total revenue and assets of the Government maintained in an account by that name, including all statutory allocations from the Consolidated Revenue Fund of the Federation and all internally generated revenue are said to be strictly protected in the Law.
Presenting the bills respectively, the Deputy Majority Leader of the House and Member representing Ehime Mbano State Constituency, Hon. Barr. Emeka Nduka disclosed that the first bill is basically aimed at regulating Government borrowing.
Hon. Nduka posited that it would also checkmate thoroughly, how Government of Imo State, and her successive Governors will henceforth borrow money, when to borrow and how to offset each loan gotten.
He maintained that the said bill is for the progress of the State and her development.
“There will be a database of entries in respect to any debt or loan the State borrows. The government will be able to explain strongly reasons it should borrow”.
The Ehime Mbano Legislator however extolled the State Governor, Senator Hope Uzodinma for being keen in making sure that transparency, accountability and due process tops the chart of his administration.
Furthermore, Nduka asserted that although every State in the Country borrows money for development, that of Imo State won’t be different, hence the deep thought of the Legislative House to streamline the policy by passing the bill into Law.
Contributing to the debate, the Deputy Speaker, who represents Nwangele Constituency, Rt. Hon. Amara Iwuanyanwu described the bill as a wonderful one, geared towards protecting the interest of the State.
He recalled that in absence of the Law, the State do not have a database of debts incurred by previous administrations, which Governor Hope Uzodinma is keen at ensuring that such scenario doesn’t occur again.
However, some of the functions of the Office when established include the following;
To issue, on behalf of the State, such Instruments as the State may desire to 1ssue; Borrow on behalf of the Government, from any individual or institutional bodies;
Maintain a reliable database of all instruments issued, loans taken or guaranteed by the Government or any of its agency, and all contingent liabilities related to it; Prepare and submit to the Government, a forecast of loan service obligations for each financial year; Prepare and implement a plan for the efficient management of the State’s debt obligations at sustainable levels compatible with desired economic activities for growth and development, and participate in negotiations aimed at realizing those objectives.
Other functions of the debt management office as contained in the Law are;
To verify and service debts guaranteed or taken directly by the Government; To reconcile and where applicable service debts taken by Local Governments where such debts are authorized and guaranteed by the Government; Set guidelines for managing Government financial risks and financial exposure with respect to all loans and instruments; To advise the Government on the restructuring and refinancing of all debt obligations.
In a related development, the House also passed a Law to repeal the Imo State Audit Law No.17 of 2016 and enact a Law to provide for the establishment of the Audit
Service Board, Offices of the Auditor-General for the State and
Auditor-General for Local Governments for the purposes of ensuring and guaranteeing transparency and accountability in the use of public funds and for other related matters.
The bill is a seventy-one page bill.
Leading the debate also, the Deputy Majority Leader, Hon. Emeka Nduka said the
Imo State Audit Law No.17 of 2016 was repealed, and new Law enacted to accommodate all relevant clauses that were skipped in the old law.
He pointed out that the new Law is more clearer, stressing that the major objective is to ensure transparency and accountability in both the State and Local Government Service of Imo State.
Nduka opined that there would be no financial rascality as it will be fully regulated through the new Board to be established under the Law.
“We repealed the old Law and established a new Audit law. It will be more clearer and transparent, to regulate both State and LGAs through the Board, in the aspect of spending every money meant for each purpose.
As laudable as the Law is, it regulates the way and means of spending of our money”.
“The Governor is a transparent man, so he believes and moves on the right part towards accountability and transparency as well”.
The two bills received a robust debate, support and contributions of the Members to warrant for its speedy passage.
