A committee established to investigate the finances of the Imo State Government under former governor Rochas Okorocha says it has uncovered N112.8 billion “dubious debts” owed the state by nine commercial banks, TheCable reports.
Former governor Emeka Ihedioha set up the committee to review the state’s finances under his predecessor.
The news platform said it obtained a letter dated February 6 which the committee wrote to Mr Ihedioha’s successor, Hope Uzodinma, on its findings.
The letter, signed by the committee’s chairman and former director-general of Debt Management Office, Abraham Nwankwo, said the banks are to refund the state N74.6 billion as principal amount from alleged infractions and penalties and another N38.2 billion as principal sum and penalties.
t also said some of the questionable deductions made from the state’s accounts include: excess penal claim, excess COT charges, excess interest on authorised overdraft, excess interest collections on loans, wrong debits recovery, double reversals, inappropriate facility fees, excess advisory and processing fees, excess management fees, collections on disbursement, and net loss on investment of short term facility.
The committee said it wrote to the banks on December 3, 2019, requesting refunds but that majority of them had not responded after the 30-day deadline.