Governor Rochas Okorocha of Imo State has made it clear that the Paris Club refund which the federal government has been disbursing to the state in tranches is not a free gist or loan.
He said that the Parish club fund is actually the property of the states which the federal government used to settle its external debt.
Answering reporters’ questions today, Thursday while giving details of the decision taken at the National Economic Council (NEC) meeting at the Presidential Villa, Abuja, governor Okorocha recalled that state governments had, a few years ago, sued the federal government on the issue but that the case was later withdrawn to allow for out of court settlement.
Governor Okorocha said that the previous government, especially, of Goodluck Jonathan failed to honour the gentleman agreement as a component of the out-of-court settlement, until Muhammadu Buhari came to power and decided to implement the agreement by refunding the money to the states in tranches. [myad]
