He testified on Wednesday before the Local Government Commission, saying the Council took unauthorised loans in violation of the LG Act.
He told the commission that while Basse Area Council is allowed to contract loans, but that has to be approved by the Ministry.
He explained that if they take loans and default on the loans, technically, the government could be held liable for those loans. He noted that this is why, the consent of the minister should be sought so that they could make due diligence.
Sowe further informed the Commission that the D15 million loanwas taken without the Council’s consent. Out of this amount, he added, D10 million was loaned from Supersonicz Microfinance and D5 million from Vista Bank.
He acknowledged that though the Council was aware or has given approval for some of the loans, the D5 million and the D10 million were something that they weren’t aware of.
Also, Mr Sowe said that his office’s 2020 to 2022 audit report for the Basse Area Council revealed that the Council is operating without a standing order.
