Enugu - The Enugu State Government has threatened to sue beneficiaries of its cab scheme who defaulted to meet their obligations in the revolving loan arrangement.
The Commissioner for Transport, Chuka Utazi, made the threat in Enugu on Tuesday during a meeting with the beneficiaries of the scheme.
Utazi said the state government was frustrated by the inability of the drivers to off-set their bills since the inception of the scheme in 2008.
According to him, the government is under pressure from the bank to repay the revolving loan for the taxi scheme initiated by Governor Sullivan Chime to reduce poverty in the state.
He said the duration for the repayment which was supposed to be in 36 months had exceeded five years.
"People like to do things the wrong way. These drivers were given the cars on hire purchase to complete payment within three years but unfortunately many of them have defaulted in the payment as agreed.
"The essence of this meeting is to get feedback from the cab operators who are managing phases one to three of the car scheme which the government put in place.
The Chairman of the Cab Drivers Association, Tony Chime, blamed the insurance companies handling the cars for failing to provide cover for them during accidents.
He appealed to the state government to review the scheme and ensure that the insurance companies lived up to the agreement.
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