Governor Douye Diri of Bayelsa has denied a claim that he diverted the N3 billion agricultural loan obtained from the Central Bank of Nigeria was diverted.

He said the claim was blackmail.

Mr. Diri, who reacted to the allegations on Tuesday, noted that the smear campaign to arm-twist his administration.

A former General Manager of Bayelsa Broadcasting Corporation, John Idumange, had alleged diversion of N3 billion agricultural loan obtained by Governor Seriake Dickson.

Mr. Idumange, an aide on Research and Documentation to Mr. Dickson, said he had reported the matter to the Economic and Financial Crimes Commission.

However, Mr. Diri, who said he was not averse to constructive criticism, dismissed the allegations as a mere ploy by Mr. Idumange to attract attention for personal aggrandisement.

He explained, “Let me start by saying that our administration welcomes criticism, provided that they are constructive, but this one on diversion of N3 billion is clearly a falsehood.

“Let me state it clearly in the full glare of the press that I shall not succumb to this cheap blackmail targeted to ‘knock my head’ against that of former Governor Seriake Dickson. The plot has failed.”

The governor added, “I want to warn Chief Idumange that I cannot be intimidated by this blackmail into giving out appointments. The CBN has said that no funds were diverted and clearly the N3 billion is not in the treasury of the Bayelsa government.

“The CBN manages the funds being warehoused in Access Bank. So, we do not have access to the funds. And if CBN has said the funds are not missing, then the allegations are simply false.”

Meanwhile, Mr. Dickson, had, in a statement on Friday, washed his hands off the allegations and urged his supporters to close ranks and work for the success of Mr. Diri’s administration.