Reps to probe non-payment of workers’ salaries despite bailout funds

The federal house of representatives on Thursday setup an ad hoc committee to investigate the non-utilisation of bailout funds received from federal government by some states who have been experiencing difficulty paying workers’ salaries.

This resolution by the house was sequel to a motion on matters of urgent public importance sponsored by Karimi Sunday.

He noted that the fall in the price of crude oil in the international market had taken its toll on allocations from federation account to state governments.

The lawmaker blamed this for the failure of several states to meet their financial obligations to pay workers’ salaries.

“The federal government, in July 2015, approved the release and disbursement of bailout funds totalling N689.5 billion to 27 States while a further N20 billion was disbursed to Kogi state government four months ago but noted that many of the state’s have refused to utilise the funds released for payment of worker’s salaries, “Karimi informed the house.

“A recent report by BudgIT revealed that as at April 30th 2016, Abia and Osun States were owing 2 months salary each, whilst Bayelsa state is owing 5 months. Benue, Ekiti, Kwara and plateau states were owing 3 months salary, Oyo state is reported to owe 4 months while Delta, Niger, Nasarawa and Ogun States were all reported to be owing one month each.

“Kogi state is currently owing over 7 months despite bail out release”.

He alleged that some of the states had put the monies in interest accounts while the workers continued to suffer.

“Many of the state’s that have collected bail out from the Federal government were reported to have sticked the bailout funds meant for staff salaries in interest-bearing accounts while their employees continue to wallow in hunger, poverty and lack.

“Some of these workers have even lost their lives because of their inability to meet daily need.”

The house, which adopted the motion after it was put to a voice vote by Speaker Yakubu Dogara, also expressed worry at a report by the Independent Corrupt Practices and other related offences Commission (ICPC) indicting state governments on the non-utilisation of bailout funds.

In its investigation, the ad hoc committee will also ascertain the necessity for further disbursement of the funds being muted by the federal government and report back to the house.

Source: The Cable