Saturday, 23 April 2016

How Nigeria states squander bail out funds

An analytic research was carried out by the Independent Corrupt Practices and related offenses Commission (ICPC) has stated that most of the states that received bailout funds from the federal government diverted the money for other means. 


23 states received bailout fund from the President Muhammadu Buhari-led government to pay the salaries of their workers out of 27 that applied from the Central Bank of Nigeria. 

Vanguard reports that in the analysis signed by the commissioner for public enlightenment of ICPC, the investigation was carried out by the agency in conjunction with the Nigerian Labour Congress. The breakdown revealed that most of the states that claimed to owe their workers’ salaries lied while others failed to pay workers and diverted it to other use.

The states that received bailout fund include Adamawa, Bauchi, Benue, Cross River, Ekiti, Katsina, Gombe, Kogi, Nasarawa, Niger, Ondo, Osun, Ogun, Plateau, Sokoto, Kwara, Bayelsa Imo, Enugu, Oyo, Delta, Kebbi and Zamfara. 

The most worrisome is the case of Zamfara that applied for N32.5 billion but had only received N10 billion to pay its workers. Investigation revealed that the state did not owe any worker. 

The however allegedly used the money for the settlement of indebtedness to contractors and other purposes. 

The state disbursed N4.2 billion for outstanding of payment to 14 local government areas of the state, N3 billion for outstanding payment of fertilizer for 2014 farming season, N265 million for outstanding certificate for construction of Bungudu-Nahuche Kyabarawa Road 22.6Km N55 million for outstanding certificate of Hostel Block at Abdu Gusau Polytechnic. T/Mafara, N319 million for payment of outstanding cost of vehicles supplied to State, N20 million for the outstanding certificate of construction work at K/Namoda Juma’at Mosque, N6 million for the outstanding certificate of construction work at Emir’s Palace. Gusau and N2 billion for the share of 14 local government councils bailout. 

Imo state received N26,806,430.000.00 from the CBN but paid the amount into two commercial banks and transferred part of the money into uses not related to the payment of workers’ salaries. The Governor Rochas Okorocha-led government transferred N2 billion into a government house account, paid another N2 billion into Imo state project account and another N2 billion was lodged in a micro-finance bank and a ‘management fee’ of N21 million paid into an unspecified account out of the bailout fund received by the state. 

The ICPC also found out that Adamawa state got N9,578,360, 000.00 as bailout cash but disbursed only N2,378,360,000.00 with a balance of N7,200,000,000.00. The state not to owe outstanding salaries as at September 2015 but according to the report, the state could not provide any reason for the slow process of off-setting the debt.

Also, Benue state received N 12.503,439.787. 48 as bailout fund and disbursed N10,852.536.702. 96 with a balance of N 1.650.903.084.52. However, double payment of N37,760,000.00 was made in favour of office of the deputy governor which was being investigated by the ICPC. 

Niger State received N4.396.810.000.00 as bailout fund and the entire amount was claimed to have been expended in off-setting salary debts. 

Osun state which has been at the centre of salary payment crisis received N34.988.990.000.00 as bailout fund and disbursed N18.677.224.582.20, leaving a balance of N16.311,765.418 billion as at November. 2015. The ICPC was verifying allegations that Osun state public servants had only been paid salaries up to July 2015. 

Kebbi State received N7.080.000.000.00 as bailout fund and disbursedN2,617,152,577.20 with a balance of N4,463,975,420.27. The State claimed to have cleared all outstanding arrears on salaries as at September. 2015.

Delta State received N10,936,799,299.36 as bailout fund and disbursed N8,129,888,279.86 with a balance of N2,806,9I1,019.50. However, the state claimed not to owe salaries as at 24th November. 2015 although the state has a total debt value accrued from staff salaries and emoluments of N36,417,217,601.53. 

Oyo State was granted N26,606,944,831.03 as bailout fund and disbursed N25,495,292,422.63 with a balance of Nl, l 11.652.408.40. The State owes four months’ salaries as at April. 2016. 

Kwara State received the sum of N4.320.950.000.00 as bailout fund and disbursed N4,291.087.985.08 for salaries and has a balance of N29.862.014.92. The state claimed to have cleared all outstanding salaries as at 20th October. 2015. Plateau State was granted N5.357.570.000.00 as bailout fund and disbursed N5.330.589.061.15 with a balance of N26.980.938.85. The State owed two months salaries as at 30th September 2015.



Source- Vanguard, Leadership

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