ABOUT THE PREVIOUS BAILOUT AND THE ICPC

This is a brief insight into how the last bailout released by the FG was utilized. Before we get all happy with the new #50bn bailout, lets see the ICPC’s breakdown of how the previous bailout to the states was used.

READ HERE: FRESH LOAN: FG DOLES OUT N50BN TO 35 STATES

Startling revelations have been made by the the Independent Corrupt Practices and other related offences Commission in concert with the Nigeria Labour Congress on the usage of the bailout funds released to State Governments by the Federal Government through the Central Bank of Nigeria.

While some States outrightly mismanaged the funds, others diverted it to other uses.

Yet, there were those who claimed to have used it for the payment of salaries but are yet owing workers salaries.

Revelations by the ICPC showed that some States collected the funds and used it for other purposes, with many still owing their workers despite the fact that they were given enough money to cover the outstanding salaries.

The fund has so far been disbursed to 27 States based on the approval of President Muhammadu Buhari.

For instance in Imo and Zamfara States, the bailout fund was said to have been utilised for other purposes.

The ICPC report said Imo State applied for and received bailout funds of ₦26,806,430,000.00 from the CBN.

However, it was discovered that rather than pay workers, some transfers were made into certain Imo State Government accounts, which are not related to salaries and emoluments.

The transfers included N2 billion into a Government House Account, N2 billion into an Imo State Project Account, N2 billion transferred to a Micro-Finance Bank and a management fee of N21,017,810.00 was paid into an unspecified account.

Zamfara State was said to have requested for N32,512,495,183.27 bailout fund.

It received N10,020,952,964.51.

But it was discovered that the State was not owing Civil Servants and Pensioners any arrears as at the time the Federal Government released the bailout funds.

The State Government, in order to utilize the funds, reportedly made overture to the Zamfara State House of Assembly requesting to use the funds to settle some liabilities amounting to N10,020,751,072.98.

The money was then used as outstanding of payment to 14 local government areas of the State, amounting to N4,262,560,629.83; outstanding payment of fertilizer for the 2014 farming season, N3,056,300,000.00; outstanding Certificate for Construction of Bungudu-Nahuche Kyabarawa Road, which is 22.6km, coming up to N265,256,342.76; and outstanding Certificate of Hostel Block at Abdu Gusau Polytechnic, T/Mafara: ₦55,000,000.00 among others.

Below is the full report:

 

  • Introduction:

As part of the Federal Government’s effort to end the lingering crisis of unpaid worker’s salary in most States of the Federation, President Muhammadu Buhari approved a comprehensive relief package designed to salvage the situation through the Central Bank of Nigeria (CBN)’s Special Intervention Fund which offered affected States soft loans solely for the purpose of paying the backlog of salaries.

 

  • Benefitting States:

Whereas the Central Bank of Nigeria (CBN) is yet to officially confirm this to the Commission, the twenty-seven benefitting states from the open sources are: Abia, Adamawa, Bauchi, Bayelsa, Benue, Borno Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Katsina, Kebbi, Kogi, Kwara, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Sokoto and Zamfara State.

 

  • Findings:

Following strident allegations of diversion of these bail-out funds and to avoid industrial unrest, ICPC in collaboration with the Nigerian Labour Congress (NLC), decided to monitor the disbursement of the bailout funds in the 27 benefitting States. However, relying on available resources we could only cover twenty-three States as follows:

 

  • Adamawa State – a total debt value accrued from staff salaries and emoluments was ₦9, 578,369,000.000. The State received ₦9,578,360,000.00 as bailout fund and disbursed ₦2,378,360,000.00 with a balance of ₦7,200,000,000.00. The reason for the slow process of off-setting the debt was not provided as at the time of this report. However, the State claimed not to owe outstanding salaries as at September, 2015.

 

  • Bauchi State – total debt value accrued from staff salaries and emoluments was ₦14,820,775,109.50. The State received ₦8,609,100,000.00 as bail-out fund and disbursed ₦8,414,088,383.26 with a balance of ₦195,011,616.74. The State claimed not to owe salaries as at September, 2015.

 

  • Benue State – a total debt accrued from staff salaries and emoluments amounted to ₦12,503,439,787.48. The State received ₦12,503,439,787.48 as bailout fund and disbursed ₦10,852,536,702.96 with a balance of ₦1, 650,903,084.52. Analysis of the documents submitted revealed a double payment of ₦37,760,000.00 in favour of Office of the Deputy Governor. This double payment is presently being investigated.

 

  • Cross River State is yet to submit her actual debt profile. The State received ₦7,856,400,000.00 as bailout fund and disbursed ₦3,140,883,040.77 with a balance of ₦4,715,516,959,23. However the State claimed not to have outstanding salaries to workers as at 19/11/2015.

 

  • Ekiti State – a total debt accrued from staff salaries and emoluments of ₦3,000,266,146,64. The State received ₦9,604,340,000.00 as bailout fund and disbursed ₦9,213,816,252.44 with a balance of ₦390,613,747,56. The State owed one month salary as at 28th October, 2015.

 

  • Katsina State – a total debt accrued from staff salaries and emoluments of ₦11,086,630,000.00. The State received 11,086,630,000.00 as bailout fund and disbursed ₦2,512,214,530.71 with a balance of ₦8,574,415,469,29. The state claimed to have cleared all outstanding salaries as at 18th February, 2016.

 

  • Gombe State has a total accrued from salaries and Staff emoluments of ₦9,222,432,872.67. A total of ₦11,000,000,000.00 was granted to the State as bailout and disbursed ₦6,321,684,423.67 with a balance of ₦4,679,315,576.33. The State claimed they do not owe salaries as at September, 2015.

 

  • Kogi State claimed not to have received bailout funds approved for the State by the Federal Government as at 8th August, 2015.

 

  • Nasarawa State received ₦8,317,167,368.87 in two tranches of ₦3,956,047,519.60 and ₦4,361,119,848.27 as bailout fund and disbursed ₦3,956,047,519.60 with a balance of ₦4,361,119,848.27. The State claimed not to have paid Local Government Workers’ salaries due to an on-going verification exercise.

 

  • Niger State received ₦4,396,810,000.00 as bailout fund and the entire amount was claimed to have been expended in off-setting salary debts.

 

  • Ondo State – a total debt value accrued from staff salaries and emoluments was put at ₦23,151,324,517.39. The State received 9,443,059,226.92 as bailout fund and disbursed ₦7,905,484,176.60 with a balance of ₦1,537,575,050.32. The State owes one-month salary and several months arrears of gratuity/pension as at 30th September, 2015.

 

  • Osun State received ₦34,988,990,000.00 as bailout fund. ₦18,677,224,582.20 was disbursed leaving a balance of ₦16,311,765,418 billion as at November, 2015. The Commission is verifying allegations that Osun State Public Servants have only been paid salaries up to July, 2015.

 

  • Ogun State received ₦18,916,208,664.86 as bailout fund. The State claimed to have expended the entire sum for salary arrears and does not owe workers as at 9th October, 2015.

 

  • Plateau State – a total debt value accrued from staff salaries and emoluments of ₦5,090,251,996.39. The State received ₦5, 357,570,000.00 as bailout fund and disbursed ₦5,330,589,061.15 with a balance of ₦26,980,938.85. The State owes two-months salaries as at 30th September, 2015.

 

  • Sokoto State – a total debt value accrued from staff salaries and emoluments including pension, severance and gratuity of ₦3,488,11,165.77. The State was granted ₦10,093,370,000.00 as bailout fund and was yet to disburse as at the 19th October, 2015.

 

  • Kwara State received the sum of ₦4,320,950,000.00 as bailout fund and disbursed ₦4,291,087,985.08 for staff salaries and emoluments with a balance of ₦29,862,014.92. The State claimed to have cleared all outstanding salaries as at 20th October, 2015.

 

  • Bayelsa State applied for the sum of ₦1,285,000,000.00 and had concluded disbursement formalities but the Central Bank of Nigeria was yet to release the said fund to the State as at 18th December, 2015.

 

  • Imo State applied for and received bailout funds of ₦26,806,430,000.00 from Central Bank of Nigeria which were domiciled with two commercial banks namely Fidelity and Zenith Banks. In the course of analysis, it was discovered that some transfers were made into certain Imo State Government account which are not related to salaries and emoluments as follow:

 

  • ₦2 Billion into a Government House Account
  • ₦2 Billion into an Imo State Project Account
  • ₦2 Billion transferred to a Micro-Finance Bank
  • A management fee of ₦21,017,810.00 was paid to unspecified account.

 

  • Zamfara State requested for the sum of ₦32,512,495,183.27 bail-out funds and received the Sum of ₦10,020,952,964.51. After careful analysis of the documents provided and interaction with the Nigerian Labour Leaders in Zamfara State by ICPC staff, it was revealed that the State was not owing Civil Servants and Pensioners any arrears as at the time the Federal Government released the bail-out funds.

The State Government in order to utilize the funds, made overture to the Zamfara State House of Assembly requesting to use the funds to settle some liabilities amounting to ₦10,020,751,072.98 as follows:

 

  • Outstanding of payment to 14 LGS of the State: ₦4,262,560,629.83
  • Outstanding payment of fertilizer for 2014 farming season: ₦3,056,300,000.00
  • Outstanding Certificate for Construction of Bungudu-Nahuche Kyabarawa Road 22.6Km: ₦265,256,342.76
  • Outstanding Certificate of Hostel Block at Abdu Gusau Polytechnic, T/Mafara: ₦55,000,000.00
  • Payment of outstanding cost of Vehicles supplied to State: ₦319,430,000.00
  • Outstanding Certificate of Construction work at K/Namoda Juma’ at Mosque: ₦20,479,100.39
  • Outstanding Certificate of Construction work at Emir’s Palace, Gusau: ₦6,020,000.00
  • Share of 14 Local Government Councils Bailout: ₦2,035,705,000.00

The Zamfara State House of Assembly passed a resolution for the utilization of the funds on the above items which was communicated to the Secretary to the State Government vide letter ZMHA/LEG/089/V.1/13 dated 31st August, 2015.

  • Enugu State has a total debt value accrued from Staff Salaries and emoluments of ₦13,764,622,723.38 and ₦23,279,099,157.58 as domestic debt. The State was granted ₦10,174,238,681.19 as bailout fund as at 16th November, 2015. Analysis of the documents submitted reveal that the State disbursed ₦5,967,238,681.19 from the bailout fund to settle domestic debts and claimed that funds for the payment of Staff salaries and emoluments was not yet assessed.
  • Oyo State total debt value accrued from Staff salaries and emoluments is ₦26,606,944,831.03. The State was granted ₦26,606,944,831.03 as bailout fund and disbursed ₦25,495,292,422.63 with a balance of ₦1,111,652,408.40. The State owes four Months salaries as at 7th April, 2016.
  • Delta State has a total debt value accrued from Staff salaries and emoluments of ₦36,417,217,601.53. The State was granted ₦10,936,799,299.36 as bailout fund and disbursed ₦8,129,888,279.86 with a balance of ₦2,806,911,019.50. However, the State claimed not to owe salaries as at 24th November, 2015.
  • Kebbi State’s total debt value accrued from staff salaries and emoluments is ₦8,778,594,714.78. The State received ₦7,080,000,000.00 as bailout fund and disbursed ₦2,617,152,577.20 with a balance of ₦4,463,975,420.27. The State claimed to have cleared all outstanding arrears on salaries as at September, 2015.

NOTE:

  • The Report indicate findings at the dates indicated above for each State. Subsequent changes may have taken place thereafter which the various States and Nigerian Labour Congress are at liberty to bring to our notice for verification and further comments as the need arises.
  • This Report has been published to assist all parties eliminate unsubstantiated allegations and promote peaceful negotiations and understanding in the management of government processes.
  • This Report comes under ICPC Prevention mandate and States are welcome to use this initiative.

 

Credit: Eagle Online

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