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Saturday 30 January 2016

Bail-Out Funds Affect Imo State Monthly Revenue

 



BY GRACE IGWEANYI

The N26 billion naira bail- out funds advanced to Imo State to offset cost of workers’ salaries in September 2015 is said to be responsible for the drop in the monthly revenue allocation to the State.
Imo State has been grappling with workers wages in the last one year as workers went home without pay for several months. 

Last December, the State governor announced that it has paid all workers in the State. Governor Okorocha insists he owes no worker a dime in the State.

 In January 2016, workers in 19 Parastatals and agencies were sacked by the State government, though officials of government insist they were only suspended with the proviso that they could be reabsorbed if they pass a “productivity test”.

The State Governor, Rochas Okorocha has continuously said the State cannot continue to pay a bulging monthly wage bill of workers which he put at over N4 billion naira. 

Imo State, according to him, received N1.9 billion naira in December 2015 as its allocation from the federation account.

With the falling price of crude oil in the international market, the revenue from the federal purse to the State is expected to dip further.

The Governor who spoke to newsmen last Friday at Government House, Owerri admitted that part of the monthly allocation for the State is used to service the bail- out.

According to a top government aide who spoke to this newspaper on condition of anonymity, after servicing the bail-out with part of the allocation, the remainder is not enough to pay workers salaries and other social services.

According to him, this is one of the key factors why the State government is constrained in paying workers salaries and carrying out other social responsibilities.

“This is why we came up with the concession. No worker was sacked. We only suspended workers. Imo State is insolvent, thus we need new ideas to make things happen and for the State to move forward. This is why we considered it important to concession, so that private hands can come in and turn around those agencies that have been consuming the lean resources of the State” he said.

Workers and the State government have been at loggerheads over plans to downsize the State workforce.

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