The Independent Corrupt Practices And Other Related Offences Commission (ICPC) in collaboration with the Nigeria Labour Congress (NLC) have listed Imo State and some other States for diverting bailout funds given to them by the Federal Government.
As at December 2015, the bailout funds were given to 23 out of the 27 states that applied for it in the federation to offset huge wage bills of workers in their respective States.
The States are Imo, Adamawa, Bauchi, Benue, Cross River,Ekiti, Katsina,Gombe, Kogi, Nassarawa, Niger, Ondo Osun, Ogun, Plateau, Sokoto,Kwara, Bayelsa.
Others are Enugu, Oyo, Delta, Kebbi and Zamfara States.
According to Saturday Vanguard, the ICPC revealed how Imo, Zamfara, Katsina, Benue States allegedly diverted the bail out for other purposes.
According to the commission, Imo State collected N26, 806, 430, 000, 00 from the central Bank of Nigeria, paid the amount into two commercial Banks and transferred part of the money into uses not related to workers salaries.
The ICPC said it discovered that N2 billion was lodged into a Government House Account, N2 billion paid into Imo State Project Account, while 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 received by the State.
However, this newspaper gathered that the bailout funds is a loan with 9% interest rate and repayable within a period of 20 years.
The alleged diversion of bailout funds by Imo State government authorities had attracted the Economic and Financial Crimes Commission, EFCC which stormed Owerri and arrested the Principal secretary to the Governor, Paschal Obi and two others.
The EFCC said the arrest was in line with investigations on the bail out.
Before then, workers in Imo State had protested over nonpayment of salaries. The State government later said it paid workers its outstanding salaries up to December 2015.
But the relationship between Labour and the Imo State government went sour in January 2016 when the State government sacked 3,000 workers in 19 parastatals. The workers, according to the State government, were kicked out for failing a “productivity test”
It also hinged its position on the basis that the monthly federal allocation to the States were dwindling because over bloated wage bill of workers which it put at N4 billion naira a month can no longer be serviced by the State government.
Labour in the State refused to buy the government’s story as it went on protest in February. The protest crippled both economic and social activities in the State until Governor Okorocha later brokered a deal with labour.
A Joint Negotiation/Technical Committee made up of representatives of the State government and Labour agreed on a 70%- 30% formula
The agreement indicates that 70% of all revenue accrued to the State will be used to pay workers while the State government will use 30% for its expenditure.
Since then, workers in the State have only been paid 70% of their salary for the month of January 2015 with February, March and April salaries not yet in sight. Pensioners are not left out as they lament over non payment of their pension. Pensioners of State run Orient Tv and Radio allege they that are owed 35 months pension arrears.
Recently, the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) said they are not responsible for the payment of workers’ salaries in the State as insinuated by the State government.
BY GRACE IGWEAYI With Agency Reports
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