The Kwara State government has given reasons for its plan to access N5billion from the Central Bank as part of Federal Government’s bailout.
It said the N5billion loan is the cheapest and most efficient means of paying accumulated salary arrears and allowances owed to primary school teachers and other local government employees.
The loan also covers pensions and gratuities owed to retired local government workers.
A statement issued by the Special Assistant to Governor Abdulfatah Ahmed on Media and Communications, Dr. Muideen Akorede, said the N5billion loan, when received, will bring relief to local councils, their staff and retirees as federal allocations are currently inadequate to meet salary, pension and gratuity obligations at state and local government levels.
A breakdown of the liability shows that in July, the total salary arrears for local government workers was N2, 012, 999, 522.40, while that of primary school teachers stood at N2, 143, 414, 338.55.
Total local government pension arrears was pegged at N523, 160, 259.38, while arrears for LG’s statutory contribution to Kwara State University (KWASU) was N70, 464, 259.89 and outstanding payments for sundry services was put at N267, 806, 538.40.
Providing further clarification, the state government said it is clear from the figures that the N3.6billion combined June and July allocation to the 16 local government councils was inadequate to meet current and outstanding salary and pension arrears not to talk of developmental projects.
The government therefore expressed confidence that the loan will clear all outstanding arrears and provide the local government councils with affordable repayments so that they will continue to meet future salary, pension and project obligations.
No comments:
Post a Comment