Editorial
Bail-Out Funds: In Support Of Senate Probe
Worried by the near state of insolvency and financial bankruptcy of some states in the country, resulting to non-payment of workers salaries and pensioners’ entitlements, for a long time, the Federal Government in 2015 doled out N338 billion as bail-out funds to beneficiary states to enable them offset their indebtedness to workers and pensioners.
The N338 billion which was a part payment of N510 billion Budget Support Facility (BSF) to states was specifically tied to salaries and pensions and was granted to 27 out of 36 states of the federation to offset arrears of wages and allowances, as some of the beneficiary states owed workers between five to 12 months and several years of retirees’ allowances.
Ironically, some of the states that benefited from the Federal Government’s bail-out fund policy, diverted such funds for purposes other than what the funds were meant to achieve.
Furthermore, in 2016, the Federal Government again reeled out the second phase of the BSF, this time, a 12-month statutory loan designed to provide an immediate relief to states to meet their statutory financial obligations to their workers and retirees with a monthly disbursement of N50 billion in the first three months and N40 billion for the remaining nine months.
Similarly, in 2016, a 22-point Financial Reform Plan (FRP) which commenced in June of the same year introduced Biometric Payroll Programme aimed at ensuring an audited annual financial status and reduction of ghost workers. It also aimed at generating and enhancing internally generated revenue to salvage most states that were unable to meet up salaries and wages payment.
Despite all these measures, some states are still heavily indebted to workers and retirees. More worrisome and condemnable is the fact that some of the state governors still proclaim in the public that they are not owing their workers.
A research conducted by the Nigeria Labour Congress (NLC) and the Independent Corrupt Practices and other related offences Commission (ICPC) revealed that funds released by the Federal Government under its bail-out funds initiative were diverted by some governors for payment of contracts which they had interest.
It is against this backdrop that the Finance Minister, Kemi Adeosun engaged the services of eight reputable accounting firms to audit such funds by the beneficiary states and determine how such monies were utilised. Of course, she warned that defaulting states will no longer benefit from the scheme henceforth.
The Tide therefore endorses the Minister’s action and the probe by the Senate into how some state governors used the bail-out funds, despite the protest by the said governors over the legitimacy or otherwise of the Upper Chamber to institute such investigations into the affairs of the states, the second tier of government.
Our position is quite clear, especially taking into cognisance that the said funds came from federal coffers and the nation’s parliament has the statutory obligation under its over-eight functions of the legislature to know the use or misuse of federal funds.
It is, indeed, unacceptable that governors of the beneficiary states should embark on white elephant projects while their workers and pensioners die daily in abject poverty. Some of such projects do not have direct bearing on the citizenry and are used to siphon public funds for selfish considerations.
It is unimaginable for states like Osun, Nassarawa, Benue, Imo, among others that owe arrears of salaries and pensioners’ entitlements pride themselves all over the place when their workers languish in pains.
Such states should key into Governor Nyesom Wike’s policy of ensuring that workers are paid as at when due, yet his landmarks in projects execution are phenomenal, remarkable and legendary.
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