Governor Abdulfatah Ahmed of Kwara State has said that the Federal Government’s bailout fund to the 36 states of the federation, was not meant to pay the outstanding salaries and allowances being owed workers and pensioners.
According to him, the bailout fund was for the purpose of restructuring the debts of the states in various banks and financial institutions in order to give them a new lease of life to run the day to day administrations of their affected states.
The governor stated this on a monthly radio personality programme ‘Governor Explains’ in Ilorin on Thursday.
He said the bailout has to do with restructuring of existing loans because states had not been able to pay salaries of workers because of two things, first because there is drop in federal allocation and second is that states have incurred debts that had made their cash flow to be under pressure.
DAILY POST recalls that striking council workers in the state had begged stakeholders in Kwara State to help appeal to the state government to use the bailout funds from the federal government that accrued to the state to offset their outstanding salaries and allowances.
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