Despite being named among 27 states expected to benefit from N338billion bailout fund, the Ondo State Government has said it would go ahead with the payment of its workers’ salary without receiving the bailout.
On the sharing table, Ondo State, which got N14.686billion, owes its workers three months’ salary.
The State government, while claimed that it was yet to receive the bailout fund, said necessary arrangements had been made to ensure the workers were paid one month salary this week.
Speaking with reporters yesterday in Akure, the state Commissioner for Finance, Chief Yele Ogundipe said the state government was yet to access the said fund, adding however, that the process was ongoing by the state to access the bailout fund.
According to the Commissioner, the federal government had earlier directed that states could only access the fund through commercial banks.
He added that the state got an offer letter from a Commercial bank early this month, saying “we are currently processing the payment and what the federal government has done is to instruct the state to access the funds through the commercial banks.
“We have approved one of the commercial banks and like most other states have done and they just gave us an offer letter on Thursday, 3rd of September.”
The finance Commissioner hinted that “within the next one week, the N14b will be received as the government is still collating all its papers to be forwarded to the Central bank of Nigeria.”
However, he disclosed that workers in the state will be paid a month salary before the end of this week, while the remaining two months arrears would be paid as soon as the bailout fund is accessed.
Contrary to calls from some quarters that the bailout fund should be used to fund some projects, including roads, the Commissioner said the fund will not be used for any purpose other than paying salaries of active workers.
The commissioner added that the condition for accessing the loan did not allow for pensioners to benefit from the package.
He said “the fund is for the settlement of outstanding salaries. It is not for any other purpose, it is not even for us to settle outstanding gratuities due pensioners.
“It is strictly for those who are working with the state at the moment. No money can be diverted to any project, infrastructural or whatsoever, it is not allowed,” he added.
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