Date Published: 11/23/09

Ekiti Govt. to review N3.371 billion worker's loans

In his bid to ensure prompt payment of salaries of public servants in Ekiti State, the Governor, Engr. Segun Oni has said that the N3.371 billion earmarked for direct loans for the workers would be used as reserve fund to pay salaries before the State receives its monthly allocation from the federation account.

Chief Press Secretary to the governor, Mr. Wale Ojo-Lanre said in a statement made available to journalists that Governor Oni, while speaking on Sunday, during a monthly live Television and Radio programme, ‘Mr. Governor Explains’ reaffirmed that no worker was being owed two months’ salary in the State, adding that October salary was paid last week.

He disclosed that it was only in the State that loans was being made available to workers direct, saying; “Workers in other States get loan through banks with their State governments only guaranteeing such loans.”

While noting that over 14,000 workers in the State had benefitted from the government’s direct loans, the governor noted that only a paltry sum of N22 million was provided as housing, accommodation and other loans for the workers in 2004 while his government provided N3.371 billion from 2007 to date.

“Our desire is for the workers to have a better future. Therefore, we introduced the loans scheme so that they can invest in their future. We want them to be able to build houses of their own before retirement so that they won’t have to use their gratuity to build houses or purchase cars.

“But as things are now, we may have to reconsider our position on the loan so that we can use the over N3 billion reserved for workers loans as reserve for us to be able to pay salaries before we receive our monthly allocation from the federation account,” Oni said.

The governor also disclosed that despite the fact that Ekiti State received the least allocation from the federation account, workers in the State are among the highest paid in the country. He added that the least paid worker in the State public service is paid N9, 776.00 per month while Ekiti State was the second State, after Delta State to implement the new Teachers Salary Structure (TSS), which many States are yet to implement.

Providing reasons for the 2-3 weeks delay in payment of salary, Governor Oni said; “What operates now is that salaries are paid immediately we receive our allocations. Because of this, instead of paying on 20 th of every month like we used to do in the past, we now pay when we receive our monthly allocation.

“Before we vacated office in February this year, we had developed the economy of the State to the level that at any point in time, the reserve fund in the treasury of the State could pay workers salary for three months even if we do not receive a kobo from the Federation Accounts.

“However, when we returned to power in May, the economy of the State was no longer buoyant.  

“Because we have nothing to hide, we summoned a meeting of labour leaders, traditional rulers, top civil servants and other important stakeholders where we weighed the available options. It was the consensus that salaries of workers should be delayed rather than owe areas of several months like in many States.”

The governor explained that the 2-3 weeks delay in payment of workers’ salaries as presently being experienced in the State was still the best available option in view of the prevailing circumstances, saying; “it is unfortunate that the same workers who are tying down over N3 billion as loans are the same people that are castigating the government for owing salaries for just two or three weeks.”