Enugu refutes allegation of bailout funds’ diversion

Enugu State government has refuted claims by the Independent Corrupt Practices and Related Offences Commission (ICPC), that it diverted the Federal Government bailout funds, which it collected for the payment of outstanding workers salaries, subventions and pensions.

Secretary to State government, Gabriel Ajah, in denying the claim, disclosed that when the bailout fund was received, a dedicated bank account was opened for the funds and a committee, comprising leaders of Organised Labour, representatives of the state government and pensioners was setup to oversee the disbursement.

He added that, “So far, the sum of three billion, two hundred and eighty four million, seven hundred and twenty nine thousand, two hundred and fifty three naira, thirty eight kobo (N3, 284,729,253.38) has been verified by the committee and the disbursement is on-going.

Also the organised labour in the state, has affirmed that they were involved in the management of the four billion, two hundred and seven million naira (N4, 207,007,000.00), being the actual bailout fund approved for the state.

Making further clarification, labour stressed that the money was spent on arrears of initial pensions (from 2009 to June 2015), arrears of July 2015 Pension to State Pensions, as well as arrears of four months (Jan to April2015) subvention to state government parastatals.

ICPC) had listed Enugu among the states that collected and misapplied the bailout fund, adding that several workers of the state are still being owed arrears of salary.

Giving a breakdown of how the funds were spent, ICPC claimed the state collected the sum of ten billion, one hundred and seventy four million, two hundred and thirty eight thousand, six hundred and eighty one naira, (N10, 174,238,681.00).

Out of these, it added, the state disbursed five billion, nine hundred and sixty seven million, two hundred and thirty eight thousand, six hundred and eighty one naira, nineteen kobo (N5, 967,238,681.19) of the fund to “settle domestic debt and claimed that the funds for the payment of state salaries and emoluments was not yet accessed.”

Ajah added that at the moment, there was still a “balance of Nine hundred and twenty two million, two hundred and seventy thousand, seven hundred and forty six naira, sixty two kobo (N922, 270,746.62),’ adding that ‘the verification exercise for further payment continues.

“On the issue of Excess Crude Account (ECA) Infrastructure
Development Loan, as facilitated by the Federal Government, the state government has disbursed the sum of Five billion, three hundred and eighty seven million, five hundred and sixty nine thousand, nine hundred and thirty naira (5,387,569,930.00), leaving a balance of Four billion, six hundred and twelve million, four hundred and thirty thousand and seventy naira (4,612,430,070.00).