IN Cross River State, the Central Bank of Nigeria’s (CBN) N7.856b bailout funds is still shrouded in secrecy and controversy, as over N3b it has so far been spent without the consent of labour. The state government had two weeks ago denied that it has accessed the fund and top government officials are keeping mute over it.

The Special Assistant Media/Chief Press Secretary to the Governor, Mr. Christian Ita, last Thursday told The Guardian that he was not aware if the state had accessed the money or not, even as he referred this paper to the state’s Accountant General, who could not be reached for comment. However, a top government official confided in The Guardian; “it is very unfortunate that things are going this way. The money was received long ago, and it was spent centrally in the governor’s office. Our government is just being economical with the truth.”

It was, however, gathered that the government owes pension arrears of which it managed to pay one month, while gratuity has not been paid at all. And in the Cross River University of Technology (CRUTECH) government owes N 2.3 billion arrears of unpaid salaries. Promotion arrears for civil servants in the state too have not been paid.

The state’s chairman of Nigeria Labour Congress (NLC), Comrade John Ushie, said: “The state government has accessed the bailout fund, it did not involve the NLC. Even when we went for the meeting before the strike all that they were arguing was a lie. They had since accessed the bailout. When ICPC (Independent Corrupt Practices and Related Offences Commission) came to the state after we suspended the strike, they invited me for a meeting. Though, I was not around, I asked my vice to take them to see the AG (Accountant General), because they said they were from the presidency and wanted to see the AG and the Commissioner for Finance, but we don’t have commissioners yet.

“By the time they met with the AG, we now knew that they were men from the ICPC when they introduced themselves. They said they came to the state in connection with the bailout and Cross River State is one of the states that had drawn down the bailout fund. But we were surprised because this is what we are still arguing on and we are just out of strike. The AG brought out a paper showing that they (state government) had spent N3b already from the bailout, but when we met with the governor before the strike, he said God will judge us if he had collected the bailout.”

He said the strike would resume if the terms of the Memorandum of Understanding (MOU) entered between government and organised labour — NLC, the Joint Public Service Negotiating Council (JPSNC) and the Trade Union Congress (TUC)— were not implemented.

The Chairman of the JPSNC, Comrade Thomas Igbang, told The Guardian, “for now, they have met some requirements, but they have not set up the bailout fund committee and we are still waiting for them (State Government). After this week (last week), we have to go back to ask, because we are sure the money has been released, though they did not inform us.

By next week, we intend to meet, and write to remind them about the promise made and wait for their response. Then we will know what to do. Salary arrears in CRUTECH, promotion arrears, pension in local governments and others have not been paid and that is why I said we are waiting for them. They have not even told us that they have received the bailout fund, but from our sources, they have collected the bailout fund and even spent part of it.

When asked if he was suspecting any foul play on the part of government, Igbang said, “yes and of course the ICPC has even visited them on that. We are waiting and we are just giving them till the end of this week (last week) and by next week (this week) we are going to see them.”

On capital projects, the State government is really embarking on heavy signature capital projects such as, the 260-kilometre Super Highway and the Ikang Deep Sea Port, Garment factory and few others.

Last week, President Mohammadu Buhari was in the state to flag off work on the super highway, which the state governor, Senator Ben Ayade, said investors from Israel, Britain are coming with Euro 500m and Zenith Bank, Heritage and few others partnering with the state on the project modeled on Public Private Partnership (PPP).

It was gathered that the project is expected to gulp well over N700 billion while the state government would cough out 35 per cent of that, as its own counterpart fund. When completed, the super highway and the seaport will serve as the main evacuation route for products to and from the northern part of the country and will generate lots of economic benefits to the state and the people.

The state gets its monthly allocation as well as that of the local councils from the federation account and through the joint council accounts with the councils, it pays salaries of local government staff direct from a central point. Payments of salaries in the councils have been regular now and there is no idea for now if the state will go for a bailout fund for the councils.

Public and Civil Servants in the state had on October 2, 2015 began and indefinite strike action over the non-payment of salary arrears and other burning issues affecting workers. However, the strike was suspended on October 5, after a Memorandum of Understanding (MoU) was signed following series of meetings held between the state government, led by the Deputy Governor, Professor Ivara Esu, and the Public Service Negotiating Council, NLC and TUC.

The meetings had resolved that “the payment of gratuity and pension arrears from April 2013 to date will commence in December 2015; the State contribution to the Local Government Pension fund shall resume from August 2015 and will continue; Payment of deductions from Civil Servant to Public Servant salaries to beneficiaries up to December 2015 shall commence and will be completed in the first week of October 2015 and subsequently all deductions shall be paid alongside salaries.”

The MoU also agreed that “the payment of promotion arrears and arrears of subvention to Cross River State University of Technology shall commence as soon as the bailout fund is accessed; promotion of deserving public and civil servants will commence soon as the Civil Service Commission is reconstituted. “That the implementation of CONHESS adjustment to the local government level will commence with effect from October 1, 2015, while the four months arrears would be paid when the finances of the state improve; newly recruited health workers at the local government level would be pay in October 2015, while their arrears shall be paid when the finances of the state improve and release of revised impress to MDAs will resume in October 2015.”

Igbang said though some of these issues have been addressed, many are still outstanding, adding that the negotiating council will meet with government this week to evaluate the implementation of the MoU and to know the position with the bailout fund. He had insisted that labour’s position on bailout remained that funds are meant for payment of salary arrears, outstanding gratuities/pension and deduction from salaries. Comrades this is our stand, our demand is that the government offsets all these payments.”