Date: 2017-05-02

...as labour unions call for financial relief for LGs

The Kwara State Commissioner for Finance, Alhaji Demola Banu has disclosed that the amount distributed for the 16 local councils for the month of April stood at N448 million.

He made the disclosure during the Kwara State Joint Allocation Account Committee (JAAC) meeting held at the ministry of Finance premises on Friday.

Speaking on the April federal allocation to the 16 LGs in the state, the commissioner said the councils got a gross statutory allocation of N1, 071, 999, 329.90, Value Added Tax (VAT) of N425, 294, 976.45, excess Petroleum Profit Tax (PPT) of N80, 116, 025.82 and Exchange Difference of 245, 081, 267.72. Banu revealed that the sum of N280, 045, 355 was deducted at source as repayment for the N4.820billion loan facility the councils obtained in 2015 to pay salaries.

He listed other deductions from the allocation to include funds for traditional council, bank charges, waste management, ALGON dues, LG pension board and LG commission’s running cost.

Following the deductions, Banu said that the total amount distributable among the LGs stood at N448million, which is inclusive of 10 per cent of the state government’s Internally Generated Revenue (IGR) distributable for the month, representing N52, 180, 749.39.

He stated that the sum of N900m was appropriated for the payment of Basic Education (SUBEB) teachers' salary while the sum of N130, 208, 234.25 was allocated for LG pensioners' entitlements.

The commissioner, however, disclosed that the state was yet to receive its allocation for the month of April from the FG.

Banu also emphasised that the state government does not owe any of its workers and retirees, noting that the issue of unpaid salary arrears only affects LGs in the state, which he said was caused by reduction in their federal allocations. According to him, about N580m is required to cater for LG employees’ monthly salary, N1.114b for SUBEB staff salary and N355m for LG pensioners’ monthly entitlements.

The commissioner noted that the state government is yet to receive any funds from the Paris club and will duly inform the public when the fund is available. Meanwhile, the leaders of labour unions in Kwara State have called on the state government to reduce the financial burden of the local government councils as it is contained in the JAAC.

They are also appealed to the Federal Government to hasten the release of the second tranche of Paris Club loan refunds to states, saying that the fund would assist local councils to offset part of the outstanding salary workers.