‘Alex Otti’s administration hasn’t borrowed since its inception, expects AfDB loan’

Abia State Government re-emphasised on Tuesday that the state government has not borrowed any money since the inception of Gov Alex Otti’s administration, stating however that the government is looking forward to doing so through the African Development Bank, AfDB, and the Islamic Bank.

This was as the state government has also quantified its indebtedness to its institutions in the state to be N16.5 billion.

The Commissioner for Finance, Mr Mike Akpara, disclosed this to newsmen in a press conference in Umuahia, noting that contrary to speculations, loans have not been released to the government, pointing out that the state was managing its finances prudently to meet its obligations.

Akpara disclosed that Otti’s administration has not applied for any new loan facility since its assumption of office, stating that however, the government is waiting for the $115 million from AfDB and $120 million from the Islamic Bank initiated by the previous administration in the state, adding, “We are completing what the past administration started since government is a continuum, but the loans have not dropped.”.

He listed the state-owned institutions of higher learning being owed to include Abia State University Uturu, ABSU, College of Education Technical, Arochukwu, College of Health Sciences, Abia State Polytechnic, Aba, and Abia State University Teaching Hospital, stating, “The total amount of salaries being owned to all these institutions by the immediate past administration, as we speak, is N16.5 billion, and the government is expected to pay those arrears.”

Listing the institutions, he said, “As a matter of fact, the past government owed Abia State Polytechnic 33 months, the College of Education Arochukwu 22 months, and Abia State University 11 months.

“The Hospital Management Board was owed for several months. Theirs was humongous. We also have ASUBEB and SEMB; the total amounts being owed to them are over N4 billion,”  adding, “A worker deserves his wages. Otto is willing to pay the arrears owed by the former administration and will do it gradually.”.

According to the Commissioner, the present administration inherited the debt of N16.5 billion in salary arrears owed workers in state-owned institutions of learning, adding that the state government has resolved to clear the debts while ensuring that progress in other sectors of the economy is not hindered.

“For salary arrears, the Governor has set machinery in motion to ensure that salary arrears would become things of the past. One thing I will promise is that it will be paid, but it is not going to be in one sweep. We will do it in installments so that it does not hamper the progress of other sectors of the economy.”.

Akpara emphasised the present administration’s commitment to completely changing the narrative of owing workers salaries and addressing the long-standing issue of unpaid wages, assuring that payments to workers in state-owned institutions of learning would begin in July or August, with the goal of completing the payments by the end of the year, adding that the state government has already paid the salary arrears for April and May owed workers at Abia State University Uturu.

While assuring that the state government would pay off the arrears of salary owed workers in the state civil service in tranches, he faulted the financial management practices of the previous administration, noting that subventions provided to institutions did not translate into timely salary payments, which overtime resulted in months of unpaid wages.

He described it as unfair for people to criticise Governor Alex Otti and call him names, and urged them to support the policies and programmes of the state government, adding, “We have been managing what we get from FAAC and Internally Generated Revenue, or IGR.

Answering questions from newsmen on verification, Akpara said “Verification is continuous and will continue, if necessary,”  stating that staff nominal rolls are frost with ghost workers, falsification of age, and certificate forgery.

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