CHAIRMEN of the 16 Local Government areas of Kwara state have agreed to obtain N2.1 billion loan from banks in order to pay November salaries and to meet other financial obligations due to late disbursement of monthly allocation from Federation Account Allocation Committee.
The Commissioner for Local Government, Chieftaincy Affairs and Community Development, Alhaji Haruna Tanbiri Muhammad made this known after an emergency Joint Account Allocation Committee (JAAC) meeting on Thursday in llorin.
“Kwara State government has not received November monthly allocation from Federation Account. The Council chairmen felt that this has become necessary in order to alleviate the plight of the Local government workers,” he stated.
According to him, the chairmen applied for the loan in anticipatory of expected November allocation from the federation account, saying that the delay in disbursement of November allocation from Federation Account Allocation Committee (FAAC) has aggravated the suffering of the workers.
He explained that the State Universal Education Board (SUBEB), teachers salary stood at N900,000,000, while LGEA pension would gulp N278,892,566.50 among others.
He explained that anticipatory statutory allocation for the month of November stood at N2,100,000,000 as against N1,555,329,112.84 received in October; 10 percent IGR from the state government was N37,290,837.51.
He 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 explained that the fund was appropriated in line with law guiding the local government account which included; teachers salary N900,000,000 and LGEA pension N278,892,566.50 among others.
The Commissioner, however, explained that the 16 LGs shared a total of a distributable amount of N676,8 million for the month of November.
He explained that the distribution of the allocations among the Local Government Councils in the state was done in accordance with section 4(2) of the state Joint Local Government Account Law (cap80) as amended by Law 15 of 2001.
The Commissioner charged the newly sworn in Chairmen to contribute their quota to socio-economic of their respective councils.
The Leaders of the labour unions under the aegis of the Nigeria Labour Union (NLC) led by its Chairman, Comrade Yekeen Agunbiade urged the state government not to renege in its efforts to assist the 16 LGs to get out of the financial challenges.