Abia awaits $240m loan, unveils plans to clear N16.5bn salary arrears – Commissioner for Finance

…Says workers with fake documents, falsified ages to be thrown out

From Boniface Okoro, Umuahia

As Abia State government is working to access $240 million external loans, it has put in place, a machinery to clear the N16.5 billion arrears of salaries owed staff of the state owned-tertiary institutions.

Commissioner for Finance, Mr. Mike Akpara, who made this known in his office in Umuahia while briefing newsmen, also disclosed that government has taken over the financial management of these tertiary institutions, even as efforts would be intensified to fish out workers with fake certificates and those who have doctored the ages. 

The news briefing came against the backdrop of claims by the Academic Staff Union of Universities (ASUU), Abia State University, Uturu (ABSU) Branch that government was up-to-date in payment of salaries to staff of the institution when the contrary was the case. ABSU-ASUU was reacting to Governor Otti’s statement that ABSU staff were not being owed.

The Commissioner told the newsmen that the expected $115 credit facility from African Development Bank (AfDB) and $125 million loan from Islamic Development Bank were yet to drop as it was still in the pipeline. The Commissioner was dispelling rumours by the opposition that the Governor Alex Otti-led administration has accessed the loan which process was commenced by the immediate past Peoples Democratic Party government of Dr. Okezie Ikpeazu.

“There is also this narrative they are pushing that we have borrowed more than $145 million dollars, it is not true. The only money we are working towards making sure that we conclude what they (Ikpeazu administration) did, because government is a continuum; is a loan of $115 million the previous government requested from African Development Bank; there is another $125 million they requested from Islamic Development Bank and these loans have been in the pipeline, being processed before we took over. Those loans, as we speak, they have not dropped. So, I don’t know where they get the one they say we have borrowed more than half a billion dollars,” Akpara said.

The Commissioner was categorical that the Governor Otti administration has not borrowed a dime since it came to power but has rather been prudently managing the resources accruing to it.

“We have been managing our resources: what we get from FAAC, Signature Bonus, 13 percent Derivation and IGR, to make sure that we oil our economy and run the state effectively,” he said

The Commissioner said that the current administration inherited N16.5 billion unpaid salaries to staff of tertiary institutions in the state and would start clearing it in tranches from the month of July or August, this year, adding that government hopes to pay off the arrears by the end of the year.

Said Akpara: “There is also this shout about payment of salary arrears. This is a government that came and inherited about N16.5 billion arrears of salary. The Governor has set machinery in motion to ensure that they are paid. We will do this by installments so that other sectors of the economy will not suffer.

“Join us to tell the people that were being owed salaries of 33 months, 22 months, 11 months, 17 months by the previous government, that Alex Otti, the Governor of Abia State, OFR, is ready and willing to pay and before too long, they will begin to see it, it will happen.

“We will make sure that we do that; maximum by July or August, we will begin to pay them by installment. Hopefully, it may end before the end of the year and all these salary arrears, about N16.5 billion will be taken care of.”

Recall that at the exit of the immediate past administration in the state, it was owing staff of Abia Polytechnic 33 months, Arochukwu College of Education (Technical), 22 months; Abia State University, 11 months. Also owed several months were staff of Hospitals Management Board, Abia State Universal Education Board (ASUBEB) and Secondary Education Management Board (SEMB), among others.

He explained that the N16.5 billion salary arrears would be cleared in tranches to enable the government to also pay attention to other sectors, including building of infrastructure, education, health, security environment, and others.

On the issue of ABSU staff’s April and May salaries, Governor Otti, as at June 21, 2024, during his Monthly Media Chat, said it has been paid. “I know that in the last few days, there have been discussions about ABSU but I am glad to report that as at this afternoon, every member of staff has received their salaries up-to-date. But anyone who hasn’t received must have a problem with his/her bank,” the Governor said.

But in a swift reaction, Chairperson of ASUU-ABSU, Dr. Chidi Mbah, in a statement titled: “ASUU -ABSU Disagrees with Abia State Government over salary payment,” claimed that not all staff have received their pay as the Governor had said.

The statement read in part: “Following the recent statement from the government of Abia State that all Abia State University (ABSU) staff have received their April and May salaries, we, the Academic Staff Union of Universities, ASUU, ABSU Chapter, wish to clarify and state the actual situation regarding salary payments at the University.

“Contrary to the government’s announcement and news circulating on social media, the reality is starkly different. Only a handful of staff with salary accounts at commercial banks have received their April salary, and even fewer have received their May salary. Alarmingly, there are instances where some staff who received their May salary did not receive their April salary, despite using the same bank.

“Moreover, many of the staff who received either their April or May salary experienced unexplained deductions ranging from eight thousand (8,000) to fifty-three thousand (53,000) Naira from their salary at the source.

“Additionally, the majority of staff whose salary accounts are domiciled with the ABSU Microfinance Bank, along with the teaching staff of Abia State University Teaching Hospital, have not received any payments for either April or May. This situation has caused significant financial strain, panic, and uncertainty among the staff.”

However, while giving an insight into the ABSU salary controversies, Mr Akpara said: “The truth remains that Abia State University, Uturu, they have been paid April and May salaries. The institutions were given a time frame to be able to prepare their payroll and get back to the Accountant-General. Others did their own within record time and they were duly paid. But ABSU did not. It means that something is really wrong somewhere.”

He said that 1, 195 members of staff of ABSU who have been duly verified have been paid April and May salaries.

He continued: “There are others that have problems about their account numbers. 417 staff of ABSU opened accounts in ABSU Micro-finance Bank, we tried to post their salary, it was not going because their account numbers were not complying, we told them to supply account numbers that are complying. There are 235 members of staff who have not been verified and it is only when you are verified that you will be paid. Accounts of 27 staff were disabled from the payroll system due to one non-compliance issue or the other such as BVN or NIN issues and if you sort it out, we pay you your salary.”

According to the Commissioner, names of 19 staff were found in many institutions: ABSU, ABSU Demonstration School or in ABSUTH. He said those affected were queried and would not be paid until they were cleared. “The government of the day is out to change the narrative and do things right,” he said.

He made it clear that though government has carried out verification exercise to weed ghost workers off its workforce, but still in the system, there were workers with fake documents and those who have continued to falsify their ages that needed to be fished out.

“We have done the verification to remove ghost workers. But we will continue with the verification exercise, if need be. Verification is endless. There are people who are working in this government with fake certificates. Some people keep doctoring their ages to the extent that they pass First School Leaving Certificate at the age of four. Is it possible?” he queried rhetorically.

The Commissioner said it was to check the incidents of non-payment of salaries of staff even after subventions have been given to the tertiary institutions that government decided to take over the financial management of the institutions.

Under this management, the schools are to pay in all their revenues into government coffers while government would now pay salaries of their staff and offset every of their expenditure.

Before now, these institutions enjoyed financial autonomy where they generated and spent their revenues, and government supporting them with monthly subventions which has now been stopped.