Abia set to clear N18bn salary arrears owed workers, pays staff of tertiary institutions
From Boniface Okoro, Umuahia
Finance Commissioner Mike Akpara
Abia State government has unfolded its plans to clear the outstanding N18 billion salaries arrears owed workers in the state within one year, just as it has opened discussions with the Organised Labour on the new minimum wage.
Non-payment of the arrears inherited from the immediate past administration in the state has threatened industrial harmony between the Governor Alex Otti-led administration and workers of the affected tertiary institutions and parastatals who have been embarking on protests to press home their demand.
In a move to resolve and lay the issue to rest, Commissioner for Information, Prince Okey Kanu, told newsmen in Umuahia on Monday, July 22, 2024, during the weekly media briefing on the outcome of the state Executive Council meeting that Governor Alex Otti has committed to clearing the arrears.
“The Governor also committed to offsetting all outstanding arrears owed by the immediate past government which is estimated in the region of about N18 billion and the payment of the arrears will commence in the month of August and it will be done in tranches of N1.5 billion per month for the next 12 months,” the Commissioner said.
Breaking down the arrears, the Commissioner for Finance, Mr. Mike Akpara, said the actual arrears which has been approved to be paid to the workers stood at N17.6 billion (N17, 629, 767,342.09), instead of the N16.5 billion earlier announced, while approved monthly tranche is N1.5 billion (N1, 469, 147, 278. 20).
Mr Akpara listed the institutions being owed to include Abia State Polytechnic, Aba (33 months) amounting to N4.5 billion; Abia State University Teaching Hospital (ABSUTH), Aba (21 months) amounting to N3.1 billion; Abia State University, Uturu( ABSU), (11 months) translating to N3.1 billion; Hospital Management Board (15 months) amounting to N1.3 billion and Abia State Universal Basic Education Board (ASUBEB) (eight months) amounting to N1.089 billion.
He also named the rest as Abia State College of Education (Technical), Arochukwu, owed 22 months amounting N540 million; Abia State College of Health Sciences, two months – N57.3 million; Abia Comet Football Club owed one month translating to N14.1 million; Secondary Education management Board (SEMB) owed 15 months amounting to N3.6 million and Abia State Advertising Agency (ABSAA) being owed three months with arrears of N3.2 million.
He explained that the payment was spread over a year to enable h government to honour other financial obligations to other sectors of the state.
The Commissioner for Information also added that it was to iron out all lingering issues also bordering on salary arrears that Governor Otti met with the authorities of ABSU over the weekend
“In the course of the weekend, His Excellency had to meet with the Vice Chancellor and members of the Governing Council of Abia State University to discuss issues concerning all outstanding salaries and arrears of the university. That meeting offered the Governor, His Excellency, Dr. Alex Otti, the opportunity to bring those lingering issues to an end.
“In the course of the meeting, he directed the Accountant-General to ensure that within a week, all outstanding salaries are paid and that a new verification exercise involving those already verified and those yet to be verified be carried out and he asked that the verification team be relocated to the university to conclude all outstanding issues of verification,” Kanu said, adding that staff of the institution has been paid their April, May and June 2024 salaries.
He said the payment of the arrears was an indication that “the Governor is committed to the enhancing the welfare of our university personnel as never done before by previous administrations.”
According to Kanu, the Governor also directed the Accountant-General of the state to meet with the officials of all the tertiary institutions in the state to harmonise their needs with respect to their overhead expenditure, explaining that “this is to enable them to run their operations successfully.”
Weighing in again, the Commissioner for Finance said that the Governor’s directive was being carried as the meeting with the tertiary institutions to ascertain whatever their needs were, with regards to giving them the necessary overheads to run with these institutions has commenced with Abia State Polytechnic.
Akpara said that during the meeting with ABSU problems plaguing the institution were thoroughly considered.
“During the meeting with ABSU, we went through all their problems. Most especially, we discussed about Treasury Single Account (TSA) which we said and agreed it was sacrosanct. The federal universities are already doing that and it is working. We believe it will also work for Abia State University,” he said.
Explaining why government had to terminate the subvention regime and completely take over the funding of its tertiary institutions, the Commissioner said it was to end the menace of non-payment of salaries.
“The truth remains that the state government has decided to take up everything about their salary payment. What it means is that there will not be any month they will not be paid salary, quite unlike before. Salaries will be paid; all the expenses they need to run the institution will be given to them.
“And if for any reason, somebody is paying your salary, paying all your bills, the right thing to do is that he should also get the revenue and we are doing it for transparency sake, to make sure things are done the way it should be done,” the Finance Commissioner said.
On the N70, 000 new minimum wage, the Commissioner dropped the hint that government has opened discussion with organized Labour on that front.
“I want to tell you that Abia State has been the first state to start discussions with Labour on the new N70, 000 New Minimum Wage. We started that process on Saturday because it is quite clear that whenever the federal government finishes at the federal level with Labour, states go back to talk with their people because all fingers are not equal. I promise you it will be an amicable discussion and at the end of it all, all will be happy,” Akpara promised.
He also said that payment of the N15, 000 monthly wage award to workers in the state would commence by the end of August.
