Pix of Abia State Commissioner for Information and information and Culture, Prince Okey Kanu
Clearing N18 billion salary arrears, commitment to civil servants’ welfare – Kanu
Abia State government says the clearance of the N18 billion salary arrears it inherited from previous administrations indicates that the present administration was committed to promoting the welfare of civil servants in the state.
Commissioner for Information, Prince Okey Kanu, made this known in a statement in Umuahia.
According to the Commissioner, government has commenced the payment of the salary arrears owed state-owned tertiary institutions amounting to N17, 629,767,342,09, adding that N1.5 billion released monthly for payment of the arrears over a period of 12 months.
“In line with the promise of the Abia State Governor, Dr. Alex Chioma Otti, to defray arrears of salaries owed workers of institutions in the State by previous administrations, the office of the Accountant General has commenced the payment of the arrears to all verified workers amounting to N17, 629,767,342,09 (Seventeen billion, six hundred and twenty nine million, ,seven hundred and sixty seven thousand, three hundred and forty two, nine Kobo only),” the statement read in part.
“The Abia state Government wishes to state that the payment will follow a 12-month amortization plan with the first batch already disbursed to the affected institutions. This structured payment is meant to ensure that other areas of governance do not suffer from lack of attention due to limited financial resources,” Prince Kanu explained futher.
He stated that “by this development, the Dr Alex Otti-led administration has once more demonstrated its commitment to the promotion and sustenance of the welfare of Abia State civil servants at all times.”
Recall that last July, the state government revealed its plan to clear the N18 billion salary arrears, beginning from August 2024.
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 former 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.
