Though the National Bureau of Statistics (NBS) months ago announced the nation’s exit from recession, 24 local government areas of Delta State are seen to still be in recession following their inability to pay workers’ salaries as well as meet up with other obligations.
Only four LGAs have however exited recession having cleared all the backlog of salaries owed workers.
Joyce Overah, commissioner, directorate of local government affairs, who made the disclosure during the 2018 press ministerial briefing in Asaba, said, “Among the 21 LGAs Ethiope East is owing seven months salaries while others are owing between one and two months salaries.”
She said the state was awaiting the next tranche of Paris Club refund due since March this year, to enable the LGAs clear the salaries owed workers and meet up with their obligations
In October last year, at a post-budget briefing to highlight the breakdown of N298.078 billion budget proposal for 2018 fiscal year, the commissioner of finance, David Edebvie, said a total of N33.4 billion was refunded to the state in August 2017, just as he explained how it was expended.
“Out of this amount, the sum of N7 billion belonged to the local government areas and we subsequently transferred it to the LGAs. Out of the balance, we spent N12.6 billion on salaries and pensions, while the sum of N14 billion was expended on capital projects execution,” Edevbie said.
Overah at Wednesday’s press ministerial briefing, also, disclosed that the directorate, as the secretariat of the Local Government Joint Account Allocation Committee, had discharged its duties excellently well, having successfully organised and hosted all the monthly Joint State/Local Government Account Allocation Committee meetings as well as prudently disbursed all funds that accrued to the councils till date.
According to Overah, the directorate, through early/prompt disbursement of funds received from the federal account to the councils, has helped to avert conflict and industrial problems that could have arisen from delay in disbursement of funds to LGAs for workers salaries, wages and traditional rulers’ stipends.
“It has by this, laid good foundation for industrial harmony in the 25 LG councils. The funds released has also assisted in the execution of some people oriented projects in the LG councils e.g. marker, water scheme, etc,” Overah said.
He said in order to ensure that that key function was efficiently carried out and cordial relationship sustained between the traditional rulers and the councils, the directorate deemed it necessary to directly disburse funds meant for LG traditional rulers committees in the state to avoid unpleasant stories of non-payment or delays of such payments.
He maintained that the action ensured peaceful co-existence between he traditional rulers and the local government chairmen.
Meanwhile, Overah disclosed that the state governor last year (2017), approved that the committee of qualified personnel be set up in the office of the auditor-General (local government) to carry out back duty verification for the recovery of excess bank charges imposed on the accounts of the local governments.
“This committee, whose secretariat is domiciled in the directorate of local government affairs, is expected to carry out this Forensic Audit within a measured time-frame of eleven years from 2007 to 2017 and generate a report with which all wrongful bank charges would be recovered, with interest, for the local government councils in the state.
The commissioner said the work of the committee was ongoing.
