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On Sunday, June 29, 2014, the Sunday Trust Newspaper published a story captioned ‘Inside the massive fraud in Kogi Councils’ in its magazine section on pages 8 to 10. It was, ostensibly, an “investigation” into the part payment of salaries in some Local Government Councils in Kogi State. Since the date of the publication, Council Chairmen in the State have received many calls and enquiries about the true position of things. It is, therefore, pertinent to put the issues in the right perspective and correct the erroneous and harmful impressions that have been created in the minds of the unsuspecting public that there is “massive fraud in Kogi Councils”.
The faulty plank upon which the allegations of ‘massive fraud’ are built, is the difficulty being experienced by the local councils in paying their full staff salaries on a monthly basis.
FICTION AS FACTS
The hatchet job of the two reporters has no value other than the sensation that it has created. It is also nothing but a fiction that has been presented as facts based on the following reasons:
FICTION AS FACTS
The hatchet job of the two reporters has no value other than the sensation that it has created. It is also nothing but a fiction that has been presented as facts based on the following reasons:
First, the imaginary people, Isaac Ibe and Mallam Hassan Otse which the reporters presented as staff of Igalamela/Odolu and Ijumu Local Government Area respectively, are nothing but ghost names. Records show that no staff in either of the Local Government Areas bears those names. These names were merely invented to buttress concocted evidence.
Second, the claim that allocations have quadrupled is illogical. Having admitted in the early part of their report that “though the crude oil price rose from $56.35 per barrel in 2009 to $110 per barrel in 2012, the monthly allocation to State and Local Governments dropped sharply”, the reporters by a measure of self-immolation said in the latter part of the report that “The irony in the wage crisis in Kogi Local Government is apparent, considering the fact that it is coming at a time when allocations from the Federation Account to the Local Governments have quadrupled” This is not only contradictory, but a case of approbating and reprobating. Allocation to Local Government Councils have NOT quadrupled. In fact, allocations have been dropping progressively.
Third, whereas the duo of Theophilus Abbah and Usman Bello who wrote the report created the impression that Local Councils in Kogi State receive an average of N180m per month, they presented a table showing many Local Government Areas receiving about N120m. Again, this is nothing more than invented mathematics to mislead readers; even if the average of the figures presented is calculated it will not add up to N180m. In the month of December, the total allocation from FAAC was N3,500,586,497.14 while the amount distributed and disbursed to Local governments stand at N 1,411,591,455.46, the total salary wage bill expenditure is N1,876,055,020.15, note that SURE-P funds are strictly for project execution. Besides, allocation to LGAs are not based on averages but on established parameters and from which the following statutory deductions are made:
Second, the claim that allocations have quadrupled is illogical. Having admitted in the early part of their report that “though the crude oil price rose from $56.35 per barrel in 2009 to $110 per barrel in 2012, the monthly allocation to State and Local Governments dropped sharply”, the reporters by a measure of self-immolation said in the latter part of the report that “The irony in the wage crisis in Kogi Local Government is apparent, considering the fact that it is coming at a time when allocations from the Federation Account to the Local Governments have quadrupled” This is not only contradictory, but a case of approbating and reprobating. Allocation to Local Government Councils have NOT quadrupled. In fact, allocations have been dropping progressively.
Third, whereas the duo of Theophilus Abbah and Usman Bello who wrote the report created the impression that Local Councils in Kogi State receive an average of N180m per month, they presented a table showing many Local Government Areas receiving about N120m. Again, this is nothing more than invented mathematics to mislead readers; even if the average of the figures presented is calculated it will not add up to N180m. In the month of December, the total allocation from FAAC was N3,500,586,497.14 while the amount distributed and disbursed to Local governments stand at N 1,411,591,455.46, the total salary wage bill expenditure is N1,876,055,020.15, note that SURE-P funds are strictly for project execution. Besides, allocation to LGAs are not based on averages but on established parameters and from which the following statutory deductions are made:
a. Deductions of Teachers salaries remitted to SUBEB – 1.362 Billion
b. 1% remitted to Local Government Service Commission
c. 1% remitted to Local Government Joint Accounts
d. 5% for traditional councils emoluments
e. Remittance to local Government pension Board
f. VAT charges
g. COT charges
H. 2.5% LGEA Administrative overhead cost
Simply put, what a Local Government Council gets as net receipt is not what the reporters have published!
In deed about 7 months ago the Governor of the State, Capt. Idris Wada, gave directives that no deductions outside the statutory ones listed above should be made from the Local government joint accounts. This directive is strictly been complied with at Joint Account Allocation Committee disbursement Meeting.
Fourth, in their determined mind-set to create a false impression and report unfairly, the reporters claimed to have approached the Chairman of Kogi State ALGON for an interview. Nothing can be further from the truth. The chairman was neither approached, nor was he given the opportunity to speak for his colleagues on this issue. It was part of their plan to work to a predetermined answer.
Without any doubt, the facts above have detracted greatly from the credibility of this story, but more facts are further stated here to puncture the fabrication in the story.
CRISIS IN SALARY PAYMENT
For the avoidance of doubt, the crisis in the payment of salaries in the Local Government Councils pre-dates the current State and Local Government Administrations in the State. The issue is an inherited problem which His Excellency, Capt. Idris Wada, in his characteristic manner has started to tackle frontally. This led to the restructuring of relevant institutions as attested to by personnel and change in leadership. Various committees have been set up to unearth and unravel the factors bedeviling the regularity of salary payment at this tier of Government. The on-going scrutiny has led to salary payment arrears in some Local Government Areas.
So far, it has been discovered that over the years the following reasons have made salary payments unmanageable.
1. Over staffing of Local Government Councils. In virtually all the local government councils, employment was seen by successive council administrators as a means of dispensing patronage without a corresponding correlation of such employment with the capacity and needs of the Local Government. At the moment, Local Government Councils in the State have staff strength ranging from 800-2200. Faced with the hard realities of disproportional revenue relative to personnel costs, the Local Government Councils have had to confront the hard choices of either cutting down their staff strength drastically or maintaining the staff on a reduced emolument until certain corrective fiscal measures are applied to boost the revenue of the Councils in the State. Against the backdrop of the social tension created by unemployment in the Country, it is not considered expedient to right-size the personnel at the moment. This is why the problem persists. We can imagine what kind of stories will be written if people are laid off en masse for redundancy when partially paid salaries are generating so much furore.
Fourth, in their determined mind-set to create a false impression and report unfairly, the reporters claimed to have approached the Chairman of Kogi State ALGON for an interview. Nothing can be further from the truth. The chairman was neither approached, nor was he given the opportunity to speak for his colleagues on this issue. It was part of their plan to work to a predetermined answer.
Without any doubt, the facts above have detracted greatly from the credibility of this story, but more facts are further stated here to puncture the fabrication in the story.
CRISIS IN SALARY PAYMENT
For the avoidance of doubt, the crisis in the payment of salaries in the Local Government Councils pre-dates the current State and Local Government Administrations in the State. The issue is an inherited problem which His Excellency, Capt. Idris Wada, in his characteristic manner has started to tackle frontally. This led to the restructuring of relevant institutions as attested to by personnel and change in leadership. Various committees have been set up to unearth and unravel the factors bedeviling the regularity of salary payment at this tier of Government. The on-going scrutiny has led to salary payment arrears in some Local Government Areas.
So far, it has been discovered that over the years the following reasons have made salary payments unmanageable.
1. Over staffing of Local Government Councils. In virtually all the local government councils, employment was seen by successive council administrators as a means of dispensing patronage without a corresponding correlation of such employment with the capacity and needs of the Local Government. At the moment, Local Government Councils in the State have staff strength ranging from 800-2200. Faced with the hard realities of disproportional revenue relative to personnel costs, the Local Government Councils have had to confront the hard choices of either cutting down their staff strength drastically or maintaining the staff on a reduced emolument until certain corrective fiscal measures are applied to boost the revenue of the Councils in the State. Against the backdrop of the social tension created by unemployment in the Country, it is not considered expedient to right-size the personnel at the moment. This is why the problem persists. We can imagine what kind of stories will be written if people are laid off en masse for redundancy when partially paid salaries are generating so much furore.
2. Recruitment of non-professional staff into professional departments, with their payment based on professional salary structures. Health and Agriculture Departments are plagued with staff that have been employed with no cognate qualification or experience. The attraction here is the enhanced salary structure that staff of these Departments draw. This wrong placement of personnel impact negatively on the payroll of most Local Government Councils. Additionally, in one case, the Works Department of a Local Government has over 200 members of staff and not a single one of them is an Engineer or possesses any technical proficiency.
3. Declining revenue from statutory sources. The allocations to Local Governments have also declined over time as was eloquently argued in the early part of the story. It is clear that the dwindling revenue will impact negatively on Local Government administration, since overhead costs remain constant or have risen.
3. Declining revenue from statutory sources. The allocations to Local Governments have also declined over time as was eloquently argued in the early part of the story. It is clear that the dwindling revenue will impact negatively on Local Government administration, since overhead costs remain constant or have risen.
4. Implementation of the new minimum wage without a corresponding increase in the allocation to councils. This obviously shot up the wage bill and other liabilities which are calculated as a percentage of salaries including pension, gratuity, leave bonuses and so on.
Negotiation on the minimum wage had been going on until it the new salary structure was approved in December 2011. This approval might have been based on the statutory inflow at the time. Unfortunately, this expectation was dashed as the upswing in wage bill was matched only by a declining revenue stream.
5. Tremendous strains and pressures with competing needs for development placed on the meagre resources of the Local Councils. In addition to payment of salaries, local councils have monthly responsibilities which directly impact all of their constituents and which are just as important as salaries. We must appreciate that Local Governments exist not just to pay salaries but also to provide other services.
Negotiation on the minimum wage had been going on until it the new salary structure was approved in December 2011. This approval might have been based on the statutory inflow at the time. Unfortunately, this expectation was dashed as the upswing in wage bill was matched only by a declining revenue stream.
5. Tremendous strains and pressures with competing needs for development placed on the meagre resources of the Local Councils. In addition to payment of salaries, local councils have monthly responsibilities which directly impact all of their constituents and which are just as important as salaries. We must appreciate that Local Governments exist not just to pay salaries but also to provide other services.
REMEDIAL EFFORTS:
1. Staff Audit
To address this untoward development, which has generated considerable industrial disharmony, the State government in conjunction with the Local Government councils have carried out various staff audit to ascertain the number and the qualification of local government staff and teachers. The audit led to startling revelations that will provide ample window for correcting the system, when the audit recommendation is implemented.
1. Staff Audit
To address this untoward development, which has generated considerable industrial disharmony, the State government in conjunction with the Local Government councils have carried out various staff audit to ascertain the number and the qualification of local government staff and teachers. The audit led to startling revelations that will provide ample window for correcting the system, when the audit recommendation is implemented.
2. Restructuring of SUBEB
The deduction of 1.36 Billion Naira for SUBEB which is meant for the payment of teachers and the administration of the Board is a first line charge. The various audit that have been carried out on this deduction has however revealed some loopholes. This prompted the Governor to dissolve the State Universal Basic Education Board in May 2014. An interim Board has since been set up and appreciable progress has been made in its assignment. When this exercise is completed, a lot of savings will be realised. The savings will be ploughed into addressing the fund shortages in the payment of Local Government Councils and Primary School Teachers across the State. When this happens the altruistic purpose of maintaining affected staff at work and regularising their payment would have been achieved.
The deduction of 1.36 Billion Naira for SUBEB which is meant for the payment of teachers and the administration of the Board is a first line charge. The various audit that have been carried out on this deduction has however revealed some loopholes. This prompted the Governor to dissolve the State Universal Basic Education Board in May 2014. An interim Board has since been set up and appreciable progress has been made in its assignment. When this exercise is completed, a lot of savings will be realised. The savings will be ploughed into addressing the fund shortages in the payment of Local Government Councils and Primary School Teachers across the State. When this happens the altruistic purpose of maintaining affected staff at work and regularising their payment would have been achieved.
Peace will reign and both parties will be better for it. The Interim Board has since commenced the payment of the backlog of teachers’ salaries.
3. The judicious and effective utilization of intervention funds like the SURE-P and MDG funds, which the story confirmed is an eloquent testimony of the high premium the administration of His Excellency, Capt. Idris Wada places on probity, accountability, zero tolerance for any form of fraud and grassroots development.
In the course of his current Local Government tour, His Excellency, the Governor, has encountered firsthand the evidence of judicious fund utilization as sign posted by the various projects that he has commissioned across the Local Government Areas that he has visited.
In the course of his current Local Government tour, His Excellency, the Governor, has encountered firsthand the evidence of judicious fund utilization as sign posted by the various projects that he has commissioned across the Local Government Areas that he has visited.
Way forward and appeal for caution
From the explanation stated here, it is obvious that the issues raised in the publication in reference are well known to both tiers of Government in the State and steps are being taken to address these issues. The issue of non-payment of full salaries by Local Government Councils in Kogi State is one that is being tackled head on. As political leaders, the welfare of the people is our first priority especially when it affects the livelihood and survival of our people and their dependants. No responsible Government will turn a blind eye to this.
Some of the other claims in the story are too pedestrian to deserve any response from serious minded people. If a bank manager made away with customer’s funds in a bank, who takes responsibility for that and how does that affect the Local Governments even assuming the story is true?
The issues have been slanted to cause odium and opprobrium to the State. We want to appeal that due caution be exercised in the conduct and deployment of the much avowed and time honoured press freedom.
The writers of this piece have, as it is usual of many critics, done the easier part, but the commitment of Captain Idris Wada and the Local Government Chairmen in the State to the welfare of the people of Kogi State remains unwavering. The least that is desired is for others to allow for peace so as to enable government achieve developmental goals.
Finally, we wish to assure the writers, the readers and the Good people of Kogi State that the state Government is fully aware of the challenges being faced at the Local Government level. All efforts are on course to evolve workable and enduring solutions devoid of politics and blackmail.
From the explanation stated here, it is obvious that the issues raised in the publication in reference are well known to both tiers of Government in the State and steps are being taken to address these issues. The issue of non-payment of full salaries by Local Government Councils in Kogi State is one that is being tackled head on. As political leaders, the welfare of the people is our first priority especially when it affects the livelihood and survival of our people and their dependants. No responsible Government will turn a blind eye to this.
Some of the other claims in the story are too pedestrian to deserve any response from serious minded people. If a bank manager made away with customer’s funds in a bank, who takes responsibility for that and how does that affect the Local Governments even assuming the story is true?
The issues have been slanted to cause odium and opprobrium to the State. We want to appeal that due caution be exercised in the conduct and deployment of the much avowed and time honoured press freedom.
The writers of this piece have, as it is usual of many critics, done the easier part, but the commitment of Captain Idris Wada and the Local Government Chairmen in the State to the welfare of the people of Kogi State remains unwavering. The least that is desired is for others to allow for peace so as to enable government achieve developmental goals.
Finally, we wish to assure the writers, the readers and the Good people of Kogi State that the state Government is fully aware of the challenges being faced at the Local Government level. All efforts are on course to evolve workable and enduring solutions devoid of politics and blackmail.
HON. ALOYSIUS A. OKINO
CHAIRMAN ALGON, KOGI STATE CHAPTER
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