Bailout Funds: Ugwuanyi Lauds Senate Probe

By Cecilia John

Abuja –  Gov. Ifeanyi Ugwuanyi of Enugu state has lauded efforts by the Senate to probe disbursement of bailout funds given to some states for payment of workers’ outstanding salaries.

Ugwuanyi gave the commendation in Enugu when he received members of the Senate Committee on States and Local Government Administration on Wednesday.

The committee was in the state to probe disbursement of N4.2 billion bailout funds given to the government to offset workers’ salary arrears.

The governor said that the move by the senate was commendable in view of the fact that it would give room for transparency and accountability.

According to him, it is without doubt a very important assignment as it fully tallies with our interests as a nation to enthrone accountability and transparency in the management of public funds.

“Like many of its counterparts, which were confronted with severe fiscal difficulties, Enugu State applied for N40.9 billion as bailout funds from the Federal Government.

“Out this sum, however, we received only N4.2 billion to be used for the liquidation of outstanding pensions and subvention to parastatals, agencies and departments,’’ he said.

Ugwuanyi further explained that the bailout fund given to the state government was appropriately utilised, adding that the Ministry of Finance would make available the records to the committee.

He said the records contained details of how the state government applied the fund.

He commended the Federal Government for the intervention as some states were finding it difficult to offset outstanding salaries and other entitlements of workers.

“I must use this opportunity to once again acknowledge and commend the bold and timely initiative of the Federal Government to provide states with bailout funds for use in addressing critical issues in their respective jurisdictions.’’

Ugwuanyi urged the senate to help to make a case for the release of more resources to states to enable them address other challenges.

He explained that the plea for more bailout fund was “in the light of overwhelming and ever increasing pressure to provide the needs of our people in the different sectors of the economy’’.

He further urged the federal government to among other things, refund the over N22 billion spent by the state government on reconstruction and rehabilitation of some federal roads in the state.

“The refund is not only in line with what is obtainable, but will significantly boost our capacity to tackle other critical needs and challenges confronting the state.’’

In his remarks, Chairman of the committee, Sen. Abdullahi Gumel, said that the committee was in the state to verify alleged mismanagement of bailout funds.

Gumel said that the committee was committed to carrying out thorough investigations in all the 30 states that benefitted from the funds, adding that the committee’s findings would be presented to the senate “for further action’’.