The Kwara Government says the repayment of N4.8 billion loan obtained by the local government councils in 2015 to pay two months’ salary arrears owed their workers and pensioners is being deducted from their federal allocations.
The state Commissioner for Finance, Alhaji Demola Banu, made the clarification in a statement issued in Ilorin on Tuesday.
He said that the explanation to put to rest reports in certain quarters that the state government had received its share of the N1.6 billion approved by the Federal Government to compensate victims of flood in 16 states.
Banu said the local governments obtained the loan in anticipation of a bailout fund from the Federal Government which they were expecting.
The commissioner said that such deductions were usually made at source by the three creditor banks before remittance to the State Joint Accounts.
He said the National Emergency Management Agency (NEMA) was mandated to receive the N1.6 billion recently approved by the Acting President, Prof. Yemi Osinbajo, and disburse to victims of flood in 16 states of the federation including Kwara.
According to him, the Federal Ministry of Finance was directed to release the money directly to NEMA for onward disbursement to the victims in the affected states. (NAN)
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