From Kemi Yesufu, Abuja
The House of Representatives has resolved to probe bailout out funds from the Federal Government to 28 states.
The probe to be conducted by an Adhoc committee is subsequent to the adoption of a motion of urgent public importance sponsored by Sunday Karimi (PDP, Kogi).
Leading the debate, yesterday, Karimi drew attention to a disturbing news that 27 states were unable to meet their salary obligations to workers despite receiving bailout funds.
“It is worrisome that many states collected bail out from the Federal Government but refused to utilise it for the payment of workers’ salaries. Many states were reported to have lodged the bailout funds meant for staff salaries in interest bearing accounts while their employees continue to wallow in hunger, poverty and lack. Some of these workers had even lost their lives because of their inability to meet their daily needs.
“It is equally worrisome that the public enlightenment department of the Independent Corrupt Practices Commission (ICPC), in their recent report, indicted several states governments on the utilization of the released funds.
“There have been criticisms and counter-criticisms on the usefulness of bailout funds as critics opined that the genuine intention of the Federal Government is being frustrated by the state governments since the bailout fund is not being utilized for the desired purpose by the beneficiary States.”
He said Nigerians deserves to know how the funds were expended.
Minority Leader, Leo Ogor (PDP, Delta) stressed the need to investigate the disbursement of the funds and to ascertain if the Ministry of Finance followed due process.
Ogor said supremacy of the constitution must be protected and approvals received from the National Assembly for the use of government funds for bailouts.
The Adhoc Committee has four weeks to carry out its assignment and report back to the House for further legislative action.
The National Economic Council (NEC) at its meeting of June 26, 2015 gave the CBN the go-ahead to provide financial succour, in form of soft loan, to state governments to enable them pay the backlog of salaries of their workers.
A second round of bailout to cash-crunched states is said to be underway.