Why Governor owes Osun workers five months salaries

dimeji akinloye

March 26, 2015 12:26 AM

Aregbesola said the government has accumulated debt of N12 billion in its bid to ensure that salaries were paid, noting the banks would not grant more loans.

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Governor Rauf Aregbesola of Osun on Wednesday March 25, has blamed his inability to pay the salaries of workers in the state for five months on declining federal allocation.

Speaking at the 7th Bola Tinubu Colloquium organised to mark Tinubu's 63rd birthday in Lagos, Aregbesola said he is deeply pained and unhappy that he has not been able to pay workers’ salaries.

“I have found it hard to pay the wage bills owing to the declining federal allocation to the state.

“Federal allocation to the state has reduced by 40 per cent since 2013, making it difficult for government to meet up its responsibilities,” he said.

Aregbesola said the situation became so bad at a time that he resorted to the state's reserves and exhausted it on payment of salaries.

The governor added that the government went ahead to accumulate debt of N12 billion in its bid to ensure that salaries were paid.

He said that he would not mind to borrow more “just to ensure that workers were paid but the “banks would not grant more loans.”

He assured that his administration remains pro-workers in spite of the tight corner it had found itself, pledging to pay the salary arrears as soon as the means is available.

dimeji akinloye