Governor Rauf Aregbesola of Osun on Wednesday opened up on his inability to pay the salaries of workers in the state for five months, blaming it on “declining federal allocation.”

The governor made the open confession at the 7th Bola Tinubu Colloquium organised to mark Tinubu’s 63rd birthday in Lagos.

He said he was deeply pained and unhappy that he had 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 said: “Osun is next to Lagos in the sheer size of its civil service.

“In fact, the state inherited 50 per cent of all the workers in the old western state and more than 75 per cent in the old Oyo State.

“I was meeting my wage bill of over N3.6 billion with N4.6 billion federal allocation until July, 2013 when the Federal Government announced a decline of about 40 per cent allocation to states.

“This reduced the state’s allocation from N4.6 billion with which I was meeting my bills to N2.6 billion.

“Since then, Osun has had to augment salaries by sometimes N1 billion, sometimes N1.6 billion.

“Before the last time I paid salaries in November, 2014, I have had to either spent the state’s reserves on salaries or borrow money.

“Today, I have a loan of N12 billion that we spent on salaries and I could not go to the banks anymore.”

The governor said that his administration remained pro-workers in spite of the tight corner it had found itself, pledging to pay the salary arrears as soon as the means was available.

He reiterated the commitment of his administration to the welfare of the people, adding that he had demonstrated the commitment with the implementation of a number of programmes.

He described Tinubu as “an icon through whom many great leaders had risen”


http://www.pmnewsnigeria.com/2015/03/25/why-i-owe-osun-workers-5-months-salary-aregbesola/

Must allocation always be the only way out for every Governor in Nigeria,what if the oil dries up today,does it mean Nigeria will be loaned out.

I am quite sure that they are many resources that are lying fallow that can generate far more revenue than the govt. Allocation but that will be negelected,due to lack of readiness to do challenging investment.

things like this can only be heard of in Nigeria,people come into govt. Without any kind of innovation in mind,and when the oil money comes in,it will be looted with no project in the state,and all the blame will go to the president.

Huh!! Ogbeni Pay this People fast fast, dem get Family Abeg

You can do better by ensuring that workers enjoy from the 'rice'and other electoral gifts also, afterall its not sourced freely.


[quote author=omoakin111 post=32023926]Governor Rauf Aregbesola of Osun on Wednesday opened up on his inability to pay the salaries of workers in the state for five months, blaming it on “declining federal allocation.”

He said he was deeply pained and unhappy that he had not been able to pay workers salaries.

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

“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

See excuse..
So other state allocations were increased oga Rauf?

Wat this man jst made open to d public is dat Osun state is a parasite, if wivout d allocation d state cant survive..

Well we jst dey look u oga Rauf buh nah Oga Omisore look u pass..

GEJ has been starving the state.

So where is the change?

Hmmm. See what an oil dependent economy can do. Let go of your security vote and add to what you have. Half bread is better than puff-puff

In a sane country by now you would have been fired, it takes you another six months to tell them you can't pay them. But you pay yourself, wickedness at its peak

T

Aregbe no dey shame. He's taking osun 2 dark era. U pple shud jez try 2 find wot he's happening in education & health sector in osun. 2 terms no exam 4 public school students. He's live on TVC dancing while osun citizen r suffering. May God deliver osun state frm bondage.#amen#

That reduction in federal allocation is an indirect war declared on the opposition-controlled states.

Favouredd:
Aregbe no dey shame. He's taking osun 2 dark era. U pple shud jez try 2 find wot he's happening in education & health sector in osun. 2 terms no exam 4 public school students. He's live on TVC dancing while osun citizen r suffering. May God deliver osun state frm bondage.#amen#

read what he said in the report before posting a comment.

Mr Rauf Aregbesola have you recieved your own salaries for these five months?

Have the state executive council members recieved theirs?

Have the state legislators recieved theirs?

Have the state judiciary recieved theirs?

These politicians why una no dey fear God?!

Aregbesola you lied to osun people and Nigerians. The real reason is because you've spent Osun state money on paying normal Tinubu monthly grant and donated/expended the rest on APC campaign. Remeber it is not only Osun state that hasits allocation from Fed Govt reduced, how come others pay and osun cannot? To Osun people this is just a little out of what APC will unleash on you if they win election; God forbid. I call on all osun state voters to vote out APC on 28 March poll. Vote PDP for prompt payment of salaries

If not that that useless PDP decided to field a completely unacceptable candidate in Omisore, the people of Osun would have voted out this Aregberascal during the election. The workers have been deeply unhappy with Aregbesola for a long time now. All the man knows is propaganda. He can lie for Africa. Is osun state the only state to have reduced allocation. How I wish PDP had fielded someone sensible.

The question is why did the FG reduce state allocation by 40% as according to this report?