28th June, 2011
Shock came the way of Ogun state workers this evening as the state governor, Senator Ibikunle Amosun declared that his administration would not be able to pay the new minimum wage of N18,000.00.
He adduced his decision to the poor financial situation, which his administration inherited.
The inability to pay the N18,000 has pitched most of the governors against labour unions across the states of the country.
The governor, PMNEWS learnt, was however silent on the amount the state could afford to pay the over 45,000 civil servants in the state who are preparing for a showdown with the government.
Amosun, while addressing traditional rulers at the Obas’ Complex in Abeokuta today, described the financial situation he met on ground as precarious, saying his administration would have to borrow about N6 billion to pay the wage.
According to the governor,“What we generate is between N900 million and N1 billion and there is a loan of N50 billion. There is an irrevocable standing payment order, the position we met is so bad.”
He explained that while taking bond from the capital market is a veritable tool for development, his government can’t go “there to pay salaries unless other things happen. So if the civil servants want N18, 000 minimum wage, we have to borrow about N6 billion.’’
The governor, who described Ogun as the most indebted state in the country, however, ruled out the possibility of probing his predecessor, Chief Gbenga Daniel.
“I am not interested in any probe. I don’t want to use my good time to chase what I know is bad. They said they left N50 billion. They are looking into our debt, but at the appropriate time, we will tell everybody what we met on ground.
“Ogun is the most indebted state in Nigeria. Lagos State borrowed N250 billion and Rivers State borrowed N150 billion. Lagos generates N30 billion per month while Rivers State generates between N12 billion and N15 billion.
“But for us, what we generate is between N900 million and N1 billion,while there is a loan of N50 billion. What we met is so bad,’’ the governor said.
Amosun also lamented the rate at which some of the state assets were concessioned by the immediate past administration of Otunba Gbenga Daniel.
Amosun said,“The No. 1 tourist centre in the state, Olumo Rock which is the least was concessioned for 15 years. Others are between 25 and 60 years. I begin to wonder why somebody will sign out all our patrimony. To make matters worse, all of them were made without following due process.
“They did not go through the State Executive Council, and even theHouse of Assembly,’’ he alleged.
The governor also said that a total sum of N15.9 billion was expended by the last administration on the power project, with the payment of 50 per cent to contractors and the percentage of completion is just 20 per cent.
“The technology behind the power project is 1970 and they are refurbished. Although I knew that the situation was bad, I never imagined it is this bad,’’ Amosun said.
By Abiodun Onafuye/ Abeokuta