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The Delta State House of Assembly on Tuesday 27th June 2023 approved a N40 billion funding facility for the 25 local government councils of the State to defray their pension liabilities.
TheNewsGuru.com (TNG) reports the House of Assembly approved the N40 billion funding facility during a plenary presided over by the Speaker, Rt Hon Emomotimi Guwor, following a letter addressed to the House by the State Governor, Rt Hon Sheriff Oborevwori.
Recall that Governor Oborevwori had promised to work out modalities to defray pension liabilities owed to local government pensioners and retired primary school teachers.
Oborevwori made the promise inline with his campaign pledges when the Association of Local Governments of Nigeria ALGON, Delta State Chapter led by Hon. Victor Ebonka, paid him a courtesy visit at Government House, Asaba on 14th June.
During the courtesy visit, the Governor noted the serious hardship being faced by the people of Delta State, following removal of fuel subsidy by the federal government.
While also noting that local governments play important roles in the development of the grassroot, Oborevwori stressed the need to properly manage the expectations of the people and especially provide palliatives.
In line with managing the expectations of the people, the Governor remarked that his administration would collaborate with local government councils to pay the backlog of pensions owed to local government retirees and retired primary school teachers.
“As the third tier of government, the local government plays a very significant role in our democratic setting and political evolution; being the arm of government that is closest to the grassroot.
“I note with delight that the local government administration in the state has been characterised by peace and stability, in addition to strong synergy with the state government”.
“With the hardship we are facing now with this subsidy removal, I want to appeal to you to talk to your people, your agents and tax collectors not to impose unnecessary taxes on our people.
“Unlike some states, our local government councils have full control of their finances. In fact, the previous administration regularly assisted with grants, as a result of which we have continued to see steady progress in developing our rural areas.
“We may not have been where we want to be but I am proud of the progress we have made. This administration will sustain the precedent that has been laid by my predecessor.
“We shall not interfere with your finances and we will offer assistance where necessary. In this regard, we shall be collaborating with the Local Government Pension Bureau, to see how the lingering pension issues will be resolved.
“We met last week to discuss the issue but with a caveat that it is necessary to have an Auditor to audit the pension board and see how the process is carried out diligently so that we can know the actual persons who are due for such monies.
“We don’t want pension funds to be manipulated,” Oborevwori stated during the courtesy visit by ALGON, Delta State Chapter on 14th June.
TNG reports the Delta State House of Assembly approved the N40 billion Zenith Bank facility for the 25 local government councils of the State to defray their pension liabilities shortly after that visit.
Until now, the 25 local government councils in the State were owing their pensioners a backlog of pensions up to the tune of N51 billion.
The State Government under the leadership of immediate past Governor, Senator Dr Ifeanyi Arthur Okowa, assisted in no small measure to reduce the huge arrears.
During his state wide electioneering campaigns tour as governorship candidate of the People’s Democratic Party (PDP), Oborevwori assured pensioners in the State that if elected, his administration will do whatever it takes to ensure that the arrears were paid.
At the recent meeting with Delta ALGON, the government reached a consensus agreement with the body, and it was agreed that a N40 billion credit facility be obtained from Zenith Bank PLC to settle a substantial part of pensions arrears.
However, the agreement came with a proviso that each local government will have to voluntarily without duress sign legal documents, as well as an irrevocable undertaking that its part of the credit facility should be deducted in monthly instalments at source from the Federation Accounts Allocation Committee (FAAC) at a reasonable interest rate to Zenith bank.
This means that the N40 billion credit facility through the Local Government Staff Pension Bureau approved by the State House of Assembly shall be repaid by the beneficiary local governments within a period of time from their share of FAAC monthly allocations.