Reps Set up panel to investigate 27 states over application of N690b bailout funds

The House of Representatives has commenced investigation into the application of the N689.5 billion bailout funds granted 27 state governments.

Adopting a motion of urgent public importance sponsored by Sunday Karimi (Yagba: Mopamuro: PDP, Kogi), the chamber, at the plenary presided over yesterday by the Speaker, Yakubu Dogara, also constituted an ad hoc committee to probe the terms and conditions for the lifeline.

The panel, which submits its report within four weeks, is also mandated to ascertain the necessity for further disbursements as being considered by the Federal Government.

Karimi, in the motion, claimed that information at his disposal indicated that most of the beneficiary states had allegedly lodged in interest-bearing accounts the funds that were primarily meant to clear arrears of workers.

Recalling that a report by a private sector data company revealed that the states were still failing to meet their financial obligations to workers, he regretted that tens of hundreds of employees of the affected states had been wallowing in hunger, poverty and lack, leading to avoidable death in some cases.

Karimi listed some of the debtor states as Abia, Benue, Ekiti, Kwara, Osun, Delta, Niger, Ogun, Nasarawa, Plateau and Kogi, which he particularly noted, is owing more than seven months despite a fresh N20 billion grant.

The lawmaker contended that a recent report by the Public Enlightenment Department of the Independent Corrupt Practices and other related Offences Commission (ICPC) had indicted several states of alleged misapplication of the funds.
He, however, got the support of his colleagues who queried the decision by the Central Bank of Nigeria (CBN) to make the disbursements from the Consolidated Revenue Fund without approval from the National Assembly as stipulated by the Constitution.

Subsequently, Speaker Dogara directed the committee to also ascertain how the apex bank got the authority to disburse funds in the first place.