Reps set to probe bailout funds to states

The House of Representatives on Thursday unanimously adopted a motion to investigate the issues surrounding bailout funds given to states by the federal government.

The motion was sponsored by Sunday Karimi, a member of the Peoples Democratic Party from Kogi State.

Presenting the motion, Mr. Karimi said there was need to probe the disbursement and utilisation of the funds since it was meant to ensure the welfare of citizens in the affected states.

According to him, the federal government approved and disbursed N689.5 billion to 27 states in July, 2015, and also gave N20 billion to Kogi four months ago.

He said the beneficiary states however failed to use the money to pay workers and that they had continued to owe the workers.

Mr. Karimi said there were allegations that the states lodged the bailout funds in interest-bearing accounts and allowed their employees to continue to wallow in hunger and lack.

“States like Abia, Osun, Bayelsa, Benue, Ekiti, Kwara, Plateau, Oyo, Delta, Niger, Ogun, Nasarawa, Kogi, among others, are still owing workers’ salaries for several months,” he said.

The House Leader, Femi Gbajabiamila, in his contribution, noted that the intention of giving out the bailout funds was good, but that the usage was wrong.

He said the legislature should investigate the matter with a view to avoiding same mistake in the bailout to be given soon.

The Minority Leader, Leo Ogor, said going by the provisions of the Constitution, the legislature has power to look into the methodology and legality of the bailout funds.

The House, in passing the motion, resolved that it would set up an ad hoc committee to investigate the terms and conditions of disbursement of the funds.

The committee would investigate the utilization of the funds, level of compliance with targets and determine the necessity of further disbursements as being planned by the federal government.

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