…Says State Government Do Not Manage Local Government Funds
Following the claim of the impeached Ijebu-East local government chairman, Hon. Wale Olanrewaju that the state governor, Prince Dapo Abiodun has been diverting the local governments fund in to his personal account, state chairman of Local Government Pensioners Association of Nigeria (LOGPAN) in Ogun state, Pastor Benedict Ademoye has said that the chairman did not understand the Intricacies of Local government fund.
Ademoye, while addressing the newsmen on Monday in Abeokuta the state capital, explained that the state government is not the one managing the local government allocation.
He emphasized that, in most cases, the funds obtained from Abuja are insufficient to cover the essential expenditures, leading to financial challenges within local governments.
He explained further that the controversy surrounding Mr. Adedayo’s suspension is not the first of its kind in Ogun State adding that similar disputes occurred during the past three civilian administrations, all involving elected chairmen from Ijebu East Local Government.
While addressing the current administration led by Prince Dr. Dapo Abiodun, Pastor Ademoye refutes allegations of fund diversion, stating that the governor did not divert local government funds.
He pointed out that during Mr. Adedayo’s tenure as chairman of Ijebu East L.G, salaries, allowances, and pensions were consistently paid to government employees and pensioners and various development projects were commissioned during the celebration of Mr. Adedayo’s two years in office.
He underscores that the Ministry of Local Government supervises the 20 local governments in Ogun State, and funds are transferred electronically to all stakeholders.
According to Adeyemo “He did not understand the system. If he had consulted with Experienced, competent and knowledgeable Local
Government practitioners, he would have been better informed.
“The state government ‘DO NOT MANAGE OR
ADMINISTER LOCAL GOVERNMENT FUNDS’.
Between 1999 and 2003 when funds were going to the L.G directly, most local governments owed L.G
workers, primary school teachers and pensioners up to 8 months of salaries and wages.
“Several workers and pensioners died. Workers were forced into pre-mature retirement. Families were disorganized; it was a
DARK PERIOD indeed. This was the time all stakeholders came together and put in place the current system
of “JOINT SERVICES”! The other 35 states and the FCT Abuja in the federation adopted the model.
“Therefore, what is happening currently in Ogun State is happening in all states of the federation. Situation in
other states are worse than Ogun State.
“The model is 22 years old. There is need for review. This goes beyond Prince (Dr) Dapo Abiodun and Ogun State. It is a NATIONAL MATTER. Review will involve the 36 state houses of assembly, the national assembly, the national economic council and the presidency.”
“In view of the foregoing, no informed and knowledgeable person will put the blame on the Governor or the government of Ogun State.”
While explaining the local government allocation system, he said that the Nigerian Constitution mandates a three-tier system of government, consisting of the federal, state, and local governments, with each level responsible for specific financial obligations.
He added that these responsibilities include settling first-line charges or joint services when funds are received from the federal allocation.
According to him “First line payments include staff salaries, wages, pensions, gratuities and so on.
“The constitution of Nigeria, provided for a body called the Joint Local Government Allocation Committee (JAAC) which manages the joint local government account. All Local Government chairmen are members.
“The state NULGE president, NUT representatives, the state chairman of LOGPAN, Representatives of the
four traditional councils (Egba, Ijebu, Remo, Yewa) among others are members. When funds come to the state each month, members meet and allocate funds giving PRIORITY to first line charges.
“First line charges include primary school teachers salaries, salaries of Local Government workers, Pensions and Gratuities of retired primary school teachers as well as retired Local Government workers and 5% allocation to traditional councils among others. In most cases, funds obtained from Abuja are not normally sufficient for the above.
“The state government argument
When this Adedayo’s case happened, the secretary to the state government, Mr. Tokunbo Talabi addressed the press. The Chief Economic Adviser to the Governor Mr. Dapo Okubadejo gave a run- down of Local Government fund allocation between 2019 to date.
“That was the correct position and any claim contrary to
that is FALSE.