Paris Club Loan Refund: Kogi earmarks 50% for salary arrears

Over 50 percent of the N6billion Paris Club Loan refund to the Kogi state government will be spent on workers’ salaries.

Commissioner of Finance, Asiwaju Idris Ashiru, told journalists on Monday in Lokoja that all those who have scaled the huddle of the screening exercise will be paid their arrears of salaries.

“We are still spending but it will not be less than 50 percent. I will give you the bank statement at the end,” he said.

The Paris club refund was the over deduction from state’s contributions to the loan repayment before the federal government under Chief Olusegun Obasanjo secured reprieve in 2005.

This latest refund was the second tranche of the refund. The first tranche was released last December.

Ashiru also debunked the rumours making round that the state’s share of the refund have been hijacked by banks to service the States loans burden, saying,” it is a big lie.”

Rumours of banks hijacking of the states share went viral particularly on social Media over the weekend with some claiming that as soon as the money hit the state’s account last week,it was swallowed by the loan burden put at several billions.

Also reacting to the rumours, the Director General, media and publicity to the Governor Kingsley Fanwo said “It is not true and shouldn’t be given any credence.

“Kogi State Government will not deviate from the guideline set to be used for the refund to pay wages of the civil servants.

We have no problem with our bankers. We maintain excellent relationship with the financial institutions handling our accounts,” Kingsley Fanwo said.