IMO State Governor, Rochas Okorocha, yesterday disclosed that the state
is insolvent, as its monthly wage bill has outstripped its monthly
statutory allocation from the Federal Government. The governor said
monthly servicing of the bailout fund has further compounded the
situation.
This was just as he reiterated that there was no
going back on the state government’s decision to concession the
management of parastatals.
Okorocha, who revealed this when he
spoke to newsmen at the Government House in Owerri said the monthly wage
of the state had always been higher than what the state receives from
federal allocations and internally generated revenue.
“The
monthly wage bill of the state is N4.2 billion which is far higher than
what we receive from federal allocation including the internally
generated revenue which means that the state government has always been
operating on a deficit. As at December 31, 2015 the state received N1.9
billion from the Federal Government while the monthly wage bill of the
state for the same period was N4.2 billion.”
“We cannot continue
to patch a cracked wall as if all is well, we need to break it down in
order to rebuild it, and the current wage bill of the state is beyond
our capacity. Imo State now receives the least allocation among the
South-East states because of the monthly repayment of the bailout fund
which the state took from the Federal Government, a situation which has
further compounded the financial situation of the state.” The governor
insisted that in spite of the financial dilemma of the state, no worker
is being owed any salary.
http://sunnewsonline.com/new/imo-is-broke-okorocha/
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