The state says it would henceforth monitor the banks.
The Ogun State government on Thursday threatened to review its relationship with any bank which delayed payment of salaries to civil and public servants after the government had deposited money meant for that purpose with the bank.
In a letter to the banks by the Commissioner for Finance, Kemi Adeosun, the government expressed its disappointment with what it called the consistent trend of unprofessional conduct being practiced by some banks in the state.
“As at the date of writing this letter, March 6, some of our staff and pensioners are yet to be credited with their salaries/pensions. This, despite the fact that fully funded payment instructions were issued before 9am on Thursday, February 27. The delay of seven days is unacceptable, inexcusable and unethical,” the Commissioner said. “Another worrisome development is that some banks deliberately fail to issue sms alerts to advise on the credit of salaries to individual accounts, ostensibly to delay workers from withdrawing their salaries and thereby earning additional income for the banks concerned.”
She noted that such practices would, in the long term, damage the reputation and profitability of the erring banks.
“Workers who have toiled for their salary have the right to enjoy same promptly and to withdraw or otherwise utilise as they please,” she said.
Ms. Adeosun stated that the government was committed to ensuring that all its civil servants, teachers, pensioners and local government workers received their salaries before the last working day of each month. She disclosed that systems had been put in place to monitor the banks.
“We will also monitor the issuance of alerts. The results will be made available to our staff who can then take informed decisions about which bank they will domicile their salaries with. In addition, as a government, we will take actions to reduce our level of business with those banks who consistently engage in these practices which are hurting our people and damaging the reputation of Ogun State Government,” the Commissioner stated.
She stressed that the government took its obligations to past and present personnel with utmost seriousness.
“All efforts are made to ensure that salaries and allowances are paid promptly, irrespective of any delays in receipts from the Federal Government,” she said.