Ogun Threatens Banks Over Delay in Payment of Staff Salaries

Ogun State government has threatened to review its relationship with any bank which henceforth delays payment of monthly salaries to civil and public servants after the government has deposited money meant for that purpose with such bank.

 

In a circular letter to the banks signed by Commissioner for Finance, Mrs. Kemi Adeosun, the government expressed its disappointment over what it called “the consistent trend of unprofessional conduct being practiced by some banks in the state.”

 

According to it, “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 or Thursday, February 27th. The delay of (7) days is unacceptable, inexcusable and unethical.

 

“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.

 

“It is the view of Ogun State Government that such practices will in the long term, damage the reputation and profitability of all those banks engaging in such behavior. Workers who have toiled for their salary have the right to enjoy same promptly and to withdraw or otherwise utilize as they please”, it added.

 

The government said it is committed to ensuring that all its civil servants, teachers, pensioners and local government workers receive salary before the last working day of each month, adding that it has now “put systems in place, using mystery shoppers, to monitor the time individual banks take to credit our workers accounts.

 

“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”, it stated. 

 

Restating that it takes its obligations to past and present personnel with utmost seriousness, the government stressed that “all efforts are made to ensure that salaries and allowances are paid promptly, irrespective of any delays in receipts from the Federal Government”.