The over N5 billion alleged monthly deduction from the accounts of Local Government Areas by the Association of Local Government of Nigeria (ALGON) has pitched them against workers.
ALGON is the umbrella body of all the local government chairmen across the country.
The workers, under the umbrella body of Nigeria Union of Local Government Employees (NULGE) called for a thorough investigation of the alleged fraud.
Besides, the workers urged President Muhammadu Buhari, the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and other Related Offences Commission (ICPC), and the Nigerian Financial Intelligence Unit (NFIU) to wade into the matter so as to halt the monumental fraud being perpetuated in the third tie of government.
NULGE raised the allegation at its National Executive Council (NEC) meeting in Abuja.
NULGE posited that the illegal deductions and fraud are being carried out under the pretence of phony projects already undertaken in the past.
The General Secretary of NULGE, Comrade Chukwuemeka Aguonye, said reports across the 36 states of the Federation have shown that the act is ongoing in all LGAs .
“We were told that funds of various states in the federation are being depleted with phony contracts purportedly awarded by ALGON thereby making things very difficult for local governments,” he said.
He alleged that N107 million was deducted from the Joint Account Allocation meant for Ekiti State alone, while the sum of N163 million was deducted from money allocated to local governments from the federation account.
Aguonye pointed out that deductions are being carried out across all the states of the federation, except in the FCT where the deduction had been stopped. He added that the impunity must be stopped immediately.
He said: “ALGON cannot enter into a contract on behalf of any local government because ALGON is an association of chairmen of local government and caretakers. NULGE frowned at this because it has affected payment of salaries, implementation of programmes and policies that would have a positive impact on the lives of Nigerian people.”
The NULGE scribe said the projects claimed to be carried out for which the money are being deducted every month were not visible and cannot be seen, adding, “We are therefore calling on the EFCC, ICPC and NFIU to probe the details of that phony contract because it is a fraudulent contract and that has affected local government. This should be stopped, and we are calling on EFCC to probe where that fund is being diverted to.
“That is why we are concerned, there is no project on ground and they continue deducting the money. Even the variation they are collecting now, it is more, and higher than the price of the project that was not carried out.
“When you continuously deduct N100 million, or N200 million from just one state, and across the 37 states, do you know how much that money is? Such an amount is going down the drain, nobody is showing interest and the governors allowed this impunity to be going on in the system. NULGE is averse to this and we are not happy about it. It should be stopped immediately. President Buhari must ensure this is probed.
“If the money had been allowed to hit the local government account directly, it would be difficult for them to deduct it. That is why we are clamouring for both political and financial independence of local government.
“That is why we are clamouring that the President of the Federal Republic of Nigeria must show serious interest in this and stop all the corruption going on under the name of ALGON.”
