The Taraba State
government yesterday
said that N6 billion out of the N9.4 billion bail-out
fund given the state was used servicing bank
overdrafts left by
the previous
administration.
This was disclosed by the Chief of Staff in
the Government House, Mr Rebo Usman while
briefing newsmen in
Jalingo.
He said the state
government had applied
for N 37.7 billion but the
federal government
approved N9.4 billion.
He said the decision to
pay the overdrafts
was because of the high interest rates the
state was paying which was above 20 per cent while
only 9 per cent was charged on the bail-out loan.
Mr. Rebo Usman said the state government
applied for the bail-out to take care of
outstanding salaries and gratuities of retired state
and local
government civil servants.
According to him, the
outstanding salaries
of local government
workers in the state
amount to N2.3 billion. The chief of staff
disclosed that N3billion
was used to service
a loan facility that
financed road projects in local government areas.

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