The Secretary to the State Government (SSG), Alhaji Umar Farouk Ibrahim, has dismissed allegations of N1.8 billion fund mismanagement levelled against the immediate past Head of Service, Abdullahi Musa, describing the claims as “misinformation.”
The clarification followed a directive by Governor Abba Kabir Yusuf during the May Day celebrations, asking the SSG to investigate the allegation and establish the facts surrounding it.
According to a statement signed by the Chief Press Secretary to the Governor, Mustapha Muhammad, on Saturday, the issue was first raised by the Chairman of the Nigeria Labour Congress (NLC), Kano State chapter, Comrade Kabiru Inuwa, who alleged that the former Head of Service mismanaged state funds during the Workers’ Day event.
The statement noted that Alhaji Ibrahim made the clarification at a Dinner and Award Night organised by the state government in collaboration with the NLC at the Government House, Kano.
Explaining the outcome of the investigation, the SSG said the N1.8 billion in question was not mismanaged by any government official but was instead traced to excessive deductions from civil servants’ salaries by loan vendors.
“The N1.8 billion was not mismanaged by government officials but represents excessive charges deducted from civil servants’ salaries by loan vendors,” he said.
He disclosed that, following the governor’s directive, his office engaged a professional auditing firm to scrutinise the state payroll system and the accounts of affected civil servants for the period under review.
Alhaji Ibrahim further confirmed that the loan scheme had been temporarily suspended to allow for a comprehensive investigation into the matter.
According to him, the audit revealed that several loan vendors were charging workers rates far above their agreed contractual terms.
“The private auditing firm discovered that vendors had illegally accrued over N1.8 billion from civil servants through overcharges,” the SSG stated.
He added that, based on the findings, the state government had directed the loan vendors to refund the N1.8 billion, which would subsequently be redistributed to the affected civil servants.