Osun State government says it has saved N1.4 billion from the payments of the 142 percent pension arrears due to retirees.
The government said this was achieved through the use of biometric database created by the present administration in the state.
The total pension arrears debt totaling N4 billion was allegedly left unpaid by the previous administration in which Rauf Aregbesola led government accepted to pay the debt out of his concerns for the welfare of the senior citizens of Osun.
The first installment payment of (15percent), totalling N599 million resulted into a saving of N213 million. The same biometric database system created by Rauf Aregbesola will be used to pay the balance, which will result into additional savings totaling N1.4 billion.
According to Wale Bolorunduro, the state commissioner of Finance, Budget and Economic Planning, the total savings of N1.4 billion would have been paid to un-identified retirees assuming manual system had been used.
Bolorunduro explained that the use of the biometric database is part of the expenditure re-engineering required to free the cashflow of Osun for capital project development.
Also, he explained that “once the payment of the first installment is concluded, we shall commence the subsequent payments.” The system was developed through partnership with Chams under the Public-Private Partnership and instead of making initial project fund, the partnership is such that the state and the operator share the savings over a period. This risk sharing mechanism is global acceptable standard employed to improve public finance.
While congratulating the 142 percent pension arrears recipients, who are senior citizens of the state, the commissioner promised that the administration of Aregbesola will continue to cater for the welfare of Osun citizens and residents.