Former Special Adviser to the Federal Government on public affairs , Dr Doyin Okupe has described the recent disbursement of bailout funds by the federal government to states as an act of Insincerity.
According to a statement issued by Dr Okupe, it was ethically wrong the to state governors to approach the federal government to financial assistance, which i turn is plundering the Excess Crude Account.
Okupe stated that ” that the federal government appears to be dealing with the situation from the point of Compassion. Economic situations are better approached from point of strategic policy options and fiscal management techniques rather than a ‘father Xmas’ disposition.”
He further described state governments as having over bloated civil service which in turn is an “obvious economic absurdity and incongruity where 10% of a population consumes 90% of the wealth of the state.”
While propsoing a way forward out of the economic quagmire,, he called for an immediate reduction in the state’s civil service “basic economic dictum says if expenditure cannot be controlled then internal demands must be curtailed”
Without doubt therefore, all state governments must immediately start the process of down sizing with reasonable cushions for those who will be affected.”
“An immediate 20-30% cut down in staff strength is imperative, with provision of say, upfront payment of 3years salaries for affected members of staff. If this is what the federal government will give as loans or bail outs to the States to be repaid over 10years, it will make a better a economic sense than what has been done to date. This action will ensure that the states do not keep coming back as a recurring decimal”
He called on Federal Government to create a National Infrastructural Fund, to be managed by national and international experts. Both States and federal government can approach such agency for developmental funding at single digit interest rates.
Federal government may deploy money from the pension funds, as already suggested by the Hon minister for Works Babatunde Fashola. Multi lateral agencies can also be mobilized to commit to such funds especially if the federal government backs such requests with sovereign guarantees.
Okupe also advocate for citizen participation before State governors access further bailout funds, according to him it will reducing the chances of a ” sitting state governor can commit the state to any volume of indebtedness, depending on his own financial satiety or avarice must be stopped forthwith.”